Plug Power (PLUG) 9 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Meryl Fritz	executive
Andrew Marsh	executive
James West	analyst
Eric Stine	analyst
Paul Middleton	executive
Manav Gupta	analyst
Sanjay K. Shrestha	executive
William Peterson	analyst
Colin Rusch	analyst
Christopher Dendrinos	analyst
Craig Irwin	analyst
Jordan Levy	analyst
Andrew Percoco	analyst
Amit Dayal	analyst
Skye Landon	analyst

Call transcript

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Operator

Greetings, and welcome to the Plug Power's First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Meryl Fritz, Marketing Communications Manager. Thank you, Meryl.

You may begin.

Meryl Fritz

you. Thank Plug Call. the QX Power to Earnings Welcome

for and the of forward-looking these Securities of XXXX Section This include, beliefs, XXE provisions among Act Securities include We forward-looking and be future historical contained are Exchange forward-looking statements in XXXX. statements. the These developments safe operations others, from and anticipated call matters facts. covered of strategies, intend that not will statements by Section plans results the other statements of Act to harbor statements forward-looking XXA of and expectations,

communicate We future believe that it is to important to our investors. expectations

differ the to Factors factors, reports as on the a to to, other expectations, actual fiscal results. December XX-K limited subsequent However, such statements the not ending statements Securities forecasts to understood are the quarterly are subject with time discussed for as well unduly Form and we current and be file not of those uncertainties the and forward-looking or XXXX, results Commission. read materially or on XX, report statements, and XX-Q of and investors cause risks time projections discussed Such estimates, are should various uncertainties not but annual guarantee Form that our year reports Item as based risks XA including, from management in rely and under result Exchange as cautioned a assumptions on Risk performance and could or of from to and beliefs current upon significant future performance

not forward-looking as information. result after are to the any this call made, of new only speak undertake date statements forward-looking These which in of update statements and intend do or or a we statements

Power's At this to to point, would the Andy Plug turn like over Marsh. CEO, call I

Andrew Marsh

today. Thank and and you you, for joining morning, good thank Meryl, us everyone,

pivotal been quarter This for has Plug.

navigate our we mission on long-term are growth. continue we necessary economy, are accelerating sales drive hydrogen through green we enhancing to cash focused and As to management growth. for efforts the the intensely execute strategies as recalibrations These on our sustainable crucial

this decisions green in strategic operations. made hydrogen scaling our to our leadership Our solidify significant are strides economy. up the quarter in We've designed

has has network been generation growth. -- particularly hydrogen seen substantial Our

in reduce boost currently Louisiana. performing at by completion our suppliers. facilities of capacity Tennessee eagerly per and new addition in Georgia, our anticipating production third-party production on we're The will day capacity dependency hydrogen are our only not full XX also plant This significantly but tons the

seek market. placements transport sectors we X United this on sustainable solutions. for of the States. across Building will momentum, challenges, our of help additional critical the competitive cost enhancing meeting for these to are edge as mitigate This the energy in planning expansion green of hydrogen plants is The demand hydrogen up development industry hydrogen strategic logistical and delivery and plants reducing the

Plug loan to anticipated finance DOE build-out started States. with of equity with throughout liquid plants. advisers continues project commitment the expected projects company and Commensurately, to Energy a to complement our is the the Plug's guarantee from the United Department approval hydrogen announcement. finance advance the process the project program pending awaits has of facilities bolster partners This build-out conditional the investors to and of the

their not Plug needs. a energy new U.S. and to manufacturer our partnership securing expanding major our strategy, These leadership, a to meet to fruit but industrial that top reinforces only Uline, partnerships diverse sustainable automotive in players a deal ability of customers' deliver transition Our solutions also this practices. comprehensive with that our bear robust the our model support demonstrate and market hydrogen trust place continued substantial quarter. extension testament partnerships are to securing The deals has with business to and

for design totaling PEM electrolyzer in products strategy sites of approximately be our package, sales for not market the is XX efforts expansion key strategy significant for the is of encompasses the component throughout potential build-out could our These are engineering its continent, represent our projects a to currently representing and the Europe, our This electrolyzers In systems meet highlighted which demand basic a X.X world. largest contracts to kind they our BEDP Pivotal growing leadership, commissioning technology at that testament of and transformative globally. Western rapidly are just part the of Plug. gigawatts. by future the

customers' sales in By lock substantial shorten final can the to investment significantly facilitating contracts. decisions, these long-term our and journey to our cycle ability packages enhance

to project solutions. in just mission advance globally. is at we enhancing of sustainable our aligns continue with This to lead economy, perfectly but innovative our and its we green the and our expansion capabilities, that the ensuring remain energy U.S. not Plug hydrogen in increase delivering forefront the technology As footprint, strategic

successes, this headcount quarter we our strategic implemented and margins we've and includes considerations, response, which sales. have sustainability faced our costs quarter reductions of This measures to and efficiencies. reductions inventory and enhance restructuring despite a difficult product Look, long-term are decisions of aimed this reducing necessary with to operational due series improving challenges, at In particularly equipment profitability. but

through in are future, excellence, and leadership a robust solidify to on market. designed the hydrogen focus for Looking the health to foundations financial our The significant we poised strategic is are today real growth. operational Plug building expansion

growing turn and to world meet the the sustainable the of to exceed solutions, continues Plug will be industry. to demands As ready

opportunities strategic and the To to conclude, committed about deeply remain goals optimistic our are ahead. we

Now I Paul, are journey. questions to take Sanjay and insights further ready and provide our your into

Operator

with line of questions first come Evercore ISI. [Operator Instructions] the West James Our from

James West

on that your understand we're suspect initially, will customers more curious, how your adjustments. And strategy went, the it's kind going into few how to needed of months I now? we pricing So so pricing a kind over thoughts love what has how be and adjusted. I'd next views But expect that to quarters? hear process your gone several or far should your the of

Andrew Marsh

X looking the of and When service. increase been foremost, at actually final where have first at look are come to X remaining James, customers, we the steps down has point value our in customers, price hydrogen to the and customers, -- those to So price of we our also negotiations. the agreements written top contractual the and of focus, X of we primary final the we're

will the the expect gross quarter, We which hydrogen margin major approaching breakeven that will by be business a fourth accomplishment. be

quarter customers. about But and sales, I going see broadly bringing think coming the that work it -- going with to the feel actually to we've We second handling process. raising and value look are this but is going why this rebound. I And where customers. along recalibration the successful electrolyzer been the and we about I that even really learned I the good this have can very we with for this the that they're are we lot you expect in know to at prices to tell negotiate market, to is business, after XX% you're a equipment during And XX% material be quarters, X when journey we as

board, it's difficult really beneficial I a journey been across of journey, long-term business. but learning a for think this success So the the it's been

James West

to and now we're and With to by customers, I a follow-up the And Louisiana probably the Texas green as Okay. with maybe guess, as shifts think end satisfying next. are online you're getting about Georgia, online Tennessee me. think I third providing of and just parties? to But your we then going now the current towards hydrogen Got how versus supply or your coming production focus be soon, for own you year, hydrogen, much buying that year-end from it. of

Andrew Marsh

be in expect would I because growth the we'll James, of year. this Yes. XX% range

that own day. per is day we're And closer big right, of be -- in XX the our to year-end. after expect would bring today, about XX 'XX, hydrogen. taxes So per today, tons about you're next tons XX event tons day I We'll of per late be at tons that XX online, should we're have and that bringing by capacity. we'll and

Operator

Our next from questions Stine Craig line the of Hallum. with Eric come

Eric Stine

you million out I know the savings. targeting So talked taken cost annual in about quarter, called you savings cost had the previously measures in $XX

down is and profitability, can all just the those above that for just some $XX beyond what going in? million? So cost thoughts given savings you maybe And go you're margins curious XQ, just path on this where disclosed

Andrew Marsh

Paul. over I'm going turn to to that

Paul Middleton

Yes.

couple good A progress. lot and the One, to starting you're a that Eric. that rates. and really of actions announced had we've thought see things, been the completed, we in made of So have about

underway. a see were quarter full in are kind because also of some it was You'll benefit QX when of of that actions taken. There's that those mid-quarter

to rooftop like we're things and some some consolidations, able QX. be completed fairly do in will some So quickly

you'll some manifest QX. And benefits QX in to progress into start and see those so on of

important. understands everybody management. come across curtailment of and cost gate on organization, out are We've cash downs critically And the that cost laser-focused this

to I'm to through that excited year we and and to continue the opportunities look find we're optimistic that there's absolutely I'm cost. the as So going sure progress more reduce

we're pretty and quickly. act are on things clear, able those some So to pretty

things to activities some some what just actions to And figure take and out are. through best work those time

I do in terms and a we great great what what announced we're So incrementally. position think a position we in of in can of

Eric Stine

just The maybe your that but that seem timing and you've good all steps. in had notch, on it That's current right. All along, confidence does take loan, a next color. up commentary And maybe morning like would follow-up. this maybe thoughts DOE just know I another

Andrew Marsh

head, Well, it on look, Eric. I the think you hit

And now look, we're the anxiously it. We is -- it talk continue [ if to announcement. awaiting advance the about we're with items the approval And you committed laser-focused on process ], DOE.

Eric Stine

mean, It's just you've talked past? the consistent And with changes about Got amount, I in it. what there. it's no --

Andrew Marsh

talked we what with in consistent is the past. It about

Operator

with line of next Our Manav UBS. the Gupta come from questions

Manav Gupta

But saw It margin, where based for is There here outlook like it. came particular equipment looks of what's you trying improvements you expect generally, But do were gross but to like pressure. you genuinely that your the just believe you equipment improve to in could of be under in quarter, Do area outlook bottom And have some equipment the some other an margins? on the this XQ the some this made? during the pressure. commentary margins? the understand margins other

Paul Middleton

Yes, absolutely.

that I volume been make think I big pretty a would we've say consistent and this, difference. scale

drive and more to you level We've on of was so at the labor -- in that and leverage facilities than that are opportunistic level overhead. don't substantially when lower equipment at QX, shipping a produce the most the moment. the sales -- And capacity are the we're look got that situations those those

if So quarter QX is, look the of lowest there's nothing upside. XX% always at that our in it's to and been range consistently we've of And year, is, sharing forecast, sales. our you the but as XX%

about that mathematically, you in and more shipping we're And the amount lot to a the that means recognizing if year. substantial more so be a of think going balance

a -- big and operational. lot of is benefits some announced we the balance But through benefit. consolidations alone will rooftop as headcount the to a quarter, volume realize we even pay of reduction about dividends that think just year, that. and start those the of were the in you benefits those reductions, those So When first full we cost and

So it's upside here. absolutely from

Manav Gupta

the government absolutely Okay. the people second know your But you has do finalizes the would be there your outlook And once the looked who will question like. more for electrolyzer guidance exactly guidance, think is what business. XX-week

So they'll be more comfortable placing those orders. electrolyzer

understand your to sales of trying for what's just year? the electrolyzers of the rest outlook for the So

Andrew Marsh

guidance grow. commissioning activities ball in use going between at expects of end even and if that in but the guidance talk frame. And of the may I that going in I a that, at at XXXX. -- today. will at we I activity in Europe about when time going the he to July the ground on what let grow megawatts Manav, would Sanjay, the ahead Europe moment, have, June, to was over turn And we're I continue get we is in suspect some you expect business would crystal to that the final you to I'm there's look -- year. July But moment And highlight, to Sanjay XX

Sanjay K. Shrestha

Sure.

as a packet, will on have about design Having just will going Manav, systems start the by here final And that have about Andy to to acceptance in touched I well about commissioning right? gigawatt substantial think up show already test site show our that, over We that's that we XXXX, So talked you QX. have. for that is, QX, as engineering Andy growth, meaningful that it, our design should you're through XX up sequential business backlog in expect start absolutely engineering we basic to basic see going on executing way, electrolyzer of where X.X is really said what packet. as pretty

in is the of that Some of U.S. that A is Europe. lot in

engineering basic design opportunity We also in pretty on packet have Asia big a that Pac.

And are end of these year. them the by right, customers, many final some this into decision of of going investment

start a the and start to off us with into thing also it the going the provides beyond you And very 'XX, substantial are and substantial normally decision design XXXX, We with basic for into very by year packet working early good see is backlog. them manage will engineering business backlog. working final investment growth convert of of as Some us it that look very, 'XX predictable. manage We into you a can We're makes this and costs. capital. this can to

So when a also to facility about of cost cost right, at think reduce consolidation, perspective, pulse the that we overall from things look are our you and then reduction there a doing stack.

only for will that go it. this go we you That's the and of business. should beyond. should as substantial better go as right in that profile keeps the and change to And pretty how about see the So trend margin getting electrolyzer think 'XX you to into year, you end

Operator

Our JPMorgan. the Peterson next questions line of come Bill from with

William Peterson

We'd year full also about first the talk light. It come like to in and the did quarter.

first in even were double-digit than year expected XX% drive quarter to did year-on-year the second reiterate full growth And in land maybe I you quarter. half. the X/X perhaps lighter half, You in That overall would would I first about expectations. your growth. had X/X business think you XXXX, for of believe revenue was previously for that expecting originally in

the X/X, which growth case, to you the by a of I this maybe to XQ pretty a do Sanjay in that's overall? in scenario, guess, revenues some drive expect driven implies business off, If X/X So step-up said. be first that for year still year-year large what able is just

driving in of they in quarter, if the more some be in so the helpful. up up and revenues first And quarter? they're half importantly, second the the by the parse show step you driving But forth, second step-up in energy and would didn't can of the What's what's the quarter. showing and year applications back that were the up

Andrew Marsh

Sure.

into we back, would So the I Bill, expect, It's growth I'm we let Paul. this that as that the a at do to We the said it when quarter, certainly and XX%. step will hand take on me second to going look -- last year. be be to we by first expect off call, expect numbers it and quarter, -- the about

there the we for review think the So when analysts general, we and in have consensus I think analysts today have about out it the us they're right quarter. the second

think is second in revenue I guiding so our with about what of expectations. commission you is TheStreet the of part maybe the know I line it's quarter talk the -- Paul, but And that. for slipping material the want one electrolyzers, quarter, of kind sites second. know talk from into the handling to slipped at customers there's first which that were can I you X about may to

Paul Middleton

it, to full year, full going XX%, XX% in infers preface off to just next as call being, mathematically, range example. you guess the year, and QX it the and year, I grow by XX% of that I'd is you that And if the of math absolutely Yes. look assume an at to say, last XX%

learning a the wheel through customers that's have just those said, year traction it accelerate really So the the and sure. making, that That those deployments And pipeline. -- system, for deploy that there's we X-megawatt start-up about that that provides of in we excited work the that as balance as the getting the the through we're can pipeline, and to backlog, Andy all activities. we we're deployment with

in lot will will come for a QX, happen activity of half. and second the in what in, So those there's

we traction. we're then our with handling, cryogenic sales that scaling the the as seasonality half, If second that to get you material the have with added starting I at are and benefit electrolyzers have new of you and these new typical and mean, you X/X look inferred hydrogen of electrification and the compounding doing of things products

real effect full compounding the those feel QX, think I we that second we about really -- that and feel the it's good good drive So are year. pretty and about factors half

Andrew Marsh

have electrolyzer that, business Maybe I'll as touch can you cryogenic you Sanjay, describe application. and because a little on your backlog the the most you you business. your well on there as maybe of -- in can touch

Sanjay K. Shrestha

Absolutely.

think alluded of that an I here Bill, Paul things did QX, to, impact right. key the one have So as actually in

So is all on test, this commissioning X-megawatt of lot process, happens full that system actually that you going when do we're through A a rev acceptance rec right? us. site

of lot I on you we navigate actually sit lot there's get a you there's will help sales. right? QX is and got sequential based a that, here pretty that's to working of customers, on, then number a going through. business we're factors QX QX, as from what's see Now to the of we've to to in in big to that And jump going And those think of that that the systems done QX, going completed. anticipate you Some on and should really revenue energy be

where is cryogenic think growth mobile in half into here, break -- second year our Second also piece expect X business let pieces me and business, the refueler. here for cryo meaningful of our As about our our you you a should right? that

big in than business, liquefaction the but second are liquid margin ticket expect hydrogen well a And our also higher in should as right? the as has as which items a here, ticket that of business in first even side You anticipate profile, trailer better item half awards new you we obviously well, on giving half. a business, much finally, growth these bigger meaningful our

the on year, the talking -- think to we're I meaningful number feel the happens the contribution in is it, why way that's second and growth think revenue half of the this high-level of when X/X in we not good you so about of want about first you and So much about the reason pretty year, half the based why Andy? for full year. sort the X/X really

Andrew Marsh

a business Yes. applications. electrolyzer that that of a Bill, Jose application But there, And board we that the include customers, got meeting, just and feel business that side, people business. like revenue associated tell the are done hydrogen funnel business, we don't of long be our we there, you, Crespo, material handling done who probably the with cryo runs on mostly business with some of confident, and orders for feels the time. the Most is I application our will can we've that XX% in pretty and just

So think, get through customers I rough was little it so took bit doing this quarter in things to a anymore, general, closed. a PPAs recalibrating to more get time not

good Working feel through I come the out increases. price Bill. of it, we've But

-- -- year. the So feel always year. And to at and we we're pretty we're the we increase year. revenue about that XX% XX%, expect so Paul feel probably as this good of that said, we said And we've

William Peterson

Yes. insights the for color Thanks and there.

DOE X.X been March. On loan at loan the the end out expectations -- thought by has of like looks months. were approval, this it shifted conditional I around prior

latest process guess, around of I on the I off thinking loan guess I the press also a this like even securing guess project, timing, could election? your the be So release, is equity investors. or waiting DOE, feasibility presidential based additional, year? partners the sounds the what ahead expectation it you're especially And of

this think full the can and the -- what and you year what explain more and the next loan? DOE assume are about of the should year If we for steps on why delay for

Andrew Marsh

we This you started excited I soon. completely the those tell about think projects the is share you forward. conditional news DOE. with do on So separated is equity really may I have that the writing. activity with That are we fully that sure to more good. as funded. Bill, confused from we moving boy, making Look, activity application activity really And The I hope momentum commitment can remain is and investors

Operator

Our Oppenheimer. next come from questions the with Rusch of line Colin

Colin Rusch

opportunity within how you seeing? what Are on more set looks get of a now. On the guys like up that trying talk customers many are Just that you the material to trend about folks you handling side, sense of could seeing customers, scale business? lines diversity

Andrew Marsh

activity. can the brand type That's probably Both you tell combined, time Yes. range coming we doing are this are in -- have customers X the which center for question, XXX a new, distribution range. I that, good Colin. brand them new distribution first of quarter. centers

and Our market through the worked as gone we proposition said, these that our value penetration was really as opportunity increases in think we've really good. to have be I auto continues Plug. more price I there And have through, for shown

expect Tim would what's -- I funnel. in Terrill's Jose's And know I and

see material You'll see to customer expansion next X you'll year. handling. the And operation normal back continued us in quarters, this

Colin Rusch

And follow-up Sanjay. for my then

at as and in center As little power? with lot selection you opportunity for electrolyzer the can bit structure, markets of going then set interconnection power talk guys around procurement you your Obviously, at and data the right are on cost site as underlying business looking the demand about the looking doing there's now well strategy a a electrification.

Just procurement. thought want your right on process to now that where understand is

Andrew Marsh

but to That's big business, going a hand our what to that Colin. is you stationary opportunity I'm for Sanjay, right. say actually

So ahead, hydrogen well but go as ahead go business, as Sanjay. our

Sanjay K. Shrestha

I to about I we to That's relates really this basic of hydrogen the to displacing Colin, it industry the right? think design majority So and mix, in a is of we gray if make that of think X.X-gigawatt, about that hydrogen. engineering packet, opportunity. some green customer lot talked refining opportunity going right, the think our were as

where set is access really power they sort that seeing of where European on in there the fuels, Second they sustainable are can to really right, you you're opportunity get market. location identifying if the of would, aviation a like low-cost

That's where a you the engineering can work. where packet hydro, the this lot low of seeing you have you So we're some can design of electricity some where into imagine, actually basic tap with wind cost. of right,

Colin, So PEM impact to low-cost really electrolyzer challenges big opportunity running ammonia actually one to has that. Western with what solar, with you're good we in about on big more is of customers have things the market, like right? we're the learned, export the in largest work a this solar how and world, of them here, our Australia, is where we into as places Another talking opportunity actually also through, Asian that farms, can able things we went a company help now the green

as power, that we're are market, to have the going that for who win, to whether looking refining the actually you into have then the the source going you at fuel, pointed And green offtake, outlook rightfully the the ones aviation out, you going got into power, it's that customers industry of or to ammonia have, sustainable got the the land.

You a this FEED really very got to unique able hand-in-hand a them and the And is investment that's to position be to really to water. -- So that look, [ puts have the again, us ] collaborate criteria that clearly strong right? what key decision, use. as of final study in gets with part them you we with and working and a

be end table it's have really our we them to that the for price the allows that very of to customers, At cost the about that Are the a just Bringing versus whereby to day, as attractive about value and levelized play right. Colin, green not ammonia bringing value it's well all opportunity to industry. here cost. attractive selling in of refining able as hydrogen

Operator

questions with come Chris Capital line of RBC the next Markets. Our from Dendrinos

Christopher Dendrinos

outs bit. cash decent a as ops I far ] flow cash And on burn to start just little [ the as sequential there end. guess from some improvement I here limiting is wanted out the

improvement the should where Should continued you Just year? around kind we from the color that? about of give rest we any expect of cadence how the can think sit for we So today?

Paul Middleton

XX% about obviously year we're in being excited we Yes, first -- it's close XX% the reduction full in year-over-year Yes. We've that the to talked reduction. that quarter.

the second little the overall. in right, lot in obviously first we but year, that terms a concentrated reason reason the a even bigger, this second for that heavier that that the different of One, dissipate that year-over-year and the the is in did why couple -- for plan -- is the reasons. down bit infers half, So of But why CapEx and And be reduction. will for half is, will half. it's CapEx a

we more already better see the the Second particular, substantially coming in second leverage anticipate quarter, opportunity quarters in getting first working in in even so we even with but thing that you is half. and the and -- in capital anticipate the more it inventory,

that's a third cash thing business. improving the the is And So big contributor. in margins the then flows improving the and

in difference the And second as that that happening of a factor difference driving. we sales But make X/X with will so the the half. we're a -- cost scale other will make downs big is

facilities is to terms of increases and start impactful these the and we're in fuel pretty in second which the will So actions start turning, price we'll in have to what and and the of in some and the QX QX. more first turning more taken benefit And we're again we've more on the quarter see that the of to benefits and even QX benefit completing in the quarter. then impact

that to to we're it. And that still that the XX% reduction So optimistic those laser going drivers on we're get we're improve year-over-year. are focused to

the move So as progression through you continued should year. we see definitely

Christopher Dendrinos

projects my into question is, development? on rate you past, that I high. shifting of opportunity. we of bit -- you guess the just historically, Got gears extremely gigawatts guys conversion commented of to it. the And forward here then moving guess, I BEDP go guess how rate on what is conversion portion type that just as the In should expect the of the forward? BEDP project X.X activity, the have a maybe what's I those activity kind actually little do maybe to

Sanjay K. Shrestha

work when give that basic it's precise right? here, to it, go explanation doing to let get facility. key gets we do FID. there, we their that really to entire electrolyzer. piece the really now -- a a So key number them to down going to probably But investment for a packet, We're want the think here. design about can an to feed the of they you look, very to engineering put And got I get to to how related through I point thing think actually significant it's go we're is That's where right? the a time decision. the and -- me customer some They FID do come thinking final the to a of more

derivative design with of them, What We of fact, product them, actually they are obviously thinking offtake from a terms right in pretty what about going the making right? to are power, architecture, for to customer much involved come is, for hydrogen in it's down really source standpoint.

look into year. XXXX. this getting about into we get decision some at Many final we good funnel, of final feel our will As in BEDP that investment very them investment decision

all this of really a very base just year it not and that position backlog into puts business building becomes business next in a substantial growth about really us year, that us, where it's for and X X So you think would, and the until -- for even really many for but for when or a about right? end you year of it really if the decade, to this visibility great come throughout years

it think get will sure with their we really how they to that's XX% we're or that really move final making So move, than of can rather terms investment to trying XX% about decision. will handicap customer working in the

new end therefore, really growth business. support our we going bookings and, award BEDP, to fact, up from So in in the the backlog

Andrew Marsh

values, the we're which shows about forward. and getting a point part business you, level it engagements. cycle see these from paying the I with that's And their really from it work of view, is why that you seriousness real of think, Sanjay, customer going of a one items, I plans is of probably you sales so is have the of because to positive One the

Sanjay K. Shrestha

XXX%. Yes, absolutely.

Operator

of the Craig come ROTH. questions next with Irwin Our from line

Craig Irwin

been most answered. of So questions actually my have

handling customers to move So have people several customers forklifts. pedestal companies of your I small back implementations America the groceries in on hydrogen materials market, your in forklifts. interesting want similar technology, step the XX% bigger more other are represent of guess, right? You I assume longer-term exciting using the I than some to hydrogen character that And picture, pedestal around there's really into maybe that evaluating the and opportunities. have

would this adding that your maybe this anything trajectory for we to you you repositioning? of customers customers be scope that saying useful will Can with next those what And think else be of feel you're us out to few through get for years? short-term longer-term us sort repositioning you Do after over the the pedestal you business? understand now

Andrew Marsh

is this So Craig, Andy.

First can warehouses this quarter it to to we you X a have we deployments never done business are centers, question and before. and the yes. is foremost, take who distribution who level, I with higher your have to XXX tell answer customers But doing

So on, that had as interest the is and handling can handling from I back throughout new we the tell starting activity in to an as the I expect is years. -- continuing business and going to active any get material we there you second and you, which at active, is tell normal Molex, big seen much probably quarter year. we've customers material show, can sales

to pretty here weren't -- the focused more would So We not first expect names we're we boy, U.S., naming -- even been we'll have we're had in -- actually the readjustment. year. over through but especially be we're the in go this -- quarter, coming we

our Sanjay's at look take electrolyzers business And Craig. back. our to to So while is in I your look, 'XX. in the question probably will you dominant business, become want if activity step a answer yes,

substantial rate will look growth because -- a remains handling driver -- become remain on, has will you when -- that the the of amount of material it business, and our and it hydrogen will the at our activity portion going business. of And a and

of the to did of using mentioned the we year, call, expect I end earlier the we year. be by than in last more at the hydrogen XX% As end

through of year. So but we've close with the growth, the not part to And here, we breakeven by see be luckily, there is able the gone there we'll end to think of been is proposition we've because hydrogen, -- what stronger. value growth of only

significant the see of expansion business. we so And

Craig Irwin

some quick that just ramp hydrogen, frame maybe questions That you the And and lot are than hydrogen. suggestions people quite really be Excellent. tons get in for cumulative has talked a to out how I've around green market, gone. X a kilogram, on have can would then then a more metric green can Tennessee? you on or that hydrogen. Do for Georgia from you that different green the there helpful other $XX production And people that and share to

open can maybe... So a arbitrage Can the little of you bit an if that may market. sell be in there still you

Andrew Marsh

the first part I'm to take second one. going beside to take going and of the the me analysts I'm let here part, that

an the an I Tennessee about looking looking -- from you're So When at Craig. of XXX% probably get quarter. it, XX% at as and at We're view the Georgia kind and been to XX%, operation point out. delivery XX%, pretty we're moment. capacity can't we optimization at of look logistics, guy, and at all we've Logistically, at probably not ramping we're capacity. XX% running XXX% we'll -- That's running be -- just how much

the X weeks, at last look we where I about the are. that's flows when X But or

you opportunity maybe that? So Sanjay, how you're about the can and thinking talk about arbitrage

Sanjay K. Shrestha

that, about I here think Georgia. done what in right we absolutely right, you're Craig, So have given

given look, a but try for to and to driving there our we're our right? would, end been given make a be great mission production -- of said you us price clearly sure value do always customer if the for proposition some a having, capacity, where opportunity discussion sale. that our of spot has an it's more you opportunistic Having to so keep hydrogen is to that, not So the level

now it capacity, We Louisiana are at the in right discussion that XX% live at, discussions, capacity Tennessee given now, industry we've got it, many talked players running Georgia here online. we having about that as sit is. with is coming that those is XX%, Andy as and

there discussions And And we're one. don't to We exact is internally. having. want this a those helping absolutely about revenue opportunity absolutely And well right the And is probably I our year, really need fuel that very especially there is available. growth, for arbitrage help, this everything and should and we pricing margin, what's on what know logic point know as number. get yes, your quite QX your you into business. an We call, think But of taken.

Craig Irwin

on period. congratulations significant Well, progress in some a difficult Great. guys

made in items. difference of number big You a a

Operator

Sung line of Our come [ the Wolfe Chris next questions Research. ] with from

Unknown Analyst

follow loan. clarifying DOE up, just the Andy, question on previous a to wanted I

investor need equity for investors don't close? financial an reach You a need or conditional to commitment. But partners you would

Andrew Marsh

No.

Unknown Analyst

the helpful. Yes. on then the And remind conditional No, loan commitment? proceeds from us timing perhaps of for of receipt the DOE you that's on receipt can

Andrew Marsh

teaming this, been share on we've more informed Chris, DOE. have you to going I keep to with It's on we're -- I really well ahead. earlier, really at progress ongoing about soon. to -- really we -- said all forward what's developments want and as really the look momentum. it, we when And I recognize the we since information And have exciting great hope we important

Unknown Analyst

the final Fair be question or enough. comes perhaps Louisiana able on that volumes quantify you to sell. you right. guess I sell you my volumes Can And how is probably spot All into once could along. would much

Andrew Marsh

that, at shot Sanjay? a take Maybe

Sanjay K. Shrestha

Based per on in now, right somewhere ongoing we our a anticipate of be kind tons that could day it neighborhood. XX discussion

Operator

questions come of Levy Jordan from Securities. line with next Truist the Our

Jordan Levy

here. Appreciate all the details. Maybe for Sanjay

the through segment? of next overall a on take the touched you complexity that back, sort think remainder confidence the in and quarter appreciate sales electrolyzer process that visibility maybe delays year? some the of and give in of just side, the you comment sales of shipment I a visibility and the And just on might improving commissioning But of and process On the you this, of sort I there's there. that lot Can given thing. step to what

Sanjay K. Shrestha

on as Jordan, really X-megawatt XX touched on right? system. about this we backlog, on bit, our XXXX, So we this is mean, existing executing I for right, over a are executing

X-megawatt XX We system. have over

large-scale We projects. are executing XXX-megawatt on multiple

again, that's theme So right? really it's for for execute execute, the XXXX. So electrolyzer business and execute

requirements, vary is, we're something frankly location. that ramp installation. of with QX. a And these I different continent, goes a from we've would. is of which another of as operating we this learning to we our the so in a piece all here acceptance anticipated, the been look, different getting on tend is along rapid tests mean, customers. into We're many some you learnings if got launching and are the the specification, there's to product, lot Now bit countries from And speaking, than site doing things also this taken and why have we're mode, And lot longer location

shifting into of Some QX. is that

the goes Some QX. also QX of likely into

they able So all helps to we pretty on as also everyday installed entire entire being before do recognition that it. work it systems do But site title why this revenue that we Look, cadence good is doing, the customer a even us from perspective, complete enough makes test, the very the that in even happening. make of basis easier we transfer actually standpoint, get the QX, an about from there's sure a we're team right? the is proud acceptance of here this feel a that's from to of lot everything to

is pretty and should in to XXXX. QX and electrolyzer QX, that big sequential should it year a in business another growth You meaningful pretty in expect for really going there one be our a be

stage doing working BEDP gets all 'XX, should decision. our 'XX new hand-in-hand materializing, Beyond into we're as final that customers that, this investment based that the you BEDP with also this for setting expect on work beyond bookings and

Jordan Levy

it. And topic, a Got follow-up. a Appreciate that. quick separate

in just the referenced million we kind $XX write-downs, wondering or I through on expect in But to details the those continue should in that? the that you moving the year On Q. release, if get know we'll of more on

Paul Middleton

activities a production When the have of of and labor lot and is A much. opportunity get as you don't to overhead that lower just activities, Yes. the absorb you level plants. in sales

of And in so continue there as and ramp to that QX may be scale. we bit a little

more We second in as also expect tremendously the substantially progress continued another it counter more There that we activity to downs. that move the in dissipate the production. half towards to favorable cost sales and are is

have absorption by we're is selling both effects producing and increasing you happening, reducing we're which costs so more more. and And

move through trend that see you'll as that substantially we down think the I year. So

Operator

from come line Capital Markets. Our Thakkar next with BMO questions of the Ameet

Unknown Analyst

on got You've ] Ameet. here for [ Ryan

sort the at update along on I under quarter. lines, where program interim of update able just end out the last So issuance at current like to the provide is you tap guys an cash on if an the provide was Just wondering to since you if you're this And would if those update of all February? be today? the ATM planning balance

Paul Middleton

to Q filing we're Obviously, today. Yes. going our be

in are that been of been roughly I couple solutions. of a this. you mean for a that I where meaningful is and -- detail -- today. debt closer XXX our share ever time. I'll we've in But on you'll just We're terms lot is of We've we biggest terms in feel for Q. what we're got sit the are $XXX to wasn't challenge be will things there. see it's this share we today than helpful we been -- like a raised as working I'd of have that's million there'll -- with part that that we're that where question, finding long we've And pages that say will going. We disclosed that So roughly your through that under us, laser-focused conversation that parties but

the primary it focus about done But finding of burn, these that manifests last primary well, total feel extremely terms very that what the means sourcing. whether reduction -- XX% we year, and know fund and see we are it X my and lot the continues our to than have diligence a could of has of of our that the the and of But been them well that parties if we're more solutions which it halfway that's we'll terms capital in into math, in debt of context balance be need, we're is -- conclusion. do you off

the is is capital. better that to we which a start for us putting helpful. continue sourcing and to progress and will -- a position show lot, that need in dissipate So But better

helps little bit on So provide how hopefully, that about color a it. of think we

Operator

come with Morgan line next of the Our Andrew Stanley. from questions Percoco

Andrew Percoco

pretty bring question supply market, evolving is demand And very first at clean much and U.S. dependent question prices. to lot I constricted seems your demand, power. can I've seems PPA in Colin's this bit least back market we're of like to is on how there's much for AI low And higher power I think in the of business coming pretty before, asked we a procurement the just on terms strategies. It be to I my but little guess quickly. before power think level a

U.S. up that in has imbalance least So pushing been the PPA supply-demand at prices,

U.S. how hydrogen additional can in context in obviously you procurement I'm of agreements signed? which just have more for bit your Texas just green curious, provide a already about beyond you're York, facilities offtake New and thinking power terms the little

Andrew Marsh

Go ahead, Sanjay.

Sanjay K. Shrestha

on can where far but at has as So had a do to right? our really you look, terms as well, a I be very plant. [ us make go to player When green in a do the price conversation we with it's plant, you last that's call want location the hydrogen of this from always want the with do going America, where can think that said to obviously in to ], right? just can allocate think identifying going we've development generation So region-by-region basis, where to about terms building to not our imagine, want green work this that we electron be network, strategy we in the pretty right, we've want of actually been network to this you is an economics And core North go, how to either you where put a standpoint location. existing there along sense, provide

out, electron, you attractive us. pointed is think with for And and wind about nuclear That's complemented rightfully about, in that should obviously, you And green Georgia, right? pricing pretty today, it, hydro. think as solar, we how looking

I'm allocation comments hydro of of on what New York, the we're we Texas, PPA, making. based we lot did a signed you're the glad some getting for that.

power. we you a that as can of power about as from we low-cost some attractive get actually where hydro looking might location the think an we're to terms like looking the in where believe also solar the next well this we you should where country in middle you network able at build -- opportunity West Coast, we're at as plant access the be of standpoint So of -- that nuclear the

obviously as power solar, are in right, pricing, of chain there the think But Georgia #X is in as I let's going right? do that's always given comes there right, the this they well. it's that development here. footprint not Texas in as mean, back wind in doing forget, in some We're But are you of well. on, where our somewhere at look, if also everything do, on as country rates supply region. just existing presence pressure what as situation, not middle really the X probably can they one-faceted cost the I and electricity, line, the inflationary is levelized We that of lot be between and surprised Don't Coast, a West looking well a plant expand

prices continue path to might our end we went But of where a trying to don't You've feel it of terms strategy is in normalized a basis, to on at of over while like different the this accomplish, the doing to next will you we're variety sure disruption we to X there go some right? up down tentacles a down things. should If short-term and need to is in have we're there got where Would the And before locations what change anything we to we the long be like today, of the likely power is anything. lot there? add make what do. really for months, is directionally, us of looking day, different certainly wait accomplish any more that situation a it game a go there

Andrew Marsh

listen questions, price in to what in expansions York, you the have us for I we'll future paying do comments couple you it's -- pay allow would if listen that what that Texas, of Yes. the what I say New years. our we're the to to we're next and the already contracts think incredible over Georgia, place we differential to these Craig's in price in advantage future paying price just

So I feel actually think me it good. makes pretty

Sanjay K. Shrestha

Andy, benefits the move key first of of [ this is one ].

Andrew Marsh

Yes.

Andrew Percoco

that, just facilities? beyond any you from transmission York those kind of guess on I excess projects already supply additional follow have starting on or or to or for bank you Texas Understood. do access be already would New bank power it. up Got of scratch kind and additional

Sanjay K. Shrestha

right? us in we're terms Look, X to new thinking the the about in in years, development build So over for journey opportunity that, I really have from secured West new we've what So opportunities said for is scratch, starting now a this and Andrew, the of get. nothing right? mean, that likely of Now been having you're kind best about Coast? we for this What where to kind you think is PPA right? California, is on get, works. we're think the out about the -- Arizona can what trying depends to model right. really what's You looking opportunity you're figure can power probably of location Arizona, looking

expand gives So like we can Texas really allocation arbitrage there. attractive from already reasons is think where cost cost of that that the in continuing right? it's that, capacity. where case in you scratch, buttoned completely There wanted up, to profit on that but power is while input know our along new in the view renewable a additional very activity, say get enough of wouldn't us electricity, hydrogen us you I is really Georgia, to gives far it like of well. are nothing that level So multiple we and plans, if we margin the look going still fully to Texas, have but what drive opportunity

Operator

of Dayal come Our H.C. Amit questions from line next the with Wainwright.

Amit Dayal

questions adjacent discussed. just Yes. mix maybe sales I mean, have some the for this with year. things to already Starting

versus side, 'XX? 'XX and other what like? in mix fuels services, handling equipment and other that Excluding then for offerings 'XX, sales hardware And on the just would how look changes material the

Andrew Marsh

expect the at answer. be associated will material our business. take I'll shot to be cryo about I'll this, probably X/X you initial Paul, and will of XX% be XX% will handling, other probably let So about electrolyzers, XX% would and with an and remaining I liquefaction business hydrogen or XX%

Amit Dayal

the see this other ramping you Or do And similar Understood. like XXXX? sort does outside remain aggressively? parts of of more business in material handling

Andrew Marsh

Yes.

of business Amit, would a the larger think, 'XX grow our we business I And in to I percentage. liquefaction come will that think our be part electrolyzers be to expect XXXX. biggest

Amit Dayal

perspective, cost -- what rest And quarterly sort a going we on Paul, onwards operating the yes, basis maybe Paul assume forward, for for of XXXX? XQ just maybe an so for Paul, should of Okay. like from then

Paul Middleton

Yes.

this will in reductions So be been from a run the we year rate, that down of cost on. QX to one things we last lot the of that. of our reasons. drivers year biggest A to is OpEx focused host the benefit for did expect we've And

through to of I -- a on the call on going think would it, $XXX quarterly balance million good rate let's million is $XXX a I about, So proxy year. the run

Operator

questions next with Our Skye Redburn line the of Atlantic. Landon from come

Skye Landon

to saw had the interested results Hydrogen one results hand, recently on Firstly, other were reaching the this risk we it's from what we figure lower-than-expected hear thoughts to of bank great because auction I'd on the FID. potentially EU of end winning on have the low higher your to capacities. bids. as where adds a be electrolyzer kind But projects provides more things

to your bids subsidy the level involvement to a if winning then of is So would but and Or on commentary related awarded? less that be great do there, higher subsidy any enough? projects would prefer provide you with any you capacity actually think the as And this, you well. with see could

Andrew Marsh

involved can higher. successful. some were liked I customers yes, see talk our you would the know customers. and just to have I about Skye, prices say, you've our maybe Sanjay, would we been of

Sanjay K. Shrestha

think, Some Andy, of still process. this our have, but an I is customers evolving

Look, like love energy the think industry. right, piece I I an you think look, this evolving think should energy fair talk, an rightfully process. subsidies So of to industry, is out, I we'd even pointed as be to every

maybe to and into want time. customer we at it all point how not in specifically see unfolds get the So this

Andrew Marsh

Yes.

the think But consensus that industry. Skye, in probably know hydrogen doesn't I I you. -- that is that's think I that us of the general helpful. help think I is

Skye Landon

process on. That's more of more Are a Just can And you little of that the the a sites the this? No. electrolyzer we of currently, also, can to figure guess, go site you put this getting able actually order and equipment systems get differences maybe good to then sure while enough. Fair on involved process I'm a share reach a currently clarity kind around exactly recognition? then there's get XX color. the through about you're the on in to project-by-project I process a and some acceptance bit commissioning's works. bit revenue so undergoing basis, how that And needs to that on capacity

Sanjay K. Shrestha

X-megawatt we've put to a and over it, there's actually XX very Absolutely. this time been -- question, system, going that's Skye, is right? this on just here lot fair okay? in And look, and obviously And commissioning spending of effort something the context. of that it's So breakdown all

touched All there's year. commissioning of phases, large-scale and that. continuing sure And the actually on the not like that is ready, XX through making X-megawatt that is QX, work, it, right, we XX X-megawatt customers system. projects and to are things over some that throughout as there's enough it's just going rectifiers we're over go system But fabrication, there that through also are

how another a And sometimes the staff site you system. And like, key produce buttoned to don't a here acceptance that that X-megawatt stack key sure piece. whether But the acceptance go, depends make that you and system the X-megawatt it's ready on to going on that make the is the factory it is get needs to performance -- have acceptance up got sure in couple factory. that's of much in documents is of the to test. right? a actually you system produced When the depending test compliance all are test leads be -- versus situation, do you've a terms turndown what when factory from the comes so of You process, hydrogen the

and comes to. say, acceptance test. do down enough before it really that handover site. for piece that's the That's at the what the we And really right, hydrogen site specification it have And really completed finally, down you final the we've produced all comes what is

Skye Landon

follow a up that fair of Would as of say on to commissioning things? the be things of of rather just these customer on it is side delays on the sort Power well some Just in that. Plug some -- of than side

Sanjay K. Shrestha

ready. do. our everything and customers, also right? with always to the be not has we It's we team hand-in-hand But customer's site just commissioning work Look,

and about And And the is sites of in where done. than activities those are to ready. do where some to them with tremendous that. In end right. you site are that look, hand-in-hand there situation make could working sure cases, some on get really we the the some is right also team QX, there But that the we do up tests handover absolutely things needs rather acceptance have are can QX You're customers' customer as but well. going

Andrew Marsh

of I close for help factories to have I with quarter. key foundations, with for it our Georgia, I'm today. no to I out. to us hydrogen forward customer walked throughout the I us want relationships, I of the everyone that discussions look over our industry Louisiana. the walked this plants And So, Rochester, to going the look, thank in joining infrastructure, I believe the vision our that partners one has. Plug has and one these build analysts

I direction. the think it's right a real But X X or months. differential moving advantage. It's we're in been tough a

So look the throughout year. and the throughout engagements our forward quarter I to

everyone, the joining thank for call. So you,

Operator

This you. teleconference. does We today's appreciate conclude participation. your Thank

your this your may Enjoy at day. the disconnect lines You of rest time.

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