Plug Power, US-based designer and manufacturer of hydrogen (H2) fuel cell systems, experiences revenue growth of over 90% versus prior year first quarter.

In the first quarter of 2018, Plug Power continued to grow its material handling customer base with the addition of two new customers, one being a major US food distributor. In Europe, the company successfully commissioned 80 additional units with Carrefour, more than doubling the size of the customer’s fuel cell fleet. Since the reintroduction of the ITC (Investment Tax Credit) for fuel cells, the company has experienced an acceleration of its sales funnel which should translate into future growth. Additionally, the successful deployment of Plug Power’s ProGen-powered Federal Express delivery van has opened additional market opportunity for the company outside of our core business.

Gross revenue for the first quarter of 2018 was $29.1m, compared to $15.2m in the first quarter of 2017. GAAP gross loss for the first quarter of 2017 was negative $4.5m or 29.4% of sales. GAAP gross loss for the first quarter of 2018, including customer warrant charges, was negative $4.0m or 14.6%. The improvement in adjusted gross margins versus the prior year stems from favourable mix with more fuel cell system sales and efficiencies gained in the service and fuel product lines. The company continues to drive sustainable positive service gross margins based on reliability investments and labour leverage. The improvement in fuel delivery margin reflects the company’s focus on system efficiency investments and supply chain leverage.

Outlook

In the press release, the company states that it will continue to focus on growth, drive cost reduction programmes, and attract increased interest in existing and new markets, which collectively will provide sustained growth.

The company is forecasting sales in Q2 2018 of between $37m and $41m which will represent growth of between 60% and 80% over the prior year. In addition, the company forecasts a range for positive adjusted gross margin of 3% to 5% and EBITDAS of negative $7m to $9m for the second quarter – both of which represent a significant improvement over prior year.