Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced further progress on its strategic and operational initiatives and path to profitability in the third quarter of 2024. These developments underscore the Company's commitment to advancing the hydrogen economy and solidifying its market and financial position in the industry.

Financial Highlights

  • Q3 Financial Performance: Plug reported revenue of $173.7 million in Q3 2024, representing an inflection in electrolyzer deployments, continued expansion of its internally produced hydrogen network, and increased leverage on its manufacturing footprint.
    • Operating Cash Flows: Improved 31% Quarter-Over-Quarter (QoQ) reflecting improvement in margins, working capital efficiency, and leverage of existing inventory. Plug expects to continue to see improvements as revenues increase in the fourth quarter, allowing for further leverage on inventory and fixed manufacturing costs.
    • Gross Margin Loss: Decreased 37% QoQ. This was driven by multiple revenue streams, equipment improving 42%, service improving 776%, Power Purchase Agreements (PPA) improving 13%, and fuel improving 9%.
    • Net Loss: Plug recorded an Earnings-Per-Share loss of $0.25 for Q3 2024, compared to $0.36 for Q2 2024. The Company recorded a net loss of $211.2 million in Q3 2024, compared to $262.3 million in Q2 2024. This net loss included strategic investments, new product deployments, and market dynamics. This net loss also included ~$70.5 million of non-cash charges such as depreciation and amortization, stock-based compensation, provision for common stock warrants, inventory adjustments, and impairment charges.

Operational and Strategic Highlights

  • Electrolyzer Deployment and Revenue Inflection: Plug reported an inflection point for revenue in Q3 2024 with electrolyzer sales increasing 285% QoQ with contribution from 5MW (megawatt) system sales being recognized and additional revenue recognized from a large-scale order being deployed. In Q3 2024, the Company announced an order for 25 MW from bp and Iberdola’s joint venture at the Castellon refinery project in Spain. This quarter marks a major milestone for Plug’s electrolyzer business as it scales and is a significant inflection point for the industry overall, with Q4 2024 expected to see significant deployments continue. This positions the product platform for growth in 2025 and beyond.
  • Leveraging Plug’s Hydrogen Production Network: Hydrogen fuel margins continue to improve as the Company effectively leverages its internal network of hydrogen plants. Planned downtime and maintenance at its Georgia and Tennessee facilities in Q3 2024 limited margin contribution but is expected to improve with higher utilization in Q4 2024. Additionally, our Joint Venture hydrogen plant with Olin Corporation in Louisiana is progressing and is currently in the process of commissioning, with liquid production expected to ramp up to nameplate capacity during Q1 2025.
  • Basic Engineer and Design Package (BEDP) Contracts: To date, Plug has grown to over 8 GW (gigawatts) in global BEDP contracts, which includes further progress in Q3 2024 to a binding framework agreement to provide Allied Green Ammonia (AGA) with 3 GW of electrolyzer capacity for its ammonia plant in Australia. Plug and AGA are in the final stages of completing purchase agreements, expected to be finalized in the coming months. Progress with BEDP customers has continued globally, and anticipated finalization of the 45V tax credit in the U.S. is expected to support acceleration in BEDP work and project FIDs in coming quarters.
  • Continued Momentum in Material Handling: This quarter Plug saw additional benefits of price increases implemented during Q2 2024, primarily in its fuel and service business, with additional pricing benefits expected from PPAs in Q4 2024. Alongside this progress, Plug expanded its material handling portfolio by partnering with Carreras Grupo Logistico to establish Spain’s first hydrogen-powered logistics site. Plug plans to deliver a complete green hydrogen ecosystem to this site, including hydrogen fuel cells, a 1 MW electrolyzer, and a hydrogen refueling station, marking a key milestone in advancing hydrogen adoption in European logistics.
  • Groundbreaking 8 MW Stationary Hydrogen Fuel Cell System for Energy Vault: Plug Power has completed the installation of an 8 MW hydrogen fuel cell system, designed and integrated by Energy Vault, for a first-of-its-kind hybrid microgrid in California. Combining battery storage with green hydrogen, this system will deliver reliable power during wildfires and emergencies, setting a new benchmark for clean, resilient energy solutions in the U.S.
  • Department of Energy (DOE) Support: Plug continues to progress with the DOE loan, which aims to support the expansion of its green hydrogen initiatives and infrastructure for up to six hydrogen sites. Additionally, the Company was awarded a $10 million DOE grant to lead the development of advanced hydrogen refueling stations in Washington State in Q3 2024.
  • Revenue Outlook: Plug anticipates its 2024 revenue to range between $700 million and $800 million, driven by a pipeline of orders in the electrolyzer, cryogenic, and material handling businesses in the second half of 2024. Despite the speed and development of the hydrogen economy continuing to impact hydrogen equipment deployments, the mid-term and long-term outlook remains positive.

CEO Statement

Plug Power CEO Andy Marsh stated: “Plug Power's performance this quarter underscores our commitment to building a sustainable and profitable hydrogen future. Our progress in electrolyzer deployments, advancements in hydrogen production, and expansion into new markets reflect our team's dedication to leading the build out of the hydrogen economy.”

2024 Plug symposium

Plug will host its 6th annual symposium on November 13th at its headquarters in Slingerlands, N.Y. The event will bring together Plug leadership and industry experts to showcase groundbreaking projects that are reshaping the hydrogen industry and to present innovative solutions for the future.

We invite all stakeholders to join us virtually for this important industry event. Register now at: https://event.on24.com/wcc/r/4709318/2EB78C1AF5AAF63684C7F1DF68A30983?partnerref=EarningsPR

Conference Call

Plug Power has a scheduled conference call today, November 12, at 8:30 AM ET to review the Company’s results for the third quarter of 2024. Interested parties are invited to listen to the conference call by calling 877-407-9221 / +1 201-689-8597

The webcast can be accessed at: https://event.webcasts.com/starthere.jsp?ei=1692922&tp_key=d012114e58    

A playback of the call will be available online for a period following the event.

About Plug Power

Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the Company has deployed more than 69,000 fuel cell systems and over 250 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.

With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants for commercial operation. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.

For more information, visit www.plugpower.com.

Plug Power Safe Harbor Statement

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“Plug”), including but not limited to statements about Plug’s expectations regarding its revenue in Q4 2024 and its ability to leverage inventory and fixed manufacturing costs; Plug’s expectations regarding its electrolyzer business, including deployments in Q4 2024 and growth in 2025 and beyond; Plug’s expectations that planned downtime and maintenance at its Georgia and Tennessee facilities will improve with higher utilization in Q4 2024; Plug’s expectation that its Joint Venture hydrogen plant with Olin Corporation in Louisiana will ramp up to nameplate capacity during Q1 2025; Plug’s expectation that it will finalize purchase agreements with Allied Green Ammonia in the coming months; Plug’s anticipation that finalization of the 45V tax credit in the U.S. will support acceleration in BEDP work and project FIDs in coming quarters; Plug’s expectations that there will be additional impacts from price increases from power purchase agreements in Q4 2024; Plug’s plans to deliver a complete green hydrogen ecosystem Carreras Grupo Logistico; Plug’s belief that its hydrogen fuel cell system for Energy Vault will deliver reliable power during wildfires and emergencies; Plug’s expectation with respect to its conditional commitment loan guarantee from the United States Department of Energy (DOE); Plug’s anticipation that its 2024 revenue will range between $700 million and $800 million and Plug’s belief that the mid-term and long-term outlook for the hydrogen economy in the United States remains positive.

You are cautioned that such statements should not be read as a guarantee of future performance or results as such statements are subject to risks and uncertainties. Actual performance or results may differ materially from those expressed in these statements as a result of various factors, including, but not limited to, the following: the risk that our ability to achieve our business objectives and to continue to meet our obligations is dependent upon our ability to maintain a certain level of liquidity, which will depend in part on our ability to manage our cash flows; the risk that the funding of our loan guarantee from the Department of Energy may be delayed and the risk that we may not be able to satisfy all of the technical, legal, environmental or financial conditions acceptable to the DOE to receive the loan guarantee; the risk that we may continue to incur losses and might never achieve or maintain profitability; the risk that we may not realize the anticipated benefits and actual savings in connection with the restructuring; the risk that we may not be able to raise additional capital to fund our operations and such capital may not be available to us on favorable terms or at all; the risk that we may not be able to expand our business or manage our future growth effectively; the risk that we may not be able to maintain an effective system of internal control over financial reporting; the risk that global economic uncertainty, including inflationary pressures, fluctuating interest rates, currency fluctuations, and supply chain disruptions, may adversely affect our operating results; the risk that we may not be able to obtain from our hydrogen suppliers a sufficient supply of hydrogen at competitive prices or the risk that we may not be able to produce hydrogen internally at competitive prices; the risk that delays in or not completing our product and project development goals may adversely affect our revenue and profitability; the risk that our estimated future revenue may not be indicative of actual future revenue or profitability; the risk of elimination, reduction of, or changes in qualifying criteria for government subsidies and economic incentives for alternative energy products, including the Inflation Reduction Act and our qualification to utilize the PTC; and the risk that we may not be able to manufacture and market products on a profitable and large-scale commercial basis. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Plug in general, see Plug’s public filings with the Securities and Exchange Commission, including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2023, the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, as well as any subsequent filings. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. We disclaim any obligation to update forward-looking statements except as may be required by law.

Media Contact: Fatimah Nouilati Plug Power Inc. Email: PlugPR@plugpower.com

Plug Power Inc. and Subsidiaries  
Condensed Consolidated Balance Sheets  
(In thousands, except share and per share amounts)  
(Unaudited)  
                 
       September 30,      December 31,    
    2024     2023      
Assets                
Current assets:                
Cash and cash equivalents   $ 93,940     $ 135,033      
Restricted cash   216,772     216,552      
Accounts receivable, net of allowance of $7,340 as of September 30, 2024 and $8,798 as of December 31, 2023     167,222       243,811      
Inventory, net     885,764       961,253      
Contract assets     145,499       126,248      
Prepaid expenses and other current assets     124,824       104,068      
Total current assets   1,634,021     1,786,965      
                 
Restricted cash   $ 689,483     $ 817,559      
Property, plant, and equipment, net     1,534,056     1,436,177      
Right of use assets related to finance leases, net     52,947       57,281      
Right of use assets related to operating leases, net   361,009       399,969      
Equipment related to power purchase agreements and fuel delivered to customers, net   142,238     111,261      
Contract assets   30,333     29,741      
Intangible assets, net   175,006       188,886      
Investments in non-consolidated entities and non-marketable equity securities   92,767     63,783      
Other assets     13,014       11,116      
Total assets   $ 4,724,874     $ 4,902,738      
               
Liabilities and Stockholders’ Equity                
Current liabilities:                
Accounts payable   $ 207,224     $ 257,828      
Accrued expenses   107,402       200,544      
Deferred revenue and other contract liabilities   132,345       204,139      
Operating lease liabilities     66,973       63,691      
Finance lease liabilities     10,822       9,441      
Finance obligations     83,305       84,031      
Current portion of convertible senior notes, net   58,163          
Current portion of long-term debt   3,232     2,716      
Contingent consideration, loss accrual for service contracts, and other current liabilities   117,479     142,410      
Total current liabilities   786,945     964,800      
             
Deferred revenue and other contract liabilities   $ 59,529     $ 84,163      
Operating lease liabilities     249,191       292,002      
Finance lease liabilities   27,134       36,133      
Finance obligations     278,250       284,363      
Convertible senior notes, net   149,214     195,264      
Long-term debt   2,341     1,209      
Contingent consideration, loss accrual for service contracts, and other liabilities     142,937       146,679      
Total liabilities   1,695,541     2,004,613      
               
Stockholders’ equity:                
Common stock, $.01 par value per share; 1,500,000,000 shares authorized; Issued (including shares in treasury): 900,281,573 as of September 30, 2024 and 625,305,025 as of December 31, 2023   $ 9,003     $ 6,254      
Additional paid-in capital   8,388,930       7,494,685      
Accumulated other comprehensive loss   (1,634 )     (6,802 )    
Accumulated deficit     (5,259,021 )     (4,489,744 )    
Less common stock in treasury: 19,831,594 as of September 30, 2024 and 19,169,366 as of December 31, 2023     (107,945 )     (106,268 )    
Total stockholders’ equity     3,029,333       2,898,125      
Total liabilities and stockholders’ equity   $ 4,724,874     $ 4,902,738      
                 
Plug Power Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
                             
      Three months ended Nine months ended  
      September 30, September 30,  
      2024     2023     2024     2023    
Net revenue:                            
Sales of equipment, related infrastructure and other     $ 107,141     $ 145,130     $ 252,224     $ 543,510    
Services performed on fuel cell systems and related infrastructure       14,148       9,290       40,205       27,088    
Power purchase agreements       20,459       20,068       58,437       44,135    
Fuel delivered to customers and related equipment       29,791       19,371       77,964       47,391    
Other       2,191       4,852       8,514       7,055    
Net revenue     $ 173,730     $ 198,711     $ 437,344     $ 669,179    
Cost of revenue:                            
Sales of equipment, related infrastructure and other       149,912       158,989       414,948       504,717    
Services performed on fuel cell systems and related infrastructure       9,086       17,916       35,773       53,586    
Provision for loss contracts related to service       6,036       41,581       38,265       55,801    
Power purchase agreements       51,782       56,981       161,322       157,773    
Fuel delivered to customers and related equipment       55,538       59,012       172,428       177,963    
Other       1,401       2,197       4,963       4,843    
Total cost of revenue     $ 273,755     $ 336,676     $ 827,699     $ 954,683    
                             
Gross loss     $ (100,025 )   $ (137,965 )   $ (390,355 )   $ (285,504 )  
                             
Operating expenses:                            
Research and development       19,712       27,651       63,932       83,437    
Selling, general and administrative       91,586       105,451       254,689       310,621    
Restructuring       514             8,154          
Impairment       4,185       665       8,406       11,734    
Change in fair value of contingent consideration       146       2,239       (5,286 )     26,316    
Total operating expenses     $ 116,143     $ 136,006     $ 329,895     $ 432,108    
                             
Operating loss       (216,168 )     (273,971 )     (720,250 )     (717,612 )  
                             
Interest income       7,423       10,369       24,495       44,392    
Interest expense       (9,148 )     (11,802 )     (29,984 )     (33,717 )  
Other income/(expense), net       15,510       4,987       (566 )     (4,866 )  
Realized gain on investments, net                         263    
Other-than-temporary impairment of available-for-sale securities             (10,831 )           (10,831 )  
Change in fair value of equity securities             70             8,987    
Loss on equity method investments       (8,690 )     (7,030 )     (29,043 )     (19,970 )  
Loss on extinguishment of convertible senior notes                   (14,047 )        
                             
Loss before income taxes     $ (211,073 )   $ (288,208 )   $ (769,395 )   $ (733,354 )  
                             
Income tax (expense)/benefit       (95 )     4,729       118       6,916    
                             
Net loss     $ (211,168 )   $ (283,479 )   $ (769,277 )   $ (726,438 )  
                             
Net loss per share:                            
Basic and diluted     $ (0.25 )   $ (0.47 )   $ (1.03 )   $ (1.22 )  
                             
Weighted average number of common stock outstanding       858,442,951       599,465,146       745,827,431       593,417,595    
                             
Plug Power Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
(In thousands)  
(Unaudited)  
    Nine months ended September 30,
       2024        2023    
Operating activities              
Net loss   $ (769,277 )   $ (726,438 )  
Adjustments to reconcile net loss to net cash used in operating activities:              
Depreciation of long-lived assets     51,639       37,810    
Amortization of intangible assets     14,194       14,158    
Lower of cost or net realizable value inventory adjustment and provision for excess and obsolete inventory     67,768       33,889    
Stock-based compensation     64,120       129,074    
Loss on extinguishment of convertible senior notes     14,047       -    
(Recoveries)/provision for losses on accounts receivable     (1,458 )     948    
Amortization of (premium)/discount of debt issuance costs on convertible senior notes and long-term debt     (1,731 )     1,699    
Provision for common stock warrants     16,294       12,737    
Deferred income tax benefit     (118 )     (621 )  
Impairment     8,406       11,734    
(Recovery)/loss on service contracts     (558 )     35,893    
Loss on sale of long-lived assets     2,519       -    
Fair value adjustment to contingent consideration     (5,286 )     26,316    
Net realized gain on investments     -       (263 )  
Other-than-temporary impairment of available-for-sale securities     -       10,831    
Accretion of premium on available-for-sale securities     -       (5,144 )  
Lease origination costs     (3,508 )     (7,665 )  
Change in fair value for equity securities     -       (8,987 )  
Loss on equity method investments     29,043       19,970    
Change in fair value of derivative financial instruments     100       -    
Changes in operating assets and liabilities that provide/(use) cash:              
Accounts receivable     78,047       (34,685 )  
Inventory     30,868       (411,737 )  
Contract assets     (14,849 )     (39,040 )  
Prepaid expenses and other assets     (42,835 )     (6,423 )  
Accounts payable, accrued expenses, and other liabilities     (29,183 )     21,221    
Payments of contingent consideration     (9,216 )     (2,895 )  
Deferred revenue and other contract liabilities     (96,428 )     23,699    
Net cash used in operating activities   $ (597,402 )   $ (863,919 )  
               
Investing activities              
Purchases of property, plant and equipment     (253,148 )     (484,030 )  
Purchases of equipment related to power purchase agreements and equipment related to fuel delivered to customers     (41,513 )     (26,094 )  
Proceeds from maturities of available-for-sale securities     -       961,160    
Proceeds from sales of equity securities     -   -   76,263    
Proceeds from sale of long-lived assets     500       -    
Cash paid for non-consolidated entities and non-marketable equity securities     (64,368 )     (66,811 )  
Net cash (used in)/provided by investing activities   $ (358,529 )   $ 460,488    
               
Financing activities              
Payments of contingent consideration     (1,841 )     (10,105 )  
Proceeds from public and private offerings, net of transaction costs     793,249       -    
Payments of tax withholding on behalf of employees for net stock settlement of stock-based compensation     (1,677 )     (7,922 )  
Proceeds from exercise of stock options     96       1,313    
Principal payments on long-term debt     (726 )     (5,710 )  
Proceeds from finance obligations     54,416       90,265    
Principal repayments of finance obligations and finance leases     (64,342 )     (53,394 )  
Net cash provided by financing activities   $ 779,175     $ 14,447    
Effect of exchange rate changes on cash     7,807       2,130    
Decrease in cash and cash equivalents     (41,093 )     (579,821 )  
(Decrease)/increase in restricted cash     (127,856 )     192,967    
Cash, cash equivalents, and restricted cash beginning of period     1,169,144       1,549,344    
Cash, cash equivalents, and restricted cash end of period   $ 1,000,195     $ 1,162,490    
               
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