Plug Power Inc Q4 FY2025 Earnings Call

Greetings, and welcome to the Plug Power Q4 and Year-End 2025 Earnings Conference Call and Webcast. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Teal Hoyos, Vice President, Marketing and Communications. Please go ahead, Teal.

Thank you. Welcome to the 2025 Fourth Quarter Earnings Call. This call will include forward-looking statements. These forward-looking statements contain projections of our future results of operations, financial position, or other forward-looking information. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward-looking statements, and such statements should not be read or understood as a guarantee of future performance or results. Such statements are subject to risks and uncertainties that could cause actual results, or performance, to differ materially from those discussed as a result of various factors, including, but not limited to, risks and uncertainties discussed under Item 1A Risk Factors in our annual report on Form 10-K for the fiscal year ending December 31, 2024, or quarterly reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025, as well as other reports we file from time to time with the SEC. These forward-looking statements speak only as of the day in which they are made, and we do not undertake or intend to update any forward-looking statements after this call, or as a result of new information. At this point, I would like to turn the call over to Plug Power's new CEO, Jose Luis Crespo.

Good afternoon, everyone, and thank you for joining us. As many of you know, today is my first earnings call as CEO. I would like to begin by acknowledging the foundation I am inheriting. Andy led this company for almost 20 years with vision and determination, building Plug into a global leader in the green hydrogen ecosystem. That is a platform a few CEOs are fortunate to inherit and I am grateful for it. My mandate is clear. I will work to convert this leadership position into sustained profitable growth. I have been part of building this company, setting and executing its strategy. I deeply understand both the opportunity in front of us and the discipline required to realize it. We entered 2025 focused on these objectives: grow the top line; improve margins, targeting margin neutral in Q4; reduce cash usage; expand hydrogen production, including commissioning the Louisiana plant all while strengthening liquidity. We delivered against those objectives. In 2025, we achieved approximately 13% revenue growth while turning gross positive margin in the fourth quarter. Gross margin improved by 125 percentage points, from negative 122.5% in Q4, 2024 to positive 2.4% in Q4, 2025. A 125 percentage point improvement in gross margin is a meaningful milestone in strengthening our operating performance. The results we delivered were not accidental. They reflect ambition paired with discipline, focused execution, and the hard work of the entire Plug team. 2025 was a defining year for Plug. In a highly uncertain macroeconomic environment, we grew revenue at double-digit rates and achieved positive margin. A combination that has been challenging for many companies in our sector. We believe this represents an inflection point. Now, that said, we are not done. We still have work to do to achieve sustained profitability while maintaining growth. My responsibility now is to build on this momentum and continue progressing toward profitability. In 2026, our focus remains on advancing toward profitable growth. We currently expect revenue growth in 2026 to be directionally comparable to 2025, driven primarily by our material handling and electrolyzer business. In material handling, favorable conditions have emerged. The reinstatement of the investment tax credit in January, combined with increased demand from pedestal customers such as Amazon and Walmart, position us for renewed growth in this segment. We are seeing new developments and fleet refresh programs at key customer sites, while activity increased across both new and repeat customers. Our electrolyzer business continues to develop and expand globally. Today, the company has shipped over 300 megawatts of our GenEco electrolysis globally and are now deployed on six continents, demonstrating significant operating experience across multiple markets. In 2025, we delivered equipment for major projects, including a 25-megawatt project with Iberdrola and BP in Spain, and a 100-megawatt project with GALP in Portugal, resulting in a record $188 million in electrolyzers revenue. Europe's regulatory mandates and funded incentive programs provide structural support for hydrogen adoption. We see significant opportunity in refinery decarbonization and in the production of e-methane, e-methanol, synthetic jet fuel, and ammonia. We estimate that meeting European mandates just for transportation could require 4 to 6 gigawatts of electrolyzer capacity by 2030, and we intend to compete for a meaningful portion of that opportunity. We remain focused on converting as much as possible of our approximately $8 billion electrolyzer funnel into revenue-generating projects that will support Plug's long-term growth. In 2026, we expect to begin executing projects with Carlton and Schroders in the U.K., and we will continue progressing with Allied Green Ammonia towards FID on the 3-gigawatt project in Australia and the 2-gigawatt project in Uzbekistan. As an example of the activity in the market, over the last 2 months, we executed 750 megawatts of new basic engineering design package agreements. In 2026, we expect to see a full year benefit from the Quantum Leap initiatives launched in 2025. These improvements are expected to be further supported by continued cost reductions and optimization efforts across the business. Together with revenue growth, these actions position us to achieve positive EBITDAS in the fourth quarter of 2026, consistent with our previously stated targets. We also intend to continue reducing cash usage in 2026. We ended 2025 with $368.5 million in unrestricted cash. We currently expect continued improvement in cash usage similar to the reduction achieved in 2025. With ongoing cash flow improvements and the planned $275 million proceeds from the monetization of assets and associated rights announced in Q4, 2025, which we expect to close in the first half of 2026, we believe we are well-positioned to support our operational plans through 2026. In conclusion, we continue our journey towards profitability. 2025 was about margin progression, optimizing the platform we have built, enforcing cost discipline, strengthening infrastructure control, improving liquidity, and sharpening our strategic focus. 2026 will be about continued sales growth and advancing the financial milestones outlined in our roadmap, including our target of achieving positive EBITDAS in Q4, 2026, a milestone within our roadmap towards positive operating income in 2027, and full profitability in 2028. With that, I will now turn the call over to Paul for a detailed review of the fourth quarter and full year financial results.

Thanks a lot, Jose Luis. Let me first expand on the margin results. The significant improvement we achieved stems from a culmination of efforts over the last 2 years to optimize and scale the investments we have made. We've made a conscious effort to really focus on margin and cash flow improvement. And this includes multiple actions undertaken within Project Quantum Leap and our overall product cost down road maps. More specifically, in Q4, the results benefited from significant improvements in the unit service costs; achieving rates almost half of what they were a little over a year ago; ramping our hydrogen platform through our three facilities, including Louisiana that was turned on and scaled up this year; scaling sales volumes as increased sales provide tremendous incremental overhead leverage and continued discipline and scrutiny over discretionary spending. Equally important to these Q4 results is the fact that we see this progress as a platform to continue driving towards our 2026 financial targets. Regarding cash usage, we saw improvements throughout the year, and these actions were associated with Project Quantum Leap and included targeted price increases, labor optimization, rooftop consolidations, improvements in production costs, and leveraging our hydrogen platform, and a clear focus on reducing our OpEx resource investment. We expect 2026 to include a full year of benefits from these activities undertaken last year. In addition, we see significant upside to continue this optimization effort and drive even more leverage as we grow sales. We anticipate continued improvement, incremental leverage from growth in equipment sales, given our capacity, continued improvements in our service cost profile, additional improvements in fuel efficiency and network leverage, and continued scrutiny over OpEx and resources. We continue to be laser-focused on driving growth in margins and cash flows in the near term and achieving our Q4 goal of positive EBITDAS. Despite the progress we made, as conveyed in our filing, we determined it was prudent for Plug to record a net $763 million in various charges associated predominantly with noncash charges for asset impairments and the capital transactions we undertook in Q4. The impairment charges stem from multiple factors, including overall market conditions, resulting in slower growth than anticipated for certain products. In terms of impairments, this relates to property, plant and equipment, intangible assets, and assets associated with power purchase agreements and fuel. As a result of these impairments, it will reduce our future amortization and depreciation in 2026 and onward. In terms of liquidity, as Jose mentioned, we ended with over $368 million in unrestricted cash. We recently executed the first of three transactions associated with monetizing the $275 million for the data center project sales. We have an effectively unleveraged balance sheet, given our debt restructuring we undertook, which also lowered our cost of capital and extended the maturity. We have also significantly curtailed our CapEx expenses, and we believe we have the platform we need to deliver our financial goals, so we anticipate even lower CapEx rates in 2026. These factors, coupled with the focus on improvement in margins and cash flows, put us in a strong position to achieve our near-term and midterm financial goals, and fund our operating plan for 2026. GAAP EPS for Q4 '25 was $0.63 negative, compared to GAAP EPS of negative $1.48 for Q4 '24. But if we exclude the unusual charges in each period, adjusted EPS for Q4 '25 was negative $0.06, versus adjusted EPS for Q4 '24 of negative $0.29. The progression in this is just another illustration of how operationally the company is making progress holistically in growing overall sales and margin profiles. I'll now turn the call back over to Jose Luis.

Thank you, Paul. We will now open the call for questions.

Our first question today is coming from Colin Rusch from Oppenheimer.

Congratulations on the progress here. So as you look at 2026 from a revenue growth perspective, can you just give us a bit more color around which drivers are actually moving the needle from a growth perspective? It looks like you're talking about kind of low double-digit growth overall. I'm just curious if there's one part of the product business that's actually making an outsized impact on that growth?

So for 2026, as I mentioned, we are projecting similar growth as we saw in 2025. And the main drivers for that growth are going to be material handling. What we're seeing in material handling is our pedestal customers are going back to growth. We are also seeing refreshes. Some of the sites that we have with some of the pedestal customers are sites that have been running between 5 and 6, 7 years, time to refresh. So we see an uptick on that. We also see new customers. As you know, we signed Floor and Decor last year, but we see other customers coming online in 2026. And also the value proposition is just getting stronger when our customers are beginning to see that the material handling fuel-cell solution allows them to reduce their utility demand on their sites, which is really valuable for customers in days where we all know that utility and electricity availability is becoming more challenging. But that's not the only area that we're going to see growth. As I mentioned, in the electrolyzer business, we also see growth and opportunities. We just signed, at the end of 2025, the agreement with Carlton Power for 55 megawatts. And we are looking at, in the next couple of months or so, signing a similar agreement for another project in Australia. We have a lot of the projects that we have in the funnel are beginning to move further into FID. So we are expecting to see also growth in the electrolyzer business. So those are going to be the two main drivers for growth in 2026.

Excellent. And guys, when you look at the fuel margins and the cost of that fuel, I know you're getting better at optimizing some of the production costs and timing around that, but I'm just curious about how quickly you can start driving some of those margins closer to breakeven on the fuel side?

Yes. Thanks, Colin. I think just to clarify, if we kind of look back and we think about some of the things we've done, I mean, obviously, turning on these three plants and vertically integrating them puts us in a great position and we've seen that in the benefits in our results. We see that continuing to trend upwards. We've been on this maturity curve of optimizing those facilities. We hit all-time records in the Georgia plant for many of the months in 2025. And we've seen a progression in the utilization and efficiency of the newer plant in Louisiana, as we've turned that on this year and scaled that up. So one thing we expect for 2026 is better leverage on those facilities now that we can take those learnings and run those plants even more efficiently. Second thing is, obviously, we're adding, as Jose mentioned, more sites, more material handling customers. And a lot of that we're going to feed through those plants and so you get greater volume leverage, which is important. We've shown progression in our logistics network and how we can drive greater efficiency through that. The last one of the other challenges we've been focused on and really made tremendous progress is the efficiencies at the sites in terms of how the systems recapture the gas, how we minimize any losses of the molecule through the system. So the combination of those things, coupled with the new agreement we signed with the third-party gas company last year, reduces prices but also puts us on a platform of working with them to optimize the network with which sites are sourced from which plants. All of those factors are what's been driving the improvement and we're going to see additional improvement this year. So I think we're going to directionally be moving there as we progress through the year. Part of it will be tied to the timing of turning on some of these volumes, getting additional leverage out of those facilities as the year progresses. But we expect that we've been, and we expect that we're going to continue to move in the right direction in that regard for the course of the year.

Next question today is coming from Craig Irwin from ROTH Capital Partners.

So first one I wanted to ask about is just an update on the cash needs this year. So you guys did a great job last year, $368 million in unrestricted cash exiting the year. You got your cash burn down dramatically year-over-year. You've put in place the $275 million in asset sales. You're obviously continuing to execute on the restricted cash for your historical PPAs as those roll off? And I guess as you make new sales, which is good. But can you maybe help us understand the tempo of cash needs across this year now that we don't have some of these big construction projects, and that you've taken all these other steps to put in place, the actions to get to positive EBITDA?

Thank you for the question, Craig. Paul, do you want to cover that?

Thank you, Craig. Over the past couple of years, we've seen improvements in our margins and overall profitability, along with better management of our working capital. This has led to a decrease in operating cash flows and cash burn. We've also significantly reduced our Capital Expenditures, reaching some of the lowest rates in recent times in Q4. This positions us well as we aim for breakeven or positive EBITDAS in Q4, expecting a similar decrease in cash burn as in previous years. Mathematically speaking, with a low CapEx rate, our current cash position is nearly sufficient to cover our needs, and the $275 million we have puts us in an excellent position to finance the year. Our plan indicates that we have more than enough existing capital and access to funds from ongoing projects without needing additional capital. While I have options available and an unleveraged balance sheet, I prefer not to incur debt. However, since restructuring our debt, we have a very low cost of capital around 7%. Overall, I'm in a strong situation due to various positive developments, including successfully navigating some acquisitions and earn-outs, as well as managing JV investments. These factors have significantly reduced our overall cash needs. In terms of seasonality, we anticipate a slightly higher cash burn in the first half of the year, but as sales volume increases in the second half and we convert that into collections while leveraging our inventory, we expect better results. Given our working capital position, EBITDAS serves as a good indicator of cash flows, and there is a reasonable possibility we could achieve breakeven or even positive cash flows in Q4, in addition to the EBITDAS metrics. I hope this provides clarity, Craig.

Fantastic. That's very helpful. So along the similar theme, your new project, new sales commitments that you're making today are obviously made with a different discipline than you had in the market a few years ago with the pricing changes and the complete focus on profitability now at Plug. Can you maybe just give us a little bit more color on the 750 megawatts in new engineering design package agreements you signed in the quarter? Are customers paying for these engineering packages upfront now? What do we see as a potential timeline for some of these fresh new orders to come through and potentially materialize as bookings and then revenue? How do we look at these opportunities? Is this mostly a new set of customers? Or has this got significant overlap with the existing customer base?

Thank you. I want to clarify that we focus on profitability through growth. So growth is a very important part of our strategy. Yes, the 750 megawatts of BEDPs that we have signed and started working on in the last few months are all new projects. Some projects are in North America, a couple of them are in North America. We also have projects in Europe. The timeline is a little bit different for each one of them. A couple of them are, at least at the moment, the FID timeline is in 2027, but there is one project that we are replacing, a prior electrolyzer company that is no longer going to be doing this project, and they have picked us to do this BEDP for them, you can infer probably what the company is. That project is already pretty advanced. What we're doing right now is basically doing a very quick BEDP, and that project has probabilities to be FID in 2026. So there's a little bit of a different timeline for the different projects, but all of them are in the next 12 to 24 months, in the current planning for the FIDs.

Congratulations on the progress here.

Our next question is coming from Eric Stine from Craig-Hallum.

This is Luke standing in for Eric. First, could you share your expectations for activity on the hydrogen pipeline front in Europe following last month's delivery announcement in the Netherlands? Should we anticipate further developments there in 2026?

Luke, do you mean the deployment or the development of the actual pipeline in the European market?

Yes. And just potential inroads that Plug might be making there in '26 and beyond.

If I understand correctly the question, the pipeline that you're referring to is in the Netherlands, which was announced a couple of years ago, that we are continuing to do the deployment in that pipeline. What Plug, and in general, the industry benefits from is that having a pipeline allows us to basically have an offtaker for generation. We see, for example, in the Netherlands, we have several projects that we are discussing of companies that are looking into generating to put into that pipeline in particular. So it's a positive development in the industry, and it will help with projects going FID, given that they can deliver hydrogen to that pipeline. I don't know if that answers your question, Luke.

No, I think so. That's helpful. And just as a quick follow-up here. So just quickly on the data center opportunity. I mean, you pointed out last quarter as having potential for hydrogen-based backup power. Obviously, framed it as very early stages. Just wondering if you had any updated thoughts on potential use cases in this market?

For the case of the data center opportunity, we agreed with Stream that we were going to be working on potential applications. We are concentrated with them right now on closing the deal itself, but open discussion on what we could use fuel cells for. At this moment, we are concentrated on closing the deal. In terms of applications, we're going to start discussing with them about what stationary applications we could launch together once the deal is closed.

Your next question today is coming from Jason Tilchen from Canaccord Genuity.

With regard to material handling, I think in the last call, you said this is a $14 billion opportunity overall. And you've only really started to scratch the surface with this. Obviously, the price and availability of hydrogen is clearly a major gating factor. But I'm curious, beyond that, what are some of the other things within your control that the company can do to sort of help capture an incrementally greater share of that opportunity going forward?

We're working with all of our main customers, pedestal customers like Amazon and Walmart, making sure that they can extract as much value of the technology as possible. One of the things that we are seeing, I think I mentioned that before, is that many of our customers are seeing the value of the utility advantages of using fuel cells. For many of our customers, they need between 1 and 2 megawatts to power batteries if they use batteries in their distribution centers. But when you use fuel cells, you open up that capacity for other uses or actually just to be able to reduce consumption and connection to the grid. Those types of things are the type of things that little by little, we are discovering and working with customers, to understand better how they can take advantage of the technology and to make sure that the business case can be expanded to as many applications within material handling as possible. We believe that as time goes by, we will be able to unlock further markets within the material handling business.

Great. That's very helpful. And one follow-up. In the release, you talked about launching multiple follow-on actions to continue reducing costs and improving cash flow in '26, wondering if you could share a little bit more about specifics of some of those initiatives.

Do you want to cover that, Paul?

Yes. We are consistently assessing our bill of materials and designs, seeking opportunities to refine our manufacturing processes. We're examining our distribution methods and fabrication approaches, particularly our electrolyzer network. We believe we are still in the early stages of exploring opportunities that will arise over the next few years. Over the past two years, we have made deliberate efforts to achieve specific targets and improvements, and we feel that there are ongoing themes we can optimize to enhance the overall company and drive our margin profile.

Next question is coming from Chris Dendrinos from RBC Capital Markets.

I would like to echo the congratulations on the positive EBIT and positive gross margins for this quarter. Following up on the last question, the press release also mentions that you are potentially considering other asset monetizations that had been impaired. Could you discuss what those might be and the potential timelines for those opportunities?

Want to...

Well, let me say it this way. If you go back the last couple of years, the themes that we've been talking about in some of these markets haven't developed as fast as we thought. So from an accounting standpoint, you go through your accounting exercises and you land on the conclusions of what you can include in your forecast, which may or may not create those impairments. We still have an incredible portfolio of assets and opportunities that we can either look for alternative ways to monetize it, like the data center sales, or still have opportunities in the pipeline in these different markets that can manifest. We firmly believe it's a question of when. I don't think anyone believes markets like mobility and high-power stationary won't happen. It's just a question of when. As those things start to unfold, we still have all of these assets that we can really leverage. It could be a combination of sales in those spaces or alternative uses that we look at. So it happens. It's just one of the ways that we're really centering in on how to get the best value from this significant asset portfolio in the short term.

Got it. And then I guess maybe as a follow-up here. You've got the $8 billion pipeline. Just trying to think through how much of this year's outlook is secured by that pipeline or what's in the backlog, and how you're thinking about confidence in the year, given existing commitments.

For the year, on the outlook that we just discussed, which is similar to the growth we saw in 2025, we have high confidence of probably close to 80% of that revenue amount. Also, confidence that we will be able to close the additional 20%. Entering the year with that high backlog puts us in a very good position to project where we think we will end the year. Obviously, years advance as they go. But at this moment, we feel confident about the projection that we just gave for similar growth as 2025.

Our next question is coming from Sherif Elmaghrabi from BTIG.

When you think about a potential hydrogen plant like New York versus the liquidity opportunity that presents, any insight you can share as to how you balance that cash with your hydrogen fuel demand 2 years down the road, 5 years down the road?

Thank you for the question. What we have been able to do is reach an agreement with one of the largest industrial gas companies to provide hydrogen for us at a reasonable cost, much better than we were getting before. This, added to the current capacity that we have right now, which is about 40 tons a day of nominal capacity, and the potential for some customers that are planning to do liquefaction to take some offtake from those potential projects. We're comfortable that we have a good path to cover the demand in the next few years based on our projections for growth, especially in the material handling market. We feel that the capability to monetize those assets is more valuable for Plug at this moment than making the investment to build a plant in New York. We've put all those plans for growth for production on hold at this moment. That doesn’t mean that in the future, we might not pick up some of these plans when we can demonstrate that we can perform financially and finance these projects more efficiently. At the moment, monetizing those projects and ensuring hydrogen availability gives us the best path forward for Plug.

Got it. And then the One Big Beautiful Bill Act reinstated tax credits, but it also introduced stricter requirements for eligibility. This has been a supply chain headache for some renewable players. I'm wondering if Plug Power has had to retool its supply chain meaningfully?

For the ITC, the investment tax credit, what we have seen is that the requirements to be able to take advantage of the tax credit were meaningfully simplified from what they were before the bill that passed last year in Congress. At this moment, actually, this 30% tax credit is even a simpler way for our customers to take advantage of it. We’ve been discussing this with many of our customers, and they agree on this point. So it's actually been an improvement on the tax credit process for our customers.

Your next question is coming from Sameer Joshi from H.C. Wainwright.

Congratulations on your new role. I wanted to touch on two main areas regarding revenues from material handling. Are we planning to add more pedestal customers similar to the flooring company that attended the symposium? Additionally, regarding the $8 billion pipeline you mentioned for electrolytes, how do you plan to convert that into orders?

Thank you, Sameer. On the material handling side, we are talking to many new potential customers. I think we're going to see some new customers being signed. Some, like you mentioned Floor and Decor, can be multi-site, or what we call pedestal customers. There is an open door for new pedestal customers in 2026 and beyond. On the $8 billion funnel for electrolyzers, we are continuing to work with many of the companies that we have in that funnel toward the FID, the financial investment decision. In many cases, especially in the European market, we are seeing new opportunities closing in Australia, and we closed the opportunity in the U.K. with Carlton Power and Schroders at the end of last year, which will be executed this year. What we're seeing in the European market is that the RED III regulation is being converted into law in many of the countries, which requires a certain percentage of hydrogen use for transportation purposes, including refineries, to convert to green hydrogen at a rate of about 1% by 2030. This means that refineries like BP or GALP or other refineries in Europe are looking for ways to meet those requirements. This is accelerating the investment decisions in many of these projects. We expect to see these projects come to fruition in the next 12 to 24 months as the mandates become law, and we anticipate taking a fair share of that funnel. That's the timeline I am looking at right now for the conversion of the funnel.

And then regarding margins, congratulations on successfully reducing them, particularly in services and equipment. Looking ahead to equipment sales, should we expect to see positive gross margins in the first quarter, or will margins still be in the negative teens due to expected lower seasonal revenues?

Do you want to cover that, Paul?

Yes, Sameer, it's Paul. I would say that if you analyze Q1 in relation to our annual sales from a seasonal perspective and apply the math that Jose shared regarding sales projections for next year, you would notice a decline from Q4. While it should be better than the same percentage range as last year's Q1, it will still reflect lower volume sequentially. Equipment sales are closely linked to leverage, and much of it depends on the timing of those sales. Without extra volume in the quarter, it will certainly impact margin, so you may see a slight dip in both absolute and equipment margins specifically. However, there are some positive developments. The rooftop consolidations and initiatives from last year help mitigate some of that impact. Overall, it will likely be directionally better, certainly more favorable than Q1 last year. You can expect to see improvements in both sales and margin from quarter to quarter and year over year in each quarter. With a third of sales occurring in the first half of the year and two-thirds in the second half, much is linked to volume. When considering what we've outlined for Q4, achieving EBITDAS positivity with a $300 million sales proxy sets the tone for how the year might unfold.

Yes, that is really helpful. I wanted to reconfirm that you still anticipate two-thirds of the sales in the second half of the year, correct?

Yes.

Yes.

Our next question is coming from Chris Senyek from Wolfe Search.

Congrats, Jose, on your first day on the job. Most of my questions have already been asked. But I guess, if you were to just provide some sort of guidance on your outlook for '26, are you able to share the segment mix you're assuming across materials handling, electrolyzers, fueling, etc.?

It's going to be similar to what we've seen in 2025. I will need to get more details, but material handling will likely account for 30% to 40% of revenues.

Yes.

Then you're going to see a similar amount, probably a little bit less on electrolyzers. The rest is going to be our fuel and cryo business. That's kind of the mix that we're going to see. Material handling is still going to be the largest revenue generator for the company in 2026.

Right. That makes sense. Just a quick follow-up on one of your earlier responses about having high confidence in 80% of 2026 and uncertainty in the remaining 20%. Is it accurate to think of that 20% as being influenced by external factors related to customers who need to achieve specific milestones that are beyond your control? How do you view that?

That 20% is projects that we are in the process of closing right now, that probably we're looking into closing them in the next few months that will secure the revenue for 2026. The other 80% to 77% is what I calculated that we have in high probability are projects that we either have a firm commitment from the customer, or it's being finalized, the commitment. The 20% is projects that are right now being negotiated, and we're expecting to close them within the year to be able to realize revenue within the year as well.

Congrats again on a nice quarter.

Our next question today is coming from Ameet Thakkar from BMO Capital Markets.

Congratulations, Jose. You mentioned momentum in expanding with your existing pedestal customers. Earlier this year, you signed a release event license agreement with one of your bigger customers, Walmart. I’m curious, for your larger pedestal customers, if they wish to add more sites with you, do you expect to implement similar agreements with them before proceeding, and throughout 2026?

Yes, you're referring to the licensing agreement. That was a very specific agreement with Walmart that we executed. An agreement that actually will help us to continue building and growing the relationship with Walmart. But I'm not expecting any similar agreements with any other customers in 2026.

Okay. And just maybe one quick follow-up on a different topic. I know Moeve in Spain, in Andalusian kind of greenlit a fairly large electrolyzer project today. I was just wondering if you guys have any kind of role in that project while I have you.

No, that was a project that was announced earlier in 2024. So it's been a project that has been out there for a while. It seems like it went FID this week, today. As far as I know, and I will have to look into that, it is an alkaline project. It's a 300-megawatt alkaline project, and we are not part of that project. We are talking to other refineries in Spain about projects as well, but that project, in particular, is a 2024 project that seems to be going FID at this moment. This is good news in terms of the conversion that we're going to start seeing, as I was saying before, of projects to FID. These are projects that have been hanging for the last 24 months, and now they're coming to fruition. This is kind of what we're expecting to see in the near future with the projects that we have in our funnels.

We reached the end of our question-and-answer session. I'd like to turn the floor back over to Jose Luis for any further or closing comments.

Thank you, everyone, for the thoughtful questions and for your continued engagement, and for joining us on my first earnings call as the CEO. Let me leave you with this: 2025 marked a structural turning point for Plug. We demonstrated that we can grow revenue while restoring margin discipline, and that combination matters. In 2026, our focus and targets are clear: execute with discipline, reduce cash usage, and deliver EBITDAS positive in the fourth quarter. The foundation is in place. The cost structure is improving, and the demand drivers are strengthening. We really appreciate your support and look forward to updating you on our progress next quarter. On Friday, I'm going to be closing the bell at Nasdaq, so you can go to our website, and you're going to have a link to see me and a big part of the Plug team that has made the results this year in 2025 possible, closing the bell with me. Thank you, everyone. Really appreciate your time.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.