Can Rising Electrolyzer Demand be a Catalyst for PLUG's Long-Term Growth?

Plug Power Inc.’s PLUG electrolyzer product line is emerging as the primary growth driver. In the second quarter of 2025, revenues from this product line surged approximately 200% on a year-over-year basis. This sharp rise was supported by increased product deliveries and new orders across North America and Europe.

Demand for Plug Power’s GenEco proton exchange membrane (PEM) electrolyzers is rising among industrial and energy sectors globally. This rising demand is supported by strong policy backing in Europe, where government investments and faster project timelines are helping accelerate the use of green hydrogen.

It is worth noting that in October 2025, Plug Power delivered a 10-megawatt (MW) GenEco electrolyzer to Galp’s Portugal-based Sines Refinery, which is Europe’s largest PEM hydrogen project. The company will install a total of 10 arrays of GenEco electrolyzers with Hydrogen Processing Units by early 2026. Also, in June 2025, PLUG expanded its partnership with Allied Green Ammonia with a new two-gigawatt electrolyzer project in Uzbekistan. This deal builds on their existing three GW project in Australia and strengthens the company’s position as a leading provider of large-scale hydrogen solutions worldwide.

Although, the ongoing challenges, including negative gross margins and cash outflows, are likely to affect PLUG’s near-term performance, rising demand for electrolyzers in the green hydrogen market and the Quantum Leap project are likely to be beneficial in the long run.

Snapshot of Plug Power’s Peers

Among its major peers, Flux Power Holdings, Inc. FLUX reported revenues of $16.7 million in the fourth quarter of fiscal 2025 (ended June 2025). Flux Power’s total revenues increased 25% year over year in the same period, driven by strong demand in both material handling and ground support markets. Flux Power continues to expand its lithium-ion energy storage solutions and SkyEMS software platform.

In the second quarter of 2025, PLUG’s another peer, Bloom Energy Corporation’s BE product and service revenues rose 25.9% year over year. Bloom Energy’s total revenues surged 19.5% year over year. The growth was fueled by robust demand for Bloom Energy’s solid oxide fuel cell systems and expanding adoption of hydrogen-capable solutions.

The Zacks Rundown for PLUG

Shares of Plug Power have gained 32.8% in the year-to-date period compared with the industry’s growth of 32.7%.

From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 6.97X against the industry average of 26.3X. PLUG carries a Value Score of F.

The Zacks Consensus Estimate for PLUG’s bottom line for third-quarter 2025 has remained the same in the past 60 days.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research