ZACKSยท2025-08-29 16:06Core Insights - Plug Power Inc. and Flux Power Holdings, Inc. are key players in the clean energy market, focusing on advanced energy storage solutions for commercial and industrial applications [2][3] - Plug Power is experiencing challenges with declining hydrogen site installations and negative gross margins, while Flux Power is benefiting from strong demand for its energy storage solutions [11][20] Plug Power Analysis - Plug Power's hydrogen site installations decreased from 52 to 15 year-over-year in 2024, and further declined to four in the first half of 2025 [4] - The company reported a gross margin of negative 31% in Q2 2025, an improvement from negative 92% in the same quarter the previous year [5] - Operating cash outflow for the first half of 2025 was $297.4 million, down from $422.5 million year-over-year [5] - To address liquidity issues, Plug Power raised $267.5 million from equity sales in Q1 2025 and $857.9 million in 2024 [6] - The company is focused on scaling its business and investing in hydrogen plants, with a loan guarantee of $1.66 billion from the U.S. Department of Energy to support new production facilities [8] - Project Quantum Leap aims to generate over $200 million in annualized savings and improve cash flow [9] Flux Power Analysis - Flux Power is experiencing increased demand for its energy storage solutions, particularly in the material handling and ground support markets [10] - The company reported strong revenue growth and margin improvement in Q3 of fiscal 2025, supported by product expansion and new airline customers [10][12] - Flux Power launched the G-Series G96 High Voltage lithium-ion energy solution and received a patent for its AI-based battery technology [13] - However, the company faces challenges with lower orders in the new forklift category due to reduced capital spending [14] - Flux Power's accumulated deficit was $105.2 million, with cash flows from operations totaling $2.2 million [14] Financial Estimates - The Zacks Consensus Estimate for Plug Power's 2025 sales is $707 million, reflecting a year-over-year growth of 12.4%, with an expected loss of 63 cents per share [15] - For Flux Power, the fiscal 2025 sales estimate is approximately $66.3 million, indicating a 9% growth year-over-year, with an expected loss of 42 cents per share [16] Stock Performance - Over the past six months, Plug Power's shares increased by 8.6%, while Flux Power's stock rose by 25.6% [18] - Both companies are currently trading at a negative forward price-to-earnings ratio [18] Conclusion - Plug Power's long-term potential in the green hydrogen market is countered by current operational challenges, while Flux Power's strength in lithium-ion solutions positions it for growth [20][21] - Given the current circumstances, Flux Power appears to be a more favorable investment choice compared to Plug Power [23]