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Plug Power (PLUG) is back in the spotlight this May after a big jump on April 28, thanks to news of a new $525 million secured loan and some strong early results for the first quarter. This rally comes at an important time for both the company and the hydrogen industry, which is picking up speed as countries push harder for cleaner energy.
The hydrogen sector itself is growing fast. Hydrogen demand hit 97 million metric tons in 2023, up 2.5% from the year before, and it could climb to about 150 million metric tons by 2030 as more industries and transport options start using hydrogen.
With the hydrogen sector expanding and Plug Power making big moves to improve its finances and streamline how it operates, the stock’s recent rally is more than just a reaction to headlines. It shows that investors are starting to see hydrogen as a bigger part of the world’s energy future and are giving Plug Power another look.
So, is Plug Power stock a buy, sell, or hold for May 2025? Let’s find out.
Financial Health After Fresh Funding
Plug Power (PLUG) is a company that makes hydrogen fuel cells and everything needed to get hydrogen from the production stage all the way to powering things like forklifts and backup generators. Its main business is selling hydrogen and fuel cell systems to big companies, hoping to help speed up the move to cleaner energy.
But it hasn’t been an easy ride for Plug Power’s stock. Over the last year, shares have dropped almost 63%, and they’re down more than 60% in the year to date.
However, things took a big turn in late April 2025 when Plug Power announced it had secured a new $525 million loan from Yorkville Advisors. Out of that, $210 million is available immediately, with $82.5 million set aside to pay off older debt. This helps avoid diluting shares by about 55 million and strengthens the company’s finances.
This fresh cash and some serious cost-cutting are already making a difference. Plug Power’s cash burn improved by 25% compared to the previous quarter and by 46% compared to last year’s Q4. The company also cut spending on big projects by more than half.
In Q4 2024, Plug brought in $191.5 million in revenue but is still unprofitable. The company reported a gross margin loss of 122% in Q4, weighed down by non-cash charges and inventory write-downs, and it took a $971.3 million hit from asset impairments and bad debts last year.
Looking at value, Plug Power’s market cap is just below $900 million. The stock is still risky, trading way below its old highs, and the company is still searching for a way to make steady profits. Analysts warn that even though Plug Power has more time thanks to this new funding, it still hasn’t shown it can turn growing sales into real profits.
Key Drivers Behind Plug Power’s Turnaround
Plug Power is focused on actually building out real hydrogen infrastructure and making smart partnerships. A great example is the new Hidrogenii plant in St. Gabriel, Louisiana, which Plug built with Olin (OLN).
This plant is now one of the biggest hydrogen liquefaction facilities in North America, adding 15 metric tons per day and bringing Plug’s total U.S. hydrogen capacity to 40 metric tons per day. The Louisiana plant supplies liquid hydrogen to big names like Amazon (AMZN), Walmart (WMT), and Home Depot (HD).
Plug Power is also making moves in Europe. The company has teamed up with Toyota Material Handling Europe and STEF Group to bring hydrogen-powered forklifts and fuel cell equipment to cold storage centers in France and Spain. These projects prove that Plug can handle everything from making hydrogen to putting it to use in real businesses, both in the U.S. and Europe.
These steps show investors that Plug Power’s turnaround isn’t just talk. The company is actually making progress and putting the right pieces in place for a real recovery. Whether that’s enough to make the stock a “Buy” depends on how much risk you’re willing to take, but it’s clear Plug is laying a solid foundation for the future.
Analyst Sentiment and What’s Next
What do analysts think? Most are still careful. Out of 26 analysts, the group’s average rating is “Hold,” meaning they’re not rushing in or running away. The average price target is $2.33, which is more than double the current price, but the predictions are all over the place, showing there’s still a lot of uncertainty.
Analysts agree that Plug’s new funding and cost savings are good news, but the company still needs to prove it can keep growing sales and control costs before anyone gets too excited. For now, Plug’s financial health looks better, but it needs to keep this up if it wants to win over more investors.
Conclusion
Plug Power’s recent financing and operational wins have given it a fighting chance, but the path ahead is still lined with challenges. The company is making real progress on hydrogen production and cost control, yet profitability remains elusive, and volatility is the norm. With analysts split and the stock still deeply discounted, Plug Power looks like a classic “wait and see” story for May 2025. For now, holding makes sense. There’s clear potential, but it’s not without risk. Investors should watch closely the next few quarters to see if this turnaround gains traction.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
