Plug Power Remains Plagued by Margin Woes: Can It Buck the Trend?

Plug Power Inc. PLUG continues to grapple with persistent margin challenges despite undertaking cost-control initiatives. The company is focusing on improving its supply chain, optimizing its workforce and reorganizing its manufacturing and real estate setup. These steps are meant to lower expenses and help improve margins over time.However, Plug Power’s latest results show that the challenges are far from over. The company’s gross margin decreased from negative 57.6% in the third quarter of 2024 to negative 67.9% in the third quarter of 2025. PLUG also reported a gross loss of $120 million in the quarter, up 20% on a year-over-year basis. High equipment costs and rising fuel delivery expenses continued to hurt profitability.Also, Plug Power incurred more than $97 million in impairment charges during the third quarter. This included reductions in the value of property, plant and equipment, prepaid capital expenses, contract assets, right-of-use assets and equipment tied to power purchase agreements. These write-downs occurred because it is dealing with project execution challenges, customer disputes and changes in its site and real estate plans, all of which forced Plug Power to lower the value of several assets and added further pressure to its financial results.Despite the adversities, the company remains committed to long-term recovery. By lowering input costs, tightening spending and expanding electrolyzer capacity and hydrogen plant development, Plug Power aims to improve its margin trajectory.Margin Performance of PLUG’s PeersAmong PLUG’s major peers, Bloom Energy Corp.’s BE cost of revenues surged 46% year over year in the third quarter of 2025. However, Bloom Energy’s gross profit rose 92.6% year over year. Bloom Energy’s gross margin expanded 540 basis points to 29.2%, driven by productivity gains, higher volumes and favorable pricing.Plug Power’s another peer, Flux Power Holdings, Inc.’s FLUX total cost of sales was $9.41 million, down 13.7% year over year in the fiscal first quarter of 2026 (ended September 2025). However, Flux Power’s gross profit declined 27.8% year over year. Flux Power’s gross margin decreased 380 basis points, due to lower average selling prices.The Zacks Rundown for PLUGShares of Plug Power have gained 1.4% in the year-to-date period compared with the industry’s growth of 35%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 5.99X against the industry average of 25.01X. PLUG carries a Value Score of F.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for PLUG’s bottom line has decreased in the past 60 days.Image Source: Zacks Investment ResearchThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plug Power, Inc. (PLUG): Free Stock Analysis Report Flux Power Holdings, Inc. (FLUX): Free Stock Analysis Report Bloom Energy Corporation (BE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks