Plug Power Remains Plagued by Margin Woes: Can It Buck the Trend?

Core Insights - Plug Power Inc. is facing ongoing margin challenges despite implementing cost-control measures aimed at improving supply chain efficiency, workforce optimization, and manufacturing reorganization [1][4] Financial Performance - The company's gross margin deteriorated from negative 57.6% in Q3 2024 to negative 67.9% in Q3 2025, with a gross loss of $120 million, representing a 20% year-over-year increase [2][8] - Plug Power incurred over $97 million in impairment charges during Q3, affecting various asset values due to project execution issues and customer disputes [3][8] Strategic Initiatives - To address these challenges, Plug Power is focused on reducing input costs, tightening expenditures, and expanding electrolyzer capacity and hydrogen plant development to enhance margin performance [4][8] Peer Comparison - Bloom Energy Corp. experienced a 46% year-over-year increase in cost of revenues but achieved a 92.6% rise in gross profit, resulting in a gross margin expansion of 540 basis points to 29.2% [5] - Flux Power Holdings, Inc. reported a 13.7% decrease in total cost of sales, yet its gross profit fell by 27.8%, leading to a 380 basis point decline in gross margin due to lower average selling prices [6] Market Position - Year-to-date, Plug Power's shares have increased by 1.4%, contrasting with the industry's growth of 35% [7] - The company is currently trading at a forward price-to-earnings ratio of negative 5.99X, significantly lower than the industry average of 25.01X, and holds a Value Score of F [10]