Q4 2025 Plug Power Inc Earnings Call

March 2, 2026

Operator: Greetings, and welcome to the Plug Power Q4 and Year-End 2025 Earnings Conference Call and Webcast. At this time, all participants are in listen only mode. A question and answer session will follow the formal presentation. You may be placed in the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Teal Hoyos, Vice President, Marketing and Communications. Please go ahead, Teal.

Speaker #2: A question-and-answer session will follow. You may be placed in the question queue at any time by pressing *1 on your telephone keypad. As a reminder, this conference is being recorded.

Operator: You may be placed in the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Teal Hoyos, Vice President, Marketing and Communications. Please go ahead, Teal.

Speaker #2: It's now my pleasure to turn the call over to Teal Hoyos, Vice President, Marketing and Communications. Please go ahead, Teal. Thank you. Welcome to the 2025 fourth quarter earnings call.

Teal Vivacqua Hoyos: Thank you. Welcome to the 2025 Q4 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.

Speaker #2: 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.

Speaker #2: 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.

Teal Vivacqua Hoyos: 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.

Speaker #2: 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.

Speaker #2: 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 10K for the fiscal year ending December 31, 2024, or quarterly reports on Form 10Q for the quarters ending March 31, 2025, June 30, 2025, and September 31, 2025.

Teal Vivacqua Hoyos: 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 31 December 2024, or quarterly reports on Form 10-Q for the quarters ended 31 March 2025, 30 June 2025, and 31 September 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 the 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's new CEO, Jose Luis Crespo.

Speaker #2: 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 the 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.

Teal Vivacqua Hoyos: These forward-looking statements speak only as of the day in which the 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's new CEO, Jose Luis Crespo.

Speaker #2: At this point, I would like to turn the call over to PLUG POWER's new CEO, Jose Luis Crespo. Good afternoon, everyone, and thank you for joining us.

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 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.

Speaker #2: 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.

Speaker #2: Andy led this company for almost 20 years with vision and determination, building Plug into a global leader in the green hydrogen ecosystem. That is a platform few CEOs are fortunate to inherit.

Speaker #2: 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 an executing on its strategy.

Jose Luis Crespo: 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.

Speaker #2: I deeply understand both the opportunity in front of us and the discipline required to realize it. We entered 2025 focused on this objective. Grow the top line; improve margins; targeting margin-neutral in Q4; reduce cash usage; expand hydrogen production including commissioning the Louisiana plant; all while strengthening liquidity.

Jose Luis Crespo: We entered 2025 focused on these objectives: grow the top line, improve margins, targeting margin neutral in Q4, reduce cash usage, expand hydrogen production, including commissioning the Louisiana plant, all while strengthening liquidity. We deliver against those objectives. In 2025, we achieved approximately 30% revenue growth while turning gross positive margin in Q4. Gross margin improved by 125 percentage points from -122.5% in Q4 2024 to +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 team. 2025 was a defining year for Plug.

Speaker #2: We deliver against those objectives. In 2025, we achieve approximately 30% revenue growth while turning gross positive margin in the fourth quarter. Gross margin improved by 125% points from negative 122.5% in Q4 2024 to positive 2.4% in Q4 2025.

Jose Luis Crespo: Gross margin improved by 125 percentage points from -122.5% in Q4 2024 to +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 team. 2025 was a defining year for Plug.

Speaker #2: A 125% point improvement in gross margin is a meaningful milestone in strengthening our operating performance. The results we deliver were not accidental. They reflect ambition paired with discipline, focused execution, and the hard work of the entire PLUG team.

Speaker #2: 2025 was a defining year for PLUG. 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.

Jose Luis Crespo: In a highly uncertain macroeconomic environment, we grew revenue at double-digit rates and achieved positive margin. A combination 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 remain 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 conditions have emerged. The reinstatement of the Investment Tax Credit in January, combined with increased demand from pedestal customers such as Amazon and Walmart, position us for renewed growth in this segment.

Speaker #2: 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.

Speaker #2: 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.

Jose Luis Crespo: In 2026, our focus remain 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 conditions have emerged. The reinstatement of the Investment Tax Credit in January, combined with increased demand from pedestal customers such as Amazon and Walmart, position us for renewed growth in this segment.

Speaker #2: In material handling, favorable conditions have emerged. The rain statement 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.

Speaker #2: 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.

Jose Luis Crespo: 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 MW of our GenEco electrolyzers globally and are now deployed on six continents, demonstrating significant operating experience across multiple markets. In 2025, we deliver equipment for major projects, including a 25 MW project with Iberdrola and bp in Spain and a 100 MW project with Galp in Portugal, resulting in a record $188 million in electrolyzer revenue. Europe regulatory mandates unfunded incentive programs provide a 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.

Speaker #2: Today, the company has shipped over 300 megawatts of our GENCO electrolyzers globally and are now deployed on six continents, demonstrating significant operating experience across multiple markets.

Jose Luis Crespo: Today, the company has shipped over 300 MW of our GenEco electrolyzers globally and are now deployed on six continents, demonstrating significant operating experience across multiple markets. In 2025, we deliver equipment for major projects, including a 25 MW project with Iberdrola and bp in Spain and a 100 MW project with Galp in Portugal, resulting in a record $188 million in electrolyzer revenue.

Speaker #2: In 2025, we deliver equipment for major projects, including a 25-megawatt project with Iberdrola MVP in Spain, and a 100-megawatt project with GALP in Portugal, resulting in a record 188 million in electrolyzer revenue.

Jose Luis Crespo: Europe regulatory mandates unfunded incentive programs provide a 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.

Speaker #2: Europe regulatory mandates and funded incentive programs provide structural support for hydrogen adoption. With this significant opportunity, in refinery decarbonization, and in the production of e-methane, e-methanol, synthetic jet fuel, and ammonia.

Speaker #2: We estimate that meeting European mandates just for transportation could require four to six gigawatts of electrolyzer capacity by 2030, and we intend to compete for a meaningful portion of that opportunity.

Jose Luis Crespo: We estimate that meeting European mandates just for transportation could require 4 to 6 GW of electrolyzer capacity by 2030, 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's long-term growth. In 2026, we expect to begin executing projects with Carlton and Schroders in the UK, we will continue progressing with Allied Green Ammonia towards FID on the 3 GW project in Australia and the 2 GW project in Uzbekistan. As an example of the activity in the market, over the last two months, we executed 750 MW of new basic engineering design packages agreements. In 2026, we expect to see full year benefit of the Quantum Leap initiatives launched in 2025.

Speaker #2: We remain focused on converting as much as possible of our approximately $8 billion electrolyzer funnel into revenue-generating projects that will support Plug's long-term growth.

Jose Luis Crespo: In 2026, we expect to begin executing projects with Carlton and Schroders in the UK, we will continue progressing with Allied Green Ammonia towards FID on the 3 GW project in Australia and the 2 GW project in Uzbekistan. As an example of the activity in the market, over the last two months, we executed 750 MW of new basic engineering design packages agreements. In 2026, we expect to see full year benefit of the Quantum Leap initiatives launched in 2025.

Speaker #2: In 2026, we expect to begin executing projects with Carlton and Schroders 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.

Speaker #2: 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.

Speaker #2: In 2026, we expect to see the 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.

Jose Luis Crespo: 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 EBITDA in Q4 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 the first half of 2026, we believe we are well positioned to support our operation plans through 2026. In conclusion, we continue our journey towards profitability.

Speaker #2: Together, with revenue growth, these actions position us to achieve positive EBITDAs in the fourth quarter of 2026 consistent with our previously stated targets. We also intend to continue reducing cash usage in 2026.

Jose Luis Crespo: 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 the first half of 2026, we believe we are well positioned to support our operation plans through 2026. In conclusion, we continue our journey towards profitability.

Speaker #2: 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 the first half of 2026, we believe we are well positioned to support our operation plans through 2026.

Speaker #2: 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.

Jose Luis Crespo: 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 EBITDA in Q4 2026, a milestone within our roadmap towards positive operating income in 2027 and full profitability in 2028. With that, I will now turn the call over to Paul for a detailed review of the Q4 and full year financial results. Paul.

Jose Luis Crespo: 2026 will be about continued sales growth and advancing the financial milestones outlined in our roadmap, including our target of achieving positive EBITDA in Q4 2026, a milestone within our roadmap towards positive operating income in 2027 and full profitability in 2028. With that, I will now turn the call over to Paul for a detailed review of the Q4 and full year financial results. Paul.

Speaker #2: 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.

Speaker #2: With that, I will now turn the call over to Paul for a detailed review of the fourth quarter and full-year financial results. Paul. Thanks a lot, Jose.

[Company Representative] (Plug Power): 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 2 years to optimize and scale the investments we have made. We've made a conscious effort to really focus on margin and cash flow improvement. 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 over a little over a year ago. Ramping our hydrogen platform through our 3 facilities, including Louisiana, that was turned on and scaled up this year. Scaling sales volume as increased sales provides tremendous incremental overhead leverage. Continued discipline and scrutiny over discretionary spending.

Paul 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 2 years to optimize and scale the investments we have made.

Speaker #2: Louise. 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.

Speaker #2: We've 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.

Paul Middleton: We've made a conscious effort to really focus on margin and cash flow improvement. 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 over a little over a year ago.

Speaker #2: More specifically, in Q4, the results benefited from significant improvements in the unit service costs, achieving rates almost half of what they were over a little over a year ago.

Speaker #2: Ramping our hydrogen platform through our three facilities including Louisiana, that was turned on and scaled up this year. Scaling sales volume has increased sales provides tremendous incremental overhead leverage.

Paul Middleton: Ramping our hydrogen platform through our 3 facilities, including Louisiana, that was turned on and scaled up this year. Scaling sales volume as increased sales provides tremendous incremental overhead leverage. Continued discipline and scrutiny over discretionary spending.

Speaker #2: 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.

[Company Representative] (Plug Power): 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. 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 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 and drive even more leverage as we grow sales. We anticipate continued improvement, 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 of resources.

Paul Middleton: 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. 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 clear focus on reducing our OpEx resource investment.

Speaker #2: 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, and leveraging our hydrogen platform.

Speaker #2: And clear focus on reducing our OPEX resource investment. We expect 2026 to include a full year of benefits from these activities undertaken last year.

Paul Middleton: 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 and drive even more leverage as we grow sales.

Speaker #2: In addition, we see significant upside to continue this optimization effort and drive even more leverage as we grow sales. We anticipate continued improvement, incremental leverage from growth and 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.

Paul Middleton: We anticipate continued improvement, 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 of resources.

Speaker #2: We continue to be laser-focused on driving growth and margins and cash flows in the near term and achieving our Q4 goal of positive EBITDAs. Despite the progress we've made, as conveyed in our filing, we determined it was prudent for PLUG to record a net $763 million in various charges, associated predominantly with non-cash charges for asset impairments and the capital transactions we undertook in Q4.

[Company Representative] (Plug Power): We continue to be laser focused on driving growth in margins and cash flows and 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 to record net $763 million in various charges associated predominantly with non-cash charges for asset impairments and the capital transactions we undertook in Q4. The impairment charges stem from multiple factors, including overall market conditions resulting in slower growth than anticipated for certain products. In terms of impairments, this relates to property, plant, and equipment, tangible assets, and assets associated with power purchase agreements and fuel. As a result of these impairments, it will reduce our future amortization depreciation 2026 and onward.

Paul Middleton: We continue to be laser focused on driving growth in margins and cash flows and 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 to record net $763 million in various charges associated predominantly with non-cash charges for asset impairments and the capital transactions we undertook in Q4.

Speaker #2: The impairment charges stem from multiple factors, including overall market conditions resulting in slower growth than anticipated for certain products. In terms of the impairments, this relates to property, plant, and equipment, and tangible assets.

Paul Middleton: The impairment charges stem from multiple factors, including overall market conditions resulting in slower growth than anticipated for certain products. In terms of impairments, this relates to property, plant, and equipment, tangible assets, and assets associated with power purchase agreements and fuel. As a result of these impairments, it will reduce our future amortization depreciation 2026 and onward.

Speaker #2: And assets associated with power purchase agreements and fuel. As a result of these impairments, it will reduce our future amortization and depreciation in '26 and onward.

Speaker #2: 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.

[Company Representative] (Plug Power): In terms of liquidity, as José 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. We have also significantly curtailed our CapEx expenses, and we believe we have the platform we need to deliver our financial goals, so we anticipate even lower CapEx rates in 2026. These factors, coupled with the focus on improvement in margins 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.

Paul Middleton: In terms of liquidity, as José 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.

Speaker #2: We have an effectively unleveraged balance sheet given our debt restructuring we undertook, which also lowered our cost of capital and extended the maturity. We have also significantly curtailed our CAPEX expenses, and we believe we have the platform we need to deliver our financial goals.

Paul Middleton: We have an effectively unleveraged balance sheet given our debt restructuring we undertook, which also lowered our cost of capital and extended the maturity. We have also significantly curtailed our CapEx expenses, and we believe we have the platform we need to deliver our financial goals, so we anticipate even lower CapEx rates in 2026.

Speaker #2: So, we anticipate even lower CAPEX rates in 2026. These factors, coupled with the focus on improvement in margins 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.

Paul Middleton: These factors, coupled with the focus on improvement in margins 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.

Speaker #2: GAAP EPS for Q4 '25 was 63 cents negative compared to GAAP EPS of negative one dollar and 48 cents for Q4 '24. But if we exclude the unusual charges in each period, adjusted EPS for Q4 '25 was negative six cents, versus adjusted EPS for Q4 '24 of negative 29 cents.

[Company Representative] (Plug Power): GAAP EPS for Q4 2025 was $0.63 negative compared to GAAP EPS of negative $1.48 for Q4 2024. 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 in just another illustration of how operationally the company is making progress holistically in growing overall sales and margin profiles. I'll now turn the call back over to Jose Luis.

Paul Middleton: GAAP EPS for Q4 2025 was $0.63 negative compared to GAAP EPS of negative $1.48 for Q4 2024. 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 in just another illustration of how operationally the company is making progress holistically in growing overall sales and margin profiles. I'll now turn the call back over to Jose Luis.

Speaker #2: And the progression in this is just another illustration of how, operationally, the company is making progress holistically and growing overall sales and margin profiles.

Speaker #2: I'll now turn the call back over to Jose Luis.

Speaker #3: Thank you, Paul. We will now open the call for questions.

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

Speaker #4: Thank you. And I'll be conducting a question-and-answer session. If you'd like to be placed in the question queue, please press star one on your telephone keypad.

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

Speaker #4: We ask you to please ask one question in one follow-up, then return to the queue. Once again, it's star one to be placed in the question queue, and if you'd like to remove your question from the queue, please press star two.

Operator: Once again, that's star one to be placed in the question queue. If you'd like to remove your question from the queue, please press star two. A confirmation tone will indicate your line is in the question queue when you press star one. Our first question today is coming from Colin Rusch from Oppenheimer. Your line is now live.

Speaker #4: A confirmation tone will indicate your line is in the question queue. When you press star one. Our first question today is coming from Colin Rush from Oppenheimer.

Speaker #4: Your line is now live.

Speaker #5: 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?

Colin Rusch: Guys, congratulations on the progress here. 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're talking about kind of low double-digit growth overall. I'm just curious if there's one part of the product business that's actually making an outsized impact on that growth.

Speaker #5: It looks like you're talking about kind of low double-digit growth overall. I'm just curious if there's one part of the product business that's actually making an outsized impact on that growth.

Speaker #3: Hi, Colin. How are you? And 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.

Jose Luis Crespo: Hi, Colin. How are you? For 2026, as I mentioned, we are projecting similar growth as we saw in 2025, the main drivers for that growth are gonna be material handling. What we're seeing in material handling is, our pedestal customers are going back to growth. We're also seeing refreshes. Some of the sites that we have with some of the pedestal customers are, sites that have been running between 5 and 6, 7 years. Time to refresh. We see an uptick on that. We also see new customers. As you know, we signed Floor & Decor last year, we see other customers coming, you know, online in 2026. The value proposition is just getting stronger, I think we mentioned this during the symposium.

Speaker #3: What we're seeing in material handling is our pedestal customers are going back to growth. We're also seeing refreshes. Some of the sites that we have with some of the pedestal customers are sites that have been running between 5 and 6, 7 years, time to refresh.

Jose Luis Crespo: We're also seeing refreshes. Some of the sites that we have with some of the pedestal customers are, sites that have been running between 5 and 6, 7 years. Time to refresh. We see an uptick on that. We also see new customers. As you know, we signed Floor & Decor last year, we see other customers coming, you know, online in 2026. The value proposition is just getting stronger, I think we mentioned this during the symposium.

Speaker #3: So we see an uptick on that. We also see new customers. As you know, we signed Floor & Decor last year, but we see other customers coming online in 2026.

Speaker #3: And also, the value proposition is just getting stronger. When—and 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.

Jose Luis Crespo: 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 that utility and electricity availability is becoming more challenging. That's not the only area that we're gonna 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 that 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 are beginning to move farther into FID.

Speaker #3: Which is really valuable for customers in days where we all know that utility and electricity availability is becoming more challenging. But that's not the only area that we're going to see growth.

Speaker #3: 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.

Jose Luis Crespo: We just signed at the end of 2025, we announced that 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 are beginning to move farther into FID. We are expecting to see also growth in the electrolyzer business. Those are gonna be the two main drivers for growth in 2026.

Speaker #3: And we are looking at, in the next couple of months or so, signing a similar agreement for another project in Australia. A lot of the projects that we have in the funnel are beginning to move farther into FID.

Speaker #3: So we are expecting to see also growth in the electrolyzer business. So those are going to be the two main drivers for growth in 2026.

Jose Luis Crespo: We are expecting to see also growth in the electrolyzer business. Those are gonna be the two main drivers for growth in 2026.

Speaker #5: Excellent. And guys, when you look at the fuel margins and the cost of that fuel, I know you're getting better at optimizing some of the production.

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

Speaker #5: Production costs and timing around that. But I'm just curious about how quickly you can start driving some of those margins closer to breakeven on the fuel side.

Speaker #3: Yeah, thanks, Colin. I think, just to be clarified, if we kind of look back and we think about some of the things we've done—I mean, obviously, turning on these three plants and vertically integrating—puts us in a great position.

[Company Representative] (Plug Power): Yeah, thanks, Colin. you know, I think just to clarify, if we kind of look back and we think about some of the things we've done, I mean, obviously turning on these three plants and vertically integrating puts us in a great position. we've seen that in the benefits in our results. We see that continuing to trend upwards. you know, we've 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. we've seen a progression in the utilization and efficiency of the newer plant, Louisiana, as we've turned that on this year and scaled that up.

Paul Middleton: Yeah, thanks, Colin. you know, I think just to clarify, if we kind of look back and we think about some of the things we've done, I mean, obviously turning on these three plants and vertically integrating puts us in a great position. we've seen that in the benefits in our results.

Speaker #3: And we've seen that and the benefits. And our results we see that continuing to trend upwards. We've been on this maturity curve of optimizing those facilities.

Paul Middleton: We see that continuing to trend upwards. you know, we've 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. we've seen a progression in the utilization and efficiency of the newer plant, Louisiana, as we've turned that on this year and scaled that up.

Speaker #3: We hit all-time records in the Georgia plant for many of the months in 2025. And we've seen a progression in the utilization and efficiency of the newer plant, Louisiana, as we've turned that on this year and scaled that up.

Speaker #3: So, one thing we expect for 2026 is obviously better leverage on those facilities, now that we can take those learnings and run those plants even more efficiently.

[Company Representative] (Plug Power): One thing we expect for 2026 is obviously better leverage on those facilities now that we've, you know, can take those learnings and run those plants even more efficiently. Second thing is, obviously, we're adding, as Jose mentioned, more sites, you know, more material handling customers, and a lot of that we're gonna feed through those plants, and so you get greater volume leverage, which is important. We've shown progression in our, you know, logistics network and how we can drive greater efficiency through that.

Paul Middleton: One thing we expect for 2026 is obviously better leverage on those facilities now that we've, you know, can take those learnings and run those plants even more efficiently. Second thing is, obviously, we're adding, as Jose mentioned, more sites, you know, more material handling customers, and a lot of that we're gonna feed through those plants, and so you get greater volume leverage, which is important.

Speaker #3: Second thing is, obviously, we're adding as Jose mentioned, more sites. More material handling customers. And a lot of that we're going to feed through those plants until you get greater volume leverage, which is important.

Paul Middleton: We've shown progression in our, you know, logistics network and how we can drive greater efficiency through that. The last one of the other challenges we've been focused on and really made tremendous progress is the efficiencies at the site in terms of how the systems offer, the recapture the gas, how do you make sure that you minimize any loss of the molecule through the system.

Speaker #3: We've shown progression in our logistics network and how we can drive greater efficiency through that. And then lastly, one of the other challenges that we've been focused on—and really made tremendous progress—is the efficiencies at the sites in terms of how the systems operate, the recapture of the gas, and how you make sure that you minimize any losses of the molecule through the system.

[Company Representative] (Plug Power): The last one of the other challenges we've been focused on and really made tremendous progress is the efficiencies at the site in terms of how the systems offer, the recapture the gas, how do you make sure that you minimize any loss of the molecule through the system. The combination of those things, coupled with the new agreement we signed with the third party gas company last year that's reduced prices but also put us on a platform of working with them to optimize the network with, you know, which sites are sourced from which plants. All of those factors are what's been driving improvement and gonna see additional improvement this year. I think we're gonna directionally be moving there as we progress through the year.

Speaker #3: So the combination of those things, coupled with the new agreement we signed with the third-party gas company last year that's reduced prices, but also put us on a platform of working with them to optimize the network with which sites to source from which plants.

Paul Middleton: The combination of those things, coupled with the new agreement we signed with the third party gas company last year that's reduced prices but also put us on a platform of working with them to optimize the network with, you know, which sites are sourced from which plants. All of those factors are what's been driving improvement and gonna see additional improvement this year. I think we're gonna directionally be moving there as we progress through the year.

Speaker #3: All of those factors are what’s been driving improvement and are going to see additional improvement this year. So I think we're going to, directionally, be moving there as we progress through the year.

[Company Representative] (Plug Power): you know, part of it will be tied to, you know, what the timing of turning on some of these volume and getting additional leverage out of those facilities as the year progresses. you know, we have been, and we expect that we're gonna continue to move in the right direction in that, in that regard through the course of the year.

Speaker #3: And part of it will be tied to the timing of turning on some of these volume and getting additional leverage out of those facilities as the year progresses.

Paul Middleton: You know, part of it will be tied to, you know, what the timing of turning on some of these volume and getting additional leverage out of those facilities as the year progresses. you know, we have been, and we expect that we're gonna continue to move in the right direction in that, in that regard through the course of the year.

Speaker #3: But we expect that where we have been, and we expect that we're going to continue to move in the right direction in that regard through the course of the year.

Speaker #5: Excellent. Thanks so much, guys.

Colin Rusch: Excellent. Thanks so much, guys.

Speaker #3: Thank you.

Jose Luis Crespo: Thank you.

Speaker #4: Thank you. Next question today is coming from Craig Irwin from Ross Capital Partners. Your line is now live.

Operator: Thank you. 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. First one I wanted to ask about is just an update on the cash needs this year. You guys did a great job last year, $368 million in unrestricted cash, like, something in the year. You know, you got your cash burn, you know, down dramatically year-over-year. You know, you've put in place the $275 in asset sales. You're obviously continuing to execute on the restricted cash for your PPAs, your historical PPAs as those roll off.

Speaker #6: 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.

Speaker #6: So you guys did a great job last year, 368 million in restricted in unrestricted cash exiting the year. You got your cash burn down dramatically year over year.

Craig Irwin: You know, you got your cash burn, you know, down dramatically year-over-year. You know, you've put in place the $275 in asset sales. You're obviously continuing to execute on the restricted cash for your PPAs, your historical PPAs as those roll off.

Speaker #6: You've put in place the 275 in asset sales. You're obviously continuing to execute on the restricted cash for your PPAs, your historical PPAs, as those roll off.

Speaker #6: 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 don't have some of these big construction projects, and that you've taken all these other steps to put in place?

Craig Irwin: 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 don't have some of these big construction projects and that you've taken all these other steps to put in place, you know, the actions to get to positive EBITDA?

Speaker #6: The actions to get to positive EBITDA.

Speaker #3: Thank you for the question, Craig. Paul, do you want to cover that?

Jose Luis Crespo: Thank you for the question, Craig. Paul, do you wanna go with that?

Speaker #4: Yeah. Thanks, Craig. And good to hear from you, man. A couple of things. One, if you look at the progression the last couple of years, just in the improvements in margin and just overall profitability and how that's been playing, as well as our leverage of our working capital, you've seen the reduction in operating cash flows and cash burn in general.

[Company Representative] (Plug Power): Yeah. Thanks, Craig, good to hear from you, man. A couple things. One, if you look at the progression the last couple years, you know, just in the improvements in margin and overall profitability and how that's been playing as well as our leverage of our working capital, you've seen, you know, there's a reduction in operating cash flows and cash burn in general. You've also seen a big reduction in the CapEx. I mean, I think if you look at the Q4 rates, you know, they have one of the lowest CapEx rates we've had in a long time.

Paul Middleton: Yeah. Thanks, Craig, good to hear from you, man. A couple things. One, if you look at the progression the last couple years, you know, just in the improvements in margin and overall profitability and how that's been playing as well as our leverage of our working capital, you've seen, you know, there's a reduction in operating cash flows and cash burn in general.

Speaker #4: You've also seen a big reduction in the CapEx. I mean, I think if you look at the Q4 rates, they're one of the lowest CapEx rates we've had in a long time.

Paul Middleton: You've also seen a big reduction in the CapEx. I mean, I think if you look at the Q4 rates, you know, they have one of the lowest CapEx rates we've had in a long time. It postures us really well 'cause we expect, you know, certainly as we talk about our financial targets this year and getting to EBITDA, you know, breakeven to positive in Q4, you know, we expect a similar reduction, you know, in the cash burn as we've experienced the last couple years.

Speaker #4: So it postures us really well because we expect certainly as we talk about our financial targets this year and getting the EBITDAs breakeven to positive in Q4, we expect a similar reduction in the cash burn as we've experienced the last couple of years.

[Company Representative] (Plug Power): It postures us really well 'cause we expect, you know, certainly as we talk about our financial targets this year and getting to EBITDA, you know, breakeven to positive in Q4, you know, we expect a similar reduction, you know, in the cash burn as we've experienced the last couple years. If you just look at that mathematically coupled with a very, you know, nominal CapEx rate, it mathematically puts you in a position where, you know, the opening cash position we have is almost enough to cover it all. You know, obviously, the $275 puts us in a great position to fund the year.

Speaker #4: 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 puts us in a great position to fund the year.

Paul Middleton: If you just look at that mathematically coupled with a very, you know, nominal CapEx rate, it mathematically puts you in a position where, you know, the opening cash position we have is almost enough to cover it all. You know, obviously, the $275 puts us in a great position to fund the year.

[Company Representative] (Plug Power): You know, we sit today, and our working plan is that we've got more than adequate existing capital and access to that capital that's coming in through those projects to fund this year without needing incremental capital. I do have optionality. I have an unleveraged balance sheet. It's not my preference to go out and get debt. You know, now that we've restructured the debt, you know, I've got an incredibly low cost of capital structure in place right now in that 7% range. I'm in a good spot overall in terms of lots of other factors. There's other positive things that are happening like, you know, we've gotten past through some of the acquisitions and the earn-outs, and we've got some of those things behind us.

Speaker #4: So we sit more of that adequate existing capital and access to that capital that's coming in through those projects, to fund this year without needing an incremental capital.

Paul Middleton: You know, we sit today, and our working plan is that we've got more than adequate existing capital and access to that capital that's coming in through those projects to fund this year without needing incremental capital. I do have optionality. I have an unleveraged balance sheet. It's not my preference to go out and get debt.

Speaker #4: I do have optionality. I have an unleveraged balance sheet. And so it's not my preference to go out and get debt, but obviously, and now that we've restructured the debt, I've got an incredibly low cost of capital structure in place right now.

Paul Middleton: You know, now that we've restructured the debt, you know, I've got an incredibly low cost of capital structure in place right now in that 7% range. I'm in a good spot overall in terms of lots of other factors. There's other positive things that are happening like, you know, we've gotten past through some of the acquisitions and the earn-outs, and we've got some of those things behind us.

Speaker #4: And that 7% range. And so I'm in a good spot overall, in terms of lots of other factors. There are other positive things that are happening, like we've gotten past some of the acquisitions and the earnouts.

Speaker #4: And we've got some of those things behind us. We've really tempered the JV investments. A lot of things have just been very put us in a good position where just the overall cash needs have dropped substantially.

[Company Representative] (Plug Power): We've really tempered the JV investments. You know, a lot of things have just been very, put us in a good position where just the overall cash needs have dropped substantially. I guess in conclusion. You know, 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. As the, you know, volume grows in the second half when we convert those into collections and leverage even more inventory, it'll even be better in the second half. As we sit today, given the working capital position, you know, for me, EBITDA is kind of a proxy of cash flows. You could almost.

Paul Middleton: We've really tempered the JV investments. You know, a lot of things have just been very, put us in a good position where just the overall cash needs have dropped substantially. I guess in conclusion. You know, 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.

Speaker #4: So I guess in conclusion, and 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'll even be better in the second half.

Paul Middleton: As the, you know, volume grows in the second half when we convert those into collections and leverage even more inventory, it'll even be better in the second half. As we sit today, given the working capital position, you know, for me, EBITDA is kind of a proxy of cash flows. You could almost. I think there's a decent chance we might even get to, you know, break even to positive cash flows into Q4, not just the EBITDA's KPI as well. I think, hopefully, that helps, Craig.

Speaker #4: And as we sit today, given the working capital position, for me, EBITDAs is kind of a proxy of cash flows. So you could almost I think there's a decent chance we might even get to breakeven to positive cash flows in the Q4, not just the EBITDAs KPI as well.

[Company Representative] (Plug Power): I think there's a decent chance we might even get to, you know, break even to positive cash flows into Q4, not just the EBITDA's KPI as well. I think, hopefully, that helps, Craig.

Speaker #4: So, I think hopefully that helps, Craig.

Speaker #6: Fantastic. That's very helpful. So along the similar theme, right, your new project, new sales commitments that you're making today, are 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.

Craig Irwin: Fantastic. That's very helpful. Along the, a similar theme, right? Your new project, new sales commitments that you're making today are obviously made with a different discipline than you had in the market a few years ago with the pricing changes and, you know, the complete focus on profitability now at Plug. You know, can you maybe just give us a little bit more color on the 750MW new engineering design package agreements you signed in the quarter? Are customers paying for these engineering packages up front 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? You know, how do we look at these opportunities?

Speaker #6: Can you maybe just give us a little bit more color on the 750 megawatts and new engineering design package agreements you signed this quarter?

Craig Irwin: You know, can you maybe just give us a little bit more color on the 750MW new engineering design package agreements you signed in the quarter? Are customers paying for these engineering packages up front now?

Speaker #6: 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?

Craig Irwin: 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? You know, how do we look at these opportunities? Is this mostly a new set of customers, or has this got significant overlap with the existing customer base?

Speaker #6: How do we look at these opportunities? And is this mostly a new set of customers, or does this have significant overlap with the existing customer base?

Craig Irwin: Is this mostly a new set of customers, or has this got significant overlap with the existing customer base?

Speaker #3: Craig, thank you. I'm just going to clarify is focus on profitability through growth. So growth is a very important part of our strategy. And yes, the 750 megawatts of BDPs that we have signed and started working in the last few months, are all new projects.

Jose Luis Crespo: Craig, thank you. I, just gonna, you know, clarify is focused on profitability through growth. Growth is a very important part of our strategy. Yes, the 750 MW of VEDPs that we have signed and started working in the last few months are all new projects. Some projects are in North America. 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.

Speaker #3: 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.

Jose Luis Crespo: A couple of them are, at least at the moment, the FID timeline is into 2017. 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 VEDP for them. You can, you know, infer probably what the company is. That project is already pretty advanced, and what we're doing right now is basically doing a very quick VEDP, and that project has probabilities to be FID in 2026. A little bit of a different timeline for the different projects. All of them are in the next 12 to 24 months in the current planning for the FIDs.

Speaker #3: A couple of them are, at least at the moment. The FID timeline is into 2017, but there is one project where we are actually replacing an existing, prior electrolyzer company that is no longer going to be doing these projects, and they have picked us to do these BDP for them.

Speaker #3: You can infer probably what the company is. And that project is already pretty advanced, and what we're doing right now is basically doing a very quick BDP and that project has probabilities to be FID in 2026.

Jose Luis Crespo: That project is already pretty advanced, and what we're doing right now is basically doing a very quick VEDP, and that project has probabilities to be FID in 2026. A little bit of a different timeline for the different projects. All of them are in the next 12 to 24 months in the current planning for the FIDs.

Speaker #3: 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.

Speaker #6: Understood. Congratulations on the progress here. Thank you.

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

Speaker #3: Oh, thank you.

Jose Luis Crespo: No, thank you.

Speaker #4: Thank you. As a reminder, that's Star One to be placed in the question queue. Our next question is coming from Eric Stein from Craig Allen.

[Company Representative] (Plug Power): Thank you. As a reminder, that's star one to be placed into question queue. Our next question is coming from Eric Stine from Craig-Hallum. Your line is now live.

Operator: Thank you. As a reminder, that's star one to be placed into question queue. Our next question is coming from Eric Stine from Craig-Hallum. Your line is now live.

Speaker #4: Your line is now live.

Speaker #7: Hey, this is Luke on for Eric. Thanks for taking our questions. 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?

[Analyst] (Craig-Hallum Capital Group LLC): Hey, this is Luke on for Eric. Thanks for taking our question. 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?

[Analyst] (Craig-Hallum Capital Group): Hey, this is Luke on for Eric. Thanks for taking our question. 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?

Speaker #7: Should we expect to see further inroads there in 2026?

Speaker #3: Hi, Luke. Do you mean like the deployment or the development of the actual pipeline in the European market?

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

Speaker #7: Yeah. And just potential inroads that PLUG might be making there in 2026 and beyond.

[Analyst] (Craig-Hallum Capital Group LLC): Yeah, just potential inroads that Plug might be making there in 2026 and beyond.

[Analyst] (Craig-Hallum Capital Group): Yeah, just potential inroads that Plug might be making there in 2026 and beyond.

Speaker #3: So, if I understand the question correctly, the pipeline that you're referring to is in the Netherlands, which was announced a couple of years ago, and we're continuing to do the deployment in that pipeline.

Jose Luis Crespo: If I understand correctly the question, the pipeline that you're referring to is in the Netherlands, which it was announced 2 years ago that we're continuing to do the deployment in that pipeline. What Plug and in general, the industry benefits from is that having a pipeline allows us to basically have an offtaker for generation. What we see, for example, in the Netherlands, we have several projects that we are discussing of companies that are looking into generating to put into that pipeline in particular. It's a positive development in the industry, and it will help with projects going FID given that they can deliver hydrogen to that pipeline. Don't know if that answers your question, Luke.

Speaker #3: What PLUG and, in general, the industry benefits from is that having a pipeline allows us to basically have an uptake for generation. And what we see, for example, in the Netherlands, we have several projects that we are discussing of companies that are looking into generating to put into that pipeline in particular.

Jose Luis Crespo: What we see, for example, in the Netherlands, we have several projects that we are discussing of companies that are looking into generating to put into that pipeline in particular. It's a positive development in the industry, and it will help with projects going FID given that they can deliver hydrogen to that pipeline. Don't know if that answers your question, Luke.

Speaker #3: So it's a positive development in the industry, and it's it will help with projects going FID, given that they can deliver hydrogen to that pipeline.

Speaker #3: I don't know if that answers your question, Luke.

Speaker #7: No, I think so. That's helpful. Thanks for the color. And just as a quick follow-up here—so, just quickly on the data center opportunity, I mean, you pointed it out last quarter as having potential for hydrogen-based backup power, obviously framed as very early stages.

[Analyst] (Craig-Hallum Capital Group LLC): No, I think so. That's helpful. Thanks for the color. Just as a quick follow-up here, so just quickly on the data center opportunity, I mean, you pointed it out last quarter as having potential for hydrogen-based backup power, obviously framed as very early stages. Just wondering if you had any updated thoughts on potential use cases in this market. Thanks.

[Analyst] (Craig-Hallum Capital Group): No, I think so. That's helpful. Thanks for the color. Just as a quick follow-up here, so just quickly on the data center opportunity, I mean, you pointed it out last quarter as having potential for hydrogen-based backup power, obviously framed as very early stages. Just wondering if you had any updated thoughts on potential use cases in this market. Thanks.

Speaker #7: Just wondering if you had any updated thoughts on potential use cases in this market. Thanks.

Speaker #3: 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.

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

Speaker #3: But open discussion on what we could use fuel cells for. So at this moment, we are concentrated in closing the deal. And in terms of applications, we're going to start discussing with them about what is stationary applications we could launch together once the deal is closed.

Jose Luis Crespo: At this moment, we are concentrated in closing the deal and in terms of applications, we're gonna start discussing with them about what stationary applications we could launch together once the deal is closed.

Speaker #7: Understood. Thank you.

[Analyst] (Craig-Hallum Capital Group LLC): Understood. Thank you.

[Analyst] (Craig-Hallum Capital Group): Understood. Thank you.

Speaker #3: You're welcome, Luke.

Jose Luis Crespo: You're welcome, Luke.

Speaker #7: Thank you. Next question today is coming from Jason Tilchin from Can Accord Junior. What are your line is now live?

[Company Representative] (Plug Power): Thank you. Next question today is coming from Jed Dorsheimer from Canaccord Genuity. Your line is now live.

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

Speaker #3: Good afternoon. Thanks for taking my question. With regard to material handling, I think on the last call you said this is a $14 billion opportunity overall.

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

Jed Dorsheimer: Good afternoon. Thanks for taking my question. With regards to material handling, I think on the last call you said this is a $14 billion opportunity, overall, and you've only really started to scratch the surface with this. Obviously, the price and availability of hydrogen is clearly a major gating factor.

Speaker #3: And you've only really started to scratch the surface with this. Obviously, the price and availability of hydrogen is clearly a major gaining factor. But I'm curious, beyond that, what are some of the other things within your control that the company can do to sort of help capture and incrementally greater share of that opportunity going forward?

Jed Dorsheimer: I'm curious, beyond that, what are some of the other things that within your control, that the company can do to sort of help capture an incrementally greater share of that opportunity going forward?

Speaker #6: Well, we're 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.

Jose Luis Crespo: Well, we're 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. For many of our customers, they need between one and two megawatts to power batteries if they use batteries in their distribution centers. When you use fuel cells, you open up that capacity for other uses or actually just, you know, to be able to reduce consumption and connection to the grid.

Speaker #6: 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.

Speaker #6: For many of our customers, they 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.

Jose Luis Crespo: For many of our customers, they need between one and two megawatts to power batteries if they use batteries in their distribution centers. When you use fuel cells, you open up that capacity for other uses or actually just, you know, to be able to reduce consumption and connection to the grid.

Speaker #6: 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.

Jose Luis Crespo: Those type of things are the type 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. We believe that, as time goes by, we will be able to unlock further markets within the material handling business.

Speaker #6: And we believe that, as time goes by, we will be able to unlock further markets within the material handling business.

Speaker #3: Great, that's very helpful. And one follow-up—in the release, you talked about launching multiple follow-on actions to continue reducing costs and improving cash flow in 2026. I'm wondering if you could share a little bit more about the specifics of some of those initiatives?

[Analyst] (Canaccord Genuity): Great. That's very helpful. One follow-up. In the release you talked about launching multiple follow-on actions to continue reducing costs and improving cash flow in 2026. Wondering if you could share a bit more about specifics of some of those initiatives.

Jed Dorsheimer: Great. That's very helpful. One follow-up. In the release you talked about launching multiple follow-on actions to continue reducing costs and improving cash flow in 2026. Wondering if you could share a bit more about specifics of some of those initiatives.

Speaker #6: Do you want to go over that, Paul?

Jose Luis Crespo: You wanna go with that, Paul?

Speaker #4: Yeah, I think we are constantly looking at things like our bill of materials or designs. We have opportunities to look at our manufacturing processes and think about how to streamline those.

[Company Representative] (Plug Power): Yeah. I think, you know, we are constantly looking at things like our bill of materials, our designs. You know, we have opportunities to look at our manufacturing processes and think about how to streamline those. You know, we're thinking about, you know, where we deliver from a distribution standpoint, a fabrication standpoint, our network for electrolyzers, as an example. You know, there's just, if you look at the last 10, 12 years, you know, the things that we've done and from looking at, you know, working with vendors on the supply cost to, you know, structures what we have with how we manage the supply chain to, you know, our manufacturing processes to, you know, even additional ways to optimize facilities.

Paul Middleton: Yeah. I think, you know, we are constantly looking at things like our bill of materials, our designs. You know, we have opportunities to look at our manufacturing processes and think about how to streamline those. You know, we're thinking about, you know, where we deliver from a distribution standpoint, a fabrication standpoint, our network for electrolyzers, as an example.

Speaker #4: We're thinking about how we where we deliver from a distribution standpoint, a fabrication standpoint, our network for electrolyzers as an example. There's just a if you look at the last 10, 12 years, the things that we've done and from looking at working with vendors on the supply cost to structures that we have with how we manage the supply chain to our manufacturing processes to even additional ways to optimize facilities as we continue to reduce inventory, we need less warehouses as an example.

Paul Middleton: You know, there's just, if you look at the last 10, 12 years, you know, the things that we've done and from looking at, you know, working with vendors on the supply cost to, you know, structures what we have with how we manage the supply chain to, you know, our manufacturing processes to, you know, even additional ways to optimize facilities.

[Company Representative] (Plug Power): As we continue to reduce inventory, we need less warehouses as an example. You know, we look at it holistically and there's, you know, we believe we're still very early in the curve of opportunities over the next couple of years. Those are just some of the examples and ideas of things that we have active efforts around. You know, we've had some very conscious efforts the last 2 years to deliver these specific targets and improvements, and we think that it's just, you know, themes that we can continue to optimize the overall company to continue driving the margin profile.

Paul Middleton: As we continue to reduce inventory, we need less warehouses as an example. You know, we look at it holistically and there's, you know, we believe we're still very early in the curve of opportunities over the next couple of years. Those are just some of the examples and ideas of things that we have active efforts around.

Speaker #4: So we look at it holistically and there's we just we believe we're still very early in the curve of opportunities over the next couple of years so those are just some of the examples and ideas of things that we have active efforts around.

Paul Middleton: You know, we've had some very conscious efforts the last 2 years to deliver these specific targets and improvements, and we think that it's just, you know, themes that we can continue to optimize the overall company to continue driving the margin profile.

Speaker #4: We've had some very conscious efforts the last two years to deliver these specific targets and improvements. And we think that it's just themes that we can continue to optimize the overall company to continue driving the margin profile.

Speaker #3: Great. Thank you very much.

[Analyst] (Canaccord Genuity): Great. Thank you very much.

Jed Dorsheimer: Great. Thank you very much.

Speaker #6: Thank you.

Jose Luis Crespo: Thank you.

Speaker #7: Thank you. Next question is coming from Chris Andrinos from RBC Capital Markets. Your line is now live.

[Company Representative] (Plug Power): Thank you. Next question is coming from Chris Dendrinos from RBC Capital Markets. Your line is now live.

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

Speaker #6: Yeah. Thank you. I'm just maybe just to echo the congratulations on the positive gross margins this quarter. Following up on the last question, the press release, I think, also says that you're potentially looking at other asset monetizations that have been impaired.

Chris Dendrinos: Yeah, thank you. Just, hi maybe just to echo the congratulations on the positive gross margins, this quarter.

Jose Luis Crespo: Thank you.

Chris Dendrinos: you know, following up on the last question, you know, the press release I think also says that you're potentially looking at other moni-asset monetizations that have been impaired. Can you maybe discuss what those might be potential, timelines on those opportunities? Thanks.

Speaker #6: Can you maybe discuss what those might be, and potential timelines on those opportunities? Thanks.

Jose Luis Crespo: Do you wanna-

[Company Representative] (Plug Power): Yeah. Well, let me say it this way, you know, if you think, if you go back the last couple years, the themes that we've been talking about, you know, and some of these markets, you know, haven't kind of developed as fast as we thought. From an accounting standpoint, you go through your accounting exercises, and it kind of, you know, you land on the conclusions of what you conclude in your forecast and so forth through, you know, that may or may not increase those impairments.

Paul Middleton: Yeah. Well, let me say it this way, you know, if you think, if you go back the last couple years, the themes that we've been talking about, you know, and some of these markets, you know, haven't kind of developed as fast as we thought.

Speaker #4: Yeah. Well, let me say it this way. If you think, if you go back to the last couple of years, the themes that we've been talking about—some of these markets haven't kind of developed as fast as we thought.

Speaker #4: And so from an accounting standpoint, you go through your accounting exercises and it kind of you land on a conclusions of what you conclude in your forecast and so forth to that may or may not create those impairments.

Paul Middleton: From an accounting standpoint, you go through your accounting exercises, and it kind of, you know, you land on the conclusions of what you conclude in your forecast and so forth through, you know, that may or may not increase those impairments.

Speaker #4: But we still we have incredible portfolio of assets and opportunities that we can either look for alternative ways to monetize it, like the data center sales, or we still have opportunities in the pipeline.

[Company Representative] (Plug Power): You know, we still have an incredible portfolio of assets and opportunities that we can either look for alternative ways to monetize it, like the data center sales, or we still have opportunities in the pipeline, you know, in these different markets that can manifest. You know, as they start to manifest, we really believe it's a question of when, you know? I mean, I don't think anybody doesn't believe markets like mobility and high power stationary, just to pick a few, aren't going to happen. It's just, you know, a question of when. As those things start to unfold, we still have all of these assets that we can really truly leverage.

Paul Middleton: You know, we still have an incredible portfolio of assets and opportunities that we can either look for alternative ways to monetize it, like the data center sales, or we still have opportunities in the pipeline, you know, in these different markets that can manifest. You know, as they start to manifest, we really believe it's a question of when, you know?

Speaker #4: In these different markets that can manifest. And as they start to manifest and we really believe it's a question of when. I mean, I don't think anybody doesn't believe markets like mobility and high power stationary just to pick a few aren't going to happen.

Paul Middleton: I mean, I don't think anybody doesn't believe markets like mobility and high power stationary, just to pick a few, aren't going to happen. It's just, you know, a question of when. As those things start to unfold, we still have all of these assets that we can really truly leverage.

Speaker #4: It's just a question of when. And so as those things start to unfold, we still have all of these assets that we can really truly leverage.

Speaker #4: And so it could be a combination of sales in those spaces or it could be a combination of alternative uses that we look at.

[Company Representative] (Plug Power): It could be a combination of, you know, sales in those spaces, or it could be a combination of alternative uses that we look at. You know, it happens. It's just one of the ways that we're really, you know, centering in with how do we get the best value out this big asset portfolio in the short term.

Paul Middleton: It could be a combination of, you know, sales in those spaces, or it could be a combination of alternative uses that we look at. You know, it happens. It's just one of the ways that we're really, you know, centering in with how do we get the best value out this big asset portfolio in the short term.

Speaker #4: So it happens, it’s just one of the ways that we’re really centering in with how do we get the best value out of this big asset portfolio in the short term.

Speaker #3: Got it. And then I guess maybe as a follow-up here, you've got the $8 billion pipeline. And just trying to think through maybe how much of this year's outlook is secured by that pipe or maybe what's in the backlog.

Chris Dendrinos: Got it. I guess maybe as a follow-up here, you know, you've got the $8 billion pipeline, and just trying to think through, you know, maybe how much of this year's outlook is secured by that pipe or maybe what's in the backlog, and just how you're thinking about, you know, I guess, overall kind of confidence in the year given kind of existing commitments. Thanks.

Speaker #3: And just how you’re thinking about, I guess, overall kind of confidence in the year, given kind of existing commitments. Thanks.

Speaker #6: So for the year, on the outlook that we just discussed, which it is a growth similar to what we saw in 2025, we have very high confidence of probably close to 80% of that revenue amount.

Jose Luis Crespo: For the year, on the outlook that we just discussed, which, it is a growth similar to what we saw in 2025, we have very high confidence of probably close to 80% of that revenue amount. Also high confidence that we would be able to close the additional 20%. Entering the year with that high backlog, if you wanna call it that way, it is a very good position to be able to project where we think we're gonna end the year. Obviously, you know, years advance as they go. At this moment, we feel pretty confident on the projection that we just gave on similar growth as 2025.

Speaker #6: 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, it is a very good position to be able to project where we think we're going to end the year.

Jose Luis Crespo: Entering the year with that high backlog, if you wanna call it that way, it is a very good position to be able to project where we think we're gonna end the year. Obviously, you know, years advance as they go. At this moment, we feel pretty confident on the projection that we just gave on similar growth as 2025.

Speaker #6: Obviously, years advance as they go. But at this moment, we feel pretty confident on the projection that we just gave of similar growth as 2025.

Speaker #3: Got it. Thank you.

Chris Dendrinos: Got it. Thank you.

Speaker #6: You're welcome.

Jose Luis Crespo: You're welcome.

Speaker #7: Thank you. Our next question today is coming from Shareef Al Mugrabi from BTIG. Your line is now live.

Operator: Thank you. Our next question today is coming from Sharif El-Azzazi from BTIG. Your line is now live.

Speaker #8: Hey, thanks for taking my question. When you think about a potential hydrogen plant like New York versus the liquidity opportunity that presents, is there any insight you can share into how you balance that cash with your hydrogen fuel demand two years down the road, five years down the road?

Operator: 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 into how you balance that cash with, you know, your hydrogen fuel demand 2 years down the road, 5 years down the road?

Sharif El-Azzazi: 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 into how you balance that cash with, you know, your hydrogen fuel demand 2 years down the road, 5 years down the road?

Speaker #6: Hi, Shareef. Thank you for the question. So we have looked very carefully at our hydrogen needs and the potential or the probability or the possibility to monetize the assets like we did that we're planning to do in New York.

Jose Luis Crespo: Hi, Sharif. Thank you. Thank you for the question. We have looked very carefully at, you know, our hydrogen needs and the potential or the probability or the possibility to monetize the assets like we did, that we're planning to do in New York. We 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 what we were getting before.

Jose Luis Crespo: We 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 what we were getting before.

Speaker #6: We 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 a reasonable cost—much better cost than what we were getting before.

Jose Luis Crespo: 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're 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. We found that the capability to be able to monetize those assets was something that it was more valuable for Plug at this moment than making the investment of building a plant in New York.

Speaker #6: 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.

Speaker #6: We're comfortable that we have a good path for to cover the demand in the next few years based on our projections for growth, especially in the material handling market.

Jose Luis Crespo: We're 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. We found that the capability to be able to monetize those assets was something that it was more valuable for Plug at this moment than making the investment of building a plant in New York.

Speaker #6: So we found that the capability to be able to monetize those assets was something that it was more valuable for PLUG at this moment than making the investment of building a plant in New York.

Speaker #6: We have not we put all those plans for growth for production on hold at this moment. That doesn't 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 maybe able to finance these projects in a much more efficient way.

Jose Luis Crespo: We have not, we put all those plans for growth, for production, on hold at this moment. That doesn't mean that in the future we may not pick up some of these plans when, you know, we are able to show that we can perform financially and maybe able to finance these projects in a much more efficient way. 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 forward for Plug.

Speaker #6: 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 forward for PLUG.

Jose Luis Crespo: 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 forward for Plug.

Speaker #7: 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's something that's been a supply chain headache for some renewables players.

Operator: Got it. Thanks, Jose Luis. Then the one big beautiful bill act.

Sharif El-Azzazi: Got it. Thanks, Jose Luis. Then the one big beautiful bill act reinstated tax credits. It also introduced stricter requirements for eligibility, and that's something that's been a supply chain headache for some renewables players. I'm wondering if Plug Power has had to retool its supply chain meaningfully.

[Company Representative] (Plug Power): reinstated tax credits. It also introduced stricter requirements for eligibility, and that's something that's been a supply chain headache for some renewables players. I'm wondering if Plug Power has had to retool its supply chain meaningfully.

Speaker #7: So I'm wondering if PLUG Power has had to retool its supply chain meaningfully.

Jose Luis Crespo: 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. At this moment, actually, this 30% tax credit has become even a simpler way for our customers to take advantage of. We've been discussing with many of our customers on this, and they agree on this point. You know, it's actually been an improvement on the tax credit process for our customers.

Speaker #6: 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.

Speaker #6: 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.

Jose Luis Crespo: At this moment, actually, this 30% tax credit has become even a simpler way for our customers to take advantage of. We've been discussing with many of our customers on this, and they agree on this point. You know, it's actually been an improvement on the tax credit process for our customers.

Speaker #6: And we've been discussing with many of our customers on this, and they agree on this point. So it's actually been an improvement on the tax credit process for our customers.

Speaker #7: Very interesting. Hey, thanks again.

[Company Representative] (Plug Power): Very interesting. Hey, thanks again.

Sharif El-Azzazi: Very interesting. Hey, thanks again.

Speaker #6: No, thank you.

Jose Luis Crespo: No, thank you.

Speaker #7: Thank you. Next question is coming from Samir Joshi from HG Wainwright. Your line is now live.

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

Speaker #8: Hey, good afternoon. Good evening. Thanks so much for your questions. Hey, congrats on the new role officially the new role.

Sameer Joshi: Hey, good afternoon, good evening. Thanks for taking my questions.

Jose Luis Crespo: Hi, Sameer.

Sameer Joshi: Hey, congrats on the new role, officially, the new role.

Speaker #6: Thank you.

Jose Luis Crespo: Thank you.

Speaker #8: So I think I just wanted to hit on two broad categories. One, revenues from material handling. Are we looking to add additional pedestal customers just like the flooring company that was at the symposium?

Sameer Joshi: I think I just wanted to hit on two broad categories on revenues from material handling. Are we looking to add additional pedestal customers just like the flooring company that was, you know, at the symposium? On the electrolyzer front, the 8 gigawatt pipeline that you spoke about, how is that planned to be converted into others?

Speaker #8: And then on the electrolyte front, electrolyzer front, the 8-gigawatt pipeline that you spoke about, how is that planned to be converted into orders?

Speaker #6: So thank you, Samir. On the material handling side, we are talking to many new potential customers. I think we're going to see some new customers being signed.

Jose Luis Crespo: Thank you, Sameer. On the material handling side, we are talking to many new potential customers. I think we're going to see some new customers being signed, and some of them, like you mentioned, Floor & Decor, can be multi-site of what we call pedestal customers. 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 FID, towards the final investment decision.

Speaker #6: And some of them, like you mentioned, Floor & 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.

Jose Luis Crespo: 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 FID, towards the final investment decision.

Speaker #6: On the $8 billion funnel for electrolyzers, we continue working with many of the companies that we have in that funnel towards FID, towards the financial investment decision, final investment decision.

Jose Luis Crespo: What we're seeing in many cases is with some, especially in the European market, but also, as I said, we're gonna see some new opportunities closing in Australia, and we closed the opportunity in the UK with Carlton Power and Schroders, at the end of last year, which will be executed this year. What we're 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, which requires 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.

Speaker #6: What we're seeing in many cases is with some, especially in the European market, but also, as I said, we're going to see some new opportunities closing in Australia.

Speaker #6: And we closed the opportunity in the UK with Carbon Power and Shredder at the end of last year, which will be executed this year.

Speaker #6: What we're seeing in the European market is that the red three regulation is being converted into law in many of the countries in Europe, which requires a certain especially for the transportation sector, which requires a certain percentage of the hydrogen use for transportation purposes, including refineries.

Jose Luis Crespo: What we're 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, which requires 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.

Speaker #6: To convert to green hydrogen at a rate of about 1% by 2030. This means that refineries like BP, Orgal, or other refineries in Europe are looking into ways to meet that those requirements.

Jose Luis Crespo: This means that refineries like, you know, bp or Galp or other refineries in Europe are looking into ways to meet that those requirements. This is what is accelerating the investment decision in many of these projects. What we're gonna see is in the next 12 to 24 months, as the mandate becomes law, we're gonna see these projects coming to fruition, and we're expecting to take a fair share of that of that funnel. That is kind of the timeline that I'm looking at right now for conversion of the funnel.

Speaker #6: And this is what is accelerating the investment decision in many of these projects. What we're going to see is in the next 12 to 24 months, as the mandate becomes law, we're going to see these projects coming to fruition.

Jose Luis Crespo: What we're gonna see is in the next 12 to 24 months, as the mandate becomes law, we're gonna see these projects coming to fruition, and we're expecting to take a fair share of that of that funnel. That is kind of the timeline that I'm looking at right now for conversion of the funnel.

Speaker #6: And we're expecting to take a fair share of that funnel. So that is kind of the timeline that I'm looking at right now for conversion of the funnel.

Sameer Joshi: Thanks for that color. Then on the margins front, I mean, really congratulations on the success on bringing margins down, especially on the services, and also on the equipment. On the equipment sales going forward, should we continue, like should we see Q1 positive gross margins or because of lower revenues expected seasonally, margins will be still in sort of negative teens?

Speaker #7: Thanks for that, Carlo. And then on the margins front, I mean, really congratulations on the success on bringing margins down, especially on the services.

Speaker #7: And also on the equipment. On the equipment sales, going forward, should we continue should we see 1Q positive gross margins, or because of lower revenues expected this seasonally, margins will be still in sort of negative teams?

Jose Luis Crespo: You wanna cover that, Paul?

Sameer Joshi: For equipment in specific, yeah.

Speaker #7: For equipment. For equipment in specific, yeah.

Sameer Joshi: For equipment in specific, yeah.

Speaker #6: Yeah. Samir, hey, bud. It's Paul. Yeah. I would say if 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 next year, I think you would see sequentially, it's coming down from Q4.

[Company Representative] (Plug Power): Yeah. Sameer, hey bud. It's Paul. I would say, if 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, you know, the math that Jose Luis Crespo shared with looking at sales projections next year, I think you'd see sequentially it's coming down from Q4. You know, it's should be, you know, probably better than, you know, in that range of the, that same percentage from last year's Q1. Just sequentially, with the lower volume, equipment really is tied to leverage. And most of it is just timing of those sales.

Paul Middleton: Yeah. Sameer, hey bud. It's Paul. I would say, if 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, you know, the math that Jose Luis Crespo shared with looking at sales projections next year, I think you'd see sequentially it's coming down from Q4.

Paul Middleton: You know, it's should be, you know, probably better than, you know, in that range of the, that same percentage from last year's Q1. Just sequentially, with the lower volume, equipment really is tied to leverage. And most of it is just timing of those sales.

Speaker #6: It should be probably better than in that range of the same percentage from last year's Q1. But just sequentially with the lower volume equipment really is tied to leverage.

Speaker #6: So in most of it, it's just timing of those sales, and so without that incremental volume in the quarter, comparatively speaking, it's definitely going to affect margin.

[Company Representative] (Plug Power): Without that incremental volume in the quarter, comparatively speaking, it's definitely, you know, gonna affect margins. You probably see a bit of a dip on the absolute and on the equipment margin in particular. There are some favorable events. You know, we definitely, all the rooftop consolidations, all the things we've been doing last year, you know, that play well in terms of mitigating some of that. On the whole, yes, but probably directionally better. Certainly better than Q1 last year. You're gonna see progress both on sales and margin, you know, quarter-over-quarter, you know. I'm sorry, year-over-year on each quarter. You know, you probably. If you look at one-third of sales happening in the first half of the year-

Paul Middleton: Without that incremental volume in the quarter, comparatively speaking, it's definitely, you know, gonna affect margins. You probably see a bit of a dip on the absolute and on the equipment margin in particular. There are some favorable events.

Speaker #6: So you probably see a bit of a dip on the absolute. And on the equipment margin in particular, but there are some favorable events.

Paul Middleton: You know, we definitely, all the rooftop consolidations, all the things we've been doing last year, you know, that play well in terms of mitigating some of that. On the whole, yes, but probably directionally better. Certainly better than Q1 last year.

Speaker #6: We definitely all the rooftop consolidations, all the things we've been doing last year, that play well in terms of mitigating some of that. So on the whole, yes, but probably directionally better, certainly better than Q1 last year.

Speaker #6: You're going to see progress both on sales and margin quarter over quarter. I'm sorry, year over year on each quarter so you probably but if you look at one-third to sales happen and then 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've talked about for Q4 in particular, getting to that EBITDA positive range with kind of a 300 million sales proxy, it just gets you a tone of how that might play for the year.

Paul Middleton: You're gonna see progress both on sales and margin, you know, quarter-over-quarter, you know. I'm sorry, year-over-year on each quarter. You know, you probably. If you look at one-third of sales happening in the first half of the year-

Jose Luis Crespo: Yeah.

Sameer Joshi: Yeah.

[Company Representative] (Plug Power): you know, two-thirds in the second half, you know, a lot of it is tied to volume. you know, when you look at what we've talked about for Q4 in particular, getting to that EBITDA positive, you know, range with kind of a $300 million sales proxy, it just gives you a tone of, you know, how that might play for the year. Hopefully that helps.

Paul Middleton: you know, two-thirds in the second half, you know, a lot of it is tied to volume. you know, when you look at what we've talked about for Q4 in particular, getting to that EBITDA positive, you know, range with kind of a $300 million sales proxy, it just gives you a tone of, you know, how that might play for the year. Hopefully that helps.

Speaker #6: So hopefully, that helps.

Speaker #7: Yeah. No, no. That is really helpful. And I wanted to reconfirm that you're still targeting or from where you sit right now, you still are seeing two-thirds of the sales in the second half, right?

Sameer Joshi: Yeah. No, no, that is really helpful. I wanted to reconfirm that. You're still targeting or from where you sit right now, you still are seeing two-thirds of the sales in second half, right?

Speaker #6: Yes.

Jose Luis Crespo: Yes.

Speaker #7: Yes. Got it. Okay. Thanks a lot for taking my questions.

[Company Representative] (Plug Power): Yes.

Paul Middleton: Yes.

Sameer Joshi: Got it. Okay. Thank you a lot for taking my questions.

Speaker #6: No, thank you.

Jose Luis Crespo: No, thank you.

Speaker #7: Thank you. As a reminder, that's star 1, 3, to place in the question queue. Our next question is coming from Chris Sung from Wolf Research. Your line is now live.

Operator: Thank you. As a reminder, that's star one to be placed into question queue. Our next question is coming from Steve Fleishman from Wolfe Research. Your line is now live.

Speaker #8: Hey, guys. Good afternoon. Congrats. Hey, congrats, Jose, on your first day on the job.

Steve Fleishman: Hey, guys. good afternoon.

Jose Luis Crespo: Hi, Chris.

Steve Fleishman: Congrats. Hey, congrats, José, on first day on the job.

Speaker #6: Thank you.

Jose Luis Crespo: Thank you.

Steve Fleishman: Yeah. Most of my questions have already been asked, but I guess if, if you were to just provide some sort of guidance on your outlook for 26, are you able to share the segment mix you're assuming across materials handling, electrolyzers, fueling, et cetera?

Speaker #8: Yeah. So most of my questions have already been asked, but I guess if you were to just provide some sort of guidance on your outlook for '26, are you able to share the segment mix you're assuming across materials handling, electrolyzers, fueling, etc.?

Jose Luis Crespo: It's gonna be similar to what we've seen in 2025. Probably, we're talking, in the, what, I will have to get the numbers a little bit more detail in there. Probably, material handling would be in the 30% to 40% of revenues, right?

Speaker #6: So, it's going to be similar to what we've seen in 2025. Probably we're talking in the, what, 20—I'll have to get the numbers a little bit more detailed in there—but probably material handling will be in the 30 to 40 percent of revenues, right?

[Company Representative] (Plug Power): Yeah.

Paul Middleton: Yeah.

Speaker #6: And then you're 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.

Jose Luis Crespo: You're gonna see a similar amount, probably a little bit less on electrolyzers, the rest is gonna be, you know, our fuel and cryo business. That's kind of the mix that we're gonna see. Material handling is still gonna be the largest revenue generator for the company in 2026.

Speaker #6: So that's kind of the mix that we're going to see. Material handling is still going to be the largest revenue generator for the company in 2026.

Speaker #8: Right. And that makes sense. And just to follow up on one of your responses earlier about 80% of '26 kind of firm or high confidence and the other 20, is that kind of 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?

Steve Fleishman: Right. That makes sense. Just to follow up on one of your responses earlier, about 80% of 26 kind of not like firm or high confidence in the other 20. Is that kind of, is the right way to think about that the 20% are external factors for customers that need to hit like specific milestones or, like outside of your control? Or how do you think about that?

Speaker #6: That 20% is projects that we are in the process of closing right now, that probably we're looking into closing them in the next few months.

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

Speaker #6: That will secure the revenue for 2026. The other 80%—77% to 80% is what I calculated—that we have in high probability are projects that we either have a firm commitment from the customer or we're finalizing the commitment.

Speaker #6: So, that 20% is projects that are right now being negotiated, and we expect to close them within the year to be able to realize revenue within the year as well.

Jose Luis Crespo: That 20% is projects that are right now being negotiated, and we're expecting to close them within the year to be able to realize revenue within the year as well.

Speaker #8: All right. Great. I'll turn over. Congrats again on the nice quarter.

Steve Fleishman: All right, great. I'll turn over. Congrats again on the nice quarter.

Speaker #6: Oh, thank you.

Jose Luis Crespo: Thank you.

Speaker #7: Thank you. Next question today is coming from Amit Thakkar from BMO Capital Markets. Your line is now live. Amit, perhaps your phone is on mute.

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

Speaker #7: Please pick up your handset. Or take your phone.

Speaker #9: Hi. Thank you. Hi. Good evening. Thanks for squeezing me in. Just one quick one for us. Hey, Jose. And congrats. Just you mentioned kind of momentum and kind of growing with your existing pedestal customers.

Ameet Thakkar: Hi. Thank you. Hi, good evening. Thanks for us squeezing me in.

Jose Luis Crespo: Hi, Ameet.

Ameet Thakkar: Just one quick one for us. Hey, Jose, and congrats. Just, you mentioned kind of momentum in kind of growing with your existing pedestal customers. You know, one of your larger pedestal customers, Walmart, you executed a release event 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 kind of executing similar agreements with them before kind of doing so and throughout 2026? Thanks.

Speaker #9: One of your larger pedestal customers, Walmart, you executed a release event 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 kind of executing similar agreements with them before kind of doing so?

Ameet Thakkar: I was just wondering with your larger pedestal customers, to the extent they want to add more sites with you, do you anticipate kind of executing similar agreements with them before kind of doing so and throughout 2026? Thanks.

Speaker #9: And throughout 2026. Thanks.

Speaker #6: Yeah. Are you referring to the licensing agreement? Yeah. No, that was a very specific agreement with Walmart that actually will help us to continue building and growing the relationship with Walmart.

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

Speaker #6: But I'm not expecting any similar agreements with any other customers. In 2026.

Speaker #9: 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.

Ameet Thakkar: Okay. Just maybe one quick follow-up on a different topic. I know Mueve in Spain, in Andalusia, kind of greenlit a fairly large electrolyzer project today. I was just wondering if you guys have any kind of role in that project while I have you. Thanks.

Speaker #9: 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's been a project that has been out there for a while. It seems like it went FID this week, today. As far as I know, and I will have to kind of look at that, it is an alkaline project. It's a 300 megawatt alkaline project, and we are not part of that project. We are talking to and we're talking to refineries in Spain about projects as well, but that project in particular is a 2024 project that seems to be going FID at this moment. I think it's good news in terms of the conversion that we're gonna start seeing, as I was saying before, of projects to FID.

Speaker #6: No, that was a project that was announced earlier in 2024, so it's been a project that has been out there for a while. It seems like when FID this week—today—and as far as I know, and I will have to kind of look at that, it is an alkaline project.

Speaker #6: It's a 300-megawatt alkaline project. And we are not part of that project. We are talking to other and we're talking to refineries in Spain about projects.

Jose Luis Crespo: 300 megawatt alkaline project, and we are not part of that project. We are talking to and we're talking to refineries in Spain about projects as well, but that project in particular is a 2024 project that seems to be going FID at this moment. I think it's good news in terms of the conversion that we're gonna start seeing, as I was saying before, of projects to FID.

Speaker #6: As well. But that project in particular is a 2024 project that seems to be going FID at this moment. But I think it's good news.

Speaker #6: In terms of the conversion that we're 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.

Jose Luis Crespo: These are projects that have been hanging for the last, you know, 24 months. Now they're coming to fruition. This is kind of what we're expecting to see in the near future with the projects that we have in our funnels.

Speaker #6: And now they're coming to fruition. This is kind of what we're expecting to see in the near future with the projects that we have in our funnels.

Speaker #7: Great. Thank you.

Sameer Joshi: Great. Thank you.

Ameet Thakkar: Great. Thank you.

Speaker #6: Thank you.

Jose Luis Crespo: Thank you.

Speaker #7: Thank you. We've reached the end of our question-and-answer session. I'd like to turn the floor back over to Jose Luis for any further closing comments.

Operator: Thank you. We've reached the end of our question-and-answer session. I'd like to turn the floor back over to Jose Luis for any further closing comments.

Speaker #6: Well, thank you, everyone, for the thoughtful questions. And for your continued engagement. And for joining us on my first earnings call as a CEO.

Jose Luis Crespo: Well, thank you everyone for the thoughtful questions and for your continued engagement and for joining us on my first earnings call as a CEO. Let me leave you with this. 2025 marked a structural turning point for Plug. We demonstrated that we can grow revenue while restoring margin discipline. That combination matters. In 2026, our focus and targets are clear. Execute with discipline, reduce cash usage, and deliver EBITDA positive in Q4. The foundation is in place, the cost structure is improving. The demand drivers are strengthening. We really appreciate your support and look forward to updating you on our progress next quarter. Also, if you are free Friday, I'm gonna be closing the bell at Nasdaq.

Speaker #6: Let me leave you with this. 2025 marked a structural turning point for PLUG. We demonstrated that we can grow revenue while restoring margin. Discipline.

Speaker #6: And that combination matters. In 2026, our focus and targets are clear. Execute with discipline, reduce cash usage, and deliver EBITDA positive in the fourth quarter.

Jose Luis Crespo: In 2026, our focus and targets are clear. Execute with discipline, reduce cash usage, and deliver EBITDA positive in Q4. The foundation is in place, the cost structure is improving. The demand drivers are strengthening. We really appreciate your support and look forward to updating you on our progress next quarter. Also, if you are free Friday, I'm gonna be closing the bell at Nasdaq.

Speaker #6: 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.

Speaker #6: And also, you are free Friday. I'm going to be closing the bell at Nasdaq. So you can go to our website and you're going to have a link to see me and a big part of the PLUG team that has made the results this year in 2025 possible closing the bell with me.

Jose Luis Crespo: You can go to our website and you're gonna have a link to see me and a big part of the Plug team that has made the results this year in 2025 possible closing the bell with me. Thank you everyone. Really appreciate your time.

Speaker #6: Thank you, everyone. Really appreciate your time.

Speaker #7: Thank you. That does conclude today's teleconference and webcast. Let me disconnect your line at this time and have a wonderful day. We thank you for your participation today.

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.

Q4 2025 Plug Power Inc Earnings Call

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