Plug Power(US:PLUG) Haitong Securities International·2025-08-13 09:43Investment Rating - The report maintains a positive outlook on Plug Power, indicating a strong revenue performance driven by GenDrive fuel cell demand, despite a net loss in Q2 2025 [2][3]. Core Insights - Plug Power reported a net loss of $227 million in Q2 2025, which was worse than the consensus estimate of a $163 million loss, but revenue of $174 million exceeded expectations of $158 million, primarily due to strong demand for GenDrive fuel cells [2][3]. - The company reiterated its annual cost reduction target of $150 million to $200 million and its long-term strategic plan, aiming for operational profitability by the end of FY 2027 and overall profitability by FY 2028 [2][3]. - Plug Power expects to achieve a gross margin breakeven in Q4 2025, with a Q2 2025 gross margin of -31%, better than the expected -36% [2][3]. Financial Performance - For Q2 2025, Plug Power's revenue was $174 million, a 30% increase quarter-over-quarter and a 22% increase year-over-year [4]. - The operating costs for Q2 2025 were $227 million, reflecting a 9% increase from the previous quarter but a 17% decrease year-over-year [4]. - The adjusted net income for Q2 2025 was -$227 million, a 15% improvement from the previous quarter but a 13% decline year-over-year [4]. Cash Position and Project Progress - The company holds over $140 million in unrestricted cash and cash equivalents, with an additional debt financing capacity of over $300 million [3]. - Plug Power's packaging and liquefier technology has gained customer recognition, with revenue contributions expected from renewable diesel and sustainable aviation fuel businesses in the second half of 2025 [3].