Plug Power Q2 Earnings Call Highlights

Plug Power raised its 2026 revenue-growth outlook to 15%–16% after second-quarter revenue rose 9% sequentially to $178.3 million. Management expects second-half revenue to be about 40% higher than the first half, with most volume arriving in the fourth quarter. Margins improved sharply, with gross margin approaching breakeven at negative 0.9% versus negative 30.7% a year earlier, while operating expenses and net cash usage declined. Plug reiterated its target of achieving positive EBITDA in the fourth quarter. The company ended the quarter with $161.9 million in unrestricted cash and is pursuing asset monetization expected to provide about $80 million in near-term liquidity. It also reported stronger GenDrive deployments and continued progress across major electrolyzer projects in the U.K., Canada, Australia, Portugal and Spain.

Plug Power NASDAQ: PLUG raised its full-year revenue growth outlook after reporting second-quarter results that showed improving margins, lower operating expenses and reduced cash usage, while management reiterated its goal of achieving positive EBITDA in the fourth quarter. Revenue totaled $178.3 million in the second quarter, up about 9% sequentially from the first quarter. First-half revenue reached $342 million, an 11% increase from the prior-year period, according to Chief Financial Officer Paul Middleton.

Based on first-half performance and its outlook for the second half, Plug increased its 2026 revenue growth guidance to 15% to 16%, from its prior projection of 13% to 15%. Management said it expects the majority of second-half volume to occur in the fourth quarter, consistent with the company’s historically second-half-weighted deployment cycle.

Chief Executive Officer Jose Luis Crespo said gross margin improved to about negative 0.9% in the quarter, compared with negative 30.7% a year earlier and negative 13% in the first quarter. Middleton described the result as essentially breakeven gross margin, representing an improvement of roughly 30 percentage points from the prior-year period.

The company attributed the progress to its Project Quantum Leap restructuring initiative, better service margins, manufacturing and supply-chain improvements, tariff recoveries, and higher utilization at its hydrogen production plants. Service revenue increased 82% year over year to $29.8 million, while service margin reached 27%. Crespo said improving unit reliability and stack performance enabled technicians to service more units, creating overhead leverage. He also said the company had increased service pricing over the past several years to better reflect servicing costs.

Fuel revenue grew approximately 15% year over year to $39.5 million. Fuel gross margin improved to negative 48%, from negative 91% a year ago, driven by utilization and production-efficiency gains at facilities in Georgia, Tennessee and Louisiana, along with network optimization and supply agreements. Middleton said power-purchase-agreement loss rates improved to roughly negative 30%, compared with negative 92% a year earlier. He cited service-cost reductions and the company’s sale-leaseback buyback program, which reduced equipment lease costs.

Management said it expects higher second-half equipment volumes to be the primary driver of further margin improvement. Middleton said the company expects second-half revenue to be about 40% above first-half levels, with much of the increase coming from equipment sales.