power plug (NASDAQ:PLUG) recently released its fourth-quarter results, and the report came with plenty of reason to cheer shareholders. For starters, the hydrogen energy technology company posted a loss of $0.06 per share on sales of $225.2 million, significantly better than the average analyst estimate of a loss per share of $0.10 on revenue of $217 million.
In addition to posting a smaller-than-expected loss and sales that beat expectations, the company issued promising future guidance. It also announced that José Luis Crespo had become its next CEO, succeeding Andrew Marsh in the role.
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Could Plug Power be on the verge of becoming an income-generating stock, offering returns of 10x or more for investors who build positions at current prices?
Plug Power saw a dramatic improvement in its gross margin in the fourth quarter of last year, highlighted by its 2.4% gross margin versus the negative 122.5% gross margin it posted in the prior-year quarter. Sales growth of 17.6% in the fourth quarter also represented a significant acceleration of growth on a sequential quarterly basis.
While the company saw its fourth-quarter loss per share decline to $0.63 from $1.48 in the prior-year period, Plug Power is still operating in the red. Furthermore, it remains to be seen whether the company’s margin improvements are sustainable.
Plug Power’s revenue increased 12.9% annually to approximately $710 million last year. The company indicated that sales growth in 2026 is expected to be “directionally comparable” to last year’s level, with growth driven by the company’s electrolyzers and materials handling businesses. Meanwhile, management said the company is expected to achieve positive earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter of this year.
Plug Power closed 2025 with a net loss of approximately $1.69 billion. Meanwhile, the company has a market capitalization of about $3.1 billion and ended last year with a cash and equivalents and restricted cash position of about $323.5 million against total liabilities of about $1.59 billion.
Plug Power is a long way from generating net income and free cash flow to support sustainable dividend payments. Companies typically pay dividends when they generate reliable cash flow, and it makes sense to distribute some of that cash so it is returned directly to shareholders. Paying dividends is unlikely to be a sensible move in the next five years, but it’s not outside the realm of possibility that the company’s stock could offer a significant payout at some point down the road.