Plug Power Inc. (NASDAQ: PLUG) reported stronger second-quarter results driven by higher GenDrive deployments, increased hydrogen fuel sales, and lower operating costs. PLUG shares traded at $2.21, up 4.73%, after earlier gains partially receded during a mid-morning pullback. The company also raised its full-year 2026 revenue growth outlook following improved commercial execution. The results come as Plug Power, one of the most closely watched names in the hydrogen fuel cell sector, works to convince investors that its path toward profitability is achievable amid longstanding scrutiny over cash burn and capital needs.

GenDrive Deployments Jump 125%

Plug Power deployed 1,666 GenDrive fuel cell units during the second quarter, a 125% increase from 739 units in the same period last year. This expansion broadened the company's material handling installed base and reinforced recurring service and hydrogen revenue opportunities. Two major customers plan to refresh more than 20,000 GenDrive units over the next three years.

Service revenue rose 82% year over year to approximately $30 million. Service margin reached 27%, supported by improved unit reliability and greater technician productivity. Plug Power attributed this progress to stronger operating leverage across its growing installed fleet.

Material handling remains central to Plug Power's commercial hydrogen business and recurring revenue model. A larger installed base supports equipment replacements, maintenance contracts, and sustained hydrogen fuel demand, giving the company a broader revenue foundation beyond initial equipment sales.

Hydrogen Sales and Electrolyzer Projects Advance

Plug Power generated approximately $178 million in quarterly revenue, representing roughly 9% sequential growth. Fuel revenue increased about 15% year over year to nearly $39 million as hydrogen consumption rose. Fuel gross margin improved to negative 48%, compared with negative 91% one year earlier.

The company also advanced large-scale electrolyzer projects across Europe, Canada, Australia, and Britain. Plug Power reached final investment approval for Carlton Power's 30-megawatt Barrow Green Hydrogen project and secured a 50-megawatt electrolyzer order for Orica's Hunter Valley Hydrogen Hub. These projects reflect a broader industry push toward green hydrogen infrastructure supported by policy frameworks such as the European Union's hydrogen strategy and government incentives in multiple jurisdictions.

Additional projects progressed through development and commissioning during the quarter. Plug Power advanced the 100-megawatt GALP project in Portugal and a 25-megawatt project in Spain. The company also secured a 275-megawatt engineering scope for Hy2gen's Courant Project in Québec.

Margins Improve as Costs and Cash Usage Decline

Plug Power improved its overall gross margin to roughly breakeven, up from negative 31% in the prior-year quarter and from approximately negative 13% in the first quarter of 2026. Operating expenses fell about 50% year over year to roughly $62 million.

GAAP loss per share narrowed to $0.14 from $0.20 in the prior-year period. Adjusted loss per share improved to $0.07 from $0.18 one year earlier. Lower expenses and stronger margins contributed to reduced operating losses during the quarter.

Unrestricted cash stood near $162 million at quarter end, while net cash usage declined to approximately $61 million. Plug Power also received about $47 million from asset sales and escrow releases during July and August.

The company raised its full-year 2026 revenue growth guidance to a range of 15% to 16% and maintained its target of achieving positive EBITDAS in the fourth quarter. Whether Plug Power can reach that EBITDAS milestone—and sustain its trajectory of declining cash burn—will be a central focus for investors in coming quarters, particularly as the company balances its electrolyzer project pipeline with ongoing capital requirements.

Source: CoinCentral