Plug Power, Inc.

Greetings and welcome to the Plug Power fourth quarter 2024 earnings call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Teal Hoyers, Vice President, Marketing and Communications. Thank you. You may begin.

Thank you. Welcome to the 2024 fourth quarter and year-end earnings call. This call will include forward-looking statements. These forward-looking statements contain projections of our future results of operations or a financial position or other forward-looking information. We intend these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933. and Section 21E of the Securities Exchange Act of 1934. We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward-looking statements, and such statements should not be read or understood as a guarantee of future performance or results. Such statements are subject to risks and uncertainties that could cause actual results or performance to differ materially from those discussed as a result of various factors, including but not limited to risks and uncertainties discussed under item 1A risk factors in our annual report on Form 10-K for the fiscal year ending December 31st, 2024, as well as other reports we file from time to time with the SEC. These forward-looking statements speak only as of the day in which the statements are made, and we do not undertake or intend to update any forward-looking statements after this call or as a result of new information. At this point, I would like to turn the call over to Plug Power CEO, Andy Marsh.

Good morning, and thank you for joining our fourth quarter conference call. Last night, we announced significant structural change to streamline our cost base through Project Quantum Leap. Over the coming months, we'll be reducing staff, refining our product focus, and consolidating facilities. These measures are targeted to generate annualized cost savings of $150 to $200 million. These decisions are not easy, but they are necessary. The slower they anticipate development, the hydrogen market has been influenced by multiple factors, including the pace of policy implementation, global energy insecurity driven by geopolitical conflicts, the higher cost of project execution, and passed-over enthusiasm in the sector. However, we remain confident that hydrogen will play a critical role in the future energy mix, with many experts projecting it will eventually contribute 10 to 20 percent of the world's energy supplies. The projects that will progress the fastest are those with a clear value proposition, strong policy support, and a well-integrated value chain. As we assess our businesses, our primary focus moving forward will be on three key areas, material handling, electrolyzers, and hydrogen generation to support material handling as they align best with these attributes. In material handling, we deliver a compelling value proposition by helping customers move goods more efficiently. Plug benefits from three revenue streams in this business, products, services, and hydrogen. In 2024, we have made significant improvements in improving margins for service and hydrogen, expanding them by approximately $120 million compared to 2023, excluding the impact of customer warrant charges. Product margins, however, are tied to sales and factory utilization. Last year, sales were slower as we worked through price renegotiations with major customers and the transition from PPA to direct sales. That process is now complete, and we expect increased deployments this year from both existing and new customers, which will improve our facility utilization and drive positive gross margins. Additionally, hydrogen margins will continue improving with the launch of our new joint venture facility in Louisiana this month, while service is on track to reach profitability by year's end. Hydrogen production costs are a critical driver of both our profitability and the broader market development for fuel cells. By the end of this month, the plug will have 39 tons per day of capacity while customer demand stands at approximately 55 tons per day. The DOE approval for our limestone plant in Texas, a project creating jobs in a deeply conservative district, was secured in January. We already have the necessary equipment to cover our equity investment in the project and are finalizing discussions with external investors to complete the funding structure. Given the change in administration, We now anticipate a later start in 2025, with project completion expected 18 to 24 months from the start date. Importantly, we do not plan to contribute additional plug equity to complete the project and anticipate retaining a 70 to 80% ownership stake once operation. Our electrolyzer business is essential to both our near-term and long-term growth. The primary applications involve replacing gray hydrogen in sectors like refining, green ammonia, and methanol production. Global demand remains strong, and we expect significant growth in both sales and bookings this year. Notably, we're executing large-scale projects, including the 100-megawatt deployment with GAP. Here's why I see, and this is really important. Here's why I see tremendous potential in this market for plug. Unlike some hydrogen fuel cell market that face challenges across the value chain, such as infrastructure, fueling and financing hurdles for on road vehicles, the replacement of gray hydrogen with green hydrogen is a much simpler transition. Customers can blend green hydrogen to existing processes without major operational changes, which accelerates deployments, speeds up time in markets, and you deliver immediate benefits. As we move forward from this restructuring and market adjustments, PLUG will prioritize material handling, hydrogen production supporting material handling, and electrolyzer sales, alongside profitable cash generating assets in well-established markets. If the program is not tied to profitability or cash generation, PLUG will not pursue the program in the near or long term. With that, I'd like to turn the call over to Sanjay to review our Q4 results, followed by Paul, who will provide insights into our financial outlook.