Amazon’s 20,000-Unit Fuel-Cell Renewal Gives Plug Power a Multi-Year Revenue Stream as Q1 Loss Narrows
Published on 05/16/2026 at 10:32 | Redaktion boerse-global.de
Plug Power’s turnaround story is gaining a powerful structural tailwind. The first generation of fuel cells it installed at Amazon roughly a decade ago is approaching the end of its operational life, and starting in late 2026 the hydrogen specialist expects to replace about a dozen fulfillment-center systems each year. That translates into roughly 20,000 units over several years, providing a reliable revenue pipeline that will be reinforced by similar fleet upgrades at Walmart and newer programmes with BMW and Stellantis.
The long-term visibility from the Amazon refresh comes on the heels of better-than-expected first-quarter results. Revenue climbed 22% year over year to $163.5 million, easily topping Wall Street forecasts. The jump was powered by a fourfold increase in electrolyser sales, which hit roughly $41 million as large projects in Spain and Portugal moved into commissioning and final assembly, while new orders from Canada further padded the backlog.
Operationally, the cost-cutting programme is beginning to bite. The gross margin improved by 42 percentage points to negative 13%, helped by more efficient logistics and a roughly one-third reduction in service costs per unit as fuel cells run longer between overhauls. The operating loss shrank to $109 million from $178 million in the same quarter last year, putting the company on track to achieve positive EBITDA by the fourth quarter of 2026.
Should investors sell immediately? Or is it worth buying Plug Power?
On a GAAP basis, the net loss came in at $0.18 per share, well below consensus estimates. However, roughly $140 million of that shortfall stemmed from non-cash write-downs tied to the valuation of convertible notes and the rising share price. Stripping out those one-off items, the adjusted loss narrowed to $0.08 per share.
The progress prompted mixed reactions from the Street. Susquehanna raised its price target to $3.75 and Canaccord Genuity lifted its to $4.00, but both houses maintained a neutral or hold rating, applauding the operational improvements while waiting for a sustainable path to profitability. H.C. Wainwright kept its buy recommendation.
Investors have been piling into the stock, which ended the week at €3.25. Over the past 30 days shares have gained roughly 31%, and since the start of the year they have risen 71%. On a 12-month view the rally is even more dramatic, with the stock up more than 400%. Yet the rally is fuelled partly by elevated short interest — about a quarter of the free float is sold short — making each upward move prone to violent squeezes.
Despite the brightening operating picture, the balance sheet remains the most pressing concern. Plug Power burned $150 million in cash during the first quarter. Total liquidity stands at around $800 million, but a large portion of that is restricted. To bridge the gap, management is racing to monetise assets. By the end of May it expects to sell tax credits worth nearly $40 million, and a larger project sale worth $142 million is slated for June. The success of these transactions will be critical to keeping the turnaround on track and reaching the Q4 EBITDA target without a dilution-heavy capital raise.
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Plug Power Stock: New Analysis - 16 May
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