Stock surge of Plug Power today by nearly 5%
Plug Power Secures Long-Term Supply Agreement with Johnson Matthey, Aiming for Revenue Growth and Improved Profit Margins
Plug Power, a leading hydrogen and fuel cell solutions provider, has announced a significant partnership with Johnson Matthey, a major U.S.-based industrial gas company. This partnership is expected to support Plug Power's ambitious financial goals, including generating $5 billion in revenue by 2026 and $20 billion by 2030.
The manufacturing plant, set to begin production in 2025, will produce components such as catalysts, membranes, and catalyst-coated membranes (CCMs). Johnson Matthey will assist Plug in setting up a CCM manufacturing plant in the U.S., strengthening Plug Power's supply chain and helping meet the growing demand for fuel cells and electrolyzers.
While Plug Power has not provided explicit revenue and profit margin projections for 2026 and 2030, historical and recent data indicate a trajectory of revenue growth aligned with the hydrogen sector's growth optimism. Gross margins, currently negative, are improving, with management targeting break-even gross margins possibly by year-end 2025.
The long-term supply agreement with Johnson Matthey, which lasts through 2030, is critical to achieving these financial goals. The partnership is expected to help Plug Power achieve promised levels of profitability in 2026, as well as strengthen its position in the competitive hydrogen market.
On July 9, 2025, Plug Power's shares increased by 4.7% on Tuesday morning, reflecting investor confidence in the partnership's potential to drive growth and improve profitability. The agreement is also expected to support Plug Power's goal of generating $5 billion in sales by 2026, with forecasted gross profit margins of 30% and operating profit margins of 17%.
Despite expected revenue growth, Plug Power is projected to miss revenue estimates for 2022, with growth only 45% to 50%. However, the company remains optimistic about its future prospects, with plans to achieve full-year profitability as early as 2024.
The partnership with Johnson Matthey is not just about revenue growth and improved profit margins. It is also about meeting the growing demand for fuel cells and electrolyzers, which are crucial for a sustainable, hydrogen-powered future. With this partnership, Plug Power is taking a significant step towards realizing its vision of generating $20 billion in revenue by 2030.
- The partnership with Johnson Matthey, aimed at producing catalysts, membranes, and catalyst-coated membranes, will bolster Plug Power's financial objectives, such as achieving $5 billion in revenue by 2026 and $20 billion by 2030.
- To drive growth and improve profitability, investing in the production infrastructure with Johnson Matthey will be instrumental for Plug Power to meet its financial targets, including reaching promised profitability in 2026.
- As Plug Power forges ahead with its ambitions in business, this long-term, $5 billion revenue goal is not only about money, but also about meeting the increasing demand for fuel cells and electrolyzers – essential components for a sustainable, hydrogen-powered future.
