Plug Power has declared group revenue of $55.3m in the third quarter of 2018 and has also reported the highest adjusted gross margins in the company’s history.

The hydrogen and fuel cell company sold more than 1,400 GenDrive fuel cell units, seven GenFuel hydrogen stations and delivered products to nine different customers in the third quarter of 2018.

Based on increasing customer traction and a strong sales funnel, the US company recently increased gross revenue targets to between $175m - $190m for 2018.

Plug Power: We must find a way to make hydrogen more accessible

Growth in product deployments and service business improvement has been key to Plug Power’s imporved adjusted gross margins and EBITDAS throughout the past year. The company reported negative EBITDAS of $1.6m, which it said is a record performance.

To meet the rapidly growing demand for its fuel cell products, Plug Power opened a new manufacturing facility in Clifton Park, supported by New York State’s Empire State Development. This new facility allows Plug Power to expand manufacturing capacity for its products and establish a product line for its latest offering of ProGen hydrogen engines.

Revenue growth drives Plug Power’s New York manufacturing expansion

Today, the company as capacity to produce more than 20,000 fuel cell products on an annual basis.

Stack development

Over the past 12 months, Plug Power manufactured more than 5,000 stacks. In Q3, the company produced its first membrane electrode assemblies (MEA’s), a capability vertically integrated into Plug Power with the recent technology acquisition of American Fuel Cell (AFC).

Plug Power begins production of MEAs

Plug Power’s proprietary MEA technology is a key component of newly designed ProGen metal stacks. The company developed an ink, catalyst and material formula for its MEA technology that improves efficiency, reduces costs and enhances durability. At the start of Q4, Plug Power shipped stacks to customers utilising this in-house MEA technology.

Breakdown

Net revenue for the third quarter of 2018 was $53.2m, versus net revenue of $34.6m for the third quarter 2017.

GAAP gross profit was $4.4m, compared to negative $19.4m for the prior year. Adjusted gross profit for the third quarter 2018 was $8.1m, or 15% of gross sales.

EBITDAS was negative $1.6m, compared to negative $1.9m for the third quarter of 2017.

Net cash flow provided by operating activities for the second quarter of 2018 was $3.5m compared to negative $23m in the third quarter of 2017.

President and CEO Andy Marsh said, “As we continue to reiterate, Plug Power remains committed to achieving EBITDAS breakeven in the second half of 2018 and is positioned to be cash flow and EBITDAS positive in 2019 and beyond.

“We are also focused on rapidly expanding our opportunity in material handling and leveraging our extensive learnings to expand into other fuel cell applications.”