Plug Power Stock Is Trending Tuesday: What's Going On?

Plug Power Inc PLUG shares are in the spotlight Tuesday after rallying 26% to start the week. Here’s a look at what’s going on.

What Happened: Plug Power shares raced higher on Monday after the company reported preliminary first-quarter results and announced it secured a credit facility of up to $525 million.

Plug said it signed a definitive agreement with Yorkville Advisors for a secured debt facility that includes the issuance of up to $525 million of secured debentures. The arrangement includes an initial $210 million tranche, which will be fully funded at the initial closing, along with additional tranches of up to $315 million. 

Plug Power said it expects to report first-quarter revenue of approximately $130 million to $134 million. Analysts are anticipating first-quarter earnings of $131 million, per Benzinga Pro estimates.

The company noted that it expects net cash usage in the first quarter of approximately $142 million, compared to $268 million in the first quarter of 2024.

“Plug anticipates additional near-term reductions to net cash usage driven by hydrogen plant ramp-ups, additional cost downs, and additional price increases,” the company said.

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Plug reported that it had $296 million in unrestricted cash as of March 31. The company is due to report audited first-quarter results in early May. In the preliminary release, the company also provided guidance for the second quarter.

Plug expects second-quarter revenue to be in the range of $140 million to $180 million versus estimates of $143.35 million.

“We’ve made the tough decisions and put the structure in place to deliver improved operating leverage and capital efficiency,” said Andy Marsh, CEO of Plug Power.

“Between strengthening our balance sheet, scaling hydrogen production, and streamlining operations, we’ve taken the right steps to position Plug for long-term success in the hydrogen economy.”

PLUG Price Action: Plug shares raced higher on Monday following the announcements. The stock was pulling back Tuesday at last check, down 4.5% at 97 cents at the time of publication, per Benzinga Pro.

Photo: T. Schneider/Shutterstock.