Financial Highlights

Revenues: In the fourth quarter of 2024, Plug reported revenue of $191.5 million, reflecting a key commercial inflection point in electrolyzer deployments, continued expansion of its hydrogen network, and increased utilization of its manufacturing footprint. Customer warrant charges for the fourth quarter of 2024 totaled $22.7 million, an elevated amount driven by updated forecasts and the timing of customer programs.
Liquidity Management: In the fourth quarter of 2024, operating cash flow improved by 25% quarter-over-quarter (QoQ) and 46% year-over-year (YoY), driven by margin expansion and increased working capital efficiency. For the full year of 2024, operating cash flow burn also improved by 34% compared to 2023, reflecting the Company’s ongoing focus on financial discipline and operational optimization. In terms of capital expenditures, outlays were down by 56% quarter-over-quarter (QoQ) and 52% for the full year of 2024 compared to 2023. This stems from Plug driving key strategic projects to conclusion and limiting incremental investments, as the Company focuses on leveraging recently established platforms to drive cash leverage.

Gross Margin Loss: In the fourth quarter of 2024, Plug reported a gross margin loss of 122%, which included the impact of non-cash adjustments of approximately $22.7 million in customer warrant charges and $104.2 million in inventory valuation adjustments. The inventory valuation adjustments were deemed necessary given the strategic slowdown of certain market investments in mobility, high-power stationary applications, and the development of other products. For the full year of 2024, the results included an estimated reduced amount of labor, overhead, and outside services of approximately $42 million (excluding absorption variation for inventory build/reductions). This stems in part from targeted cost reduction including labor optimization and rooftop consolidation. For the full year of 2024, the results also reflect improvements in contribution margin for service and fuel given the Company’s focus on price increases, cost downs, and the leverage of its hydrogen platform buildout. These cost downs were complemented by additional reductions in operational expenses for SG&A and R&D driving enhanced overall operational leverage.
Asset Impairment and Bad Debt Charges: Plug recorded $971.3 million in non-cash charges for varied asset impairments and bad debt provision in operating expenses in the fourth quarter of 2024 due to strategic shifts in its business operations stemming from pushouts of market demand and overall market dynamics. The impairment charges recorded will reduce the associated future depreciation and amortization, including an estimated $55 million to $60 million for 2025. The types of assets related to the impairment charges recorded in the fourth quarter of 2024 include property plant and equipment, right-of-use assets, intangible assets, non-marketable equity investments, contract assets, and assets associated with power purchase agreements and fuel.

Operational and Strategic Highlights

2024 Electrolyzer Milestone and Strong Basic Engineering and Design Package (BEDP) Pipeline Supporting Future Growth: Plug reported another quarter of growth as its electrolyzer business continues to scale. In the fourth quarter of 2024, electrolyzer revenue increased 583% YoY, driven by the recognition of revenue from 5-megawatt (MW) system sales and a large-scale order deployment. During the fourth quarter of 2024, Plug announced a significant purchase agreement with Allied Green Ammonia (AGA), under which the Company will supply three gigawatts (GW) of electrolyzer capacity for AGA’s cutting-edge green hydrogen-to-ammonia plant in Australia. This agreement further strengthens Plug’s position for continued growth in 2025 and beyond. To date, Plug has secured more than 8 GW in global BEDP contracts, with ongoing progress across its customer base.
Hydrogen Production Network and Louisiana Plant Update: Plug continues to strengthen its hydrogen business by effectively leveraging its internal network of hydrogen plants. The Company’s joint venture hydrogen plant with Olin Corporation in Louisiana is on track for full operation, with final commissioning nearly complete. This expansion is expected to increase Plug’s hydrogen nameplate network capacity to over 39 tons per day (TPD), supporting continued growth in hydrogen sales and margin expansion through 2025. We believe this expansion will further enhance Plug’s ability to meet growing customer demand, providing key partners like Amazon and Walmart with reliable, vertically integrated hydrogen solutions.
Continued Momentum in Material Handling, with Safe Harbor from Key Customer Demonstrating Ongoing Interest: Plug anticipates its material handling business to grow approximately 10-20% YoY, driven by increased customer diversification and ongoing deployments with key pedestal customers. In the fourth quarter of 2024, a major customer placed an approximate $10 million order, positioning over $200 million in equipment opportunities by using this $10 million order to facilitate a safe harbor investment structure. We believe this development underscores the strong growth trajectory and expanding market opportunities within the material handling segment.
Liquidity Planning:
- Cash Management: Plug closed 2024 with over $200 million in unrestricted cash on its balance sheet as we enter 2025. The improvement in cash burn in the fourth quarter makes it clear the initiatives in 2024 are significantly reducing cash burn for the Company. Given that 2025 will include a full year of benefits from activities undertaken in 2024, coupled with incremental benefits from Project Quantum Leap as outlined above, the cash burn in 2025 is expected to continue to significantly improve.
- Investment Tax Credit (ITC) Transfers: Plug is pleased to have completed the transfer of approximately $30 million in energy storage ITC related to the hydrogen liquefier at its hydrogen generation plant in Woodbine, GA. This transaction demonstrates Plug’s ability to leverage its assets to provide non-dilutive financing options. The Company plans to leverage a similar strategy for its Louisiana and Texas hydrogen plants and pursue sales of various other asset ITC opportunities.
- Department of Energy (DOE) Loan Update: Plug recently closed the $1.66 billion DOE Loan Guarantee program. Plug has invested over $250 million in the project to date. To complete the project, Plug estimates an additional required investment of approximately $600 million. Of this additional investment, the DOE loan is targeted to cover approximately $400M. To cover the investment amount outside the DOE loan, Plug has targeted a process of working with project finance and potential equity investors. The Company has made progress aligning with interested parties and anticipates culminating that process commensurate with kicking off the project in the coming months. Construction is expected to take approximately 18 months once its engineering, procurement, and construction (EPC) contractor is mobilized. This remains an important project for the future and is expected to benefit the Company and the U.S. market once completed, but the Company will be prudent about the timing of mobilizing the project to ensure third-party funding given this project is not correlated to near-term sales and margin goals.

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