Amazon’s 20,000-Unit Fuel-Cell Renewal Gives Plug Power a Multi-Year Revenue Stream as Q1 Loss Narrows

Plug Power reports 22% revenue growth, Amazon fuel cell replacements set to boost earnings from 2026. Cost cuts improve margins but cash burn and $150M quarterly deficit persist.

Plug Power’s turnaround story is gaining a powerful structural tailwind. The first generation of fuel cells it installed at Amazon roughly a decade ago is approaching the end of its operational life, and starting in late 2026 the hydrogen specialist expects to replace about a dozen fulfillment-center systems each year. That translates into roughly 20,000 units over several years, providing a reliable revenue pipeline that will be reinforced by similar fleet upgrades at Walmart and newer programmes with BMW and Stellantis.

The long-term visibility from the Amazon refresh comes on the heels of better-than-expected first-quarter results. Revenue climbed 22% year over year to $163.5 million, easily topping Wall Street forecasts. The jump was powered by a fourfold increase in electrolyser sales, which hit roughly $41 million as large projects in Spain and Portugal moved into commissioning and final assembly, while new orders from Canada further padded the backlog.

Operationally, the cost-cutting programme is beginning to bite. The gross margin improved by 42 percentage points to negative 13%, helped by more efficient logistics and a roughly one-third reduction in service costs per unit as fuel cells run longer between overhauls. The operating loss shrank to $109 million from $178 million in the same quarter last year, putting the company on track to achieve positive EBITDA by the fourth quarter of 2026.

On a GAAP basis, the net loss came in at $0.18 per share, well below consensus estimates. However, roughly $140 million of that shortfall stemmed from non-cash write-downs tied to the valuation of convertible notes and the rising share price. Stripping out those one-off items, the adjusted loss narrowed to $0.08 per share.

The progress prompted mixed reactions from the Street. Susquehanna raised its price target to $3.75 and Canaccord Genuity lifted its to $4.00, but both houses maintained a neutral or hold rating, applauding the operational improvements while waiting for a sustainable path to profitability. H.C. Wainwright kept its buy recommendation.

Investors have been piling into the stock, which ended the week at €3.25. Over the past 30 days shares have gained roughly 31%, and since the start of the year they have risen 71%. On a 12-month view the rally is even more dramatic, with the stock up more than 400%. Yet the rally is fuelled partly by elevated short interest — about a quarter of the free float is sold short — making each upward move prone to violent squeezes.

Despite the brightening operating picture, the balance sheet remains the most pressing concern. Plug Power burned $150 million in cash during the first quarter. Total liquidity stands at around $800 million, but a large portion of that is restricted. To bridge the gap, management is racing to monetise assets. By the end of May it expects to sell tax credits worth nearly $40 million, and a larger project sale worth $142 million is slated for June. The success of these transactions will be critical to keeping the turnaround on track and reaching the Q4 EBITDA target without a dilution-heavy capital raise.