Plug power (NASDAQ: PLUG ) It recently released its fourth quarter results, and the report came with plenty to cheer for shareholders. For starters, Hydrogen Energy Technology Co. posted a loss of $0.06 per share on sales of $225.2 million — significantly better than the average analyst estimate for a loss of $0.10 per share on revenue of $217 million.
In addition to posting a smaller-than-expected loss and sales that beat expectations, the company issued guidance for the future. It also announced that Jose Luis Crespo has become its next CEO, succeeding Andrew Marsh in that role.
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Could Plug Power be on the verge of becoming an income-producing stock that delivers 10x or more for investors who build positions at today’s prices?
Plug Power saw a dramatic improvement in its gross margin in the fourth quarter of last year, with a gross margin of 2.4% versus the negative 122.5% gross margin it recorded in the year-ago quarter. The 17.6% sales growth in the fourth quarter also represented a significant acceleration of growth in the sequential quarter.
While the company saw its Q4 loss per share shrink to $0.63 from $1.48 in the year-ago period, Plug Power is still operating deep in the red. Additionally, it remains to be seen whether the company’s margin improvements are sustainable.
Plug Power’s revenue rose 12.9% year-over-year to nearly $710 million last year. The company indicated that 2026 sales growth is expected to be “directly comparable” to last year’s levels, with growth driven by the company’s electrolaser and materials handling businesses. Meanwhile, management said the business expects to achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter of this year.
Plug Power closed 2025 by posting a net loss of approximately $1.69 billion. Meanwhile, the company has a market capitalization of approximately $3.1 billion and ended last year with approximately $323.5 million in cash and equivalents and a restricted cash position against total liabilities of approximately $1.59 billion.
Plug Power goes a long way from generating net income and free cash flow to support sustainable dividend payments. Companies generally pay dividends when they generate reliable cash flow, and that means some of that cash is returned directly to shareholders. A dividend payout isn’t likely to be a smart move anytime in the next five years, but it’s not out of the realm of possibility that the company’s stock could offer a meaningful payout sometime down the line.
