- Plug Power (PLUG, Financial) announces a $525 million secured credit facility with Yorkville Advisors, with an initial tranche of $210 million.
- Q1 2025 preliminary revenue is estimated between $130 and $134 million, with Q2 projecting $140 to $180 million.
- The company completed a 15TPD hydrogen production plant in Louisiana, expecting $200 million in annual cost savings.
Plug Power Inc. (PLUG), a leader in hydrogen solutions, has secured a $525 million credit facility from Yorkville Advisors, aiming to bolster its financial position. The deal includes an initial $210 million tranche, anticipated to close around May 2, 2025. A portion of these funds, approximately $82.5 million, will be allocated to retire existing convertible debentures, significantly reducing potential share dilution by approximately 55 million shares.
Preliminary financial results for Q1 2025 show expected revenues between $130 million and $134 million, demonstrating stability compared to previous quarters. For Q2 2025, Plug Power forecasts revenues ranging from $140 million to $180 million. The company's net cash usage improved markedly, dropping to $142 million in Q1 2025 from $268 million in Q1 2024. As of March 2025, Plug Power held $296 million in unrestricted cash, reflecting strong liquidity management.
Among the significant operational milestones, the company completed a new 15 tons per day hydrogen production facility in St. Gabriel, Louisiana, through the Hidrogenii joint venture with Olin Corporation. This facility enhances Plug Power's vertically integrated hydrogen network and is set to serve prominent customers such as Amazon and Walmart, securing crucial offtake agreements.
To further solidify its financial health, Plug Power has implemented several cost-cutting measures expected to yield over $200 million in annual savings. These strategic changes encompass organizational realignment and heightened manufacturing and supply chain efficiencies. Consequently, the company is on track for improved margins and continued progress toward profitability, with no planned equity raises in 2025.
