I've Been a Plug Power Bear for Years, but That May Soon Be Changing

Since its debut on public markets, Plug Power (NASDAQ: PLUG) stock has sparked excitement among those who recognized the company as an early leader in the burgeoning fuel cell and hydrogen industry. Over the past three decades, though, Plug's shares have vastly underperformed the S&P 500 (SNPINDEX: ^GSPC), and for a long time, I've been doubtful that the stock's trajectory would reverse.

But some of the company's recent developments have motivated me to reconsider my position. I'm not ready to add Plug stock to my buy list just yet, though I am thinking more deeply about it for a couple of reasons.

Image source: Getty Images.

This C-suite change is A-1 in my book

The first week of March marked a significant change in Plug's history: Andy Marsh stepped down as chief executive officer (CEO), and Jose Luis Crespo took the helm. While Marsh deserved credit for some of the company's accomplishments since 2008, on balance, shareholders have not benefited from his tenure.

From the time of his appointment as CEO on April 8, 2008, to March 1, 2026, when he stepped down, Plug stock plummeted 95%. If you had invested $1,000 upon Marsh's hiring as CEO, you'd only be looking at $50 left of your investment. With Crespo now serving as CEO, there's new hope for shareholders.

Profits are coming into focus -- kinda, sorta

Plug hasn't achieved the same sort of success as its fuel-cell peer Bloom Energy, which is now consistently generating gross profits and operating cash flow -- two things that remain elusive for Plug -- but it's making some progress.

Image source: The Motley Fool.

Over the past year, Plug has implemented Project Quantum Leap to reduce costs and improve cash flow. It seems to be working. Plug recently reported fourth-quarter 2025 financial results, featuring a gross profit of $5.5 million, a substantial reversal from the $233 million gross loss it reported in the same period last year. Plus, management stated the company is on track to achieve its target of attaining positive earnings before interest, taxes, depreciation, amortization, and share-based expense (EBITDAS) by the fourth quarter of 2026.

Next steps to take before plugging Plug stock into your portfolio

While there are some reasons to believe that Plug stock represents a less speculative investment than it had been just a few months ago, it's still too soon to declare that it's out of the woods. The company has projected achieving positive EBITDAS for more than a decade. The current forecast is nothing new, however, and there's still ample risk with a Plug investment. Cautious investors with eyes on Plug stock should look for the company to continue reducing its losses as validation of its turnaround. And if Plug succeeds in achieving its target of breaking even on an EBITDAS basis at the end of 2026, it would be a bright green flag that the company is proceeding in the right direction.

For those who are more earnest about exposure to the hydrogen industry, however, there are fortunately other hydrogen stocks that are more compelling buys right now.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.