Plug Power’s first-quarter numbers beat expectations, the Barrow green hydrogen project moved into construction, and the company is lining up asset sales worth nearly $200 million. Yet the stock keeps sliding, down roughly 12% over the past week to around €2.87 on the German exchange. The disconnect between operational milestones and market sentiment has rarely been wider.
Revenue rose 22% year on year to $163.5 million, comfortably ahead of analyst forecasts. The bottom line, however, remained deep in the red. Plug Power reported a net loss of $245 million for the quarter, with a loss per share of $0.08 — a cent better than the consensus estimate. One separate report pegged the net loss at $109 million, highlighting the divergent views on the company’s accounting treatment. The gross margin, a closely watched metric, improved sharply from minus 55% to minus 13%, driven by cost reductions and higher demand from key customers such as Walmart.
In Cumbria, the Barrow Green Hydrogen project reached its final investment decision on May 20. Plug Power will supply six of its 5-megawatt GenEco PEM electrolysers to the 30 MW facility, developed by GHECO — a joint venture between Schroders Greencoat and Carlton Power. The plant is expected to produce around 100 gigawatt-hours of green hydrogen annually, primarily for the nearby Kimberly-Clark factory in Barrow-in-Furness, which makes Andrex and Kleenex. The hydrogen will replace up to 50% of the site’s natural gas consumption, cutting roughly 18,300 tonnes of CO₂ per year. A long-term power purchase agreement with SEFE (Securing Energy for Europe) secures the renewable electricity needed for electrolysis.
Should investors sell immediately? Or is it worth buying Plug Power?
Cash burn remains the overriding concern. Short sellers are still heavily positioned against the stock. Two near-term transactions could provide relief. Plug Power is set to sell tax credits for nearly $39 million in the coming weeks. A larger deal with Stream Data Centers is expected to bring in approximately $142 million from the sale of equipment. The combined $181 million would buy time as the company pursues its target of turning positive on an adjusted EBITDA basis by the fourth quarter of 2026.
Analyst opinions remain split. B. Riley rates the stock a Buy with a price target of $5. Wells Fargo holds at Equal-Weight, recently raising its target to $2.50. At the other end, BMO Capital Markets maintains an Underperform rating with a $1.20 target. The stock now trades about 18% below its 52-week high, though it has more than tripled over the past twelve months. The relative strength index stands at 20.5, indicating deeply oversold territory.
Plug Power’s global project pipeline exceeds $2 billion. Whether the narrowing margin between growth aspirations and persistent losses can close in time will be decided when fourth-quarter results land — the deadline for management’s EBITDA promise. For now, the asset sale proceeds offer the clearest test of whether the market is willing to give this hydrogen story another chance.
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