SLINGERLANDS, N.Y., Nov. 12, 2024 (GLOBE NEWSWIRE) -- 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.

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  • 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: [email protected]

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 endedNine months ended 
   September 30,September 30,  
   2024  2023  2024  2023  
Net revenue:              
Sales of equipment, related infrastructure and other  $107,141()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});