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Jun 30, 2021
Plug Power Q2 2021 Earnings Report
Reported record revenue with increased year-over-year growth and launched strategic partnerships and green hydrogen initiatives.
Key Takeaways
Plug Power reported record second-quarter revenue of $124.6 million, an 83% increase year-over-year. The company continues to execute its strategic priorities, including the launch of HYVIA, expansion of its green hydrogen generation network, and new market partnerships. Gross margin remained under pressure due to hydrogen sourcing costs and COVID-19 related supply chain impacts, but improvements are expected in the second half of the year.
Net revenue reached $124.6 million, up 83% year-over-year.
Launched HYVIA, a joint venture with Renault Group, targeting 30% market share in hydrogen-powered light commercial vehicles in Europe by 2030.
Announced plans to build a 15 tons per day green hydrogen plant in Camden County, GA, expanding the service network across the U.S. East Coast.
Forged a strategic partnership with BAE Systems to develop hydrogen-powered electric buses.
Plug Power
Plug Power
Plug Power Revenue by Segment
Revenue by Segment
PPAs Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Plug Power anticipates improvements in margins by the second half of the year due to declining hydrogen prices and COVID-19 related costs, along with supply diversification efforts. They are on track to launch joint ventures with Acciona and SK Group during the second half of 2021 and expect growth in the electrolyzer business by over 400% in 2021 versus 2020.
Positive Outlook
- Declining hydrogen prices expected in the second half of the year.
- Declining COVID-19 related costs anticipated.
- Continued efforts into supply diversification.
- Expected improvement in margins by the second half of the year.
- Growth in the electrolyzer business estimated to be up over 400% in 2021 versus 2020.
Challenges Ahead
- Gross margin remained under pressure due to significant costs sourcing the hydrogen molecule.
- Substantial costs incurred as the company terminated a fuel vendor relationship and transitioned to new providers.
- COVID-19 related impact to the global supply chain.
- Margins negatively impacted as production is scaled for new products.
- Slight mismatch in new resources versus straight-lined service/PPA revenues due to late site deployments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income