Q2 2026 Plug Power Inc Earnings Call

August 10, 2026

Operator: Greetings, and welcome to the Plug Power Q2 2026 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 into the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero. It is now my pleasure to turn the call over to Vice President of Marketing Communications, Teal Hoyos. Please go ahead, Teal.

Operator: Greetings, and welcome to the Plug Power Q2 2026 Earnings Conference Call and Webcast. At this time, all participants are in listen only mode. A Q&A session will follow the formal presentation. You may be placed into the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero. It is now my pleasure to turn the call over to Vice President of Marketing Communications, Teal Hoyos. Please go ahead, Teal.

Speaker #1: Greetings, and welcome to the Plug Power second quarter 2026 earnings conference call and webcast. At this time, all participants are in listen-only mode.

Speaker #1: A question-and-answer session will follow the formal presentation. You may be placed into the question queue at any time by pressing star one on your telephone keypad.

Speaker #1: As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero. It is now my pleasure to turn the call over to Vice President of Marketing and Communications, Teal Hoyos.

Speaker #1: Please go ahead, Teal.

Speaker #2: Thank you. Welcome to the 2026 second quarter earnings call. This call will include forward-looking statements. These forward-looking statements contain projections of future results of operations, of our financial position, or other forward-looking information.

Teal Hoyos: Thank you. Welcome to the 2026 Q2 earnings call. This call will include forward-looking statements. These forward-looking statements contain projections of future results of operations or 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: 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.

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.

Teal 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, risk and uncertainties discussed under Item 1A Risk Factors in our annual report on Form 10-K for the fiscal year ending 31 December 2025, our quarterly reports on Form 10-Q for the quarter ending 31 March 2026, as well as other reports we file from time to time with the SEC. These forward-looking statements speak only of the day that 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's CEO, Jose Luis Crespo.

Speaker #2: 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 December 31, 2025.

Speaker #2: Or quarterly reports on Form 10-Q for the quarter ending March 31st, 2026, as well as other reports we file from time to time with the SEC.

Speaker #2: These forward-looking statements speak only of the day that 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.

Speaker #2: At this point, I would like to turn the call over to PLUG's CEO, Jose Luis Crespo.

Speaker #3: Good afternoon, everyone. And thank you for joining our second earnings call of 2026. And also, thank you for your continued confidence in the PLUG team.

José Luis Crespo: Good afternoon, everyone, and thank you for joining our second earnings call of 2026. Thank you for your continued confidence in the Plug team. Q2 was a strong step forward and is giving us real conviction about the rest of the year. We are executing, our numbers are moving in the right direction across the board, and today we are raising our full-year revenue growth guidance as a result. Paul will walk through the financial details in a moment, but let me start with why we are excited. Revenue was $178.3 million in Q2, up approximately 9% sequentially from Q1. This is continued proof that our commercial engine is accelerating. Gross margin improved to approximately breakeven. It was about -0.9%, compared to -30.7% a year ago and -13% just last quarter.

Speaker #3: Q2 was a strong step forward and is giving us real conviction about the rest of the year. We are executing our numbers are moving in the right direction across the board, and today we're raising our full year revenue growth guidance as a result.

Speaker #3: Paul will walk through the financial details in a moment, but let me start with why we are excited. Revenue was $178.3 million in the second quarter.

Speaker #3: Up approximately 9% sequentially from the first quarter. This is continued proof that our commercial engine is accelerating. Gross margin improved to approximately break-even; it was about negative 0.9%.

Speaker #3: Compared to negative 30.7% a year ago, and negative 13% just last quarter. This is a meaningful step in a single quarter, and it's the direct result of the operational discipline we've built into Quantum Leap—which is our restructuring program—combined with improving service margins and better planned utilization in hydrogen production.

José Luis Crespo: That is a meaningful step in a single quarter, and it is the direct result of the operational discipline we have built into Project Quantum Leap, which is our restructuring program, combined with improving service margins and better plant utilization in hydrogen production. Just as important, our breakeven revenue thresholds keep on coming down, which puts positive EBITDAs in Q4 squarely within reach. Operating expenses declined approximately 50% year-over-year to $62 million. Again, a direct reflection of the discipline we have driven through Project Quantum Leap and our continued asset monetization efforts. On the cash side, net cash usage improved to $61 million this quarter, a reduction in cash usage of about 58% compared to Q1. Our cash burn is coming down, and the trend line matters enormously as we head towards profitability. Our priorities for 2026 are clear, and they have not changed.

Speaker #3: But just as important, our break-even revenue thresholds keep on coming down, which puts positive EBITDA in the fourth quarter squarely within reach. Operating expenses declined approximately 50% year over year to $62 million.

Speaker #3: Again, a direct reflection of the discipline we have driven through Quantum Leap and our continued asset monetization efforts. And on the cash side, net cash usage improved to $61 million this quarter, a reduction in cash usage of about 58% compared to the first quarter.

Speaker #3: Our cash burn is coming down, and the trend line matters enormously as we head towards profitability. Our priorities for 2026 are clear, and they haven't changed.

Speaker #3: Discipline in execution, profitable growth, and continued improvement in cash utilization and operating leverage. What has changed is our confidence in how the year plays out.

José Luis Crespo: Discipline execution, profitable growth, and continued improvement in cash utilization and operating leverage. What has changed is our confidence in how the year plays out. On our last call, we guided full year revenue growth of 13% to 15%. Based on our H1 results and the visibility we now have into the H2, we are raising that guidance today to 15% to 16% for the full year. Our business has historically been H2 weighted, with the Q4 benefiting from year-end deployment cycles. Everything we are seeing tells us that pattern is expected to hold again this year, with even more strength behind it. Material handling continues to be a genuine bright spot, and the growth story here just keeps on building. We deployed 1,666 GenDrive units in the quarter, more than double the 739 units we deployed in the Q2 of last year.

Speaker #3: On our last call, we guided full-year revenue growth of 13% to 15%. Based on our first-half results, and the visibility we now have into the second half, we are raising that guidance today to 15% to 16% for the full year.

Speaker #3: Our business has historically been second-half weighted, with the fourth quarter benefiting from year-end deployment cycles. Everything we are seeing tells us that pattern is expected to hold again this year, with even more strength behind it.

Speaker #3: Material handling continues to be a genuine bright spot. On the growth story here, just keep on the growth story here, just keep keeps on building.

Speaker #3: We deployed 1,666 GN Drives units in the quarter, more than double the 739 units we deployed in the second quarter of last year. Service revenue grew 82% year over year to $29.8 million, with a service margin of 27%.

José Luis Crespo: Service revenue grew 82% year-over-year to $29.8 million, with service margin of 27%. Improving reliability lets our technicians cover more units and drive real overhead leverage. We are not just growing, we are building a durable, recurrent revenue base. Two of our largest material handling customers are planning to refresh more than 20,000 GenDrive units over the next three years. This is a multi-year revenue opportunity sitting right in front of us, and is exactly the kind of embedded growth that gives us confidence well beyond this year. Our electrolyzer business continues to build real commercial momentum. We announced the FID of the 30-megawatt Barrow Green hydrogen project for Carlton Power in the UK. This is part of the 55 megawatts we were awarded in November of 2025, and we expect the additional 25 megawatts to reach FID in 2026.

Speaker #3: As improving reliability lets us, lets our technicians cover more units and drive real overhead leverage. And we're not just growing, we're building a durable, recurring revenue base.

Speaker #3: Two of our largest material handling customers are planning to refresh more than 20,000 GN drives units over the next three years. This is a multi-year revenue opportunity sitting right in front of us, and it's exactly the kind of embedded growth that gives us confidence well beyond this year.

Speaker #3: Our electrolysis business continues to build real commercial momentum. We announced the FID of the 30-megawatt Varro green hydrogen project for Carlton Power in the UK.

Speaker #3: This is part of the 55-megawatt project we were awarded in November of 2025, and we expect the additional 25 megawatts to reach FID in 2026.

Speaker #3: In Q2, we were also selected for the 275-megawatt FEED on the H2GN Current project in Quebec. And on July 7th, we announced that Plug secured a 50-megawatt GN Eco electrolyzer order following the final investment decision from Norica, for Norica's Hunter Valley Hydrogen Hub in Australia.

José Luis Crespo: In Q2, we were also selected for the 275-megawatt FID on the Hy2gen current project in Quebec. On 7 July, we announced that Plug secured a 50-megawatt GenEco electrolyzer order following the final investment decision from Orica's Hunter Valley Hydrogen Hub in Australia. This is the largest renewable hydrogen project to reach FID in Australia. As an update on the business, our 100-megawatt project with Galp in Portugal and our 25-megawatt project with Iberdrola and bp in Spain continue progressing positively on the commissioning. I also want to flag something bigger on the horizon here, because I think it is an important part of the electrolyzer story for the next several years. Europe continues to advance the conversion of the Renewable Energy Directive III, it is called RED III, into a national law across EU member states.

Speaker #3: And this is the largest renewable hydrogen project to reach FID in Australia. As an update on our on on the business, our 100-megawatt project we got, in Portugal, and our 25-megawatt project with Iberdrola, MVP in Spain, continue progressing positively on the commissioning.

Speaker #3: But I also want to flag something bigger on the horizon here, because I think it is an important part of the electrolyzer story for the next several years.

Speaker #3: Europe continues to advance the conversion of the renewable energy directive 3—it's called RED III—into national law across EU member states. Spain is the latest country to release a draft framework establishing an 11% renewable fuels of non-biological origin, which is the RFNBOs, by 2040.

José Luis Crespo: Spain is the latest country to release a draft framework establishing an 11% renewable fuels of non-biological origin, which is the RFNBOs, by 2040. This is backed by a specified non-compliance penalty and a system of tradable carbon reduction certificates. Based on our preliminary internal analysis, we believe Spain's framework alone could drive approximately 10 gigawatts of electrolyzer demand by 2030. In addition, the European Commission approved a €780 million Dutch subsidy scheme targeting 400 megawatts of electrolyzers capacity with an auction plan for early 2027. Also, the European Commission plans on launching a fourth hydrogen auction in December of 2026 with a budget of up to €500 million. This is the kind of regulatory tailwind that turns a strong pipeline into a durable, multi-year growth runway, and we like our position to capture it.

Speaker #3: This is backed by a specified non-compliance penalty and the assistance of tradable carbon reduction certificates. Based on our preliminary internal analysis, we believe Spain's framework alone could drive approximately 10 gigawatts of electrolyzer demand by 2030.

Speaker #3: In addition, the European Commission approved a €780 million Dutch subsidy scheme targeting 400 megawatts of electrolyzer capacity, with an option plan for early 2027.

Speaker #3: And also, the European Commission plans on launching a fourth hydrogen auction in December of 2026, with a budget of up to €500 million.

Speaker #3: Now, this is the kind of regulatory tailwind that turns a strong pipeline into a durable, multi-year growth runway. And we like our position to capture it.

Speaker #3: Now, turning to hydrogen, our fuel business delivered approximately 15% revenue growth year over year, to $39.5 million. This was driven by continued growth in hydrogen consumption across our expanding customer base.

José Luis Crespo: Now turning to hydrogen, our fuel business delivered approximately 15% revenue growth year-over-year to $39.5 million. This is driven by continued growth in hydrogen consumption across our expanding customer base. Fuel gross margin improved to -48%, from -91% a year ago, on improvement in plant utilization, production efficiency, and network optimization across our production facilities in Georgia, Tennessee, and Louisiana. We still have work to do here, obviously, but the trajectory is decisively in our favor, and we expect that progress to continue through the H2 of the year. We ended the period with $161.9 million of unrestricted cash, with net cash usage improving to $61 million for the quarter, down approximately 58% sequentially.

Speaker #3: Fuel gross margin improved to negative 48%, up from negative 91% a year ago, on improvement plan utilization, production efficiency, and network optimization across our production facilities in Georgia, Tennessee, and Louisiana.

Speaker #3: We still have work to do here, obviously, but the trajectory is decisively in our favor, and we expect that progress to continue through the second half of the year.

Speaker #3: We ended the period with $161.9 million of unrestricted cash, with net cash usage improving to $61 million for the quarter, down approximately 58% sequentially.

Speaker #3: We are also executing on our asset monetization programs, and as an update to the stream transaction we announced on July 13th, where we indicated approximately $80 million of expected near-term liquidity, we have already received $47 million.

José Luis Crespo: We are also executing on our asset monetization programs. As an update to the Stream transaction we announced on 13 July, where we indicated approximately $80 million of expected near-term liquidity, we have already received $47 million. This is a step forward of our initiative to unlock more than $275 million through this asset monetization and non-dilutive financing, and we expect to keep delivering on this initiative in the coming quarters. Put simply, this was a good quarter, and it sets up an even better H2. Revenue is growing, margins are approaching breakeven. Operating expenses are down 50%. Cash burn is falling, and we are raising our full-year guidance to 15% to 16% growth. We remain on track to deliver positive EBITDAs in Q4, a milestone that marks a real turning point for the company.

Speaker #3: This is a step forward in our initiative to allocate more than $275 million through this asset monetization and non-dilutive financing, and we expect to keep delivering on this initiative in the coming quarters.

Speaker #3: So, put simply, this was a good quarter, and it sets up an even better second half. Revenue is growing, and margins are approaching break-even.

Speaker #3: Operating expenses are down 50%. Cash burn is falling. And we are raising our full-year guidance to 15–16% growth. We remain on track to deliver positive EBITDA in the fourth quarter, a milestone that marks a real turning point for the company.

Speaker #3: We're building PLUG into the profitable, cash-generative hydrogen leader, we set out to become. We have work to do, but Q2 is more evidence that we are getting there.

José Luis Crespo: We are building Plug Power into the profitable cash-generative hydrogen leader we set out to become. We have work to do, but Q2 is more evidence that we are getting there. With that, I will turn the call over to Paul for a more detailed review of the quarter, including our liquidity position and financial outlook. Thank you. Paul?

Speaker #3: And with that, I'll turn the call over to Paul for a more detailed review of the quarter, including our liquidity position and financial outlook.

Speaker #3: Thank you. Paul.

Speaker #2: Thank you, Jose Luis. And good afternoon, everyone. Building on Jose Luis's comments, I want to leave you with three key takeaways from the quarter.

Paul Middleton: Thank you, Jose Luis, and good afternoon, everyone. Building on Jose Luis' comments, I want to leave you with three key takeaways from the quarter. First, the margin transformation is real, and it is compounding. We exited Q2 at essentially break-even gross margin, roughly a 30-point improvement from a year ago. Second, our cost discipline is showing up everywhere it should, including improved margins and reduced OpEx, which yields reduced cash use. Third, we believe we have the capital and the levers in place to execute the balance of the year. This stems from current cash balances, continued improvements in margins, reduced CapEx, and the ongoing asset monetization efforts. Diving into the details of the quarter, as Jose outlined, net revenue for the quarter was approximately $178 million, which was up 9% sequentially, bringing the H1 to $342 million, up 11% year-over-year.

Speaker #2: First, the margin transformation is real, and it is compounding. We exited Q2 at essentially break-even gross margin—roughly a 30-point improvement from a year ago.

Speaker #2: Second, our cost discipline is showing up everywhere it should, including improved margins and reduced opex, which yields reduced cash use. And third, we believe we have the capital and the levers in place to execute the balance of the year.

Speaker #2: This stems from current cash balances, continued improvements in margins, reduced capex, and the ongoing asset monetization efforts. And diving into the details of the quarter, as Jose outlined, net revenue for the quarter was approximately $178 million, which was up 9% sequentially, bringing the first half to $342 million, up 11% year over year.

Speaker #2: The first half is slightly ahead of the range we outlined in May, so the shape of the year is playing out slightly better than the way we told you it would.

Paul Middleton: The H1 is slightly ahead of the range we outlined in May, so the shape of the year is playing out slightly better than the way we told you it would. As Jose Luis outlined, given our traction and pipeline, we are increasing our full-year projection to 15% to 16% growth off of 2025. We expect some growth in Q3 2026 sequentially and over the Q3 of prior year, but the majority of the volume in the H2 forecast, we expect unfolding in the Q4 of 2026. On margins, let me expand a bit because this is where the last two years of work really are starting to show off. Gross margin came in at essentially break even versus the -31% a year ago, as I outlined. Every platform contributed. Equipment margin was positive, driven from volume leverage, continued manufacturing cost optimization, and supply chain leverage.

Speaker #2: And as Jose Luis outlined, given our traction and pipeline, we're increasing our full-year projection to 15% to 16% growth off of 2025. We expect some growth in Q3 '26 sequentially, and over Q3 of the prior year, but the majority of the volume in this second half forecast we expect to unfold in the fourth quarter of '26.

Speaker #2: On margins, let me expand a bit, because this is where the last two years of work really are starting to show off. Gross margin came in at essentially break-even, versus 31% a year ago, as I outlined.

Speaker #2: Every platform contributed. Equipment margin was positive, driven by volume leverage, continued manufacturing cost optimization, and supply chain leverage. We're also recognizing benefits from tariff recoveries and reduced tariff spend.

Paul Middleton: We are also recognizing benefits based on the tariff recoveries and reduced tariff spend. Service margin was 27% positive, as unit reliability keeps improving. Our cost of service is down materially, and that is letting us expand the tech unit coverage and drive overhead leverage. PPA loss rates improved to roughly -30% from -92% a year ago, which is driven from cost reductions to service this PPA fleet, coupled with the sale leaseback buyback program, which reduces our equipment lease cost. Fuel margin improved to roughly -48% from -91%, as Jose Luis outlined, driven by the increased plant utilization, improved network optimization, and benefits of our supply agreements. Still a lot of work to do, but these are structural improvements, not one-quarter effects, and they keep lowering our break-even threshold.

Speaker #2: Service margin was 27% positive, as unit reliability keeps improving. Our cost of service is down materially, and that’s letting us expand the tech unit coverage and drive overhead leverage.

Speaker #2: PPA loss rates improved to roughly negative 30% from negative 92% a year ago, which is driven by cost reductions to service this PPA fleet, coupled with the sale-leaseback buyback program, which reduces our equipment lease cost.

Speaker #2: Fuel margin improved to roughly negative 48% from negative 91%, as Jose Luis outlined, driven by increased plant utilization, improved network optimization, and benefits of our supply agreements.

Speaker #2: Still a lot of work to do, but these are structural improvements, not one-quarter effects, and they keep lowering our break-even threshold. Just to prelude, the second half, in context of our target to achieve positive EBITDAs in Q4, this will come mainly from increased gross margin and will stem from many factors.

Paul Middleton: Just to prelude the H2 in context of our target to achieve positive EBITDA in Q4, this will come mainly from increased gross margin and will stem from many factors. Driving more sales as the H2 will be 40% higher than the H1, and this will mostly come from equipment volume. Driving more cost downs in manufacturing and supply chain, such as ramping our diffusion bonding process for GenEco stacks as an example. Continuing our service reliability improvement trends and driving enhanced tech leverage, especially given the number of sites and GenDrive being deployed in the H2. Further improving the fuel network leverage given continued growth in fuel sales and focus on network logistics cost and network efficiency. Driving even more improvements in our PPA platform by further service cost reductions and completing more sale leaseback buybacks.

Speaker #2: Driving more sales in the second half will be 40% higher than the first half, and this will mostly come from equipment volume. Driving more cost downs in manufacturing and supply chain.

Speaker #2: Such as ramping our diffusion bonding process for ELX stacks, as an example. Continuing our service reliability improvement trends and driving enhanced tech leverage, especially given the number of sites and GenDrives being deployed in the second half.

Speaker #2: Further improving the fuel network leverage, given continued growth in fuel sales, and focusing on network logistics costs and network efficiency. And driving even more improvements in our PPA platform by further reducing service costs and completing more sale-leaseback buybacks.

Speaker #2: Gap operating expenses were $62 million, down 50% year over year, but I want to be transparent on the composition. This includes $39.7 million of recoveries of previously impaired assets, principally the $37 million gain from a resolution of a customer contract dispute we settled in June.

Paul Middleton: GAAP operating expenses were the $62 million, down 50% year over year, but I want to be transparent on the composition. This includes $39.7 million of recoveries of previously impaired assets, principally the $37 million gain from a resolution of a customer contract dispute we settled in June. Excluding that recovery and the IT sale transaction fees for this quarter and excluding impairment, restructuring, and other non-cash changes and contingent consideration as an example, operating expenses continued to decrease, and we believe we remain on the path towards the roughly $75 million a quarter run rate we discussed in May. The OpEx reduction stems from continued scrutiny over headcount, discretionary spend discipline, and from reduced CapEx spend yielding lower depreciation. On the bottom line, GAAP EPS was a loss of $0.14 versus a loss of $0.20 a year ago.

Speaker #2: Excluding that recovery and the IT sale transition transaction fees for this quarter, and excluding impairment, restructuring, and other non-cash changes and contingent considerations example, operating expenses continued to decrease, and we believe we remain on the path towards the roughly 75 million a quarter run rate we discussed in May.

Speaker #2: The opex reduction stems from continued scrutiny over headcount, discretionary spend discipline, and from reduced capex spend yielding lower depreciation. On the bottom line, GAAP EPS was a loss of $0.14 versus a loss of $0.20 a year ago.

Speaker #2: I'd note that the gap result in Q2 of 26 carries about 104 million of non-cash mark-to-market valuation charges, for our convertible debt and warrant liabilities.

Paul Middleton: I'd note that the GAAP result in Q2 of 2026 carries about $104 million of non-cash mark-to-market valuation charges for our convertible debt and warrant liabilities, driven primarily by our own stock price appreciation in the quarter. Adjusted EPS was a loss of $0.07 versus $0.18 a year ago, and reconciliations on these adjusted EPS numbers are in our tables. The net cash usage for the quarter was roughly $61 million, an improvement of 58% over Q1 of 2026. The continued asset monetization efforts contributing to margins and overall reduced cash usage. Even setting those aside, the underlying burn continues to improve and to step down on margin improvement, working capital leverage, and reduced CapEx spend. Inventory is down about $28 million from year-end, and we still expect at least $100 million of inventory reduction for the full year, weighted to the second half.

Speaker #2: Driven primarily by our own stock price appreciation in the quarter. Adjusted EPS was a loss of $0.07 versus $0.18 a year ago.

Speaker #2: And reconciliations on these adjusted EPS numbers are in our tables. The net cash usage for the quarter was roughly $61 million, an improvement of 58% over Q1 of '26.

Speaker #2: The continued asset monetization efforts contributing to margins and overall reduced cash usage, but even setting those aside, the underlying burn continues to improve and to step down on margin improvement, working capital leverage, and reduced capex spend.

Speaker #2: Inventory is down about $28 million from year end, and we still expect at least $100 million of inventory reduction for the full year, weighted to the second half.

Speaker #2: Capital spending remains light, under $9 million in the first half. We ended the quarter with $162 million of unrestricted cash and $510 million of restricted cash, which means we have over $670 million in total cash.

Paul Middleton: Capital spending remains light, under $9 million in the first half. We ended the quarter with $162 million of unrestricted cash and $510 million of restricted cash, which means we have over $670 million in total cash. The restricted cash continues to keep coming back to us. More than $115 million released in the first half, and roughly $155 million of the remaining balance is scheduled to release over the next 12 months. It is effectively a built-in non-dilutive funding stream. Subsequent to quarter end, we announced the transaction expected to generate approximately $80 million of near-term liquidity through the sale of our Graham, Texas project and the stage closing in New York Gateway. The first phase of this program to unlock more than $275 million through this overall asset monetization non-dilutive financing program.

Speaker #2: The restricted cash continues to come back to us, with more than $115 million released in the first half. Roughly $155 million of the remaining balance is scheduled to be released over the next 12 months.

Speaker #2: It is effectively a built-in, non-dilutive funding stream, and subsequent to quarter-end, we announced the transaction expected to generate approximately $80 million of near-term liquidity through the sale of our Graham, Texas project and the staged closing of the New York Great Gateway.

Speaker #2: The first phase of these program to unlock more than 275 million through this overall asset monetization dilutive non-dilutive financing program. Out of this initial 80 million in July and August to date, we've received already 47 million, bringing the total for this endeavor so far to 52 million.

Paul Middleton: Out of this initial $80 million in July and August to date, we received already $47 million, bringing the total for this endeavor so far to $52 million. For the full year, we plan for our sales growth of 15% to 16%, and we believe that the first half puts us squarely on that trajectory. We remain laser-focused on our Q4 goal of positive EBITDA. The levers are the ones that you watch us pull on all year and the ones that I've outlined today. We believe we have the balance sheet and clear non-dilutive capital opportunities to execute. In summary, we believe we are postured to deliver on our targets we have set for ourselves this year, and we look forward to sharing more as our progress progresses throughout the year. With that, I'll turn it back over to Jose Luis.

Speaker #2: For the full year, we plan for our sales growth of 15 to 16 percent, and we believe that the first half puts us squarely on that trajectory.

Speaker #2: We remain laser-focused on our Q4 goal of positive EBITDA. The levers are the ones that you, you know, you watch us pull on all year, and the ones that I've outlined today.

Speaker #2: We believe we have the balance sheet and clear, non-dilutive capital opportunities to execute. In summary, we believe we are postured to deliver on the targets we have set for ourselves this year, and we look forward to sharing more as our progress continues throughout the year.

Speaker #2: With that, I'll turn it back over to Jose Luis.

Speaker #1: Thank you, Paul. So now, again, thank you for attending the call, and we'll go to the questions part of the call.

José Luis Crespo: Thank you, Paul. Now, again, thank you for attending the call, and we'll go to the questions part of the call.

Speaker #3: Thank you. Now, conducting a question and answer session. If you'd like to be placed into 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 into the question queue, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you'd like to withdraw your question from the queue. We ask you please ask one question and one follow-up, then return to the queue. Our first question today is coming from Colin Rusch from Oppenheimer. Your line is now live.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue.

Speaker #3: We ask you to please ask one question and one follow-up, then return to the queue. Our first question today is coming from Colin Rusch from Oppenheimer.

Speaker #3: Your line is now live.

Speaker #4: Thank you so much, guys. I appreciate the question here. Can you talk about the drivers for the service margins? How much of that is being driven by the improved contracting, and how much of it is being driven by better performance of the assets out in the field?

José Luis Crespo: Hi, Colin.

Colin Rusch: Thank you very much, guys. Appreciate the question here. Can you talk about the drivers for the service margins? How much of that is being driven by improved contracting, and how much of it's being driven by better performance of the assets out in the field?

Speaker #1: Hi, Colin. Thank you thank you for the question. the improvement on the on services really is driven by by, you know, several factors. One of them is the reliability of the units is is improving.

José Luis Crespo: Hi, Colin. Thank you for the question. The improvement on services really is driven by several factors. One of them is the reliability of the units is improving, the stack performance is improving, and that's leading to us being able to use less techs to actually service the units. So the overhead is also improving. Adding to that, over the last couple of years, as you know, we went through a process of cautiously increasing pricing on services to be aligned to the reality of the cost of servicing the units. So all of that together has contributed to this 27% margin that you see right now, and it's actually structural. It's something that we believe is sustainable.

Speaker #1: The stock performance is improving, and that's leading to us being able to use fewer techs to actually service the units. So, the overhead is also improving.

Speaker #1: And adding to that, over the last couple of years, as you know, we went through a process of, cautiously increasing, pricing on services to to be aligned to the reality of the cost of servicing the units.

Speaker #1: So all of that together, has contributed to this 27% margin that you that you see right now, and is actually a structural. It's it's something that, we believe is is sustainable.

Speaker #4: Excellent. And then, you know, just thinking about, you know, the the pipeline of hydrogen projects, you you guys have made a nice, dent in moving these things forward.

Colin Rusch: Excellent. Just thinking about the pipeline of hydrogen projects, you guys have made a nice dent in moving these things forward. I am curious about urgency around some of these projects in Europe, starting construction, and really starting to see some of the ramp on equipment orders. How should we think about that as we get through the balance of this year and into next year?

Speaker #4: You know, I'm just curious about the urgency around some of these projects in Europe—starting construction, and really starting to see some of the ramp-up on equipment orders.

Speaker #4: You know, how should we think about that as we get through the balance of this year and into next year?

Speaker #1: So, we are already seeing this, not necessarily in Europe or ECAP, for example. I think ECAP lost a little bit in the market dynamics, but ORICA is a 50-megawatt order, the first FID project in Australia.

José Luis Crespo: We are already seeing, not necessarily in Europe, Orica, for example. I think it got lost a little bit in the market dynamics. Orica is a 50 MW order, first FID project in Australia. You think about it, our largest order was 100 MW from Galp. This is the second-largest order. The award of 55 MW from Carlton Power in the UK is now becoming FIDs. We saw the first FID with 30 MW, and we are already manufacturing and getting ready for implementation in the UK for those projects. We see even our own projects that we have in Spain with our joint venture with ACCIONA moving towards FID, with subsidies being awarded by the European Hydrogen Bank. I think those two projects have the largest per kilogram award in the market. We see a lot of activity in the European market.

Speaker #1: And if you think about it, you know, our largest order was 100 megawatts from GALP. This is the second largest order. The award of 55 megawatts from Carlton Power in the UK is now becoming FIDs.

Speaker #1: We saw the first FID with 30 megawatts, and we are already manufacturing and getting ready for implementation in the UK for those projects.

Speaker #1: We see even our own projects that we have in Spain, with our joint venture with Acciona, moving towards FID, with subsidies being awarded by the European Hydrogen Bank.

Speaker #1: I think those two projects have the largest per-kilogram award in the market. So, we see a lot of activity in the European market.

Speaker #1: We see many projects that are coming along to get to FID. By the end of the year, beginning of 2027. And you will be hearing more news about those, those projects in the coming quarters.

José Luis Crespo: We see many projects that are coming along to get to FID by the end of the year, beginning of 2027, and you will be hearing more news about those projects in the coming quarters.

Speaker #3: Thank you. Next question is coming from Eric Stein from GrayCalum. Your line is now live.

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

Speaker #5: Hi, Jose Luis. Hi, Paul.

Eric Stine: Hi, Jose Luis. Hi, Paul.

Speaker #1: Hi, Eric.

José Luis Crespo: Hi, Eric.

Speaker #6: Hey, Eric.

Paul Middleton: Hey, Eric.

Speaker #5: Hey, so I was hoping we could talk about material handling. I'm interested in these two customers—the 20,000 units over three years. As I think about how you've talked about the repowering opportunity, it's been something that you've been optimistic about, but it seems like it was off a little ways.

Eric Stine: Hey. I was hoping we could talk about material handling. Interested in these two customers, the 20,000 units over three years. As I think about how you have talked about the repowering opportunity, it has been something that you have been optimistic about, but it seems like it was off a little ways. Now you are talking about these two customers. I am curious, is it fair to say that this has kind of sped up a little bit versus previous expectations? Or is this more kind of the normal refresh, versus they are just this proactively deciding to do it, for the next GenDrive fuel cell system?

Speaker #5: So now you're talking about these two customers. I'm curious—I mean, is it fair to say that this has kind of sped up a little bit versus previous expectations?

Speaker #5: Or is this more kind of the normal refresh, you know, versus they're just proactively deciding to do it, for the next-gen fuel cell system?

Speaker #1: It is really being driven by the refresh timing. We are going to refresh some of those units—in the range of around 2,000 of them—already in 2026.

José Luis Crespo: It is really being driven by the refresh timing. We are going to refresh some of those units in the range of around 2,000 of them already in 2026. Then, as the year progresses, we are expecting to start refreshing with the two largest customers in the next three years to complete the total fleet. In both cases, what we are seeing is that we are reaching in many of the sites over the next three years, the time to refresh the units. As the units are becoming more reliable and as we are basically coming with all the upgrades and all the improvements that we have done to the units in the field, the new units are going to have that already in the production units.

Speaker #1: And then, as the year progresses, we're expecting to start refreshing with the two largest customers. In the next three years, we’ll complete the total fleet.

Speaker #1: In both cases, what we're seeing is that we're reaching, in many of the sites over the next three years, the time to refresh the units.

Speaker #1: And, as the units are becoming more reliable and as we are basically coming with all the upgrades and all the improvements that we've done through the to the units in the field, the uni the new units are gonna have that, in already in the in the production units.

José Luis Crespo: The customers are also interested in doing the refreshes, but mainly they are driven by the normal natural timing of the refreshes, which is starting now.

Speaker #1: the customers are also interested in doing the refreshes. But mainly, they're driven by the the normal natural timing of the refreshes, which is starting now.

Speaker #5: Okay. And, and so these are your two largest customers, is this did you say that this kind of completes their I mean, this would be their their footprint, or it would seem like this could be a, you know, multi-year beyond the three, that you were talking about for this specific opportunity with these two?

Eric Stine: Okay. These are your two largest customers. Did you say that this kind of completes their this would be their footprint, or it would seem like this could be a multi-year beyond the three that you were talking about for this specific opportunity with these two?

Speaker #1: This would be their normal, footprint for renewals or re or refreshes of the units that they have in the field right now. I'm not sure maybe if I didn't understand the question correctly, please,

José Luis Crespo: This would be their normal footprint for renewals or refreshes of the units that they have in the field right now. I am not sure. Maybe if I did not understand the question correctly, please.

Speaker #6: Well, I just would add that if you think about it like a portfolio, there are more and more sites, and they're adding sites this year as an example.

Paul Middleton: Well, I'd just add that if you think about it like a portfolio, there's more and more sites, and they're adding sites this year as an example. They go through a normal reset cycle, but this is kind of, one of them in particular is hitting a major refresh cycle starting here now. The other one, although they've been on refresh, it's starting to grow and build on that. As they add more sites, it'll become bigger and bigger. So we expect a pretty incremental step function in terms of this refresh activity starting from here on out just because of those dynamics.

Speaker #6: So they go through a normal reset cycle, but this is kind of—you know, one of them in particular is hitting a major refresh cycle starting here now.

Speaker #6: And the other one, you know, although they've been on refresh, it's starting to grow and build on that. And as they add more sites, it'll become bigger and bigger.

Speaker #6: So, we expect a pretty incremental step function in terms of this refresh activity starting from here on out, just because of those dynamics.

Speaker #1: So so I guess it's it's gonna be refreshes on top of the normal growth on those customers.

José Luis Crespo: I guess it's going to be refreshes on top of the normal growth on those customers.

Speaker #3: Thank you. Our next question comes from Sharif Al-Maghrabi with BTIG. Your line is now live. We will follow with a question from Chris Dendrinos at RBC Capital Markets.

Operator: Thank you. Our next question today is coming from Sherif Elmaghrabi from BTIG. Your line is now live. Our next question is coming from Chris Dendrinos from RBC Capital Markets. Your line is now live.

Speaker #3: Your line is now live.

Speaker #4: Yeah. Good afternoon. maybe just on the on the fueling, margins here and, you know, I think, you know, pretty solid improvement year on year.

Chris Dendrinos: Yeah. Good afternoon. Maybe just on the fueling margins here and I think pretty solid improvement year-on-year, sequentially, call it relatively flat. Just what are the next big drivers to push or to fuel, no pun intended, more fueling improvement? Thanks.

Speaker #4: Sequentially, call it re-relatively flat. Just what are the next big drivers to push or to, you know—pun intended—fuel more fueling improvement?

Speaker #4: Thanks.

Speaker #1: Thank you, Sharif. We're going to continue operating more efficiently at the plants. We have the three plants: Tennessee, Georgia, and Louisiana. So as we continue operating them, we are getting more efficient and achieving higher utilization of the plants.

José Luis Crespo: Thank you, Sharif. We are going to continue operating more efficiently the plants. We have the three plants, Tennessee, Georgia, and Louisiana. As we continue operating them, we are getting more efficient and higher utilization of the plants. On the logistics side, we are going to continue also improving our logistics. We are continuously trying to make sure that we deploy and send hydrogen to our customers in the most effective way, and we are implementing systems to be able to do that the most effective way that is possible. Finally, we are working in each one of the sites and also in the plants to make sure that the actual efficiency of the systems is improving over time. Those are the items that we are working on to improve our margins in hydrogen.

Speaker #1: On the logistics side, we're going to continue also improving our logistics. We are continuously trying to make sure that we deploy and send hydrogen to our customers in the most effective way.

Speaker #1: And we are implementing systems to be able to do that in the most effective way possible. And finally, we are working in each one of the sites, and also in the plants, to make sure that the actual efficiency of the systems is improving over time.

Speaker #1: So those are the those are the items that we're working on to improve our ma our margins in hydrogen.

Speaker #4: Got it, thanks. And maybe just as a follow-up to an earlier question on the electrolyzer pipeline here—in, you had highlighted Spain being a potential, I think, 10-gigawatt market by 2030.

Chris Dendrinos: Got it. Thanks. Maybe just as a follow-up to an earlier question on the electrolyzer pipeline here, and you had highlighted Spain being a potential, I think 10-gigawatt market by 2030. What are kind of the key markers here? What should we be looking for in terms of, I guess the cadence of when demand would potentially pick up for that market specifically? Thanks.

Speaker #4: What are kind of the key markers here? What should we be looking for in terms of, I guess, the cadence of when demand would potentially pick up for that market specifically?

Speaker #4: Thanks.

Speaker #1: So, drive three, which is the regulation that is being implemented as a law in the different countries, in the different European member states, mandates a certain amount of hydrogen being used in transportation.

José Luis Crespo: RED III, which is the regulation that is being implemented as a law in the different countries, in the different European member states, mandates a certain amount of hydrogen being used in transportation, and specifically for refineries to be converted as different percentages in different countries, but there are numbers for each one of the countries before 2030. What we are going to see, and 2030 is here. We are right now middle of 2026, so we have basically 3 years and a half to make those conversions. We are already seeing some of those projects moving. The projects that we already have and we are implementing, Iberdrola and bp and the project with Galp and some of the projects that we have, the smaller projects on the refinery side, is a result of this legislation becoming a reality.

Speaker #1: And specifically, for refineries, to be converted at different percentages in different countries. But there are, you know, numbers for each one of the countries before 2030.

Speaker #1: So what we're going to see in 2030 is here. I mean, we are right now in the middle of 2026, so we have basically three and a half years to make those conversions.

Speaker #1: So we are already seeing some of those projects moving. The the the projects that we already have and we're implementing, Iberdrola, BP, and the project with GALP, and some of the projects that we have smaller projects on the on the refinery side, is a result of these legislation becoming, a reality.

Speaker #1: So as this gets the draft in Spain, for example, gets approved, which is expected to be in the next, few months, and it becomes an actual law, we are expecting that companies start actually executing and moving forward with the projects.

José Luis Crespo: As the draft in Spain, for example, gets approved, which is expected to be in the next few months, and it becomes an actual law, we are expecting that companies start actually executing and moving forward with the projects. Many of those projects are already in our funnel. This is the $8 billion funnel that we have been talking about. These are not new projects that we are going to basically pick up right now. It is projects that many of them we have done the engineering phase. They are ready to go, and once this happens, the project will start moving forward, and we are hoping that by the end of this year, beginning of next year, you will start seeing some of these projects becoming a reality by reaching FID.

Speaker #1: We have — many of those projects are already in our funnel. This is the $8 billion funnel that we've been talking about. These are not new projects that we're going to basically pick up right now.

Speaker #1: These are projects that have been, many of them we've done the engineering phase. They are ready to go, and once this happens, the project will start moving forward.

Speaker #1: And we're hoping that by the end of this year, beginning of next year, you will start seeing some of these projects becoming a reality by reaching FID.

Speaker #3: Thank you. And the next question is coming from Somaya Jain from UBS. Your line is now live.

Operator: Thank you. Next question is coming from Somaya Jain from UBS. Your line is now live.

Speaker #5: Hi team. congrats on the quarter. so now that gross margins have approached break-even, can you provide more color on the primary structural drivers, whether it's pricing, power, product mix, or lower input costs that are expected to push margins into the positive territory in the second half of the year?

Somaya Jain: Hi, team. Congrats on the quarter. Now that gross margins have approached break even, can you provide more color on the primary structural drivers, whether it's pricing power, product mix, or lower input costs that are expected to push margins into the positive territory in the H2 of the year?

Saumya Jain: Hi, team. Congrats on the quarter. Now that gross margins have approached break even, can you provide more color on the primary structural drivers, whether it's pricing power, product mix, or lower input costs that are expected to push margins into the positive territory in the H2 of the year?

Speaker #1: I'm going to let Paul take that one.

José Luis Crespo: I am going to let Paul take that one.

Speaker #6: Yeah. I I think, so the first thing is sales volume. If you think about, you know, us, you know, with the the the numbers that we've shared in the in the in the forecast of our guidance, as I said earlier, that that suggests mathematically that we'll be up, you know, to to meet those forecasts.

Paul Middleton: Yeah. The first thing is sales volume. If you think about us, with the numbers that we have shared and the forecast of our guidance, as I said earlier, that suggests mathematically that we will be up to meet those forecasts. It is about 40% growth off of the H1. That mostly is equipment volume. That is where we really become very accretive because of the contribution margin, since we are already covering the fixed overhead. That is a big driver. The second is we still got lots of opportunities on the manufacturing cost. We are still very early in the electrolyzer scale and manufacturing processes and still have a lot of opportunities to optimize that cost structure. We have already driven a lot of cost out of that equipment and continue to plan further cost downs on that as an example.

Speaker #6: It's about 40% growth off of the first half. And that mostly is equipment volume. And that's where we really, you know, become very accretive because of the contribution margin since we're already covering the fixed ta fixed overhead.

Speaker #6: So that's, you know, a big driver. The second is we still got lots of opportunities on so you know, we're still very early in the electrolyzer scale and and and manufacturing processes and still have a lot of opportunities to optimize, that cost structure.

Speaker #6: And we have already driven a lot of cost out of that equipment, and continue to plan further cost downs on that, as an example.

Speaker #6: the other two big buckets really is, service. You've seen big moves on service margin. we have seen we see continued improvements in reliability. which gives us opportunity to leverage more, units per tech, as we continue to scale.

Paul Middleton: The other two big buckets really is service. You have seen big moves on service margin. We see continued improvements in reliability, which gives us opportunity to leverage more units per tech as we continue to scale. Since we have a lot of units and sites going live in the H2, we are continuing to take advantage of that. We continue to invest in more reliability improvement processes, and so that is continued to pay off. Lastly is, we just talked a few minutes ago, it is about the fuel. As we continue to scale volume on our fuel network, improve logistics costs and efficiencies of the systems, those are the themes that you are going to continue to see collectively drive margin. In the H2, in particular, it is mainly sales volume.

Speaker #6: And since we have a lot of units and sites going live in the second half, you know, we're continuing to take advantage of that.

Speaker #6: But we continue to invest in more reliability improvement processes, and so that has continued to pay off. And then lastly, as we just talked a few minutes ago...

Speaker #6: It's about the fuel. And so as we continue to scale, volume on our fuel network, drive out the improve logistics costs and efficiencies of the systems, you know, those are the themes that you're gonna continue to see, collectively drive margin.

Speaker #6: But in the second half in particular, it's mainly sales volume. It's just such a big, you know, big step function.

Paul Middleton: It is just such a big step function in context of our targets and our forecast.

Speaker #6: in term in context of our targets and our forecast.

Speaker #5: Okay, great. Thank you. And then, with recent milestones like the order for ORCA and the Carlton Power FID, what is the conversion rate timeline for turning FEED scopes, such as the Quebec project, into firm FIDs?

Somaya Jain: Okay, great. Thank you. With recent milestones like the order for Orica and the Carlton Power FID, what is the conversion rate timeline for turning FEED scopes such as the Quebec project into firm FIDs?

Saumya Jain: Okay, great. Thank you. With recent milestones like the order for Orica and the Carlton Power FID, what is the conversion rate timeline for turning FEED scopes such as the Quebec project into firm FIDs?

Speaker #1: In the case of the project in Canada, we're working right now on the FEED, as we mentioned. And the estimated FID timeline is the beginning of 2027.

José Luis Crespo: In the case of the project in Canada, we are working right now on the FEED, as we mentioned, and the estimated FID timeline is beginning of 2027. With these big projects, as you know, things are a little bit fluid. So that is the estimated timeline that we have right now. It could move to Q3, but we have other projects as well that are going into the same process. We are seeing projects converting into FID, like, as you mentioned, the Orica 50 megawatts, 30 megawatts, and we are expecting the next 25 to become and to convert into FID before the end of the year.

Speaker #1: it could with this big projects, as you know, you know, things, are a little bit fluid. So that is the the estimated timeline that we have right now.

Speaker #1: It could move, you know, to Q3. But we have other projects as well that are going into the same process.

Speaker #1: And we've seen projects converting into FID like as you mentioned, the ORCA 50 megawatts. 30 megawatts. And we're expecting the the next 25 to become and to convert into FID before the end of the year.

Speaker #3: Thank you. Next question is coming from Sameer Joshi from HC Waverly. Your line is now live.

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

Samir Joshi: Hey, Jose Luis, Paul. Good afternoon. Thanks for taking my questions. I just wanted to check on the cash management strategy in terms of the balance sheet load, the interest rate load, some of the working capital gains you are expecting from inventory reductions, and of course, gross margins becoming slightly positive, and also money coming in from these asset monetization efforts. Is there any effort to reduce the debt?

Sameer Joshi: Hey, Jose Luis, Paul. Good afternoon. Thanks for taking my questions. I just wanted to check on the cash management strategy in terms of the balance sheet load, the interest rate load, some of the working capital gains you are expecting from inventory reductions, and of course, gross margins becoming slightly positive, and also money coming in from these asset monetization efforts. Is there any effort to reduce the debt?

Speaker #4: He was saying he was Paul. Good afternoon, and thanks for taking my questions. I just wanted to check on the cash management strategy, in terms of the balance sheet load and the interest rate load.

Speaker #4: would you be the some of the working capital gains you're expecting from in in the inventory reductions and, of course, gross margins becoming slightly positive?

Speaker #4: is there an and also money coming in from these asset monetization efforts? Is there any, effort to reduce, the debt?

Speaker #1: Thank you, Sameer. I think I'm gonna let Paul answer that question.

José Luis Crespo: Thank you, Samir. I think I am going to let Paul answer that question.

Speaker #6: Yeah. So, you know, on the debt side, the only thing we really have is the convertibles. And they're, you know, termed out eight years from now.

Paul Middleton: Yeah. On the debt side, the only thing we really have is the convertibles. They are termed out in 8 years from now. There is no amortization of that. It is, relatively speaking, a low-cost interest unsecured facility. We will continue to monitor that and see what makes sense if there is the right capital opportunities to do that. But the reality is, strength begets strength. As we continue to show the progress that we are making in terms of improving, growing sales, growing the margins, improving cash flows, we certainly expect in H2, as we have talked all year, our plan is that we should see not just sales growth and margin enhancement, but continued reductions in the cash burn.

Speaker #6: There's no amortization of that. It's relatively speaking a low-cost interest, unsecured facility. So you know, we'll we'll continue to monitor that and see, you know, what makes sense.

Speaker #6: If if if, you know, the if if there's, you know, the right, capital opportunities to do that. But the the the reality is, strength begets strength.

Speaker #6: So as we continue to show the progress that we're making and and and in terms of improving, you know, yield growing sales, growing the margins, improving cash flows, you know, we certainly expect in the second half, as we've talked all year, our plan is that we should see not just sales growth and margin enhancement, but continued reductions in the cash burn.

Speaker #6: And so that puts us in a good position, as we start approaching, you know, potentially positive operating cash flows that it opens up even more avenues for me for for debt, you know, in in in capital solutions at lower cost options.

Paul Middleton: That puts us in a good position. As we start approaching potentially positive operating cash flows, that it opens up even more avenues for me for debt and capital solutions at lower cost options. We are in a good position right now. We ended the quarter with a pretty sizable cash balance. Subsequent to the quarter end, as we have talked about, we have already brought in $47 million from this data center asset monetization, with visibility of another $30 million to $35 million in the short term, as that effort continues. We are in a good position as we sit now to fund the balance of the year.

Speaker #6: But, you know, we're in a good position right now. We ended the quarter with a, you know, pretty sizable cash balance. We've subsequent to the quarter end, as we've talked about, we've already brought in, you know, 47 million from this, data center asset monetization with visibility of another 30 million to 35 million in the short term, as those as that effort continues.

Speaker #6: And so, you know, we're in a good position as we sit now that, to kind of fund the balance of the year.

Speaker #4: Understood. Thanks for that. and then just one, stepping back, your, outlook for the year, I mean, I, I guess your fuel and PPA, revenues are sort of, more or less predictable.

Samir Joshi: Understood. Thanks for that. Just one, stepping back, your outlook for the year. I guess your fuel and PPA revenues are more or less predictable. Is this growth, and you did mention this growth is mostly going to come from equipment sales. What kind of visibility do you have? Are there any takes and puts that may exceed your guidance or cause you to not achieve these levels?

Sameer Joshi: Understood. Thanks for that. Just one, stepping back, your outlook for the year. I guess your fuel and PPA revenues are more or less predictable. Is this growth, and you did mention this growth is mostly going to come from equipment sales. What kind of visibility do you have? Are there any takes and puts that may exceed your guidance or cause you to not achieve these levels?

Speaker #4: But is this growth—I mean, you did mention this growth is mostly going to come from equipment sales. What kind of visibility do you have?

Speaker #4: Are there any takes and puts that may, exceed your guidance or, cause, you to not achieve these levels?

Speaker #1: We we I mean, we we decided to, raise guidance, because of, you know, we feel we feel we have, good visibility and expecting to meet that guidance.

José Luis Crespo: We decided to raise guidance because we feel we have good visibility and expecting to meet that guidance. The majority of the H2 of the year is going to be associated with execution, which is an important piece of the business. From a commercial standpoint, we have good visibility on what is going to make the year in terms of meeting that guidance.

Speaker #1: the majority of the second half of the year is gonna be associated with execution, which is an important piece of the business. But from a commercial standpoint, we have good visibility on what's gonna make, the year in terms of, of meeting that guidance.

Speaker #4: Understood. I I would step back. Thanks.

Samir Joshi: Understood. I will step back. Thanks.

Sameer Joshi: Understood. I will step back. Thanks.

Speaker #1: Thank you, Sameer.

José Luis Crespo: Thank you, Samir.

Speaker #3: Thank you. Next question today is coming from Craig Irwin from Roth 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: Hi, good evening, Jose Luis and Paul. Thanks for taking my question. First, I should say you guys did a great job conveying how Plug is clicking on all cylinders these days. The prepared remarks, I appreciate those. Most of my questions have been answered, so I am going to ask a bigger picture question. Over the years, many of us that have followed Plug closely have seen systems in your factory being prepped for delivery for very big technology names, Fortune 50 type names. Intel is one that jumps out to me from the last couple of years. I know you do not always press release these things, but I know you have supplied electrolyzers and other power generation equipment to many of the Fortune 100, Fortune 500, other than the great names like Amazon that are kings of the data center market.

Speaker #7: good evening. Jose Luis and and Paul, thanks for taking my question. first, I should say you guys did a great job, conveying how, Plug is clicking on all cylinders these days.

Speaker #7: So, the prepared remarks—I appreciate those. Most of my questions have been answered, so I'm going to ask a bigger-picture question.

Speaker #7: Over the years, many of us who have followed Plug closely have seen systems in your factory being prepped for delivery for very big technology names—you know, Fortune 50-type names. Intel is one that jumps out to me.

Speaker #7: From the last couple years and, you know, I know you don't always press release these things, but I know you've you've you've supplied, electrolyzers and other power generation equipment to many of of the Fortune 100, Fortune 500, you know, other than the, you know, the great names like Amazon that are of kings of the data center market.

Speaker #7: What do you see as a potential avenue or are you are you exploring, the opportunity for data center participation for Plug, you know, if you had a couple hundred million dollars in incremental capital, is this something that you would you would do and that you could do on a on a relatively, you know, fair timeline?

Craig Irwin: What do you see as a potential avenue, or are you exploring the opportunity for data center participation for Plug? If you had a couple hundred million USD in incremental capital, is this something that you would do and that you could do on a relatively fair timeline? What would it take for you to make the investment there? Given that you do have a competitor out there with a market cap in the tens of billions range, that I do not think has technology that is much better than Plug's. Obviously, I prefer Plug's.

Speaker #7: What would it take for you to make the investment there, given that you do have a competitor out there with a market cap in the tens of billions range, that I don't think has technology that's much better than Plug's?

Speaker #7: Obviously, I prefer Plug's.

Speaker #1: Well, Craig, thank you so much for your question. And and for attending the call as as usual. I appreciate the big picture, question. And it's, it's, it's a good hypothetical.

José Luis Crespo: Well, Craig, thank you so much for your question and for attending the call as usual. I appreciate the big picture question, and it is a good hypothetical. If we had USD 200 million of capital to deploy. Obviously, the data center market is a market that everybody is paying a lot of attention to. As you said, we have many customers of Plug that are data center customers. We did the first test with a 3-megawatt system with Microsoft for backup power for data centers. Right now as Plug, as we have said before, we are 100% focused on three lines of business. One is material handling, which is at this moment actually performing really well and is bringing a lot of the growth in the company. The other one is electrolyzers.

Speaker #1: If we were if we had 200 million dollars of capital to deploy, obviously, the data center market is, is is is a market that everybody is paying a lot of attention to.

Speaker #1: And as you said, we have many customers at Plug that are data center customers. We did the first test with a three-megawatt system with Microsoft for backup power for data centers.

Speaker #1: Right now, as Plug, as we have said before, we are focused—100% focused—on three lines of business. One is material handling, which is, at this moment, actually performing really well and is bringing a lot of the growth in the company.

Speaker #1: The other one is electrolyzers. As I went through it before, the European market is about to, you know, to to heat up and and to bring some orders to the table.

José Luis Crespo: As I went through it before, the European market is about to heat up and to bring some orders to the table. We are expecting that to happen. Then, the hydrogen business, which is also an area of growth. We grew 15% the top line on hydrogen, and we are expecting it to not only bring growth and eventually profitability, but also we are expecting, and it is an enabler for our business. Without hydrogen, none of these things really run. So those are the areas of the business that we are concentrated on. We are always looking at potential opportunities that we could grab in the market. Obviously, the data center market is being one that we have been looking at from different angles.

Speaker #1: We're expecting that to happen. And then, you know, the the hydrogen business, which is also an area of growth. We grew 15% in the the top line on hydrogen.

Speaker #1: And we're expecting it to not only bring growth and eventually, you know, profitability, but also we're expecting, and it is an enabler for our business.

Speaker #1: Without hydrogen, none of these things really, really run. So those are the areas of the business that we are concentrating on. We are always looking at potential opportunities that we could, you know, grab in the market.

Speaker #1: And obviously, the data center market is one that we've been looking at from different angles. One of them is to try to create a solution that, using electrolyzers and using fuel cells, could actually relieve a little bit the network tension that is created by, you know, data centers connected to the grid.

José Luis Crespo: One of them is to try to create a solution that using electrolyzers and using fuel cells could actually relieve a little bit the network tension that is created by data centers connected to the grid. Definitely, it is something that we are looking into. It is something that we have not made any decisions. Right now, at this moment, we are concentrating on the three lines of business that I just mentioned. We are going to push ahead on that and making sure that with those lines of business, we bring the company to profitability.

Speaker #1: definitely, you know, it's it's something that we're looking into. It's something that, you know, we haven't made any decisions. And right now, at this moment, we're concentrating on the three lines of business that I just mentioned.

Speaker #1: And we're gonna push ahead on that. And, and making sure that with those lines of of business, we bring the company to profitability.

Speaker #7: I like that. Thank you. S so my second question is, positive EBITDAs in the fourth quarter, you know, that's obviously you know, something when you achieve it that, Wall Street's gonna cheer, the results.

Craig Irwin: I like that. Thank you. My second question is, positive EBITDA in Q4. That is obviously something when you achieve it, that Wall Street is going to cheer the results. Can you frame out what 2027 and 2028 could look like if maybe we continue along this positive trajectory, mid to upper teen revenue growth, continued structural improvements in gross margin? How would you expect budgeting to work on your frictional costs, and your prioritization of EBITDA over the next couple of years?

Speaker #7: You know, can you frame out what 2027 and 2028 could look like if maybe we continue along this positive trajectory—mid- to upper-teens revenue growth, you know, continued structural improvements in gross margin?

Speaker #7: You know, how would you expect budgeting to work on your frictional costs, and your prioritization of EBITDA over the next couple of years?

Speaker #1: S so we haven't given any guidance beyond 2026 except for we said that 2027 was gonna be operating income positive in the fourth quarter.

José Luis Crespo: We haven't given any guidance beyond 2026, except for, we said that 2027 was going to be operating income positive.

Paul Middleton: In Q4.

Speaker #1: And we were gonna be in 2028, profitable overall profitability. EPS in fourth quarter. So I just wanted to make sure that we reinstate those which is what we have given right now as as guidance.

José Luis Crespo: In Q4. And we were going to be, in 2028, profitable. Overall profitability.

Paul Middleton: EPS in Q4, yeah.

José Luis Crespo: EPS in Q4. I just wanted to make sure that we restate those, which is what we have given right now as guidance. At this moment, we are not giving any additional guidance for 2027 and 2028. I do not know if you want to add anything, Paul.

Speaker #1: And at this moment, we're not giving any additional guidance for 2027 and 2028. I don't know if you want to add anything more.

Speaker #4: The only the only thing I would add at this point, Craig, is one thing we have said and we we you know, we believe is true and and and, you know, our baseline is we we believe we have the infrastructure, the manufacturing facilities, the things we need to do to deliver, our plans.

Paul Middleton: The only thing I would add at this point, Greg, is one thing we have said, and we believe is true in our baseline is we believe we have the infrastructure, the manufacturing facility, the things we need to do to deliver our plans. We think there is a lot of leverage opportunity, and we do not really plan on a lot of incremental investment to achieve that growth trajectory. Achieving it in Q4 is going to be a big milestone, but it also postures us as we continue. We expect to grow. Maybe it is double digits like you said, but all growth will be variable contribution in that regard and tremendous leverage opportunity.

Speaker #4: So you know, we think there's a lot of leverage opportunity. And we don't really plan on a lot of incremental investment, to achieve those that growth trajectory.

Speaker #4: So you know, achieving it in Q4 is gonna be a big milestone, but it also postures us as we continue to and we expect to grow.

Speaker #4: So, you know, maybe it's double digits like you said, but all growth will be variable contribution. And in that regard, it's a tremendous leverage opportunity.

Speaker #4: So we're, I'm pretty excited about the prospects. And I'm sure as we move forward through this year, we'll be in a position to talk more and more about '27 and onward.

Paul Middleton: I am pretty excited about the prospects, and I am sure as we move forward through this year, we will be in a position to talk more and more about 2027 and onward, but we are postured really well.

Speaker #4: But we're postured really well.

Speaker #5: Thank you. Next question is coming from Sharif Al-Maghrabi from BTIG. Your line is now live.

Operator: Thank you. Our next question is coming from Sherif Elmaghrabi from BTIG. Your line is now live.

Speaker #6: Hi, thanks. I managed to disconnect myself, so I apologize if any of these have been asked before. But, Jose Luis, you talked about this 30-gigawatt-per-megawatt project that FIDE—and a 50-megawatt project that FIDE. Can you shed a little bit of light on the timeline for these bigger projects after FIDE?

Sherif Elmaghrabi: Hi, thanks. I managed to disconnect myself, so I apologize if any of these have been asked before. Jose Luis, you talked about this 30-megawatt project that FID, and a 50-megawatt project that FID. Can you shed a little bit of light on the timeline for these bigger projects after FID? How long before they start up the commissioning process, the handover process? How long does that take? Any variation in times based on the size would be interesting.

Speaker #6: How long before they start up, you know, the commissioning process— the handover process? How long does that take? And any variation in times based on the size would be interesting.

Speaker #1: So just these two examples on the on the project in, in the UK, we have already started, delivering some of the some of the, the, balance of plan to to Europe.

José Luis Crespo: So, just these 2 examples. On the project in the UK, we have already started delivering some of the balance of plant to Europe, to set it up for the installation. It usually takes about, depending on the project, obviously, I am just going to give you high-level timelines, 12 to 15 months to start installation. In some cases, it is a little bit longer, depending on the status of the project. Then, once the installation happens, which could take a couple of months or maybe a quarter, you start with the commissioning. So it is a process in terms of getting the product out there to be installed and to be commissioned, that is in the 12 to 18 months process.

Speaker #1: To set it up for the installation, it usually takes about, you know, depending on the project, obviously—I’m just going to give you high-level timelines.

Speaker #1: You know, 12 to 15 months to start installation. In some cases, it's a little bit longer depending on the on the status of the project.

Speaker #1: And then, you know, once the installation happens, which could take, you know, a couple of months or or or maybe a quarter, then you start with the commissioning.

Speaker #1: So, it is a process in terms of getting the product out there to be installed and to be commissioned—that is in the 12- to 18-month process.

Speaker #1: Now, these types of projects—because they are larger projects and they require, you know, a lot of advanced manufacturing—are projects that we structure with milestone payments.

José Luis Crespo: Now, these type of projects, because they are larger projects and they require a lot of advanced manufacturing, are projects that we structure with milestone payments, and we also structure with percentage of completion accounting in the majority of the cases. So we start seeing revenues, and we start seeing money, cash coming in from the projects in the earlier stages.

Speaker #1: And we also structure with, percentage of completion accounting in the majority of the cases. So we start seeing revenues and we start seeing, you know, money, cash coming in from from the projects, in the earliest stages.

Speaker #6: Got it. And then, maybe something a little different. Last week, the governor of Texas announced a more ta more ta excuse me, a moratorium on new data center construction.

Sherif Elmaghrabi: Got it. Maybe something a little different. Last week, the governor of Texas announced a moratorium on new data center construction. I am wondering if that affects the sale of your Texas assets, given the counterparty for that transaction.

Speaker #6: And I'm wondering if that affects the sale of your Texas assets, given the counterparty for that transaction.

Speaker #1: Last week, our understanding is that it was a letter from the governor asking to review the data center projects that were on the list of projects that want to be implemented in Texas.

José Luis Crespo: Last week, our understanding is it was a letter from the governor asking to review the data center projects that were on the list of projects that want to be implemented in Texas. We believe there is going to be a review with very specific items that were outlined in the letter, just to make sure that the projects are the right projects and that they are real projects and not projects that are more speculative. We do believe that that process is going to play out. We continue working with Extreme through that process. We continue with the efforts that we have discussed about the monetization of the assets in Texas and New York. We will go through the process, we will go through their questions, and we will help Extreme to get through everything that they need to get through.

Speaker #1: We believe there's gonna be a review with very specific very specific items, that were outlined in the letter. Just to make sure that the projects are you know, the right projects and that they are real projects and not, not projects that are, more, speculative.

Speaker #1: And we do believe that that process is gonna play out. And, and we continue working with the stream through that process. And we continue with the efforts that we have discussed about, the monetization of the assets in Texas and New York.

Speaker #1: So we we'll go through the process. We'll go through the through the through the, questions. And, we'll help, stream to get through everything that they need to get through.

José Luis Crespo: Obviously, going through whatever the government in Texas requires that we need to do.

Speaker #1: And obviously, you know, going through whatever the, the government in Texas requires that we need to do.

José Luis Crespo: Obviously, going through whatever the government in Texas requires that we need to do.

Speaker #6: Okay. Super helpful. Thanks for taking my questions.

Sherif Elmaghrabi: Okay. Super helpful. Thanks for taking my questions.

Speaker #1: No. Thank you, Sheriff.

José Luis Crespo: No, thank you, Sherif.

Speaker #5: Thank you. Next question is coming from Skylander from North Drive. Your line is now live.

Operator: Thank you. Next question is coming from Skye Lander from Rothschild. Your line is now live.

Speaker #7: Hi, guys. Just a couple on the electrolyzer business from me. Firstly, just thinking back to your symposium last year, I think your partner, Allied Green, said that they were hoping to be operational by 2026 and potentially even be at a point where they could submit firm orders to Plug before the end of the year.

Paul Middleton: Hi, guys. Just a couple on the electrolyzer business from me. Firstly, just thinking back to your symposium last year, I think your partner, Ally Green, said that they were hoping to progress their projects through 2026 and potentially even be at a point where they could submit firm orders to Plug

Skye Landon: Hi, guys. Just a couple on the electrolyzer business from me. Firstly, just thinking back to your symposium last year, I think your partner, Ally Green, said that they were hoping to progress their projects through 2026 and potentially even be at a point where they could submit firm orders to Plug

Skye Lander: before the end of the year. Just wondering if you could provide an update on those mega projects. Then second one on the electrolyzer business. You mentioned the ACCIONA JV in Iberia earlier. Just wondering if you could remind us all how that JV is set up, how big the initial projects are, and then importantly, what the funding plans would be for those projects once they took FID. That would be great. Thanks.

Skye Landon: before the end of the year. Just wondering if you could provide an update on those mega projects. Then second one on the electrolyzer business. You mentioned the ACCIONA JV in Iberia earlier. Just wondering if you could remind us all how that JV is set up, how big the initial projects are, and then importantly, what the funding plans would be for those projects once they took FID. That would be great. Thanks.

Speaker #7: So, just wondering if you could provide an update on those mega projects. And then, secondly, on the electrolyzer business—you mentioned the Axiom or JV in Iberia earlier.

Speaker #7: Just wondering if you could remind us all how that JV is set up, how big the initial projects are, and then, importantly, kind of what the what the funding plans would be for those projects, once they took FID.

Speaker #7: That would be great. Thanks.

Speaker #1: Great. So, on Allied Green, we continue working with Allied Green on the progression of the projects in Australia and in Uzbekistan. We announced both projects.

José Luis Crespo: Well, on Ally Green, we continue working with Ally Green on the progression of the projects in Australia and in Uzbekistan. We announced both projects. As I was saying before, these type of projects are complex, and they take time. We are still expecting and hoping that we will get the go-ahead as soon as possible from Ally Green in either project. It seems like Uzbekistan is moving a little bit faster. But we keep on working on helping to try to get those projects to FID. In the Spain JV, it is a 50/50 JV with ACCIONA Energía. ACCIONA is, I think the largest, and I say I think, I don't want to quote, but I think it is the largest renewable company in Spain, in Iberia, for those that don't know what company is ACCIONA.

Speaker #1: And as I was saying before, this type of projects are complex and they take time. we're still expecting and hoping that we will get, the go-ahead, as soon as possible from from Allied Green, either in either project.

Speaker #1: It seems like Uzbekistan is moving a little bit faster. But, you know, we keep on working on helping to try to get those projects to FID.

Speaker #1: In the Spain, JV is, 50/50 JV with Axiona. Energia. Axiona is, I think the largest and and I say I think I I don't wanna quote, but I think it's the largest renewable company in, in Spain, in Iberia.

Speaker #1: for those that don't know, what company is Axiona. And this is why we partnered with them, because they have access to renewables. We have several projects that we are developing with them, but the most advanced projects are a project in, the region of Navarra, in a city called Sangüesa.

José Luis Crespo: This is why we partner with them, because they have access to renewables. We have several projects that we are developing with them, but the most advanced projects are a project in the region of Navarra, in a city called Sangüesa. That project got €2.5 from the European Hydrogen Bank. We have basically all the ingredients to get to FID. We are hoping that it probably will happen at the end of 2026, beginning of 2027, and we will work with ACCIONA to find the funding for the projects. The same thing goes with the project in Zaragoza, which is the one that just got €2.85. I believe those two projects have the highest per kilo subsidies from the European Hydrogen Bank. In the case of Zaragoza, that project is a little bit less developed than the project in Navarra.

Speaker #1: That project got €2.5 million from the European Hydrogen Bank. And we have, basically, you know, all the ingredients to get to FID. We're hoping that it probably will happen at the end of 2026, beginning of 2027.

Speaker #1: And we will work with Acciona to find the funding for the projects. The same thing goes with the project in Zaragoza, which is the one that just got to €2 and 85 cents.

Speaker #1: I believe those two projects have the highest, per kilo, subsidies from the European Hydrogen Bank. In the case of Navarra, Zaragoza, that project is a little bit less developed than the project in Navarra.

Speaker #1: That project, right now, we're re still working through, finding and for and and and getting, uptake while in the case of Sangüesa, we already have line up a potential hypo high probability of taker.

José Luis Crespo: That project, right now, we are still working through funding and getting offtake, while in the case of Sangüesa, we already have lined up a potential high probability offtaker. That is the situation with those two projects. Behind that, we have another three or four projects that are in very early stages. But those two are the ones that are the main projects that we have on the table, and we will work with ACCIONA for the funding once we reach FID.

Speaker #1: So that's the situation with those two projects. Behind that, we have another three or four projects that are in very, very early stages.

Speaker #1: But those two are the ones that are the main projects that we have on the table, and we will work with Acciona for the funding once we reach FID.

Speaker #7: That's great. Thanks.

Skye Lander: That is great. Thanks.

Skye Landon: That is great. Thanks.

Speaker #1: Thank you.

José Luis Crespo: Thank you.

Speaker #5: Thank you. Next question is coming from Jason Tilchin from County Court of Juniper. Your line is now live.

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

Speaker #7: Good afternoon, everyone. Thanks for taking my question. Apologies if this was already asked, but I'm hopping between a few calls. I believe Paul said that progress towards Q4 EBITDA profitability is going to primarily be driven by continued gross margin improvement.

Jason Tilchen: Good afternoon, everyone. Thanks for taking my question. Apologies if this was already asked. I have been hopping between a few calls. I believe Paul said that progress towards Q4 EBITDA profitability is going to primarily be driven by continued gross margin improvement. Noticed there was such a notable step down in G&A expense in the quarter. Just hoping to unpack that decline a bit, and then looking forward to the right level of sort of fixed corporate cost to think about going forward. Thank you.

Speaker #7: I noticed there was a notable step down in G&A expense in the quarter. Just hoping to unpack that decline a bit, and then looking forward, what’s the right level of sort of fixed corporate costs to think about going forward?

Speaker #7: Thank you.

Speaker #8: Yeah. A few there's there's always ebbs and flows and things that have been happening. And, you know, the what we've been saying and and projecting is is that our our normal run rate, if you will, we expect to be about 75 million a quarter.

Paul Middleton: Well, there is always ebbs and flows and things that have been happening and what we have been saying and projecting is that our normal run rate, if you will, we expect to be about $75 million a quarter. There was a large recovery via a contract dispute where we had previously taken a reserve against that position. Because we got a large amount of money back on that program, that resulted in a gain that showed up as an offset to OpEx. There is also some nominal restructuring and other charges in that bucket. If you back that out, $75 million is kind of our expected run rate. So, we continue to be very thoughtful and disciplined on cost and for overhead and discretionary spend, and we are particularly focused in the back half of the year, given our goals there.

Speaker #8: There was a large recovery of a, contra of a content via a contract dispute where we got a, you know, we had previously taken a reserve against that position.

Speaker #8: And because we got a large, you know, amount of money back on that program, that resulted in a gain that showed up as an offset to OPEX.

Speaker #8: There's also some, you know, nominal restructuring and and other charges in that bucket. But, you know, if you if you back that out, you know, 75 million is kind of our expected run rate.

Speaker #8: So, you know, we continue to be very thoughtful and disciplined on cost, and for overhead and discretionary spend. And we're particularly focused in the back half of the year, given our goals there.

Speaker #8: But if you look at it just mathematically, to get to the EBITDA target, it's mainly through gross margin in the back half of the year.

Paul Middleton: But if you look at it just mathematically, to get to the EBITDA target, it is mainly through gross margin in the back half of the year and in Q4. So, given the forecast that we have been sharing, and what we anticipate for sales, that is about 40% growth off the H1, and most of that is through equipment sales. So it becomes very accretive when you sell incremental equipment when you have already covered your fixed cost at base. So, that is where that comment came from, and that gives you some color on what was going on in Q2.

Speaker #8: So and and and in and in Q4, so, you know, given the forecast that we've been we've been sharing, and what we anticipate for sales, you know, that's about 40% growth off the first half.

Speaker #8: And most of that is through equipment sales. So it's, you know, it becomes very creative when you sell incremental equipment, when you have already covered your fixed cost your fixed cost at base.

Speaker #8: So, that's where that comment came from. And that's to give you some color on what was going on in Q2.

Speaker #7: Very helpful. Thank you very much.

Jason Tilchen: Very helpful. Thank you very much.

Speaker #1: Thank you.

José Luis Crespo: Thank you.

Speaker #5: Thank you. We appreciate our question and answer session. I'd like to turn the floor back over for any further closing comments.

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

Speaker #1: Okay, so thank you all for the questions, for your continued engagement and support. Our priorities for the balance of 2026 are still the same and are clear.

José Luis Crespo: Okay, thank you all for the questions and for your continued engagement and support. Our priorities for the balance of 2026 are still the same, are clear. We are going to execute with discipline, keep converting our commercial pipeline, keep strengthening our liquidity through non-dilutive means, and deliver positive EBITDA in Q4. Q2, this quarter, gives us a strong foundation for the H2. Margins are improving, cost discipline is holding, our backlog is growing, our cash usage is the lowest it has been all year. With our near-term liquidity outlook strengthened by the asset monetization process now coming in, and the regulatory and commercial tailwinds behind our electrolyzers business are only getting stronger. We have said that before.

Speaker #1: we're gonna execute with discipline. Keep converting our commercial pipeline. Keep strengthening our liquidity through non-dilutive means and deliver positive EBITDAs in the fourth quarter.

Speaker #1: Q2, this quarter, gives us a strong foundation for the second half. Margins are improving, cost discipline is holding, our backlog is growing, and our cash usage is the lowest it has been all year, with our near-term liquidity outlook strengthened by the asset monetization process now coming in. The regulatory and commercial tailwinds behind our electrolysis business are only getting stronger.

Speaker #1: We have said that before. Now, it's about consistent delivery. But with the momentum we are building, we are genuinely more confident than ever in where this business is headed.

José Luis Crespo: Now it is about consistent delivery, but with the momentum we are building, we are genuinely never more confident in where this business is headed for the rest of 2026 and well beyond it. Thank you again for your support. We look forward to updating you on the process in the next quarter. Thank you, everyone.

Speaker #1: For the rest of 2026, and well beyond it, thank you again for your support. We look forward to updating you on the process in the next quarter.

Speaker #1: Thank you, everyone.

Speaker #5: Thank you. That does conclude today's teleconference webcast. You may 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 webcast. You may disconnect your line after this time, and have a wonderful day. We thank you for your participation today.

Q2 2026 Plug Power Inc Earnings Call

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