In accordance with my bullish outlook on Plug Power (PLUG) stock in a column published on March 12, the shares surged from $2.21 on that date to $3.55 as of the market close on May 12.
With Plug Power’s revenue from Europe appearing likely to accelerate tremendously and more evidence accumulating that hydrogen will be extensively used to fuel drones and trucks, PLUG stock looks poised to climb much further over the longer term.
Also importantly, the company can generate a great deal of additional revenue by powering data centers, and it reported excellent first-quarter results recently while it expects to continue rapidly improving its profitability going forward.
Big Opportunities in Europe
As I noted in my previous column, PLUG CEO Jose Luis Crespo disclosed in March that, according to the firm’s calculations, the EU will have to add “4 to 6 gigawatts of electrolyzer capacity by 2030” in order to meet its own mandates for the transportation sector. As one of the leading marketers of electrolyzers, PLUG is well-positioned to benefit from this situation. Indeed, the company has already provided electrolyzers for major projects in Spain and Portugal.
Speaking on the company’s Q1 earnings call held on May 11, Crespo noted that airlines in general and Europeans airlines in particular are facing jet fuel shortages due to the ongoing standoff between the U.S. and Iran. Consequently, “many companies” are seeking to “accelerate” sustainable aviation fuel projects, and ” Energy independence and security are becoming important again in Europe,” the CEO said.
Plug Power’s electrolyzers can be used to manufacture SAF for airplanes, while the green hydrogen produced by its electrolyzers do not require oil or natural gas and can consequently meaningfully increase the continent’s energy independence and security. Consequently, by buying Plug Power’s electrolyzers, the EU will make progress towards meeting its strategic goals involving energy.
Major Positive Catalysts in the Drone, Truck, and Data Center Markets
In my previous column, I reported that hydrogen-powered drones “can fly longer distances… than their battery-powered peers.”
Providing more evidence for this assertion, Chinese scientists were reportedly able to produce hydrogen-powered drones that can fly over triple the distance of their battery-powered peers.
I also stated that hydrogen-powered drones are cheaper to maintain and operate.
Indicating that hydrogen-powered drones can be appealing to the Pentagon, the U.S. Army in March set the stage to acquire such drones, along with hydrogen-fueling systems, from a company called Heven AeroTech. And a tech firm recently obtained a deal with the Royal Canadian Mounted Police to develop hydrogen-pwoered drones for the agency. The agreement suggests that such drones can be useful for law-enforcement agencies.
Turning to trucks, Toyota (TM), Daimler, Volvo, and Isuzu are among the large firms taking significant steps to develop hydrogen-powered trucks.
In the long term, the widespread utilization of hydrogen to power drones and trucks should significantly lift the demand for PLUG’s hydrogen fuel and electrolyzers.
On the data center front, Crespo in March indicated that PLUG plans to work with data center developer Stream on powering data centers after an asset-monetization deal between the firms closes. The CEO recently stated that the initial transaction between the firm is expected to close in June.
Superb Q1 Results and Likely Continued Progress Towards Profitability
In Q1, PLUG’s sales jumped to $163.5 million versus $134 million during the same period a year earlier. Further, the company’s gross margin climbed to -13% last quarter from -55% in Q1 of 2025. And the firm’s electrolyzer revenue soared to $40.8 million in Q1 of 2026, versus $9.2 million during the same period a year earlier.
Finally, PLUG continues to target “a positive EBITDA run rate in Q4,” along with ” positive operating income in 2027 and full profitability in 2028,” CFO Paul Middleton reported on the Q1 earnings call.
*This article is intended to be informational only; it is not financial advice.
