Plug Power sees net loss swell in Q1, confirms 2022 revenue target

US hydrogen and fuel cells company Plug Power Inc’s (NASDAQ:PLUG) net loss ballooned to USD 156.5 million (EUR 148.2m) in the first quarter of 2022 from USD 60.7 million a year earlier, while revenue almost doubled to USD 140.8 million.

The material handling segment accounted for USD 96 million of the first-quarter turnover, with other offerings, including electrolyser solutions and recent acquisitions, generating USD 44.8 million.

Plug, which is seeking to develop a green hydrogen ecosystem from production to energy generation, said that it remains focused on its target to reduce services costs on a per unit basis by 30% in the next 12 months and 45% by the end of 2023 and that service margins could break even by year end.

Margins in the fuel business remain under pressure due to higher natural gas prices, but in 2023 the cost of molecules is expected to decline by more than half as the company’s green hydrogen plants go live.

The company said that in the face macro and supply chain challenges, it is working to achieve its 2022 revenue target of USD 900 million to USD 925 million with around 80% year-on-year growth.

It also confirmed its 2025 targets of USD 3 billion in annual sales, 30% gross margin and 17% operating margin.

Plug's objectives include reaching at least 1-GW electrolyser backlog by the end of 2022.

(USD 1 = EUR 0.947)

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