Plug Power Inc. announced on April 28 that it has signed a definitive agreement for a secured debt financing facility of up to $525mn with Yorkville Advisors. This transaction includes an initial tranche of $210mn, expected to close around May 2, and additional tranches of up to $315mn. The net proceeds from the initial tranche will enable Plug Power to repay approximately $82.5mn of existing convertible debentures, thereby reducing potential dilution linked to approximately 55 million underlying shares.
Preliminary financial results for the first quarter of 2025
Plug Power plans to release its first quarter 2025 results in early May. The company anticipates revenues between $130mn and $134mn, with second-quarter revenue projections ranging from $140mn to $180mn. Net cash usage for the first quarter of 2025 is estimated at approximately $142mn, compared to $268mn a year earlier. This figure represents the change in available cash, net of proceeds from public or private offerings, and excludes repayments of convertible instruments.
The reduction in net cash usage is supported by the ramp-up of new hydrogen plants, additional cost savings, and price increases. A major price renegotiation with a strategic customer, effective from January 1, temporarily affected first-quarter collections but is expected to support revenue growth and cash flow improvements from the second quarter onward.
Industrial deployment and strengthening cash position
Plug Power has completed construction of its 15 tonnes per day hydrogen production plant in St. Gabriel, Louisiana. This site, operated through the Hidrogenii joint venture with Olin Corporation, will strengthen its integrated hydrogen production and distribution network for clients such as Amazon and Walmart.
As of the end of March 2025, Plug Power had approximately $296mn in available cash. The company stated that by combining this reserve with reduced working capital needs, decreased capital expenditures, and annual cost savings estimated at over $200mn, it expects to have sufficient liquidity to support its mid-term growth. Plug Power indicated it does not plan to raise additional equity in 2025.
Cost optimisation and outlook
During the first quarter of 2025, Plug Power implemented optimisation measures expected to generate more than $200mn in annual savings. These actions include internal reorganisation and initiatives to streamline manufacturing and supply chain operations. The full impact of these savings will materialise over the coming quarters.
Andy Marsh, Chief Executive Officer of Plug Power, stated: “We have made the tough decisions and put the structure in place to deliver improved operating leverage and capital efficiency,” according to Globe Newswire on April 28.
