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Sep 30, 2022
Plug Power Q3 2022 Earnings Report
Reported revenue of $188.6M, a 31% increase year over year, and reaffirmed 2023 revenue guidance of $1.4B.
Key Takeaways
Plug Power reported revenue of $188.6M in Q3 2022, a 31% increase year over year. The company reaffirmed its 2023 revenue guidance of $1.4B and is focused on margin expansion and substantial revenue growth, driven by material handling and four key business initiatives.
Material handling continues to deliver with the addition of FreezPak and Lidl as pedestal customers.
Progress is being made on the buildout of the green hydrogen generation network, with the Georgia plant expected to be commissioned by YE22.
The Inflation Reduction Act (IRA) is seen as a transformational event for the green hydrogen industry, accelerating Plug's fuel margin expansion.
The electrolyzer backlog currently stands at 1.5GW, with a sales funnel of over $25B.
Plug Power
Plug Power
Forward Guidance
Plug Power reaffirmed its 2023 revenue forecast of $1.4B and expects continued margin expansion throughout 2023, driven by multiple factors, including a step change enhancement planned in the fuel business.
Positive Outlook
- Substantial growth in applications and energy/electrolyzer business
- Continued margin expansion throughout 2023
- Step change enhancement planned in fuel business
- Increasing gross margin leverage from volume and supply chain improvements
- Improved service and PPA margin
Challenges Ahead
- Some larger projects potentially being completed in 2023 instead of 2022 due to timing and broader supply chain issues.
- Fuel margin remained under significant pressure due to increased hydrogen molecule cost associated with historically higher natural gas prices and continued supplier disruptions.
- Potential for revenue to be 5-10% below prior target due to supply chain issues
- Delays due to supply chain and timing of some large projects
- Third-party sourcing of hydrogen coupled with increasing natural gas prices has continued to pressure the hydrogen fuel business