Plug Power’s second quarter results reflected ongoing operational improvements and strong end-market demand, particularly within its GenDrive, GenFuel, and GenEco platforms. While revenue outpaced Wall Street’s expectations, management pointed to substantial progress in gross margin improvement, citing the impact of Project Quantum Leap initiatives, cost reductions, and optimized service execution. CEO Andy Marsh acknowledged the company’s focus on operational discipline, noting, “Gross margins improved dramatically, moving from negative 92% in Q2 of last year to negative 31% this quarter.” Management attributed these gains to better pricing, streamlined operations, and a more reliable hydrogen supply network.

Is now the time to buy PLUG? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Plug Power’s Q2 Earnings Call

• Colin William Rusch (Oppenheimer) asked about the cadence of electrolyzer project closings and how quickly sales are converting. President Jose Luis Crespo answered that a strong sales funnel exists, with some projects closing in 2025 and others reaching final investment decisions in 2026, emphasizing efforts to secure early-stage agreements.
• Craig Irwin (ROTH Capital Partners) inquired about the impact of recent U.S. tax credit legislation on customer plans. Crespo noted that customers are excited, especially for electrolyzer and material handling business cases, with expectations of healthy growth in 2026 due to the new incentives.
• Manav Gupta (UBS) questioned confidence in achieving gross margin neutrality and asked if investment tax credits could open new markets. CFO Paul Middleton replied that Quantum Leap restructuring and better fuel supply contracts would support margin gains, while CEO Marsh emphasized a selective approach to new markets to maintain focus on core profitability targets.
• David Keith Arcaro (Morgan Stanley) asked for updates on tariff impacts and Texas facility plans. CEO Marsh detailed minimal tariff impacts on hydrogen and electrolyzer businesses and confirmed construction on Texas would start by year-end, with a potential partner joining by mid-fourth quarter.
• Skye Wreford Landon (Rothschild & Co Redburn) probed the requirements for European electrolyzer projects to move forward. Crespo explained that land, power, water, funding, and confirmed offtake agreements are all necessary, with several projects expected to progress in 2026.

Catalysts in Upcoming Quarters

Over the coming quarters, our analysts will closely monitor (1) Plug Power’s progress toward gross margin neutrality and the ramp-up of operational benefits from Project Quantum Leap, (2) the pace of hydrogen network expansion, including milestones for the Texas facility and new supply agreements, and (3) tangible signs of customer demand acceleration tied to recently extended tax credits. Execution on cost reduction, supply reliability, and project pipeline conversion will be critical markers for Plug Power’s trajectory.

Plug Power currently trades at $1.71, up from $1.60 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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