Plug Power Inc. (NASDAQ:PLUG) shares rose in premarket trading Tuesday after the hydrogen fuel cell company reported first-quarter results that topped Wall Street estimates on both revenue and earnings.

Earnings Beat Boosts Shares

The company reported a quarterly loss of 8 cents per share, narrower than analysts' expectations for a loss of 9 cents per share, according to Benzinga Pro data.

Revenue increased 22% year over year to $163.5 million, beating analyst estimates of $141.2 million and rising from $133.7 million in the same quarter last year.

Revenue Growth And Margin Improvement

Plug Power said growth was driven by strength in material handling, electrolyzers and hydrogen fuel sales.

Gross margin improved to negative 13% from negative 55% a year earlier, helped by Project Quantum Leap cost reductions, operating leverage improvements and higher network efficiency.

Management also cited continued demand from major customers, including Amazon.com, Inc. (NASDAQ:AMZN) and Walmart Inc. (NASDAQ:WMT), with GenDrive fleet refreshes expected over the next several years.

Plug Power ended the quarter with approximately $802 million in total cash, including $223 million in unrestricted cash and $579 million in restricted cash.

Electrolyzer Expansion And Hydrogen Projects

Electrolyzer revenue surged 343% year over year to $40.8 million, driven by large-scale European deployments, including projects with Iberdrola in Spain and Galp Energia in Portugal.

Hydrogen fuel revenue rose about 20% from a year earlier. Fuel margins improved by 54 percentage points due to higher plant utilization, logistics efficiencies, stronger network performance and lower third-party gas sourcing costs.

During the quarter, Plug Power secured front-end engineering design work for a 275-megawatt hydrogen project in Canada and continued development work tied to the 2-gigawatt Allied Green Ammonia project in Uzbekistan.

Asset Monetization And Liquidity Plans

The company said it is pursuing several asset monetization initiatives, including hydrogen-related assets and STEAM data center transactions, which are expected to generate more than $275 million in proceeds. The first transaction, valued at about $142 million, is expected to close in June 2026.

Plug Power also said it plans to monetize a $39.2 million Section 48 investment tax credit tied to its Louisiana joint venture by the end of May.

Outlook And Profitability Targets

Looking ahead, management reiterated expectations for positive EBITDA by the fourth quarter of 2026 while maintaining full-year revenue growth guidance of 13% to 15%.

The company said about 40% of annual revenue is expected in the first half of 2026, with stronger performance anticipated in the second half due to equipment sales growth and operating leverage.

Plug Power also reaffirmed its longer-term profitability targets, including positive operating income in 2027 and full profitability by 2028.

Stock Performance

PLUG Price Action: Plug Power shares were up 7.95% at $3.80 during premarket trading on Tuesday, according to Benzinga Pro data.

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