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. is a U.S.-based company specializing in the design and manufacture of hydrogen fuel cell systems that serve as clean energy replacements for conventional batteries in electric vehicles and material handling equipment. Its core solutions include ProGen fuel cell engines, GenDrive power systems for forklifts and warehouse vehicles, and GenFuel hydrogen refueling infrastructure. These offerings are sold as standalone components or integrated turnkey solutions under the GenKey brand, providing customers with on-site refueling, equipment installation and maintenance services.

In addition to its fuel cell and refueling products, Plug Power develops backup power and off-grid energy solutions through its GenSure line, which targets telecommunications, data centers and utility applications. The company has expanded its technology portfolio to include electrolyzers and liquid hydrogen distribution, aiming to create end-to-end green hydrogen ecosystems. Through strategic partnerships with industrial, retail and logistics firms, Plug Power supplies clean energy systems to operations run by Amazon, Walmart, Home Depot and several global automakers exploring hydrogen mobility.

Founded in 1997 and headquartered in Latham, New York, Plug Power initially focused on stationary fuel cell research before pivoting to material handling applications in the mid-2000s. Under the leadership of CEO Andy Marsh since 2008, the company has grown its presence to serve customers across North America, Europe and Asia. Plug Power’s international footprint includes manufacturing sites, hydrogen production facilities and joint ventures designed to localize supply chains and support market adoption of hydrogen as a transportation and industrial fuel.

Plug Power’s executive team combines experience in energy, manufacturing and technology commercialization. CEO Andy Marsh, who has led the company through multiple funding rounds and strategic acquisitions, is backed by senior leaders in operations, engineering and finance. Going forward, Plug Power aims to scale its green hydrogen network, expand product offerings for new end markets and advance its mission of enabling a zero-emission economy through hydrogen innovation.

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

[Paul Middleton, CFO at Plug Power]

Greetings and welcome to the Plug Power First Quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the presentation. If anyone should require operator assistance during this conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Teal Hoyos, Vice President, Marketing and Communications. Thank you. You may begin.

[Teal Hoyos, VP of Marketing and Communications at Plug Power]

Thank you. Welcome to the 2025 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. We believe that it is important to communicate our further expectations to 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.

[Teal Hoyos, VP of Marketing and Communications at Plug Power]

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 in our annual report on Form 10-K for the fiscal year ending December 31st 2024, our quarterly report on Form 10-Q for the quarter ended March 31st 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 CEO, Andy Marsh.

[Andy 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 $134 million, in line with guidance. 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-$180 million in revenue in the second quarter. Let me start with some business highlights, followed by updates on cost actions, capital, tariffs, U.S. 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.

[Andy Marsh, CEO at Plug Power]

One of our largest pedestal customers placed a $10 million initial order tied to over $200 million in future opportunities under a Safe Harbor structure. We also expanded with new partners, including Stef in Spain, now deploying Plug's hydrogen-powered logistics systems at their cold chain facilities. On the infrastructure front, our hydrogen generation buildout is delivering. The 15-ton per day Louisiana plant was commissioned in Q1 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 million in annualized run rate reductions. I'm pleased to report that most of these savings have already been executed. The program spans manufacturing, logistics, sourcing, and SG&A.

[Andy Marsh, CEO at Plug Power]

Our Q1 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. On capital, we've taken some important steps to ensure financial flexibility. In March, we raised $280 million in equity, bolstering liquidity while reducing risk in a volatile market. We followed that with a $525 million structured financing facility, part of which was used to retire convertible debt. Combined with the $1.66 billion 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. The underlying program is contracted, obligated, and we believe secure, and we continue to engage closely with the administration.

[Andy Marsh, CEO at Plug Power]

At quarter end, we held nearly $300 million in 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, 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 costs, particularly on ballast assemblies, battery modules, and plates. At the moment, a good deal of these items are in inventory that will be used in 2025. With today's announcements, obviously, the pressure is a little bit off, but we are continuing down our four-prong mitigation plan.

[Andy Marsh, CEO at Plug Power]

One is that if needed, we will add surge charges for customers based on sourcing mix and inventory timing, door sourcing and resourcing, which we've really had in motion for a number of years, engineering redesigns to reduce tariff-exposed components, and geographical diversification leading further into APAC and U.S. suppliers. 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 145% tariffs, and was internally developed with non-Chinese content. This is a team-wide response, and it's already helping us protect margin integrity. Finally, a brief word on U.S. policy. It's clear the transition in Washington has introduced some uncertainty about clean energy programs.

[Andy Marsh, CEO at Plug Power]

The IRA is under pressure, and there is active debate in Congress over the future of Section 45D of the hydrogen tax credit and the long-term direction of de-carbonization incentives. That said, we are actively engaged with policymakers, both directly and through our leadership in FCHEA, which is a fuel-cell and hydrogen energy association. We are also actively pursuing state and local funding opportunities where momentum continues. We remain focused on execution and will continue advocating aggressively for a stable, long-term hydrogen policy framework in the U.S. Before I turn it over, let me frame one of the most exciting strategic frontiers, Europe. Between the EU Green Deal, RePowerEU, and the UK Energy Act, we are tracking an electrolyzer opportunity funnel worth over $21 billion across 2025 and 2026. What is different now is not just ambition, but enforceable procurement mandates, funded incentive schemes, and penalties for non-compliance.

[Andy Marsh, CEO at Plug Power]

Plug has moved early and decisively in the region, and we're already embedded in some of the most transformative hydrogen projects across Europe. 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, President and CEO at Plug Power]

Thank you, Andy. As mentioned, Europe today is the most dynamic electrolyzer market in the world, driven by regulation, investment, and execution timelines that are accelerating across the region. Plug is at the forefront of that shift. Let me start with the policy foundation. Under the EU Green Deal and the Renewable Energy Directive 3, the EU sets targets for 42% of industrial hydrogen to be renewable by 2030 and 60% by 2035. The FIT55 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, President and CEO at Plug Power]

In Denmark, Plug has an opportunity for 300 MW of electrolyzer capacity for a SAF project. The French government recently awarded $25 million for pre-feed and feed engineering for SAF projects to four companies that Plug is actively working with. This is an anchor example of Plug involved at a scale for decarbonizing jet fuel. Spain is targeting 12 GW of electrolyzer capacity by 2030. Already, 2.3 GW have been pre-awarded across seven clusters, covering refining, SAF, methanol, and ammonia. 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 lifecycle offerings and domestic engineering teams. Refining is another major application.

[Jose Crespo, President and CEO at Plug Power]

Plug is delivering 100 MW to GALP in Portugal, a project supported by EUR 84 million in operational subsidies from the European Hydrogen Bank. These are 10-year index subsidies covering OpEx, not just CapEx, showing the EU's long-term commitment to green hydrogen viability. We are also delivering 25 MW for Iberdrola and BP in Castellón in Spain. Now, moving to the U.K., the Energy Act of 2023 has created a stable regulatory framework. The government has already awarded GBP 2 billion in revenue support under Hydrogen Allocation Round One, HAR One, and Plug Technology is well positioned in over 60% of the capacity awarded. For the Hydrogen Allocation Round Two, HAR Two, the U.K. has shortlisted 1.2 GW 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 875 MW.

[Jose Crespo, President and CEO at Plug Power]

Importantly, these U.K. programs come with 15-year price support contracts structured under the low carbon hydrogen agreement model. These are predictable, inflation-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 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 Plug is in the pole position on project visibility, regulatory fit, and delivery readiness. We expect Europe to be a multi-gigawatt contributor to bookings and revenue over the next 18-24 months, with meaningful margin contribution as projects move from backlog to commissioning.

[Andy Marsh, CEO at Plug Power]

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

[Paul Middleton, CFO at Plug Power]

Thank you. 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 Star two if you would like to remove your question from the queue. 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. Our first question comes from Bill Peterson with JPMorgan. Please state your question.

[Bill Peterson, Analyst at JPMorgan]

Yeah. Hi. Good afternoon, everyone. Thanks for taking the questions. I'm sure you've seen Andy and Teal, the, I guess, the initial proposal for the tax bill. My question's really around the 45V 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 going to try to accelerate and begin construction before the end of the year in order to qualify. More broadly, how should we think about the impacts to the nascent green hydrogen industry in the U.S.? Clearly, with ample fossil fuels, the cost structure for green is not in a way to compete well without this tax credit. I appreciate the comments from Jose on Europe.

[Bill Peterson, Analyst at JPMorgan]

Does this presumably mean you'd be focusing on markets such as Europe and Australia rather than the U.S.? Thank you.

[Andy Marsh, CEO at Plug Power]

Good question, Bill. I think you summarized. First, I'm going to take a step back. I was happy that 45D was continuing through 2025, and it would be, even in the first draft, a safe harbor provision for construction that would start this year. My first reaction was we're going to have to work to start construction this year to make sure that that plant would qualify under 45D. I was also pleased because I think we're probably the only fuel cell company that can leverage 48E, and that seems like it's timely at 2031. That would give us time, again, to continue to grow the fuel cell business. I think, look, Jose and I worked on this presentation for the day.

[Andy Marsh, CEO at Plug Power]

Prior to the announcements, we have become more and more focused on Europe because we see that the biggest opportunities for expanding the hydrogen industry today reside in Europe. When you look at it, the only part of our products which are actually American manufactured will be the stacks. The rest, we are leveraging integrators across the EU and the Middle East for our products. Look, there is a lot to go on Congress. I have been around a long time. I was just happy, Bill, that 45D was mentioned and that it was not completely cut out like I have heard threats for the whole IRA. I cannot say I was thrilled with the announcement, but I would not give it—it is not—there is a way to work through what has been announced. I will just add one last item not to ramble on, Bill.

[Andy Marsh, CEO at Plug Power]

I think it'll be really interesting because there seems to be very, very strong support for hubs in red districts. Look, the hubs do not work without the production tax credit. I think that is well, well known. I think there is a lot to go. Lots still going on in D.C. I hope that was helpful.

[Bill Peterson, Analyst at JPMorgan]

Yeah. No, it was helpful. I'm sure you and others will probably be working to see if there's any way to massage the existing draft. My second question is somewhat related. Looking at your BEDP pipeline, shortly after last earnings, you had close to 8 GW of electrolyzer orders set to FID within this year. Just want to get a sense, did you close each of these orders you had expected in the first quarter? Are you on track thus far into the second quarter? Again, most of these are outside of the U.S. to begin with.

[Andy Marsh, CEO at Plug Power]

Yeah. Most of these projects, I mean, are really—we have about $200 million in backlog for this year with electrolyzers. Most of these projects, we expect—call 2 GW will go to FID by year-end. I would just caution, Bill. These projects, the electrolyzers in many of these projects are billion-dollar investments, and the plants themselves can be $3 billion-$4 billion. Oh, probably I want to be cautious and say, yes, a lot of them may close this year, but some of them certainly will fall into 2026.

[Bill Peterson, Analyst at JPMorgan]

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

[Andy Marsh, CEO at Plug Power]

All right. Thanks, Bill.

[Paul Middleton, CFO at Plug Power]

Your next question comes from George Gianarikas with Canaccord Genuity. Please state your question.

[George Gianarikas, Analyst at Canaccord Genuity]

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

[Andy Marsh, CEO at Plug Power]

Hi, George.

[George Gianarikas, Analyst at Canaccord Genuity]

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

[Andy Marsh, CEO at Plug Power]

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

[George Gianarikas, Analyst at Canaccord Genuity]

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

[Andy Marsh, CEO at Plug Power]

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 that actually resides in the Netherlands. We have a strong business development sales operations with centers in France. We have activities in Spain. We have integrators across Europe that we work with. Europe, 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, President and CEO at Plug Power]

No, you're right. I mean, we have activities all over the European Union, namely the facility in the Netherlands. As you said, we have commercial operations in the U.K., in Spain, Germany, in France. This is not a new focus, as Andy said. The relationships that we have over there have been built over the last three, four years. There is a good amount of resources to face the opportunities that we have in Europe in the next.

[Andy Marsh, CEO at Plug Power]

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

[Jose Crespo, President and CEO at Plug Power]

I agree.

[George Gianarikas, Analyst at Canaccord Genuity]

Thank you.

[Andy Marsh, CEO at Plug Power]

Thanks, George.

[Paul Middleton, CFO at Plug Power]

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

[Colin Rusch, Analyst at Oppenheimer]

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

[Andy Marsh, CEO at Plug Power]

I think you probably mean Louisiana, Colin.

[Colin Rusch, Analyst at Oppenheimer]

Yeah, exactly. Thank you for that.

[Andy Marsh, CEO at Plug Power]

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

[Sanjay Shrestha, CTO at Plug Power]

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

[Andy Marsh, CEO at Plug Power]

Yeah. I think how many tons was it? 300 tons out in Georgia in April?

[Sanjay Shrestha, CTO at Plug Power]

Probably something like that.

[Andy Marsh, CEO at Plug Power]

Yeah. Georgia is beginning to run without too much management involvement, Colin. It turns on and runs every day. Louisiana, boy, I think what I have been most impressed with is, look, it is our third time around. It is a much cleaner design than Louisiana. And then Georgia and Tennessee, we really have learned how to build plants, which is really important for José in building out the electrolyzer market. We are quite pleased with the progress we are seeing at all three sites. I think the question is we need to get Texas started by year's end, and I think that is a real focus of the business.

[Colin Rusch, Analyst at Oppenheimer]

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

[Andy Marsh, CEO at Plug Power]

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

[Andy Marsh, CEO at Plug Power]

?

[Jose Crespo, President and CEO at Plug Power]

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

[Colin Rusch, Analyst at Oppenheimer]

Thanks, guys.

[Andy Marsh, CEO at Plug Power]

Okay. Thanks, Colin.

[Paul Middleton, CFO at Plug Power]

A reminder to the audience to ask a question at this time, press star one on your telephone keypad. Once again, to ask a question now, press star one on your telephone keypad. Your next question comes from Eric Stine with Craig-Hallum. Please state your question.

[Eric Stine, Analyst at Craig-Hallum]

Hey, everyone.

[Andy Marsh, CEO at Plug Power]

Hey. Hey, Eric.

[Eric Stine, Analyst at Craig-Hallum]

Good afternoon. Hey, so Colin, I know we're just talking about kind of geographic mix and material handling. But I'm curious if you could just talk about what you're seeing today. And I know part of this is because you've transitioned to the direct sales model away from PPA. You've also put through price increases for margins. As a result, does that mean that the business today is more 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?

[Andy Marsh, CEO at Plug Power]

Do you want to take that, Jose?

[Jose Crespo, President and CEO at Plug Power]

We are growing in both sides with existing customers. They mentioned one of our largest customers having Safe Harbor, $200 million of potential business at the end of 2024. We are also talking and expanding with new customers and opportunities. The customer I just described in Europe is a brand new customer. We do see expansion in both sides. The economics, given that we will be looking at the 48E possibility, are still there, and we keep on pushing the market.

[Eric Stine, Analyst at Craig-Hallum]

Got it. That is helpful. Maybe could you just remind us? I know you gave us the Q2 guide, so I'm not trying to dial this in too specifically in terms of annually. I mean, do you expect this to be a similar year in terms of the breakdown, first half, second half?

[Andy 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, as you know, we've had a couple of years where we've missed. We want to make sure that we don't mislead folks. This quarter, we have a clear plan how to get the $140-$180. We're focusing on becoming gross margin break-even by the end of the year. That is the focus. That's why we're trying not to provide any additional guidance.

[Eric Stine, Analyst at Craig-Hallum]

Yep. Yep. No, understood. Worth asking, but I get it, so thank you very much.

[Andy Marsh, CEO at Plug Power]

Okay.

[Eric Stine, Analyst at Craig-Hallum]

Bye.

[Andy Marsh, CEO at Plug Power]

Bye, Eric.

[Paul Middleton, CFO at Plug Power]

Thank you. Your next question comes from Dushyant Ailani with Jefferies. Please state your question.

[Dushyant Ailani, Analyst at Jefferies]

Thank you for taking my question, guys. Just wanted to follow up on the 45V real quick. I know that there are some 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 what the CapEx looks like?

[Andy Marsh, CEO at Plug Power]

We've spent $250 million. The CapEx is $800 million. The DOE loan is for approximately $400 million. We've been working with an equity investor for the rest. We've already spent 250 over 800 is about 37%.

[Dushyant Ailani, Analyst at Jefferies]

Do you think that the Texas project is largely safe harbored with the 45V since you've already spent?

[Andy Marsh, CEO at Plug Power]

Yeah. I would say this is going to be an interesting time as these rules, laws are finalized. I think the initial, the fact that 45V is 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. I do not want to, what we think it is today, there is one thing I can promise you. It will not be the same whether it is the end of May, whether it is before the August recess, before December. This is going to be sorted out. This is kind of the first written volley.

[Dushyant Ailani, Analyst at Jefferies]

Fair enough. Fair enough. I agree there. Just my last follow-up. I think you mentioned in your prepared remarks around conversations with customers on tariffs, just maybe adding surcharges. How have those conversations been? Have you started those conversations with your customers yet?

[Andy Marsh, CEO at Plug Power]

One of our, there has been some initial conversations. 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. We are protected on the inventory level, which actually has not really caused our costs to go up yet. If I look again at the tariffs, which the tariffs truce that went into effect, it really doesn't impact us. On the electrolyzer business, as we mentioned, the products were designed not looking to have Chinese content. When you put all that together, we feel I don't know if that's going to be a requirement, quite honestly.

[Dushyant Ailani, Analyst at Jefferies]

Got it. Thank you.

[Andy Marsh, CEO at Plug Power]

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

[Dushyant Ailani, Analyst at Jefferies]

Fair enough. Thank you.

[Andy Marsh, CEO at Plug Power]

You're welcome.

[Paul Middleton, CFO at Plug Power]

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

[Andy Marsh, CEO at Plug Power]

Thank you, everyone. Look, this quarter, we met the numbers we said we were going to meet. We are clear about our expectations for the second quarter for revenue. We expect continuous improvements on item site, gross margins in the second quarter. We have proven, and unlike anyone else in the world who is not a large industrial gas company, we actually know how to build hydrogen plants. Finally, there is a huge, huge market opportunity for Plug and electrolyzers in Europe, U.K.—I guess U.K. is still part of Europe—and Australia. Thanks, everyone. I appreciate your time, and looking forward to talking to many of you soon. Bye now.

[Paul Middleton, CFO at Plug Power]

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

Participants

Executives

• Andy Marsh, CEO
• Teal Hoyos, VP of Marketing and Communications
• Paul Middleton, CFO
• Sanjay Shrestha, CTO
• Jose Crespo, President and CEO

Analysts

• Eric Stine, Analyst at Craig-Hallum
• Dushyant Ailani, Analyst at Jefferies
• Colin Rusch, Analyst at Oppenheimer
• George Gianarikas, Analyst at Canaccord Genuity
• Bill Peterson, Analyst at JPMorgan