Plug Power lowers 2024 revenue guidance

US turnkey hydrogen solutions provider Plug Power Inc (NASDAQ:PLUG) on Tuesday lowered its forecast for full-year top line even as it reported “an inflection point” for revenue in the third quarter of the year.

The company, which is working to establish an end-to-end green hydrogen ecosystem, now expects its 2024 revenue to range from USD 700 million (EUR 659m) to USD 800 million rather than the previously projected USD 825 million-925 million. It said in a statement that its latest guidance is driven by a pipeline of orders in the electrolyser, cryogenic, and material handling businesses in the second half of the year and added that the mid-term and long-term outlook remains positive regardless of the hydrogen economy’s current pace of development.

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For the third quarter, Plug reported a net loss of USD 211.2 million compared to USD 262.3 million in the prior three months and USD 283.5 million in the third quarter of 2023. The Q3 2024 figure takes into consideration strategic investments, new product deployments, and market dynamics, and includes around USD 70.5 million of non-cash charges such as depreciation and amortisation, stock-based compensation, provision for common stock warrants, inventory adjustments, and impairment charges.

The company said that at USD 173.7 million, its Q3 revenue represents an inflection in electrolyser deployments, continued expansion of its internally produced hydrogen network, and increased leverage on its manufacturing footprint. The Q3 2023 revenue amounted to USD 199 million.

Electrolyser sales in the latest three-month period soared 285% on a quarterly basis. Plug expects significant deployments to continue in the final quarter of the year.

An important milestone for the company is that its joint hydrogen production facility with Olin Corporation in Louisiana is currently undergoing commissioning and is seen to ramp up its liquid production to the nameplate capacity during the first quarter of 2025. Plug also continues to progress its negotiations with regard to the loan guarantee of up to USD 1.66 billion from the US Department of Energy (DOE), which is vital for the company’s ability to build up to six additional green hydrogen plants.

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

(USD 1.0 = EUR 0.941)