Plug Power's Global Balancing Act: New Project Wins Mask a Portfolio in Retreat

Plug Power secures electrolyzer deals in Australia and UK while selling US assets and cutting Europe projects to boost liquidity and margins.

The hydrogen specialist is sending mixed signals to the market. Within days of each other, Plug Power secured final investment decisions on two international electrolyzer projects — one in Australia and one in the UK — while simultaneously dismantling parts of its European growth pipeline and selling off US assets to shore up liquidity.

The 50-megawatt Hunter Valley Hydrogen Hub in Australia, which will deploy Plug Power electrolyzers, reached its final investment decision, closely followed by the Barrow Green Hydrogen Project for Carlton Power in Britain. That 30-megawatt venture, part of a larger 55-megawatt award, also relies on Plug Power's technology. Together, they hand the company tangible international references at a time when its overseas ambitions have otherwise been shrinking.

Those wins, however, sit awkwardly alongside a portfolio that is being aggressively streamlined. Just over a month ago, Plug Power abandoned its Antwerp green hydrogen project — a 100-megawatt facility in Belgium that had been earmarked for a €400 million investment. The Belgian subsidiary took a €13.6 million writedown as a result. The retreat from Europe extends further, with changes to the company's Denmark and Belgium portfolio reported in parallel, all part of the same strategic reset.

On the US side, the company has been equally active in shedding assets. A sale of project assets in Graham, Texas, to Stream US Data Centers fetched up to $76.5 million, with $50 million paid at closing. That transaction joins a larger disposal of two US hydrogen projects for more than $275 million — a clear signal that management is prioritizing cash generation over expansion, particularly after the US Department of Energy withdrew a $1.66 billion loan guarantee that had underpinned earlier plans.

Core Business Shows Signs of Life

While the project portfolio contracts, Plug Power's original fuel cell operation is gaining momentum. Amazon and Walmart, the company's two largest customers in the material-handling space, plan to replace more than 20,000 GenDrive fuel cell units over the next three years. Management confirmed the plan roughly a week ago, providing a multi-year revenue anchor for the services business, which had already been accelerating.

The second-quarter numbers, released just over a week ago, reinforced the narrative of operational improvement. Revenue came in at $178.3 million, up 9 percent quarter-over-quarter and ahead of analyst expectations, while the net loss stood at $188.21 million. Adjusted loss per share was seven cents. The GAAP gross margin improved to near breakeven at minus 0.9 percent, a dramatic swing from minus 31 percent in the same period last year — a gain the company attributes to cost reductions and growing service revenue. Management also raised its full-year 2026 revenue growth forecast to a range of 15 to 16 percent and reiterated its expectation of positive adjusted EBITDA in the fourth quarter.

Commentators point to more efficient electrolyzer conversion and a heavier weighting toward the second half of the year as drivers of the improvement. Restructuring and cost discipline are clearly helping margins, even if the price — shelving growth projects like Antwerp — is visible for all to see.

The Stock Tells a Different Story

The equity market has yet to reward the operational progress. Shares last traded at €1.83, down 5.9 percent over the past seven days, and remain 55 percent below their 52-week high of €4.04 reached on October 6, 2025. The stock continues to trade well beneath its 200-day moving average of €2.13, a technical signal that the downtrend remains intact.

At a recent close of €1.86, the shares sat 54 percent below that same October peak, while still holding 55 percent above their annual low from September 5. The 30-day volatility reading of 57 percent underscores just how uncertain investors remain about the competing narratives — operational improvement on one hand, strategic retreat on the other.

Engagement Continues Behind the Scenes

Despite the turbulence, the company is maintaining its institutional outreach. A site visit in Vista and management meetings with UBS have taken place recently, and Plug Power is scheduled to appear at the Jefferies Renewables, Clean Energy Conference on September 10 — an event that could offer further clarity on strategy following the portfolio reshuffle.

For investors, the central question is whether the asset sales and project cancellations go far enough to deliver that promised positive adjusted EBITDA in the fourth quarter, or whether further cuts lie ahead. The next formal checkpoint comes with third-quarter results, scheduled for November 9, when the market will see whether the operational gains can finally outpace the weight of the restructuring.