Plug Power (PLUG) Q4 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, January 22, 2026 astatine 11:38 AM CST 48 min read

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Tuesday, March 4, 2025 astatine 8:30 a.m. ET

• Chief Executive Officer — Andy Marsh

• Chief Financial Officer — Paul Middleton

• Chief Strategy Officer — Sanjay Shrestha

Andy Marsh: Good morning, and convey you for joining our 4th fourth league call. Last night, we announced important structural alteration to streamline our outgo basal done Project Quantum Leap. Over the coming months, we'll beryllium reducing staff, refining our merchandise focus, and consolidating facilities. These measures are targeted to make annualized outgo savings of $150 cardinal to $200 million. These decisions are not easy, but they are necessary. The slower than anticipated improvement successful the hydrogen marketplace has been influenced by aggregate factors, including the gait of argumentation implementation, planetary vigor and information driven by geopolitical conflicts, the higher outgo of task execution and past implicit enthusiasm successful this sector.

However, we stay assured that hydrogen volition play a captious relation successful the aboriginal vigor premix with galore experts projecting, it volition yet lend 10% to 20% of the world's vigor supplies. The projects that volition advancement the fastest are those with a wide worth proposition, beardown argumentation enactment and a well-integrated worth chain. As we measure our businesses, our superior absorption moving guardant volition beryllium connected 3 cardinal areas: worldly handling, electrolyzers and hydrogen procreation to enactment worldly handling, arsenic they align champion with these attributes. In worldly handling, we present a compelling worth proposition by helping customers determination goods much efficiently. Plug benefits from 3 gross streams successful this business: products, services and hydrogen.

In 2024, we person made important improvements successful improving margins for work and hydrogen, expanding them by astir $120 cardinal compared to 2023, excluding the interaction of lawsuit warrant charges. Product margins nevertheless are tied to income and mill utilization. Last year, income were slower arsenic we worked done terms renegotiations with large customers and the modulation from PPA to nonstop sales, that process is present implicit and we expect accrued deployments this twelvemonth from some existing and caller customers, which volition amended our installation utilization and thrust affirmative gross margin.

Additionally, hydrogen margins volition proceed improving with the motorboat of our caller associated task installation successful Louisiana this month, portion work is connected way to scope profitability by year's end. Hydrogen accumulation costs are a captious operator of some our profitability and the broader marketplace improvement for substance cells. By the extremity of this month, Plug volition person 39 tons per time of capacity, portion lawsuit request stands astatine astir 55 tons per day. The DOE support for our Limestone works successful Texas, a task creating jobs successful a profoundly blimpish territory was secured successful January.