Plug Power(US:PLUG) Benzinga·2025-08-12 15:58Core Viewpoint - JPMorgan analyst Bill Peterson maintains a Neutral rating on Plug Power despite the company beating revenue estimates for the second quarter, citing ongoing margin uncertainty and challenging market conditions [1][5]. Financial Performance - Plug Power reported second-quarter revenue of $174 million, surpassing the estimate of $150 million and the consensus of $159 million [1]. - Cash burn for the quarter was $230 million, exceeding the consensus estimate of $161 million [1]. - The company narrowed its full-year revenue guidance to approximately $700 million, slightly below pre-call estimates of $730 million to $723 million, indicating a 12% year-over-year growth [2]. Margin and Cost Management - Second-quarter gross margins were reported at -37%, aligning with Peterson's forecast of -37.5% [3]. - The company aims to achieve breakeven gross margins by the end of the fourth quarter, with expectations of sequential gross margin improvement driven by higher volumes and cost-cutting measures [3]. Operational Updates - Plug Power is ramping up operations in Louisiana and plans to restart construction in Texas by year-end, potentially supported by a Department of Energy loan [4]. - The company is targeting $200 million annually in unlocked restricted cash and over $100 million in inventory reduction to mitigate cash burn [4]. Market Outlook - While there are signs of progress in material handling and other projects, the company faces ongoing margin uncertainty and the need for balance sheet clarity [5]. - Plug Power shares were trading lower by 9.89% at $1.44 at the time of publication [5].