Plug Power Q1 2025 Earnings Report

Plug Power EPS Results

• Actual EPS: -$0.21
• Consensus EPS: -$0.20
• Beat/Miss: Missed by -$0.01
• One Year Ago EPS: N/A

Plug Power Revenue Results

• Actual Revenue: $133.67 million
• Expected Revenue: $130.92 million
• Beat/Miss: Beat by +$2.75 million
• YoY Revenue Growth: N/A

Plug Power Announcement Details

• Quarter: Q1 2025
• Date: 5/12/2025
• Time: Before Market Opens
• Conference Call Date: Monday, May 12, 2025
• Conference Call Time: 4:30PM ET

Plug Power (NASDAQ:PLUG) Inc. develops hydrogen and fuel cell product solutions in North America, Europe, Asia, and internationally. The company offers GenDrive, a hydrogen-fueled proton exchange membrane (PEM) fuel cell system that provides power to material handling electric vehicles; GenSure, a stationary fuel cell solution that offers modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors; ProGen, a fuel cell stack and engine technology used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; GenFuel, a liquid hydrogen fueling delivery, generation, storage, and dispensing system; GenCare, an ongoing Internet of Things-based maintenance and on-site service program for GenDrive fuel cell systems, GenSure fuel cell systems, GenFuel hydrogen storage and dispensing products, and ProGen fuel cell engines; and GenKey, an integrated turn-key solution for transitioning to fuel cell power. It also provides electrolyzers, a hydrogen generator for clean hydrogen production; liquefaction systems that provides liquid hydrogen to customers; cryogenic equipment for the distribution of liquified hydrogen, oxygen, argon, nitrogen and other cryogenic gases, including trailers and mobile storage equipment; and liquid hydrogen, an alternative fuel to fossil-based energy. The company sells its products through a direct product sales force, original equipment manufacturers, and dealer networks. Plug Power Inc. was incorporated in 1997 and is headquartered in Latham, New York.

Plug Power Q1 2025 Earnings Call Transcript

Key Takeaways

• Q1 financial results: Plug delivered $134 M in revenue (in line with guidance), improved margins, cut cash burn, and projects Q2 revenue of $140 M–$180 M.
• Material handling business gained momentum with a $10 M initial order from a key customer tied to over $200 M in future opportunities under a safe-harbor structure.
• Infrastructure expansion advanced as the 15 tpd Louisiana hydrogen plant went online, bringing total internal production to 40 tpd and improving customer economics while stabilizing margins.
• The Quantum Leap cost-savings program, targeting over $200 M in annualized run-rate reductions, has mostly executed already, helping slash Q1 cash burn by nearly 50% YoY.
• Plug is poised in Europe amid a €21 B electrolyzer opportunity funnel (2025–26), holding leading positions in major projects backed by enforceable mandates and funded incentives.

Presentation

[Operator]

Greetings, and welcome to the Plug Power First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the presentation. Please note this conference is being recorded. I will now turn the conference over to Tila Hoyos, Vice President, Marketing and Communications. Thank you. You may begin.

[Teal Vivacqua Hoyos, VP -Marketing & Communications at Plug Power]

Thank you. Welcome to the twenty twenty five first quarter earnings call. This call will include forward looking statements. These forward looking statements contain projections of our future results of operations or of our financial position or other forward looking information. We intend these forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

[Teal Vivacqua Hoyos, VP -Marketing & Communications at Plug Power]

We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward looking statements, and such statements should not be read or understood as a guarantee of future performance or results. Such statements are subject to risks and uncertainties that could cause actual results or performance to differ materially from those discussed as a result of various factors, including, but not limited to, risks and uncertainties discussed under Item 1A Risk Factors and our annual report on Form 10 ks for the fiscal year ending 12/31/2024, our quarterly report on Form 10 Q for the quarter ended 03/31/2025, as well as other reports we file from time to time with the SEC. These forward looking statements speak only as of the day in which the statements are made, and we do not undertake or intend to update any forward looking statements after this call or as a result of new information. At this point, I would like to turn the call over to Plug's CEO, Andy Marsh.

[Andrew Marsh, CEO at Plug Power]

Good afternoon, everyone. Thank you for joining today. I am here with Paul, Sanjay and Jose. I'm happy to report that in Q1, Plug met the financial and operational targets we set out, delivering a quarter of solid execution in a still turbulent macro environment. Revenue came in at a hundred and $34,000,000, in line with guidance.

[Andrew Marsh, CEO at Plug Power]

But more importantly, we made real progress on our path to profitability, improving margins, reducing cash burn, and continuing to strengthen execution across all business lines. We are projecting between $140,000,000 to $180,000,000 in revenue in the second quarter. Let me start with some business highlights, followed by updates on cost actions, capital, tariffs, US policy, and then I'm going to hand it over to Jose to walk through Europe in-depth. With respect to our business performance, we saw renewed momentum in our material handling business in the first quarter. '1 of our largest pedestal customers placed a $10,000,000 initial order tied to over $200,000,000 in future opportunities under a safe harbor structure.

[Andrew Marsh, CEO at Plug Power]

We also expanded with new partners, including Steph in Spain, now deploying Plug's hydrogen powered logistics systems at their cold chain facilities. On the infrastructure front, our hydrogen generation build out is delivering. The 15 ton per day Louisiana plant was commissioned in q one on time. Together with Georgia and Tennessee, we now have 40 tons per day in internal production capacity, improving customer economics and availability while shielding margin from third party volatility. With respect to cost savings, internally, we launched a major program called Quantum Leap, targeting over $200,000,000 in annualized run rate reductions.

[Andrew Marsh, CEO at Plug Power]

I'm pleased to report that most of these savings have already been executed. Program spans manufacturing, logistics, sourcing, and s g and a. Our q one cash burn was down nearly 50% year over year, and with Quantum Leap, we expect further reductions in cash burns in future quarters. This is Plug Power operating with discipline, precision, and a long term mindset. In Capital, we've taken some important steps to ensure financial flexibility.

[Andrew Marsh, CEO at Plug Power]

In March, we raised $280,000,000 in equity, bolstering liquidity while reducing risk in a volatile market. We followed that with a $525,000,000 structured financing facility, part of which was used to retire convertible debt. Combined with the 1,660,000,000.00 Department of Energy loan guarantee, these moves provide a strong foundation to support our infrastructure goals. That said, I want to be forthright. With the change in administration, we're actively working with the DOE to advance the loan process.

[Andrew Marsh, CEO at Plug Power]

The underlying program is contracted, obligated, and we believe secure, and we continue to engage closely with the administration. At quarter end, we held nearly $300,000,000 in run unrestricted cash with meaningful additional capacity under the new facility. Our outlook remains unchanged. We do not anticipate raising additional equity in 2025, and we remain committed to that goal. Turning to tariffs.

[Andrew Marsh, CEO at Plug Power]

Recent actions from the current administration have increased duties on Chinese imports that impact our core product lines like GenDrive. For some models, this has resulted in increased cost, particularly on ballast assemblies, battery modules, and plates. At the good at the moment, a good deal of these are in inventory that will be used in 2025. With today's announcements, obviously, the pressure's a little bit off office, but we are continuing down our four pronged mitigation plan. One is that if needed, we will add search charges for customers based on sourcing mix and inventory timing.

[Andrew Marsh, CEO at Plug Power]

Dual sourcing and resourcing, which we've really had in motion for a number of years. Engineered redesigns to reduce tariff exposed components, and geographical diversification, leading further into APAC and US suppliers. Now with these items, we expect even to reduce our costs in China by 50% in the next six months. Importantly, I think this is really important, our electrolyzer platform is minimally impacted even with the 45% tariffs, and was internally developed with non Chinese content. This is a team wide response, and it's already helping us protect margin integrity.

[Andrew Marsh, CEO at Plug Power]

Finally, a brief word on US policy. It's clear the transition in Washington has introduced some uncertainty about clean energy programs. The IRA is under pressure, and there's active debate with congress over the future of section 45 b of the hydrogen tax credit and the long term direction of decarbonization incentives. That said, we are actively engaged with policymakers both directly and through our leadership in FICIA, which is a fuel cell and hydrogen energy association. We are also actively pursuing state and local funding opportunities where momentum continues.

[Andrew Marsh, CEO at Plug Power]

We remain focused on execution and will continue advocating aggressively for a stable long term hydrogen policy framework in The US. Before I turn it over, let me frame one of the most exciting strategic frontiers, Europe. Between the EU Green Deal, Repower EU, and The UK Energy Act, we are tracking an electrolyzer opportunity funnel worth over $21,000,000,000 across 2025 and 2026. What differ is different now is not just ambition, but enforceable procurement mandates, funded incentive schemes, and penalties for noncompliance. Plug has moved early and decisively in the region, and we're already embedded in some of the most transformative hydrogen projects across Europe.

[Andrew Marsh, CEO at Plug Power]

I'll let Jose walk through these specifics, but I'll close with this. Europe is real. The funnel is live. Plug is in position. With that, let me turn it over to Jose to take you through the European electrolyzer strategy. Jose?

[Jose Crespo, Chief Revenue Officer at Plug Power]

Thank you, Andy. As mentioned, Europe today is the most dynamic electrolyzer market in the world, driven by regulation in investment and execution timelines that are accelerating across the region. Plaque is at the forefront of that shift. Let me start with the policy foundation. Under the EU Green Deal and the Renewable Energy Directive three, the EU the EU sets targets for 42% of industrial hydrogen to be renewable by 02/1930 and sixty percent by February.

[Jose Crespo, Chief Revenue Officer at Plug Power]

The FEED 55 policy package sets the legally binding framework to decarbonize their energy intensive sectors using green hydrogen. That includes mandates under the fuel EU aviation and fuel EU maritime. Fuel standards for aviation and maritime now come with real penalties, creating a direct pool for SAF and e methanol, both of which rely on electrolytic hydrogen. What's different this cycle is that governments are funding real projects with real deadlines. Let's start with aviation.

[Jose Crespo, Chief Revenue Officer at Plug Power]

In Denmark, PLUS has an opportunity for 300 megawatt of electrolyzer capacity for a SAF project. And the French government recently awarded 25,000,000 for pre FEED and FEED engineering for SAF projects to four companies that Plaque is actively working with. This is an anchor example of Plaque involved at a scale for decarbonizing jet fuel. Spain is targeting 12 gigawatts of electrolyzer capacity by 02/1930. Already 2.3 gigawatts have been pre awarded across seven clusters, covering refining, SAS, methanol, and ammonia.

[Jose Crespo, Chief Revenue Officer at Plug Power]

Plug is actively engaged in multiple of these projects where our long term service model helped lower LCOH versus competitors. These evaluations are real and they include mandatory procurement scoring, which favors OEMs like Plug with full life cycle offerings and domestic engineering teams. Refining is another major application. Plug is delivering a hundred megawatts to GALP in Portugal, a project supported by €84,000,000 in operational subsidies from the European Hydrogen Bank. These are ten year index subsidies covering OpEx, not just CapEx, showing the EU's long term commitment to green hydrogen viability.

[Jose Crespo, Chief Revenue Officer at Plug Power]

We are also delivering 25 megawatts for Iberdrola and BP in Castellon in Spain. Now moving to The UK, the Energy Act of 2023 has created a stable regulatory framework. The government has already awarded £2,000,000,000 in revenue support under hydrogen allocation round one, HAR one, and Plug Technologies is well positioned in over 60% of the capacity awarded. For the hydrogen allocation round two, HAR two, the UK has shortlisted 1.2 gigawatts of new electrolyzer projects, with awards expected later this year. Plug is actively engaged in both centralized and decentralized proposals with total awards that potentially could exceed $8.75 megawatts.

[Jose Crespo, Chief Revenue Officer at Plug Power]

Importantly, these UK programs come with fifteen year price support contracts structure under the low carbon hydrogen agreement model. These are predictable inflation linked linked revenue streams critical for bankability and capital deployment. What sets Plug apart in this market is our full stack offering, proven PEM systems, integrated plant engineering, long term service, and a strong European and execution teams. This is why we are strategically positioned against competitors in both RFP scoring and LCOH evaluations. To summarize, Europe is a fully active electrolyzer market and Plaque is in the pole position on project visibility, regulatory fit and delivery readiness.

[Jose Crespo, Chief Revenue Officer at Plug Power]

We expect Europe to be a multi gigawatt contributor to bookings and revenue over the next eighteen to twenty four months with meaningful margin contribution as projects move from backlog to commissioning.

[Andrew Marsh, CEO at Plug Power]

Thank you, Jose. And Paul, Jose, Sanjay and I are ready for your questions.

[Operator]

Thank you. And at this time, we will conduct our question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press 2 if you would like to remove your question from the queue.

[Operator]

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again to ask a question, press star one. And our first question comes from Bill Peterson with JPMorgan. Please state your question.

[Bill Peterson, Equity Research at JP Morgan]

Yes. Hi. Good afternoon, everyone. Thanks for taking the questions. I'm sure you've seen, Andy and team, the, I guess, the initial proposal for the tax bill.

[Bill Peterson, Equity Research at JP Morgan]

And my question is really around the 45D and maybe a few full questions. First of all, assuming this does get written into law, what are the potential impacts for your Texas facility or the DOE loan? I presume you're gonna try to accelerate and begin construction before the end of the year in order to qualify. And more broadly, how should we think about the impacts to the nascent green hydrogen industry in The US? Clearly, with ample fossil fuels, the cost structure for green is not in a way to compete well without this tax credit.

[Bill Peterson, Equity Research at JP Morgan]

And I appreciate the comments from Jose on Europe. Does this would this presumably mean you'd be focusing on markets such as Europe and Australia rather than The US? Thank you.

[Andrew Marsh, CEO at Plug Power]

Good question, Bill. And let me I think you first, I'm gonna take a step back. I was happy that 45V was continuing through 2025, and it would be even in the first draft, you know, a safe harbor provision for construction that would start this year. I my first reaction was we're gonna have to work to start construction this year to make sure that that plant would qualify under 45 b. I was also pleased because I think we're probably the only fuel cell company that can leverage 48 e, and that seems like it's time timely, you know, 2031.

[Andrew Marsh, CEO at Plug Power]

So that would give us time, again, to continue to grow the fuel cell business. I think look. You know, Jose and I worked on this presentation for today. Prior to prior to the announcements, we have become more and more focused on York because we see that the biggest opportunities for expanding the hydrogen industry today resides in Europe. When you look at it, the only part even a viewer of our products, which are actually American manufacturer, will be the stacks.

[Andrew Marsh, CEO at Plug Power]

The rest, we are leveraging integrators across the EU and The Middle East for our products. So, you know, look, you know, there's a lot to go on congress. I've been around a long time. I was just happy bill that 45 b was mentioned and that it wasn't completely cut out like I've heard threats for the whole IRA. So I can't say I was thrilled with the announcement, but I wouldn't give it you know, it it's not there's a way to work through what's been announced.

[Andrew Marsh, CEO at Plug Power]

So I'll just add one last item, not to ramble on, Bill. I think it'll be really interesting because there seems to be very, very strong support for hubs in red districts. And, look, the hubs don't work without the production tax credit, and I think that's well, well known. So I think there's a lot to go. Lots still going on in DC. I know.

[Bill Peterson, Equity Research at JP Morgan]

I It was helpful. I'm sure you you and and others will probably be working to see if there's any way to massage the the existing draft. But my second question is somewhat related, but looking at your BEDP pipeline shortly after last earnings, you had closed eight gigawatts of electrolyzer orders set to FID within this year. Just want to get a sense, did you close you know, each of these orders you had expected in the first quarter? Are you are you on track thus far into the second quarter?

[Bill Peterson, Equity Research at JP Morgan]

And I and, most of these are are outside of The US to begin with. Yeah.

[Andrew Marsh, CEO at Plug Power]

Most of these projects, I mean, are really you know, we have about $200,000,000 in backlog for this year with electrolyzers. Most of these projects, we expect, you know, call you know, two gigawatts will go to FID by year end. But, you know, I I would just caution, Bill. You know, these projects, you know, the electrolyzers in many of these projects are billion dollar investments, and the plants themselves can be three to four billion dollars. Oh, probably, you know you know, I I wanna be cautious and say, yes, a lot of them may close this year, but some of them certainly will fall into '26.

[Bill Peterson, Equity Research at JP Morgan]

Understood. Thanks for the taking the questions, and, you know, good luck navigating this this environment. Thank you.

[Andrew Marsh, CEO at Plug Power]

Alright. Thanks, Bill.

[Operator]

And your next question comes from George Janarekis with Canaccord Genuity. Please state your question.

[George Gianarikas, Managing Director and Senior Analyst at Canaccord Genuity Inc]

Hi. Good afternoon, and thank you for taking my question.

[Andrew Marsh, CEO at Plug Power]

Hi, George.

[George Gianarikas, Managing Director and Senior Analyst at Canaccord Genuity Inc]

Hi.

[George Gianarikas, Managing Director and Senior Analyst at Canaccord Genuity Inc]

Just sorta had a question on on the cost cuts and the and the business rationalization. Are there other things that could be done, you know, whether inorganic sort of maybe selling parts of the business that could maybe accelerate your path to profitability? Thank you.

[Andrew Marsh, CEO at Plug Power]

George, we don't and, Paul, I'll I'll let you we have no plans, and we're doing no work for selling portions of the business at the moment.

[George Gianarikas, Managing Director and Senior Analyst at Canaccord Genuity Inc]

Thank you. And maybe just a follow-up to just talk about the the momentum in Europe. I'm I'm curious as to, you know, any additional steps you're taking from a people power perspective to reallocate resources to that part of the world instead of others that may be seeing a little bit of a of a slowdown in momentum? Thank you very much.

[Andrew Marsh, CEO at Plug Power]

So I'll I'll start, then I'll let Paul add on. We've invested significantly in Europe over the past three years. We have a major development facility for electrolyzers actually resides in The Netherlands. We have strong business development sales operations with centers in France. We have activities in Spain.

[Andrew Marsh, CEO at Plug Power]

We have integrators across Europe that we work with. Europe no. This is not a new focus for Plug. It has been investments that we've been making over three to four years. Jose, would you like to add to that?

[Jose Crespo, Chief Revenue Officer at Plug Power]

No. You're right. I mean, we have activities all over the European Union, namely the the the facility in The Netherlands. But as you said, we have commercial operations in The UK, in Spain, Germany, in in France, and and this is not a new focus, as Andy said.

[Jose Crespo, Chief Revenue Officer at Plug Power]

And the relationships that we have over there are have been built over the last three, four years. So it's there there is a good amount of resources to face the opportunities that we have in in Europe in the next

[Andrew Marsh, CEO at Plug Power]

And I would say, Jose, for real products in the ground using PEM technology, nobody has more.

[Jose Crespo, Chief Revenue Officer at Plug Power]

I agree.

[George Gianarikas, Managing Director and Senior Analyst at Canaccord Genuity Inc]

Thank you.

[Andrew Marsh, CEO at Plug Power]

Thanks, George.

[Operator]

Your next question comes from Colin Rusch with Oppenheimer. Please state your question.

[Colin Rusch, Managing Director - Head of Sustainable Growth & Resource Optimization Research at Oppenheimer & Co. Inc.]

Thanks so much, guys. You know, can you give us an update on, how the hydrogen production facilities, are operating? You know, what you're looking at from a yield perspective versus expectations and and how, you know, how the ramp is going in Texas at this point?

[Andrew Marsh, CEO at Plug Power]

I think you probably mean Louisiana, Colin.

[Colin Rusch, Managing Director - Head of Sustainable Growth & Resource Optimization Research at Oppenheimer & Co. Inc.]

Yeah. Exactly. Thank you for that.

[Andrew Marsh, CEO at Plug Power]

Yeah. So I think Georgia, had our best month ever.

[Jose Crespo, Chief Revenue Officer at Plug Power]

Yeah. April was a record in terms of production and yield.

[Andrew Marsh, CEO at Plug Power]

Yeah.

[Andrew Marsh, CEO at Plug Power]

So I think how many tons was it? 300 tons out Georgia in April? Yeah. So Georgia is beginning to run without too much management involvement, Colin. It turns on and runs every day.

[Andrew Marsh, CEO at Plug Power]

Louisiana, boy, it's probably you know, I think what I've been most impressed with is look. It's our third time around. It's a much cleaner design than Louisiana than Georgia and Tennessee. We really have learned how to build plants, which is really important for Jose in building out the electrolyzer market. So we're quite pleased with the the progress we're seeing at at all three sites.

[Andrew Marsh, CEO at Plug Power]

You know, we you know, I think the question is, you know, we need to get Texas started by year's end, and I think that's a real focus of the business.

[Colin Rusch, Managing Director - Head of Sustainable Growth & Resource Optimization Research at Oppenheimer & Co. Inc.]

Thanks so much. And then from a material handling standpoint, you know, there's been, you know, kind of some mixed demand, not just for you guys, but, you know, broadly speaking around warehousing, automation, and and capacity building. I guess, this point, are you seeing folks, outside The US start to expand capacity at all? You know, are there some green shoots that we can be thinking about as you as you get into the back half of this year and and prepare for 2026?

[Andrew Marsh, CEO at Plug Power]

Yeah. What's interesting, I have one of my major pedestal companies that kinda suggested to me that automation may not be working as well as they were helping, is good for our material handling business. Do you wanna touch on material handling for Europe, Jose?

[Jose Crespo, Chief Revenue Officer at Plug Power]

Yeah. So in Europe, we have made some inroads, and I think we announced this a few weeks ago with with BMW in in Europe with two new facilities that we're gonna be deploying there. And we also Andy also mentioned STEF, which is the largest freezer company in in the European market, I think. We've also done a couple of facilities with them, one in Madrid and one in in France. So we've seen some activity and some new opportunities happening in the European market as well.

[Colin Rusch, Managing Director - Head of Sustainable Growth & Resource Optimization Research at Oppenheimer & Co. Inc.]

Thanks, guys.

[Andrew Marsh, CEO at Plug Power]

Okay. Thanks, Colin.

[Operator]

Your next question comes from Eric Stine with Craig Hallum. Please state your question.

[Andrew Marsh, CEO at Plug Power]

Hey, everyone. Hey. Hey, Eric.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Good afternoon. Hey. So, Colin, I know we're just talking about kind of geographic mix of material handling. But I'm curious if you could just talk about, you know, what you're seeing today. And I know part of this is because you've transitioned to the direct sales model away from PPA.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

You've also put through price increases for margins. You know, as a result, does that mean that the business today is for expansion with current customers? Or I mean, you did mention a new customer, but just curious, the economics are different. It may take a little bit more time to get people up to speed on that. Just how should we think about that?

[Andrew Marsh, CEO at Plug Power]

Do you wanna take that, Jose?

[Jose Crespo, Chief Revenue Officer at Plug Power]

So the we we are growing in in both sides with existing customers, and they mentioned one of our largest customers having safe harbor $200,000,000 of potential business at the end of twenty twenty four. But we are also talking and and and expanding with new customers opportunities. The the customer I just described in Europe is a brand new customer. So we do see expansion in both sides. And the economics, you know, given that we will be looking at the $40.80 possibility is still there, and we keep on pushing the market.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Got it. That is helpful. And then maybe could you just remind us I know you've given you gave us the q two guide, you know, so I'm not trying to dial this in too specifically in terms of annually. But, I mean, do you expect this to be a similar year in terms of the breakdown first half, second half?

[Andrew Marsh, CEO at Plug Power]

I would say this, Eric. We are trying to be very clear to investors of our performance quarter after quarter. Look. It's no as as you know that we've had a couple years where we've missed. So we wanna make sure that we don't mislead folks.

[Andrew Marsh, CEO at Plug Power]

And and, you know, this quarter, you know, we have a clear plan how to get to one forty to one eighty. We're focusing on becoming gross margin breakeven by the end of the year. That is the focus. And, you know, that's you know, we're trying not to provide any additional additional guidance.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Yep. Yep. No. Understood. Worth worth worth asking, but I get it. So thank you very much.

[Andrew Marsh, CEO at Plug Power]

Okay.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Bye.

[Andrew Marsh, CEO at Plug Power]

Bye, Art.

[Operator]

Thank you. And your next question comes from Dushant Aylani with Jefferies. Please state your question.

[Dushyant Ailani, Senior VP at Jefferies Financial Group]

Taking my question, guys. Just wanted to follow-up on the 45 v real quick. I know that there are some, you know, safe harbor rules, right, 5% spend or if you start construction. Could you kind of remind us how much have you already spent on Texas, and then how much what the CapEx looks like?

[Andrew Marsh, CEO at Plug Power]

We've spent $250,000,000. The CapEx is $800,000,000. The DOE loan is for approximately $400,000,000. And we've been working with a equity investor for the rest. So we've already spent $2.50 over 800 to about 37%.

[Dushyant Ailani, Senior VP at Jefferies Financial Group]

So do you think it it that the Texas project is largely safe harbor with the 45 v since you've already, you know, spent

[Andrew Marsh, CEO at Plug Power]

I would say this. This is going to be a interesting time as these rules, you know, laws are finalized. And I think the initial you know, the fact that 45 v's in the mix and that there is a safe harbor aspect, I take as a real positive for Texas. That being said, I know this will go through gyrations in both the house and ultimately the senate, and then ultimately in reconciliation between the two bodies. So I'm not I don't want to you know, what we think it is today, there's one thing I can promise you.

[Andrew Marsh, CEO at Plug Power]

It won't be the same whether it's the May, whether it's before the August recess, before December. You know, this is gonna it's gonna be sorted out. This is kind of the first first written Volley.

[Dushyant Ailani, Senior VP at Jefferies Financial Group]

Fair. Fair enough. Fair enough. I agree there. And then just my last follow-up.

[Dushyant Ailani, Senior VP at Jefferies Financial Group]

I think you'd mentioned in your prepared remarks around conversations with customers to you know, on TARUS just maybe adding surcharges. How have those conversations been? Have you started those conversations with your customers yet?

[Andrew Marsh, CEO at Plug Power]

You know, one of our there has been some initial conversations. Now at the moment, we're pretty much so we had, unfortunately, inventory that we're trying to burn down, and we have goals to reduce that significantly during this year. So we are protected on the inventory level, which actually has not really caused our costs to go up yet. And if I look at, again, at the tariffs which the tariffs truce that went into effect, it really doesn't impact us. And on the electrolyzer business, as we mentioned, the products were just assigned not looking to have Chinese content.

[Andrew Marsh, CEO at Plug Power]

So when you put all that together, we feel we you know, I don't know if that's going to be a requirement, quite honestly.

[Dushyant Ailani, Senior VP at Jefferies Financial Group]

Got it. Thank you.

[Andrew Marsh, CEO at Plug Power]

I mean, I think that's I think that's one of the challenges at the level of uncertainty remains.

[Dushyant Ailani, Senior VP at Jefferies Financial Group]

Fair enough. Thank you.

[Andrew Marsh, CEO at Plug Power]

You're welcome.

[Operator]

Thank you. And there are no further questions at this time, so I'll hand the floor back to Andy Marsh for closing remarks. Thank you.

[Andrew Marsh, CEO at Plug Power]

Well, thank you, everyone. Look, this quarter, we met the numbers we said we were going to meet. We're clear about our expectations for the second quarter for revenue. We expect continuous improvements on item site gross margins in the second quarter. We've proven, and unlike anyone else in the world, that who's not a large industrial gas company, we actually know how to build hydrogen plants.

[Andrew Marsh, CEO at Plug Power]

And finally, there's a huge, huge market opportunity for plug and electrolyzers in Europe, UK. I guess UK is still part of Europe, and Australia. So thanks, everyone. I appreciate your time, and looking forward to talking to many of you soon. Bye now.

[Operator]

This concludes today's conference. All parties may disconnect. Have a good

Participants

Executives

• Teal Vivacqua Hoyos, VP -Marketing & Communications
• Andrew Marsh, CEO
• Jose Crespo, Chief Revenue Officer

Analysts

• Bill Peterson, Equity Research at JP Morgan
• George Gianarikas, Managing Director and Senior Analyst at Canaccord Genuity Inc
• Colin Rusch, Managing Director - Head of Sustainable Growth & Resource Optimization Research at Oppenheimer & Co. Inc.
• Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC
• Dushyant Ailani, Senior VP at Jefferies Financial Group