Plug Power (PLUG) Q4 2025 Earnings Call Transcript

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DATE

Monday, March 2, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Jose Luis Crespo
• Chief Financial Officer — Paul B. Middleton
• Senior Vice President, Investor Relations — Teal Vivacqua Hoyos

TAKEAWAYS

• Revenue Growth -- Approximately 30% increase, with "double-digit rates" supported by the material handling and electrolyzer segments.
• Gross Margin -- Improved by 125 percentage points, from negative 122.5% to positive 2.4%.
• Electrolyzer Revenue -- Delivered a record $188 million, with project shipments including 25 megawatts for Iberdrola and BP, and 100 megawatts for GALP in Portugal.
• Hydrogen Production -- Louisiana plant commissioned and ramped alongside existing Georgia and Tennessee facilities, contributing to operational leverage.
• Unrestricted Cash -- Ended the year with $368.5 million, not including planned €275 million in asset monetizations expected to close in 2026.
• GAAP EPS -- Negative $0.63 compared to negative $1.48 in the prior-year period.
• Adjusted EPS -- Negative $0.06, after excluding unusual charges, compared to negative $0.29 previously.
• Net Charges -- $763 million mostly in non-cash asset impairments and capital transaction-related write-downs.
• 2026 Revenue Growth Outlook -- Management expects growth "directionally comparable to 2025," driven by material handling and electrolyzer businesses.
• 2026 EBITDAS Target -- Aims for positive EBITDAS, with "full-year benefit" of Quantum Leap cost and efficiency initiatives.
• Segment Mix Outlook -- Anticipating 30%-40% of revenue from material handling, a similar but slightly lower proportion from electrolyzers, with fuel and cryo representing the balance.
• Revenue Visibility -- Management estimates "high confidence" in 77%-80% of projected 2026 revenue, with 20% in late-stage negotiation.
• Electrolyzer Funnel -- Maintains an $8 billion sales pipeline, with 750 megawatts of new engineering design agreements signed over two months.
• CapEx Reduction -- Q4 marked one of the lowest recent capital expenditure rates; further CapEx reduction is planned for 2026.
• Seasonality -- Roughly one-third of annual sales expected in the first half, with a stronger second-half weighting driving margins and profitability targets.

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RISKS

• Chief Financial Officer Middleton noted, "we determined it was prudent for Plug Power Inc. to record net $763 million in various charges associated predominantly with non-cash charges of asset impairments and then the capital transactions we undertook in Q4."
• Asset impairments driven by "overall market conditions resulting in slower growth anticipated for certain products," impacting property, plant, equipment, intangibles, and power purchase agreement assets.
• Management acknowledged some markets "have not developed as fast as we thought," directly influencing the need for impairment charges and ongoing asset monetization efforts.

SUMMARY

Plug Power Inc. (NASDAQ:PLUG) marked an inflection point by achieving a positive gross margin and reducing operating losses, credited to Project Quantum Leap and disciplined execution in margin improvement, cost, and cash management. The company secured record electrolyzer revenue and commissioned its Louisiana hydrogen facility, elevating supply efficiency and sales leverage. An $8 billion electrolyzer pipeline and the advancement of new engineering agreements provide multi-year project visibility, while the cash outlook is reinforced by year-end reserves and pending asset monetizations. Management’s segment outlook prioritizes material handling and electrolyzer growth, supported by high revenue confidence and sequential improvements in quarterly results. The company targets both positive EBITDAS in 2026 and sustained operating profitability milestones within its multi-year roadmap.

• Chief Executive Officer Crespo said, "2025 was a defining year for Plug Power Inc," citing the combination of revenue growth and margin expansion under macroeconomic uncertainty.
• Key customers Amazon and Walmart, as well as new contracts like Floor and Decor, are driving increased demand and broader customer diversification in material handling.
• Europe’s regulatory mandates, such as RED III, are catalyzing long-term electrolyzer demand, with management estimating "4 to 6 gigawatts of electrolyzer capacity by 2030" may be needed for transportation markets alone.
• Disciplined working capital, operating cost controls, and planned capital structure enhancements produce a liquidity outlook that may enable breakeven cash flows in late 2026, as stated: "there is a decent chance we might even get to breakeven to positive cash flows in Q4, not just the EBITDAS KPI."
• Initiatives focused on fuel and production network optimization are expected to incrementally improve margins, especially as new facilities achieve higher utilization rates and more efficient logistics.

INDUSTRY GLOSSARY

• EBITDAS: Earnings before interest, taxes, depreciation, amortization, and stock-based compensation—a non‑GAAP profitability metric highlighted by the company.
• Electrolyzer Funnel: Company-specific term for the pipeline of potential electrolyzer sales, measured as an aggregate dollar value for possible future projects.
• Quantum Leap Initiatives: Internal Plug Power Inc. programs targeting cost reductions, operational efficiency, and cash flow improvements.
• BEDP (Basic Engineering Design Package): Pre-contract detailed engineering documents provided to customers as part of project development; often serves as a precursor to formal project bookings and revenue recognition.
• FGD: [not mentioned in this transcript; omitted]

Full Conference Call Transcript

Teal Vivacqua Hoyos: Welcome to the 2025 fourth quarter earnings call. This call will include forward-looking statements. These forward-looking statements contain projections of our future results of operations, of our financial position, or other forward-looking information. We intend these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward-looking statements and such statements should not be read or understood as a guarantee of future performance or results.

Such statements are subject to risks and uncertainties that could cause actual results or performance to differ materially from those discussed as a result of various factors, including but not limited to risks and uncertainties discussed under Item 1A, Risk Factors, in our Annual Report on Form 10-K for the fiscal year ending 12/31/2024, or Quarterly Reports on Form 10-Q for the quarters ended 03/31/2025, 06/30/2025, and 09/30/2025, as well as other reports we file from time to time with the SEC. These forward-looking statements speak only as of the day in which statements are made, and we do not undertake or intend to update any forward-looking statements after this call or as a result of new information.

At this point, I would like to turn the call over to Plug Power Inc.’s new CEO, Jose Luis Crespo.

Jose Luis Crespo: Good afternoon, everyone, and thank you for joining us. As many of you know, today is my first earnings call as CEO. I would like to begin by acknowledging the foundation I am inheriting. Andy led this company for almost 20 years with vision and determination, building Plug Power Inc. into a global leader in the green hydrogen ecosystem. That is a platform few CEOs are fortunate to inherit, and I am grateful for it. My mandate is clear. I will work to convert this leadership position into sustained, profitable growth. I have been part of building this company, setting and executing on its strategy.

I deeply understand both the opportunity in front of us and the discipline required to realize it.

We entered 2025 focused on these objectives: grow the top line, improve margins, reduce cash usage targeting margin neutral in Q4, expand hydrogen production, including commissioning the Louisiana plant, all while strengthening liquidity. We delivered against those objectives. In 2025, we achieved approximately 30% revenue growth while turning gross positive margin in the fourth quarter. Gross margin improved by 125 percentage points, from negative 122.5% in Q4 2024 to positive 2.4% in Q4 2025. A 125 percentage point improvement in gross margin is a meaningful milestone in strengthening our operating performance. The results we delivered were not accidental. They reflect ambition paired with discipline, focused execution, and the hard work of the entire Plug Power Inc. team. 2025 was a defining year for Plug Power Inc.

In a highly uncertain macroeconomic environment, we grew revenue at double-digit rates and achieved positive margin, a combination that has been challenging for many companies in our sector. We believe this represents an inflection point. Now that said, we are not done. We still have work to do to achieve sustained profitability while maintaining growth. My responsibility now is to build on this momentum and continue progressing toward profitability.

In 2026, our focus remains on advancing toward profitable growth. We currently expect revenue growth in 2026 to be directionally comparable to 2025, driven primarily by our material handling and electrolyzer business. In material handling, favorable positions have emerged. The reinstatement of the investment tax credit in January combined with increased demand from pedestal customers such as Amazon and Walmart positioned us for renewed growth in this segment. We are seeing new developments and fleet refresh programs at key customer sites, while activity increased across both new and repeat customers.

Our electrolyzer business continues to develop and expand globally. Today, the company has shipped over 300 megawatts of our Gendrive electrolysis globally and are now deployed on six continents, demonstrating significant operating experience across multiple markets. In 2025, we delivered equipment for major projects, including a 25 megawatt project with Iberdrola and BP in Spain, and a 100 megawatt project with GALP in Portugal, resulting in a record $188 million in electrolysis revenue. Europe regulatory mandates and funded incentive programs provide structural support for hydrogen adoption. We see significant opportunity in refinery decarbonization and in the production of e-methane, e-methanol, synthetic jet fuel, and ammonia.

We estimate that meeting European mandates just for transportation could require 4 to 6 gigawatts of electrolyzer capacity by 2030, and we intend to compete for a meaningful portion of that opportunity. We remain focused on converting as much as possible of our approximately $8 billion electrolyzer funnel into revenue-generating projects that will support Plug Power Inc.’s long-term growth. In 2026, we expect to begin executing projects with Carlton and Schedders in the UK, and we will continue progressing with A Light Green Ammonia towards FID on the 3 gigawatt project in Australia and the 2 gigawatt project in Uzbekistan.

As an example of the activity in the market, over the last two months, we executed 750 megawatts of new basic engineering design packages agreements.

In 2026, we expect to see full-year benefit of the Quantum Leap initiatives launched in 2025. These improvements are expected to be further supported by continued cost reductions and optimization efforts across the business. Together with revenue growth, these actions position us to achieve positive EBITDAS in 2026, consistent with our previously stated targets. We also intend to continue reducing cash usage in 2026. We ended 2025 with $368.5 million in unrestricted cash. We currently expect continued improvement in cash usage similar to the reduction achieved in 2025.

With ongoing cash flow improvements and the planned €275 million proceeds from the monetization of assets and associated rights announced in Q4 2025, which we expect to close in 2026, we believe we are well positioned to support our operation plans through 2026.

In conclusion, we continue our journey towards profitability. 2025 was about margin progression, optimizing the platform we have built, enforcing cost discipline, strengthening infrastructure control, improving liquidity, and sharpening our strategic focus. 2026 will be about continued sales growth and advancing the financial milestones outlined in our roadmap, including our target of achieving positive EBITDAS in Q4 2026, a milestone within our roadmap towards positive operating income in 2027 and full profitability in 2028. I will now turn the call over to Paul B. Middleton for a detailed review of the fourth quarter and full-year financial results.

Paul B. Middleton: Thanks a lot, Jose Luis. Let me first expand on the margin results. The significant improvement we achieved stems from a culmination of efforts over the last two years to optimize and scale the investments we have made. We have made a conscious effort to really focus on margin and cash flow improvement, and this includes multiple actions undertaken within Project Quantum Leap and our overall product cost-down roadmaps.

More specifically, in Q4, the results benefited from significant improvements in the unit service costs, achieving rates almost half of what they were a little over a year ago; ramping our hydrogen platform through our three facilities, including Louisiana that was turned on and scaled up this year; scaling sales volume as increased sales provides tremendous incremental overhead leverage; and continued discipline and scrutiny over discretionary spending. Equally important to these Q4 results is the fact that we see this progress as a platform to continue driving towards our 2026 financial targets.

Regarding cash usage, we saw improvements throughout the year, and these actions were associated with Project Quantum Leap and included targeted price increases, labor optimization, rooftop consolidations, improvements in production costs, leveraging our hydrogen platform, and a clear focus on reducing our OpEx resource investment. We expect 2026 to include a full year of benefits from these activities undertaken last year. In addition, we see significant upside to continue this optimization effort, driving even more leverage as we grow sales. We anticipate continued incremental leverage from growth in equipment sales given our capacity, continued improvements in our service cost profile, additional improvements in fuel efficiency and network leverage, and continued scrutiny over OpEx and resources.

We continue to be laser-focused on driving growth in margins and cash flows in the near term and achieving our Q4 goal of positive EBITDAS.

Despite the progress we made, as conveyed in our filing, we determined it was prudent for Plug Power Inc. to record net $763 million in various charges associated predominantly with non-cash charges of asset impairments and then the capital transactions we undertook in Q4. Impairment charges stem from multiple factors, including overall market conditions resulting in slower growth anticipated for certain products. In terms of impairments, this relates to property, plant and equipment, intangible assets, and assets associated with power purchase agreements and fuel. As a result of these impairments, it will reduce our future amortization and depreciation in 2026 and onward.

In terms of liquidity, as Jose mentioned, we ended with over $368 million in unrestricted cash. We recently executed the first of three transactions associated with monetizing the €275 million for the data center project sales. We have an effectively unleveraged balance sheet given our debt restructuring we undertook, which also lowered our cost of capital and extended the maturity expenses. We have also significantly curtailed our CapEx, and we believe we have the platform we need to deliver our financial goals to anticipate even lower CapEx rates in 2026.

These factors, coupled with the focus on improvement in margin and cash flows, put us in a strong position to achieve our near-term and mid-term financial goals and fund our operating plan for 2026.

GAAP EPS for Q4 2025 was negative $0.63 compared to GAAP EPS of negative $1.48 for Q4 2024. But if we exclude the unusual charges in each period, adjusted EPS for Q4 2025 was negative $0.06 versus adjusted EPS for Q4 2024 of negative $0.29. The progression in this is just another illustration of how operationally the company is making progress holistically in growing overall sales and margin profile. I will now turn the call back over to Jose Luis Crespo.

Jose Luis Crespo: Thank you, Paul. We will now open the call for questions.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to be placed in the question queue, please press 1 on your telephone keypad. We ask you to please ask one question and one follow-up, then return to the queue. Once again, it is 1 to be placed into the question queue, and if you would like to remove your question from the queue, please press 2. A confirmation tone will indicate your line is in the question queue when you press 1. Our first question today is coming from Colin Rusch from Oppenheimer. Your line is now live.

Colin Rusch: Guys, and congratulations on the progress here. So as you look at 2026, from a revenue growth perspective, can you just give us a bit more color around which drivers are actually moving the needle from a growth perspective? It looks like you are talking about kind of low double-digit growth overall. I am just curious if there is one part of the product business that is actually making an outsized impact on that growth.

Jose Luis Crespo: Hi, Colin. How are you? So for 2026, as I mentioned, we are projecting similar growth as we saw in 2025. And the main drivers for that growth are going to be material handling. What we are seeing in material handling is our pedestal customers are going back to growth. We are also seeing refreshes; some of the sites that we have with some of the pedestal customers are sites that have been running between five and seven years. Time to refresh. So we see an uptick on that. We also see new customers. As you know, we signed Floor and Decor last year, but we see other customers coming online in 2026.

And also the value proposition is getting stronger. I think we mentioned this during the symposium. Our customers are beginning to see also that the material handling fuel cell solution allows them to reduce their utility demand on their sites, which is really valuable for customers in days where we all know the utility electricity availability is becoming more challenging. But that is not the only area that we are going to see growth. As I mentioned, in the electrolyzer business, we also see growth and opportunities.

We just signed at the end of 2025—we announced the agreement with Carlton Power for 55 megawatts—and we are looking at, in the next couple of months or so, signing a similar agreement for another project in Australia. We have a lot of the projects that we have in the funnel beginning to move farther into FID. So we are expecting to see also growth in the electrolyzer business. Those are going to be the two main drivers for growth in 2026.

Colin Rusch: Excellent. And, guys, when you look at the fuel margins and the cost of that fuel, I know you are getting better at optimizing some of the production cost and timing around that, but I am just curious about how quickly you can start driving some of those margins closer to breakeven on the fuel side.

Paul B. Middleton: Thanks, Colin. I think just to be clear, if we look back and we think about some of the things we have done, turning on these three plants and vertically integrating puts us in a great position, and we have seen that in the benefits in our results. We see that continuing to trend upwards. We have been on this maturity curve of optimizing those facilities. We hit all-time records in the Georgia plant for many of the months in 2025, and we have seen a progression in the utilization and efficiency of the newer plant in Louisiana. We turned that on this year and scaled that up.

So one thing we expect for 2026 is better leverage on those facilities now that we can take those learnings and run those plants even more efficiently. Second thing is, as Jose mentioned, we are adding more sites, more material handling customers, and a lot of that is going to be through those plants and see greater volume leverage, which is important. We have shown progression in our logistics network and how we can drive greater efficiency through that.

And then one of the other challenges that we have been focused on and really made tremendous progress is efficiencies at the site in terms of how the systems operate, the recapture of the gas, how to make sure that you minimize any losses of molecule through the system. So the combination of those things, coupled with the new agreement we signed with a third-party gas company last year that has reduced prices but also put us on a platform of working with them to optimize the network with which sites are sourced from which plants, all of those factors are what has been driving the improvement. We are going to see additional improvement this year.

So I think we are going to directionally be moving there as we progress through the year, and part will be tied to the timing of turning on some of this volume and getting additional leverage out of those facilities as the year progresses. But we expect that we are going to continue to move in the right direction over the course of the year.

Colin Rusch: Excellent. Thanks so much, guys.

Jose Luis Crespo: Thank you.

Operator: Next question today is coming from Craig Irwin from ROTH Capital Partners. Your line is now live.

Craig Irwin: Good evening. Thanks for taking my questions. So first one I wanted to ask about is just an update on the cash needs this year. So you guys did a great job last year, $368 million in unrestricted cash exiting the year. You got your cash burn down dramatically year over year. You have put in place the €275 million in asset sales. You are obviously continuing to execute on the restricted cash for your PPAs, your historical PPAs as those roll off, and I guess as you make new sales, which is good.

But can you maybe help us understand the tempo of cash needs across this year now that we do not have some of these big construction projects and that you have taken all these other steps to put in place the actions to get to positive EBITDA?

Jose Luis Crespo: Thank you for the question, Craig. Paul, do you want to cover that?

Paul B. Middleton: Yeah. Thanks, Craig, and good to hear from you. A couple things. One, if you look at the progression the last couple years, the improvements in margin and just overall profitability and how that has been playing as well as our leverage of our working capital, you have seen a reduction in operating cash flows and cash burn in general. You have also seen a big reduction in the CapEx. I think if you look at the Q4 rates, they are one of the lowest CapEx rates we have had in a long time.

So it postures us really well because we expect, certainly as we talk about our financial targets this year and getting to EBITDAS breakeven to positive in Q4, a similar reduction in the cash burn that we have experienced the last couple years. And so, if you just look at that mathematically coupled with a very nominal CapEx rate, it mathematically puts you in a position where the opening cash position we have is almost enough to cover it all, but obviously the €275 million puts us in a great position to fund the year.

So we sit today and our working plan is that we have more than adequate existing capital and access to that capital that is coming into those projects to fund this year without needing incremental capital.

I do have optionality. I have an unleveraged balance sheet, so it is not my preference to go out and get debt, but now that we have restructured the debt, I have got an incredibly low cost of capital structure in place right now, that 7% range. And so I am in a good spot overall in terms of lots of other factors. There are other positive things that are happening, like we have gotten past through some of the acquisitions and the earnouts, and we have got some of those things behind us. We have really tempered the JV investments.

A lot of things have just put us in a good position where just the overall cash needs have dropped substantially. So I guess in conclusion, if you look at seasonality of the sales, with the one-third/two-thirds, you can expect probably a little bit heavier burn in the first half, and as the volume grows in the second half and we convert those into collections and leverage even more inventory, it will even be better in the second half. And as we sit today, given the working capital position, for me, EBITDAS is kind of a proxy of cash flows.

So I think there is a decent chance we might even get to breakeven to positive cash flows in Q4, not just the EBITDAS KPI as well. So I think that hopefully helps, Craig.

Craig Irwin: Fantastic. That is very helpful. So along a similar theme, your new project, new sales commitments that you are making today, obviously made with a different discipline than you had in the market a few years ago with the pricing changes and the complete focus on profitability now at Plug Power Inc. Can you maybe just give us a little bit more color on the 750 megawatts new engineering design package agreements you signed in the quarter? Are customers paying for these engineering packages upfront now? What do we see as a potential timeline for some of these fresh new orders to come through and potentially materialize as bookings and then revenue?

How do we look at these opportunities, and is this mostly a new set of customers or has this got significant overlap with the existing customer base?

Jose Luis Crespo: Craig, thank you. I just want to clarify it is focus on profitability through growth. So growth is a very important part of our strategy. And yes, the 750 megawatts of BEDPs that we have signed and started working in the last few months are all new projects. Some projects are in North America; a couple of them are in North America. We also have projects in Europe. The timeline is a little bit different for each one of them.

A couple of them are, at least at the moment, the FID timeline is into 2027, but there is one project that actually we are replacing an existing—or a prior—electrolyzer company that is no longer going to be doing this project, and they have picked us to do this BEDP for them. You can infer probably what the company is. And that project is already pretty advanced, and what we are doing right now is basically doing a very quick BEDP, and that project has probabilities to be FID in 2026.

So a little bit of a different timeline for the different projects, but all of them are in the next 12 to 24 months in the current planning for the FIDs.

Craig Irwin: Understood. Congratulations on the progress here. Thank you.

Jose Luis Crespo: No. Thank you.

Operator: Thank you. Our next question is coming from Eric Stine from Craig-Hallum. Your line is now live.

Luke (for Eric Stine): Hey, this is Luke on for Eric. Thanks for taking our question. So first one here, just how do you expect activity on the hydrogen pipeline front in Europe to progress after last month’s delivery announcement in the Netherlands? Should we expect to see further inroads there in 2026?

Jose Luis Crespo: Hi, Luke. Do you mean the deployment or the development of the hydrogen pipeline in the European market?

Luke (for Eric Stine): Yeah. Just potential inroads that Plug Power Inc. might be making there in 2026 and beyond.

Jose Luis Crespo: So if I understand correctly, the pipeline that you are referring to is in the Netherlands, which was announced a couple of years ago, and we are continuing to do the deployment in that pipeline. What Plug Power Inc., and in general the industry, benefits from is that having a pipeline allows us to basically have a market for generation. And what we see, for example, in the Netherlands, we have several discussions with companies that are looking into generating to put into that pipeline in particular. So it is a positive development in the industry, and it will help with projects going FID given that they can deliver hydrogen to that pipeline.

I do not know if that answers your question, Luke.

Luke (for Eric Stine): No, I think so. That is helpful. Thanks for the color. And just as a quick follow-up here, just quickly on the data center opportunity. I mean, you pointed it out last quarter as having potential for hydrogen-based backup power, obviously. You framed it as very early stages. Just wondering if you had any updated thoughts on potential use cases in this market. Thanks.

Jose Luis Crespo: For the particular case of the data center opportunity, we agreed with Stream that we were going to be working on potential applications. We have been concentrating with them right now on closing the deal itself, but opened discussion on what we could use fuel cells for. So at this moment, we are concentrating on closing the deal, and in terms of applications, we are going to start discussing with them about what stationary applications we could launch together once the deal is closed.

Luke (for Eric Stine): Understood. Thank you.

Jose Luis Crespo: You are welcome, Luke.

Operator: Thank you. Next question today is coming from Jason Tilchin from Canaccord Genuity. Your line is now live.

Jason Tilchin: Good afternoon. Thanks for taking my question. With regards to material handling, I think in the last call you said this is a $14 billion opportunity overall, and you have only really started to scratch the surface with this. Obviously, the price and availability of hydrogen is clearly a major gating factor. I am curious beyond that, what are some of the other things within your control that the company can do to sort of help capture an incrementally greater share of that opportunity going forward?

Jose Luis Crespo: We are working with all of our main customers, pedestal customers like Amazon and Walmart, making sure that they can extract as much value of the technology as possible. One of the things that we are seeing—I think I mentioned that before—is that many of our customers are seeing the value of the utility advantages of using fuel cells. Many of our customers need between 1 and 2 megawatts to power batteries if they use batteries in their distribution centers, but when you use fuel cells, you open up that capacity for other uses or actually just to be able to reduce consumption and connection to the grid.

Those types of things are the types of things that, little by little, we are discovering and working with customers to understand better how they can take advantage of the technology and to make sure that the business case can be expanded to as many applications within material handling as possible. And we believe that as time goes by, we will be able to unlock further markets within the material handling business.

Jason Tilchin: Great. That is very helpful. And one follow-up, the release talked about launching multiple follow-on actions to continue reducing costs and improving cash in 2026. If you could share a bit more about specifics of some of those initiatives.

Paul B. Middleton: I think we are constantly looking at things like our bill of materials, designs. We have opportunities to look at our manufacturing processes and think about how to streamline those. We are thinking about where we deliver from a distribution standpoint, a fabrication standpoint, our network for electrolyzers as an example. If you look at the last 10 to 12 years, the things that we have done from working with vendors on the supply cost to structures with how we manage the supply chain to our manufacturing processes to even additional ways to optimize facilities as we would continue to reduce inventory—we need fewer warehouses, as an example.

So we look at it holistically, and we believe we are still very early in the curve of opportunities over the next couple of years. Those are just some ideas of things that we have active efforts around. We have had some very conscious efforts the last two years to deliver these specific targets and improvements, and we think that they are themes that we can continue to optimize across the overall company to continue driving the margin profile.

Jason Tilchin: Great. Thank you very much.

Operator: Thank you. Next question is coming from Chris Tendrinos from RBC Capital Markets. Your line is now live.

Chris Tendrinos: Thank you. Maybe just to echo the congratulations on the positive gross margin this quarter. Following up on the last question, the press release, I think, also says that you are potentially looking at other asset monetizations that had been impaired. Can you maybe discuss what those might be and potential timelines for those opportunities? Thanks.

Paul B. Middleton: Let me say it this way. If you go back the last couple years, the themes that we have been talking about in some of these markets have not developed as fast as we thought, and so from an accounting standpoint, you go through your accounting exercises and land on the conclusions of what you can include in your forecast and so forth that may or may not create those impairments.

But we still have an incredible portfolio of assets and opportunities that we can either look for alternative ways to monetize, like the data center sales, or we still have opportunities in the pipeline in these different markets that can manifest, and as they start to manifest—and we really believe it is a question of when. I do not think anybody does not believe markets like mobility and high-power stationary, just to pick a few, are not going to happen. It is just a question of when. And so as those things start to unfold, we still have all of these assets that we can truly leverage.

It could be a combination of sales in those spaces or a combination of alternative uses that we look at. It is just one of the ways that we are really centering in on how we think is the best value out of this big asset portfolio in the short term.

Chris Tendrinos: Got it. And then I guess maybe as a follow-up here, you have got the $8 billion pipeline. I am just trying to think through how much of this year’s outlook is secured by that pipeline or maybe what is in the backlog and how you are thinking about confidence in the year given existing commitments? Thanks.

Jose Luis Crespo: So for the year, on the outlook that we just discussed, which is a growth similar to what we saw in 2025, we have very high confidence of probably close to 80% of that revenue amount, and also high confidence that we would be able to close the additional 20%. So entering the year with that high backlog, if you want to call it that way, is a very good position to be able to project where we think we are going to end the year. Obviously, years advance as they go, but at this moment, we feel pretty confident on the projection that we just gave for similar growth as 2025.

Chris Tendrinos: Got it. Thank you.

Operator: Our next question today is coming from Shri Palmaghiri from BTIG. Your line is now live.

Shri Palmaghiri: Hey. Thanks for taking my question. When you think about a potential hydrogen plant like New York versus the liquidity opportunity that presents, any insight you can share to how you balance that cash with your hydrogen fuel demand two years down the road, five years down the road.

Jose Luis Crespo: Hi, Sherif. Thank you for the question. We have looked very carefully at our hydrogen needs and the potential or the possibility to monetize the assets, like we did—or we are planning to do—in New York. I mentioned this also in the prior earnings call. What we have been able to do is we have been able to get to an agreement with one of the largest IGCs to provide hydrogen for us at reasonable cost, much better cost than we were getting before.

That, added to the current capacity that we have right now, which is about 40 tons a day nominal capacity, and added to the possibility that we have also—and we are discussing with some customers that are planning to do liquefaction—to take some offtake from those potential projects, we are comfortable that we have a good path to cover the demand in the next few years, based on our projections for growth, especially in the material handling market. So we found that the capability to be able to monetize those assets was something that was more valuable for Plug Power Inc. at this moment than making the investment of building a plant in New York.

We have put all those plans for growth for production on hold at this moment. That does not mean that in the future we may not pick up some of these plans when we are able to show that we can perform financially and may be able to finance these projects in a much more efficient way. But at the moment, monetizing those projects, and with the hydrogen availability that we have visibility for, we feel that this is the best solution and the best path for Plug Power Inc.

Shri Palmaghiri: Got it. Thanks, Jose Luis. And then the one big, beautiful bill act reinstated tax credits, but it also introduced stricter requirements for eligibility, and that is something that has been a supply chain headache for some renewables players. So I am wondering if Plug Power Inc. has had to retool its supply chain meaningfully.

Jose Luis Crespo: So for the ITC, the investment tax credit, what we have seen is that the requirements to be able to take advantage of the tax credit were meaningfully simplified from what they were before the bill that passed last year in Congress. So at this moment, actually, this 30% tax credit has become even a simpler way for our customers to take advantage of, and we have been discussing with many of our customers on this, and they agree on this point. So it has actually been an improvement on the tax credit process for our customers.

Shri Palmaghiri: Very interesting. Hey. Thanks again.

Jose Luis Crespo: No. Thank you.

Operator: Thank you. Next question is coming from Sameer S. Joshi from H.C. Wainwright. Your line is now live.

Sameer S. Joshi: Hey. Good afternoon. Good evening. Thanks for taking my questions. Hey. Congrats on the new role, officially the new role.

Jose Luis Crespo: Thank you.

Sameer S. Joshi: So I think I just wanted to focus on two broad categories on revenues. From material handling, are we looking to add additional pedestal customers just like the flooring company that was at the symposium? And then on the electrolyzer front, there is an 8 gigawatt pipeline that you spoke about. How is that planned to be converted into orders?

Jose Luis Crespo: Thank you, Sameer. On the material handling side, we are talking to many new potential customers. I think we are going to see new customers being signed, and some of them, like you mentioned, Floor and Decor, can be multi-site or what we call pedestal customers. So there is an open door for new pedestal customers in 2026 and beyond. On the $8 billion funnel for electrolyzers, we continue working with many of the companies that we have in that funnel towards the final investment decision.

What we are seeing in many cases is, especially in the European market—but also, as I said, we are going to see some new opportunities closing in Australia, and we closed the opportunity in the UK with Carlton Power and Schroder at the end of last year that will be executed this year. What we are seeing in the European market is that the RED III regulation is being converted into law in many of the countries in Europe, which requires, especially for the transportation sector, a certain percentage of the hydrogen used for transportation purposes, including refineries, to convert to green hydrogen at a rate of about 1% by 2030.

This means that refineries like BP or GALP or other refineries in Europe are looking to ways to meet those requirements, and this is what is at least accelerating the investment decision in many of these. What we are going to see is, in the next 12 to 24 months, as the mandate becomes law, we are going to see these projects come into fruition. We are expecting to take a fair share of that funnel. So that is the timeline that I am looking at right now for conversion of the funnel.

Sameer S. Joshi: Thanks for that color. And then on the margin front, on the success on bringing margins down, especially on the services and also on the equipment. On the equipment sales going forward, should we see Q1 positive gross margins, or because of lower revenues expected seasonally, margins will be still in sort of negative teens? For equipment.

Paul B. Middleton: Yeah, Sameer. Hey, bud. It is Paul. I would say you just look at it mathematically with how Q1 typically is in relation to our annual sales on a seasonality standpoint, and you kind of apply that to the math that Jose shared with looking at sales projections this year. I think you would see sequentially it is coming down from Q4. It should be probably better than in that range of that same percentage from last year’s Q1, but just sequentially, with the lower volume, equipment really is tied to leverage, and most of it is just timing of those sales. Without that incremental volume in the quarter, comparatively speaking, it is definitely going to affect margin.

So you will probably see a bit of a dip on the absolute and on the equipment margin in particular. But there are some favorable events. All the rooftop consolidations, all the things we have been doing last year, that plays well in terms of mitigating some of that. So on the whole, yes, but probably directionally certainly better than Q1 last year. You are going to see progress both on sales and margin year over year on each quarter. If you look at one-third of the sales happening in the first half of the year and two-thirds in the second half, a lot of it is tied to volume.

And when you look at what we have talked about for Q4 in particular—getting to that EBITDAS positive range with kind of a $300 million sales prox—it just gives you a tone of how that might play for the year. Hopefully that helps.

Sameer S. Joshi: Yeah. No. That is really helpful. And I wanted to reconfirm that you are still targeting—or from where you sit right now, you still are seeing—two-thirds of the build in the second half, right?

Jose Luis Crespo: Yes. Yes.

Sameer S. Joshi: Got it. Okay. Thanks a lot for taking my questions.

Operator: Thank you. Next question is coming from Chris Sung from Wolfe Research. Your line is now live.

Chris Sung: Hey, guys. Good afternoon. Congrats. Hey. Congrats, Jose, on first day on the job.

Jose Luis Crespo: Thank you.

Chris Sung: Most of my questions have already been asked. But I guess if you are to just provide some sort of guidance on your outlook for 2026, are you able to share the segment mix you are assuming across materials handling, electrolyzers, fueling, etc.?

Jose Luis Crespo: It is going to be similar to what we have seen in 2025. Probably we are talking material handling would be in the 30% to 40% of revenues, and then you are going to see a similar amount, probably a little bit less, on electrolyzers. And then the rest is going to be our fuel and cryo business. So kind of the mix that we are going to see is still going to be the largest revenue generator for the company in 2026.

Chris Sung: Right. That makes sense. And just to follow up on one of your responses earlier, about 80% of 2026 kind of firm or high confidence, and the other 20%—is the right way to think about that the 20% are external factors for customers that need to hit specific milestones or outside of your control, or how do you think about that?

Jose Luis Crespo: That 20% is projects that we are in the process of closing right now. Probably we are looking into closing them in the next few months. That will secure the revenue for 2026. The other 77% to 80% is what I calculated that we have in high probability—projects that we either have a firm commitment from the customer or it is being finalized. So that 20% is projects that are right now being negotiated, and we are expecting to close them within the year to be able to realize revenue within the year as well.

Chris Sung: Alright. Great. I will turn it over. Congrats again on the nice quarter.

Jose Luis Crespo: Thank you.

Operator: Thank you. Next question today is coming from Amit Bhakar from BMO Capital Markets. Your line is now live. Amit, perhaps your phone is on mute. Please pick up your handset.

Amit Bhakar: Hi, good evening. Thanks for squeezing me in. Just one quick one for us. Hey, Jose, and congrats. You mentioned momentum and growing with your existing pedestal customers. One of your larger pedestal customers, Walmart, you executed a license agreement with them earlier in this year. I was just wondering, with your larger pedestal customers, to the extent they want to add more sites with you, do you anticipate executing similar agreements with them before doing so throughout 2026? Thanks.

Jose Luis Crespo: Are you referring to the licensing agreement? No. That was a very specific agreement with Walmart that we executed, an agreement that actually will help us to continue building and growing with Walmart, but I am not expecting any similar agreements with any other customers in 2026.

Amit Bhakar: Okay. And just maybe one quick follow-up on a different topic. I know Mueve in Spain and Andalusia kind of greenlit a very large electrolyzer project today. I was just wondering if you guys have any kind of role in that project while I have you. Thanks.

Jose Luis Crespo: No. That was a project that was announced earlier in 2024. So it has been a project that has been out there for a while. It seems like it went FID today. And as far as I know—and I will have to kind of look at that—it is an alkaline project. It is a 300 megawatt alkaline project, and we are not part of that project. We are talking to refineries in Spain about other projects as well, but that project in particular is a 2024 project that seems to be going FID at this moment.

I think it is good news in terms of the conversion that we are going to start seeing, as I was saying before, of projects to FID. These are projects that have been hanging for the last 24 months, but now they are coming to fruition. This is what we are expecting to see in the near future with the projects that we have in our funnels.

Amit Bhakar: Great. Thank you.

Operator: Thank you. We have reached the end of our question-and-answer session. I would like to turn the call back over to Jose Luis Crespo for any further or closing comments.

Jose Luis Crespo: Thank you, everyone, for the thoughtful questions and for your continued engagement and for joining us on my first earnings call as CEO. Let me leave you with this. 2025 marked a structural turning point for Plug Power Inc. We demonstrated that we can grow revenue while restoring margin discipline, and that combination matters. In 2026, our focus and targets are clear: execute with discipline, reduce cash usage, and deliver EBITDAS positive in the fourth quarter. The foundation is in place, the cost structure is improving, and the demand drivers are strengthening. We really appreciate your support and look forward to updating you on our progress next quarter.

And also, on Friday, I am going to be closing the bell at Nasdaq, so you can go to our website, and you are going to have a link to see me and a big part of the Plug Power Inc. team that has made the results this year in 2025 possible, closing the bell with me. Thank you, everyone. Really appreciate your time.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

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