Plug Power, Inc.

Greetings and welcome to the Plug Power first quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the presentation. If anyone should require operator assistance during this conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to Tila Hoyos, Vice President, Marketing, and Communications. Thank you. You may begin.

Thank you. Welcome to the 2025 First Quarter Earnings Call. This call will include forward-looking statements. These forward-looking statements contain projections of our future results of operations or of our 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 and our annual report on Form 10-K. For the fiscal year ending December 31st, 2024, our quarterly report on Form 10-Q for the quarter ended March 31st, 2025, 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 CEO, Andy Marsh.

Good afternoon, everyone. Thank you for joining today. I am here with Paul, Sanjay, and Jose. I'm happy to report that in Q1, Plug met the financial and operational targets we set out, delivering a quarter of solid execution in a still turbulent macro environment. Revenue came in at $134 million in line with guidance. But more importantly, we made real progress on our path to profitability. improving margins, reducing cash burn, and continuing to strengthen execution across all business lines. We are projecting between $140 to $180 million in revenue in the second quarter. Let me start with some business highlights, followed by updates on cost actions, capital, tariffs, U.S. policy, and then I'm going to hand it over to Jose to walk through Europe in depth. With respect to our business performance, we saw a renewed momentum in our material handling business in the first quarter. One of our largest pedestal customers placed a $10 million initial order tied to over $200 million in future opportunities under a safe harbor structure. We also expanded with new partners, including Steph in Spain, now deploying plugs hydrogen-powered logistics systems at their cold chain facilities. On the infrastructure front, our hydrogen generation build out is delivering. The 15 ton per day Louisiana plant was commissioned in Q1 on time. Together with Georgia and Tennessee, we now have 40 tons per day in internal production capacity, improving customer economics and availability while shielding margin from third-party volatility. With respect to cost savings, internally, we launched a major program called Quantum Leap, targeting over $200 million in annualized run rate reductions. I'm pleased to report that most of these savings have already been executed. The program spans manufacturing, logistics, sourcing, and SG&A. Our Q1 cash burn was down nearly 50 percent year over year, and with quantum leap, we expect further reductions in cash burns in future quarters. This is plug power operating with discipline, precision, and a long-term mindset. With capital, we've taken some important steps to ensure financial flexibility. In March, we raised $280 million in equity bolstering liquidity while reducing risk in a volatile market. We followed that with a $525 million structure financing facility, part of which was used to retire convertible debt. Combined with the $1.66 billion Department of Energy loan guarantee, these moves provide a strong foundation to support our infrastructure goals. That said, I want to be forthright. With the change in administration, we're actively working with the DOE to advance the loan process. The underlying program is contracted, obligated, and we believe secure, and we continue to engage closely with the administration. At quarter end, we held nearly $300 million in unrestricted cash with meaningful additional capacity under the new facility. Our outlook remains unchanged. We do not anticipate raising additional equity in 2025, and we remain committed to that goal. Turning to tariffs, recent actions from the current administration have increased duties on Chinese imports that impact our core product lines like GenDrive. For some models, this has resulted in increased costs, particularly on ballast assemblies, battery modules, and plates. At the moment, a good deal of these items are in inventory. That will be used in 2025. With today's announcements, obviously the pressure is a little bit off us, but we are continuing down our four-prong mitigation plan. One is that if needed, we will add surge charges for customers based on sourcing mix and inventory timings. dual sourcing and resourcing, which we've really had in motion for a number of years, engineering redesigns to reduce tax-exposed components, and geographical diversification, leading further into APAC and U.S. suppliers. With these items, we expect even to reduce our costs in China by 50% in the next six months. Importantly, I think this is really important, our electrolyzer platform is minimally impacted, even with the 145% tariffs, and was internally developed with non-Chinese content. This is a team-wide response, and it's already helping us protect margin integrity. Finally, a brief word on U.S. policy. To clear the transition, Washington has introduced some uncertainty about clean energy programs. The IRA is under pressure. and there's active debate in Congress over the future of Section 45B of the Hydrogen Tax Credit and the long-term direction of decarbonization incentives. That said, we're actively engaged with policymakers, both directly and through our leadership in FICHEA, which is a fuel cell and hydrogen energy association. We're also actively pursuing state and local funding opportunities where momentum continues. We remain focused on execution and will continue advocating aggressively for a stable, long-term hydrogen policy framework in the U.S. Before I turn it over, let me frame one of the most exciting strategic frontiers, Europe. Between the EU Green Deal, Repower EU, and the UK Energy Act, we are tracking an electrolyzer opportunity funnel worth over $21 billion across 2025 and 2026. What is different now is not just ambition, but enforceable procurement mandates, funded incentive schemes, and penalties for noncompliance. PLUG has moved early and decisively in the region, and we're already embedded in some of the most transformative hydrogen projects across Europe. I'll let Jose walk through these specifics, but I'll close with this. Europe is real. The funnel is live. Plug is in position. With that, let me turn it over to Jose to take you through the European electrolyzer strategy. Jose.