Plug Power's New CEO Aims to Make the Company Profitable by 2028. How Likely Is That to Happen?

Many investors see green energy stocks as a great way to invest in the future. Energy needs are rising due to population growth and artificial intelligence. Companies that can address those needs in an environmentally friendly manner can be in great positions to generate considerable growth in the years ahead.

One business that hopes to fall into that category is Plug Power (NASDAQ: PLUG), which is a hydrogen fuel cell company. Unfortunately, it has been struggling with profitability, and it wasn't all that long ago that it was warning investors it might not be able to survive. It's in a better situation today, and its new CEO believes that it may be on a path to profitability in the near future.

But just how probable is that, and should you invest in the stock based on that optimistic outlook?

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New Plug Power CEO projects profitability by 2028

In October, Plug Power announced that Jose Luis Crespo will become the company's new CEO in March 2026. He is taking over from Andy Marsh, who has stepped down from the role and who will be the executive chair of the company's board of directors.

Crespo is no stranger to Plug Power and has been with the company since 2014, with his most recent position as its chief revenue officer. As CEO, Crespo believes he can help the business get out of the red, aiming first to get to operating profitability by 2027 and for the bottom line to turn positive the following year. The company plans to do this as it focuses on the electrolyzer market and curbs plans of building more hydrogen factories in the U.S. (now that there's less support for renewable energy projects).

Why investors should be skeptical

Although there has been growing demand for the company's green energy solutions, the problem is that Plug Power's losses have risen along with sales. This is alarmingly evident in the company's poor operating margin. Not only has it been negative in recent years, it hasn't been uncommon for operating losses to be more than revenue.

PLUG Operating Margin (Quarterly) data by YCharts.

In the trailing 12 months, Plug Power's net losses have totaled $2.1 billion, while operating losses are just under $942 million. The company has not even generated a positive gross margin in the past four quarters.

While the new CEO has some bold objectives and targets in place, all while still planning to drive more growth, they won't be easy to hit. The danger with making such rosy projections is that they can set expectations high, leading to a potential sell-off in the share price if they aren't met.

Plug Power remains a highly risky stock to own

In the past five years, Plug Power stock has declined by a stunning 92%. Investors have largely given up on the stock due to its continued losses and lack of meaningful progress. The company has been around for decades, and yet, it remains a business that is still full of question marks today.

Investors should tread carefully with the stock, as any CEO will want to paint a rosy future ahead for a business. But ultimately, the numbers will tell the story, and right now, it's not a great one. Plus, with the U.S. government canceling many clean energy projects, it may be more difficult than ever for Plug Power to get to profitability. I'd be skeptical about any claims suggesting otherwise.

Until there are significant improvements in Plug Power's financials, investors may be better off waiting on the sidelines with the stock, as there's little reason to expect that the company will be able to turn a profit anytime soon. While it may be tempting to believe the business is on the right path, investors have been burned badly in the past by buying shares of Plug Power, and there's no guarantee that the future will be any better.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.