The stock market has marked the company’s share price down, with losses amounting to $236.4 million damaging a record level of sales. Despite this, Plug Power is targeting revenue of between 1.2 and 1.4 billion dollars this year.

On the face of it, this is a good result, since Plug Power has posted the best quarterly revenue in its history ($260.2 million, up 72% on the same period last year). The American company stresses that these results are due to its vertical integration strategy and that margins are improving. The 20-page document refers to an inflection point in both revenue and path to profitability.

However, Wall Street has mostly lingered on the level of losses, which totalled 236.4 million dollars. That’s twice as much as expected. Although Plug explained that it had spent $45 million to promote the transition to industrial scale in its fuel cell and hydrogen production plants, the share price lost almost 16%.

Plug Power registered higher sales than expected

Nevertheless, sales were much higher than expected. In particular, Plug more than tripled its sales in cryogenics and liquefiers, while maintaining solid results in electrolysers. Business is also buoyant in forklift trucks, with expected growth of 100%.

To reduce its losses, Plug intends to ramp up its Georgia plant (with an expected capacity of 17.5 million tonnes per day) and is also counting on the New York plant, which will enter into service at the end of 2024. The company claims to have learnt from the difficulties it encountered and is confident about its ambitions. Both for the current year and in the medium term.

Do you want to learn more about Plug Power? Then our latest 2 articles on the American company should interest you. You can read them here and there. 

Article written by Laurent Meillaud and translated by Logan King