Plug Power's Turnaround Is Working. Here's What Investors Should Look for Next.
Key Points
Plug's revenue grew 22% year over year as of its latest earnings report.
Plug is aiming for positive EBITDAS in the fourth quarter of 2026.
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Plug Power's (NASDAQ: PLUG) investors aren't rejoicing just yet, but they do have reasons to be optimistic. The hydrogen fuel cell company's latest quarterly report suggests its turnaround strategy may actually be working.
Plug's efforts to right the ship are under the initiative of "Project Quantum Leap." This is the company's official plan to improve performance by being disciplined on cost and efficiency.
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Plug Power management sets a new milestone
On May 11, Plug reported a 22% year-over-year increase in revenue, driven by material handling, electrolyzers, and hydrogen fuel. Gross margin improved drastically, going from negative territory to a positive 13%.
CEO Jose Luis Crespo is pushing Plug to reach positive EBITDAS, which is earnings before interest, taxes, depreciation, amortization, and stock-based compensation, in the fourth quarter of 2026. Investors should watch closely to see if Plug hits this milestone. If it's able to stay on track, meet expected EBITDAS goals, and grow revenue between 13% and 15% for the year, the bull case for Plug's long-term outlook will only gain strength.
Plug's stock has long struggled and is down 84% in the past five years as of May 12. Even if Plug can reach its Project Quantum Leap short-term objectives, there's still a long way to go to fully appease investors. Any missteps will be even more costly for the beleaguered stock.
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Catie Hogan has positions in Plug Power. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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