Plug Power's Forklift Fleet Is Quietly Doing What Electrolyzers Haven't Yet

Plug Power's Q2 revenue tops estimates, gross margin nears breakeven, and material handling drives a turnaround as cash burn narrows.

For years, the gap between Plug Power's hydrogen-economy rhetoric and its income statement was wide enough to drive a fleet of trucks through. The Latham, New York-based pioneer talked a big game about a decarbonized industrial future while burning through cash at a pace that made skeptics wonder if the balance sheet would survive long enough to see it. The second-quarter numbers, released Monday, suggest that gap is finally starting to close — though the market's response has been characteristically cautious.

Revenue came in at $178.3 million, topping the analyst consensus of $168.8 million, while gross margin climbed from negative 31 percent in the year-ago period to roughly breakeven. Management responded by lifting its full-year revenue growth forecast to 15-16 percent, up from the prior range of 13-15 percent. Net cash burn narrowed to approximately $61 million — still substantial, but a far cry from the days when Plug Power served as shorthand for hydrogen's overpromise-and-underdeliver problem.

The Unspectacular Engine of the Turnaround

The real story, though, isn't the guidance bump. It's the material handling business — the company's oldest and most dependable segment, one that rarely generates headlines. Plug Power shipped 1,666 GenDrive fuel cells in the quarter, a 125 percent jump year over year. These are fuel cells for forklifts in warehouses, replacing diesel and battery power with hydrogen in a way that's quietly become the backbone of the company's margin improvement.

The service business grew 82 percent to $30 million at a 27 percent margin, while hydrogen fuel sales added another $39 million, up roughly 15 percent. None of this involves massive electrolyzer projects or billion-dollar government subsidies — just industrial equipment doing its job reliably. That's precisely why it's working.

The flashier projects remain in the pipeline. Plug Power's 50-megawatt electrolyzer order for Orica's Hunter Valley Hydrogen Hub in Newcastle, Australia, reached its final investment decision in early July. The facility is expected to produce around 4,700 tonnes of renewable hydrogen annually, underscoring that Plug Power isn't relying solely on its domestic market as it competes in the global race for industrial hydrogen infrastructure.

Buying Time With Asset Sales

The company has also been busy shoring up its liquidity position. The sale of its Graham project in Texas to Stream US Data Centers, along with the staggered closing of the New York Gateway project to the same buyer, is expected to deliver $80 million in near-term cash. These transactions sit within a broader monetization initiative worth more than $275 million — a critical buffer for a company that has spent years fielding questions about whether it would run out of money.

Management is targeting positive EBITDAS — operating profit before interest, taxes, depreciation, and amortization — in the fourth quarter of 2026. Hitting that mark would represent a symbolic milestone not just for Plug Power but for an industry that has long been accused of perpetually pushing profitability a decade into the future.

The Chart Tells a More Complicated Story

The market's reaction has been muted relative to the operational progress. Shares closed at €1.99, barely above the prior day's €1.98, though the stock is up 11 percent on the week. The day of the earnings release saw a 3.1 percent gain, and Plug Power is up 18 percent year to date.

The technical picture, however, remains constrained. The stock sits 7.4 percent below its 50-day moving average of €2.14 and 7.6 percent below its 200-day average of €2.15 — both levels acting as overhead resistance. At €1.99, the shares trade 51 percent below the year's high of €4.04, reached in October, though they're now 65 percent above the 52-week low of €1.20 set in early September. Analyst consensus targets €3.08, implying roughly 55 percent upside from current levels.

The 30-day trend showed a slight decline of 0.7 percent before the earnings surprise, suggesting sentiment had already soured. With annualized volatility running at 62 percent, this remains a stock that moves violently in both directions.

The Verdict Still Pending

The next test comes with the third-quarter margin report, which will reveal whether "near breakeven" becomes genuinely positive. The pending investor lawsuit Ortolani against Plug Power — in which lead plaintiffs were named in May and the deadline for an amended complaint lapsed on August 10 — serves as a reminder that trust remains a scarce commodity for this company.

The numbers are beginning to speak for themselves. Whether they'll be loud enough to drown out years of accumulated skepticism is a question that won't be answered until the coming quarters deliver — or don't.