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Plug Power Boosts 2024 Revenue Target to $1.2 Billion; Sees Increased Profitability

By Scott Levine - Jun 23, 2020 at 10:59AM

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Management's vision of a fuel-cell filled future just got a little bigger.

Charging up investors' hopes that electric growth was on the horizon, Plug Power (PLUG -2.57%) stated in September 2019 that it was forecasting revenue of $1 billion in 2024. Now, management is upping its target. Today, the company foresees $1.2 billion on the top line in 2024 as a result of two recent acquisitions: United Hydrogen Group and Giner ELX. According to management, these two transactions "further enhance Plug Power's position in the hydrogen industry with capabilities in generation, liquefaction and distribution of hydrogen fuel complementing its industry-leading position in the design, construction, and operation of customer-facing hydrogen fueling stations."

But it's not only the top line where Plug Power is raising its expectations. The company also expects the acquisitions to contribute to the company's profitability in 2024. In the forecast issued last September, Plug Power targeted operating income and adjusted EBITDA of $170 million and $200 million, respectively. Based on the two acquisitions, however, the company now foresees operating income of $210 million and adjusted EBITDA of $250 million.

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Image source: Getty Images.

Currently, United Hydrogen Group, one of the largest privately held hydrogen producers in North America, can produce 6.4 tons of hydrogen each day, though it aspires to raise its daily hydrogen production capacity to 10 tons soon. According to Plug Power, the value in Giner ELX, however, lies in the fact that the company has "one of the world's largest, most efficient and cost-effective PEM hydrogen generators; grid-level renewable energy storage solutions, and on-site hydrogen generation systems for fuel cell vehicle refueling stations and industrial uses."

While the company's revised forecast surely comes to the delight of investors who herald this hydrogen-hopeful's prospects, it's critical to remember that plenty of risk surrounds the company which has a record of losing money and diluting shareholder value.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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