Plug Power (PLUG) 10 Nov 212021 Q3 Earnings call transcript

Greetings and welcome to the Plug Power Incorporated, Third Quarter 2021 Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Tuesday, November 9th, 2021. I would now like to turn the conference over to Teal Hoyos, Director of Marketing and Communications. ahead. go Please

or to will Welcome projections Quarter call. be financial update our these We Thank statements forward-looking forward-looking XXXX, statements. call to position, or operations include results contain forward-looking These This information. future intend you. important covered of Third Exchange forward-looking that state forward-looking by of of XXE Section XXXX for in communicate Act XXXX. XXA believe statements to Securities We of Safe is to the provision of expectations Section it and of contained Harbor investors. the Act future the Securities statements

However, forward-looking future investors be performance statements are read cautioned and not results. not to unduly rely should of or statements, on as guarantee a such

Plug differ risks uncertainties and the well intend as subject for such disclosed These forward-looking after filed reports do Factors. like with of the result fiscal cause made, factors. materially a this XXXX this on I are intend turn or At we result point, as As undertake the statements ending SEC. Annual in would any other of to XXst, Marsh. CEO, under to time-to-time forward-looking are and XX-K only but statements discussed call not or that And risks from as and a to of as to to Power's from to update day to speak which we statements our not call as over limited statements new information. Andy Report December the various those actual to XA-Risk could item Including, uncertainties performance results year or Form

hydrogen the [Indiscernible] be to My It investor economy. and really out Plug's our definite details everyone first-mover today. hydrogen brief since global the We're was ecosystem in center business. welcome Plugs belief reiterates of have to third are remain to week all fronts last and in we in benefit at leader building be will advance our on as and call. Teal, of front provided that hydrogen XX event. and the our will a vision Glasgow, quarter opening advantage you, apps conference the Thank plan We letter. building aggressive

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working I to second. XXX Now mean, deal. London Being yesterday, is really, a I large-scale just do was on in really let critical. megawatt me just avert a able plans

in is expertise management, water technology Frames which in electrolyzer brings an the critical front, industry. On the

has expertise, our friendly more between and electrolyzers are provide about water thinking this in ocean cost frames, offshore real customers better, We and position to a environmentally to effective, deal expertise, a and value. now better water We're management waste and solution. address great offshore ourselves platforms a

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for and have acquisitions. some a our and the our hydrogen the announced also paid network believe be companies They pursuing coming a tech, versus XXXX. symposium. and us one, pipeline, real with the applied And carbon stationary hydrogen SOC for cash necessity million been on this for you long hydrogen to bring important increasing caverns, X particularly via storage storing pipelines. most aggressively in Power of for density on? We the hydrogen hydrogen known gases We application. acquisitions Finally, the fueling, with a and analyzed acquisitions with be in that storage world We by provides trailers comment hydrogen Company hydrogen when delivering cool [Indiscernible] as our strongest a they and in volume have increase was the is fleet. delivered Cryo hydrogen Plug Tech provides electrolyzer our goals. in all like These the to of gases customers will industry. us to the especially mobility exclusively and only by believe lost will following. applied believe the liquid [Indiscernible] When $XXX $XXX hydrogen based storage, is high with --- allows a market for the need liquid Liquid the that We're is us have be this Again, Liquid around metric we sales crowd to technologies. recognize announcement some liquid mobility years, activities delivery and guidance hydrogen delivery practical million know, for Also Plug. We Even partners. that ports. means which to delivered Cryotech term technical net-zero for mixture may throughout operational green. that team believe also us will [Indiscernible] hydrogen hydrogen future transaction saving relationships when hydrogen. Technology hydrogen. to depot the associated Applied Today, and

to like margins, hydrogen I'd especially gross discuss Finally, service.

user largest hydrogen of always hydrogen. the building taken burden hydrogen world fluctuating and are in our the is by so commodity burdened managing the network We customers resilient have network, liquid hydrogen the as and green pricing. We've are not a

competition and same. Our the across green electricity be large is as with is hydrogen With we can there the consistent. network and customers, our electricity always pricing long-term contracts, for is U.S.

we eliminate as simplify expect in a is We'll In end We XX% Plug the by shareholder out that that business. is have quite logistics. we're viewed become short-term, and network service equation, demonstrated XX% taking online, a will network network the service over have of hydrogen and Plug roll dependable XX business The right the burden will price a end the now said energy. our changes green these profitable sites the of so cost-effective for comes activity our as XXXX by variability that of source and letter. service This Our green hydrogen savings Power. we offering. across our XXXX

our with see We advances product. even next-generation more also

who me now turn of energy questions. CFO, team Handling well Middleton, phone today. Sanjay GM over Shrestha, take to hydrogen X Crespo, the as questions. me our business, now is our your business. of So let to Paul I Jose ever have the We're GM with Material as members our ready

Thank you. [Operator Instructions].

go question of Rusch ahead. from Please with Oppenheimer. Colin the Our line comes first

just Andy guys. much, how doing? talking so Thanks you about --

Okay.

hydrogen piping or Just offshore so on I did you're Did that talking something? I about understand, and hear electrolyzer misunderstand back developing land. I assets right

that Yeah. yeah. Yeah. That -- is

capability a table. X doing don't is be years. a critical scale for that next advantages me see X at projects the see Let We'll coming to Colin. the bring small clear They to of to demonstration that. that. couple have I years I in the that

the system been some it's long. -- The make So have makes And bids hydrogen do us in pages of been with proposals, pipe, X over energy. was working developing you just can a the long if X so XX us with me can and with is it of feel, to and example, of projects. and than I system that really times of the India it for price of versus you to It's island, sense They advantage in time working more capability They've a look to the detail It customers more on lot though, Frames additionally, large under next be the can clear, at thought when deliver a on equation XX% on proposal level ocean. electricity the integration. you in team. in XX, in Plug you the XXX you used in them our have look same to For the be moving large working been build-outs, we X yet part to was respond are size. with we're to over let They're gigawatt really [Indiscernible] a that a and which can't at stated. customers rapidly. opportunity. years, electrolyzers large these plans the we have give activity -- Colin. In just executing if over

grand begin I the course see is with to with hydrogen I've about, about think method large. honestly, quick realization, of have opportunity need set really green expand so and Gigafactory to our with on ammonia, I've Friday. opening to of a on actually the of lot activity going been green we think You quite began because

go march up. of for guys all really those the process. about here, kind electrolyzers in And then capacity. folks is the up the of That's the not full elements helpful, to preparation consumables, the of locks to Andy. of guess super just it's into chain maybe scale different just second the but With preparation Sanjay, of that capex the And build-out the question of with I support supply the all you

Yeah.

So Colin, are again, you? how

from you hear Sanjay. to Good

Indeed.

puts stack? not chain strong as of So us customers look, we're the Company where position look a the take is trade? us electrolyzer electrolyzer we we on hydrogen Andy of this And very have And talked have right. that huge all resources, plan perspective think the need a is balance how able we've down? the that bids exactly all How to and we have a makes about plant anything, of second advantage adding And talent we How well. Gigafactory, that where, customer, I really that, of happening lot lot be been the the unique, to do that think do make think a about, that's very, our us sure one that's space a we thinking we X about we how, are and building. we're And activity a actually we electrolyzer components you supply up. it, reference and position just right, I becomes the for of of execute competitive lot a in in differentiation and these show is if this all which the you spend puts third-party really timeline, about generation a thing think obviously in very from because detailed as also cost to own they time controlling a niches you Colin. do green aspect When when key have the something that

you sorting of We have obviously our showing cold actually plant in do us we box Gigafactory. gone XX you of when at there's is the what managing the really and York running control us about electrolyzers for about, add up manufacturing the good want get work almost it exactly talk even going confidence be happen Georgia, liquefier our the For pretty to on, up So to year, less being by level gives lot plant how the supply When mapped way example, feel for the like XX chain, and on this ourselves months, months in broke we're know our in that that planning Georgia, the at next We the -- out doing, and we execute able the to When is we to Andy? being do in which and we position we a since detailed than able get out. we're the Anything we -- ground. the plant the a is example, the know strategy. to of site? for site? New has in that in and summer example, when puts

I think Sanjay. you hit it,

guys. Thanks

Okay.

Thank you.

ahead. with Our next from Please of question Capital go Partners. line Craig comes the Irwin ROTH

Hey, Craig..

head known Plug I I've year, have you right? talk should a different know confession, a and Hey. last I I and forever. in decades. Andy, been that Sanjay bit Hey, a there's say and I is and -- And I Andy. more lot just at and there are changes prior sometimes key your spinning, chain to XX a people XX But have has your is the looking partners, Company little I of tremendous. supply or years. lot than would of say I -- right? [Indiscernible]. My think they're investors, for than the everybody. Chairman directions progress And this congratulations. George when confused. more lot this followed people X and they're of a more years the

allows baseline, fundamental X% margins power shareholder in first at clearly per letter I you're carbon hydrogen quarter. looking the when on. achieve by technology. what to now fourth step seismic XX% I something the So as see at by and quarter that much adopting to that's the I footprint There's back, fuel improving And as exiting fact going with that that the wants look everybody points Plug at that as initiative most with green the because hydrogen the strategic important right cell context,

improvement Something working, hydrogen how this benefit for maybe quarters. really Can what's margin with bridge strategy, fundamental. on you X really going what's as as and gross over far the on next the rolls us the

enables I green. these am apps going processes me once as to green the that just as fuel that. all talk to growth. chemical Craig, I with agree But margin iPhone hydrogen turn that Sanjay, let well allow cells, you. I with the as let add answer Sanjay gross to people for to you view But about

Andy Happy Sure. hey, do to Craig, good from and that hear you. to

So look, interesting. on something I really think you picked

the to is have actually far the remarks, go thing customer ever and our being important we're focus we're that been make will go instead us tons, But XXXX from you mentioned though run trying going our paying into hydrogen, XXXX, it's most XX of primary as challenge our any their when QX, for none even to As by during to the that Tennessee is X.X big for critical his what Andy And first you focus. thing mission we prepared and sure now has availability our hydrogen be of that to from in more of into QX tons. plan run application.

to that has X, reduction in from happened cost. expansion So cost the a Number contribute will that perspective. blended

to that have you some second is break-even. business of of seismic numbers. you really that that the thing also look go by negative year, second what happens as quarter about second half you all talking that's why now is we Second cost you continue well will happen XXXX. that's into as second as summer of margin that talked half of go margin and have a happens talked really But reduce as XX% not to as in of dramatically going which shareholder what as the online come other all when of that hydrogen actually hydrogen customers second the you the the green goes towards year, going the you XXXX. the go of the also all And XXXX, also about XXXX. has all in business getting start drives our of dramatically of ASP Specialty, go shared hydrogen and we quite is production This We as is Craig, the That number improve think in approach it's about gross customer our into about letter. into plants just going and you And the why below some -- the and hydrogen know into industrial kilogram even half in you into what supply $X you being is quarter. you're that fuel of the kind cost from with about you able secure. reason will it year. driven what into XX blended the end we from to go expect, to back a when more additional green gas XXXX, to shift the tough. XXXX, been importantly, starting to cost seen you blended end the improve as year, be, That feel to XXXX. we That you've Margins what is to in our that's of at good to of XXXX improves we're

North hydrogen hydrogen right? past. highlighted entire our take first-of-a-kind hydrogen that hydrogen we also but generation America. important helps must this this where other will course, green I gets that -- And is they've and As from through in even the mitigate generation helps so this even transition, actually in to of in green it think your players a resilient That's a you that how assessment when it force it economy. course, really industry with the in couldn't things is margin, this also we of them right? -- with get comfortable, This situation does build resilient helps creates agree the here, majeure network energy see this we a right? allows unfolding, more that manage of to majeure force note sustainability perspective, build Craig, supply It some one here. more seen customer our you what But network, of as the Is

obviously Andy. Sanjay My question is the next big guidance. is Thank one you for that, and

month. you're where at to adding watch. year. be you You you by than initiatives -- maybe is most customer new this being or expected is can funded vertical that seeing has surprisingly across-the-board much is acceleration What progress faster made are the well-received last would exciting them to every say base, going almost you are Aviation your clearly really incredibly time have

their we're that looking capabilities didn't a the a it the it's going who they've stops I one I execute That's the fact will for them it. o'clock weekend grab help think with And to Frames goals. this and came at talk I leadership acquisition. Executive space on help and going utility doubt Chief with London I technology, I I'd their made we folks a people them and had around good be technologies. think me happened, they example. this that X It's the business. that meet really, the leaving come was best Craig, And the London is constant and and in electrolyzers we're of advances PEM ended to be large -- asked I net Chairman could when in X the electrolyzer manufacturing last have They am the another meeting, way. Officers. to o'clock. we It to best Company space buy Company Monday, me it's best the I I the had X and on their have year opportunities. I phone hour. this also to discuss meetings meet -- why can Chairman plants. needs, was are stay the Scotland highlight an I I years come in night you for electrolyzer think never without to huge build and is worldwide only ammonia X inflow with actually give person I the -- we're recognized am few I will in for and ones say a in that or consume, up expect real place. And of wanted morning, really me concluded the been products, for where capacity. ago. they've Friday today

in in XXXX, electrolyzers sometime bigger somewhere will hydrogen Handling. than XXXX, Handling. than Material be think bigger I will I And green Material be think

back you. I'll hop Thank [Indiscernible] it. Love

Okay.

very right. much. Thank you All

ahead. the please question from go next with Juvekar comes of Our line PJ Citi,

Andy and All good. Good morning, Sanjay.

Good Morning where you? are PJ,

It's Good long day. been a evening.

Where are you?

New here. in based I'm York,

evening. Good you. Got

started just heard and was in we been by in costs us cost, margins fuels hydrogen, number what the some cost? transportation of Clearly, What go achieving purchase and it up business that? has third your at your hydrogen are quarter? outline risks your XX% going walk quarter, in Is up up, with electrolyzer main gross second Can it within in in mind? through prices, then your impact the good And margins going XXXX, that look you

about let Sanjay, I'll side that talk PJ.

to good you look, Yes. market. you're you hear kind of and Again, PJ pricing industrial I in well, Hey, PJ. gas know How are seeing know what you. market think obviously quite you the this from

pricing So what market similar pricing make think right hydrogen arguably hydrogen if we being you we're very our and margin the gray for at to hydrogen to just hydrogen say But now ends providing paying that be the our for sure today. if we that green based anything, green if up market it that better the here should I than pay we're is were goal extrapolate to today, XX% prices what anything, conservative. what on in see green the in really with to are is customer have

the we What that we from tremendous demand where time. perspective, we basis, that. know do renewable cost the on buy areas control. to a so that can are to on not is. contain you economical, where small know pie. we make what risks? the that something your is like can Our specifically goal, want We becomes how Look, got know, always that there of how spent anticipated. that's you a the is take prices an is available. the But renewable more to we've as of we of [Indiscernible] things know sure amount to existing and More to question more We grow know, things there's pie, That's this piece that hydrogen pie And renewable area happen In right? green to to and trying is of after a and and a go manage some as that long-term charge size pricing not what application electricity.

something and thing we have. a facility to is Power Second this XX That control. on run already liquefiers. expanded I from advantage, electrolyzer, again, day, our notice know Plug Tennessee in a is per just look, to huge how touched you tons perspective, competitive as as we how differentiation liquefaction we And we've another

you other renewable to that that I if anything, hydrogen, unanticipated, doing helpful of is customers, do given are cost of that we're be biggest is How for us the various that network one logistics the for control transport as thing cost America we terms to that going think both going Now entire once tremendously the costs in the if here well North help actually you as as chunk this anything, and industry, can things delivery to we green and is always build-out, network hydrogen is variable look, producing the the right right? There now, optimize. are electrolyzer. happen but sit can

and plans about here good feeling build. this get we're execute heads-down, sitting pretty So

if your ramps And question that plants, you. for fuel thank Sanjay, that of you needed book is, Great. Xnd Giga stacking in you have needed your with for materials handling my business. electrolyzers still own front hydrogen capability order up, the on Factory the

account leverage been has just Giga real wondering the and up, the would that runs that your when into should can into taken translate you margins. incremental guidance just inflection significant does point come. as Factory operating I So in if

I'll let Paul PJ. that take

to from Good me hear PJ. again. Yeah and afternoon good

mean, speak, facility. when be a to really broaden as happen to amazing time months, that looked what's of So have ramping to we it's your it just is would on going we're next turning significant year. by at effect period. that the it's production I I in XX And next going you saying, comment going out

year. be hydrogen the impact. and full-year turning other production going of green Andy Factory and for venture are of going fold scaling that. products acquisitions and our scaling next existing have that going out We're meaningful to new of new we've our both XX electrolyzer got We've the all and Material it's substantial to a We're about. to turning external terms in got next We've the growing got It's growth sales, over platform a the year. products We've that year. scaling been the as Handling capex. year, well next products, have in and margin with really just to So on and the are joint XX% X and got we're on of talked the internal as we improvements next EV and it made just spend use service about we've business stationary we're sales on XX% talking scaling scaling grow to synergies going Giga that's we've

next to -- how XX So the year months last it going ago a are few big minutes be another Craig mentioned was.

those to impact. going meaningful we're rate get excited why and to tap baked strategic about growth these initiatives. planning and going extremely the next and that guidance XX be run exciting terms margin think the of into all horizon. over are going They're -- incredibly projections in you I and the the this year equally -- to to XX% months have then big our over how That on are of growth XX% mid-term of in all we're Company. guiding We're

I'll along. and Thank Great. you pass

PJ. Great, thanks

Our next please question Craig-Hallum, comes go ahead. Stine of with from the Eric line

everyone. Hi,

Good evening, Eric.

Good evening.

So the just accelerating. as XXXX about your we obviously think business guidance, characterize I as

is is very going you're the sizable versus frames market we of what ongoing a how arguably if just acceleration your in curious you think as internal opportunity. frames, then the impact prioritize initiatives much And able that down break do about after Just maybe it How to acquisition. of business.

Sure.

how So range. XXX growth of crowd That's Applied to at internal the frames if you the it, looking question kind second your I'm tech I jotting move at sorry, was in we're think is it organic business, So up look XXXXX Craig, next was -- year, into that of about the question? Craig, Craig. part What it. part what of was second the What I was Sanj? just the

It just somebody what acquiring I prioritize if business. Obviously, prioritizing, too. internal also You're was those of your you've pipeline, simply But this got mean, for because it means

add self Obviously business. this Sanjay that it year frames companies COVID skilled I We've will of know, why? massive been biggest whole his One a don't execute we really with that areas team XXXX [Indiscernible] the -- has Well, And of to very, of and business reach prioritization, growing make - team is our are These look possible. When when All know that's really be business we his ma and there will successful. the you the present team, Quite Sanjay staff go hiring it's his managing Jose's additional people going we've individuals. increase. are has de with affairs. as that, support would plate is integrated Obviously, the which people. we the to New over make technology exclusively. have that number team And new Material right strong. place. But like decision was weekend finance goal had needs. the we how [Indiscernible] for unit. are look, business the and sufficient his markets business keep legal Handling on an been they can we think the by and self, at government challenges, skill was developed GMs we I key XXX, the sure He and that And having Sanjay, these And the these activity. you have units really ramp honestly, really was reviewing tried for of very actually I very, platform need how I to will so York I electrolyzers, very [Indiscernible], end companies by under certain are Sanjay, Paul, centralized, was you plans. to to primarily this these that's help we're businesses them the a is all right and into We self-sufficient. help business. layout set drivers as put resources has that? but to us areas really acquiring like units. in about the development organization employees or of will made to as them as Be our organization.

I the covers think that end.

Yeah.

just more you to the on I for the going those maybe that largest mentioned and of stack cost an customer just initiative this and that something just what view last do upgrades. we know and that it's be? thoughts And of to across do XX Okay, one that broadly users, then may you're ongoing if footprint. is on your me, as thoughts the should

Sure. I'm Paul take one. going that to let

the question. the of context get didn't I

associated talking We're the service products. upgraded we about, Paul the costs service with talked -- the

Yeah.

that. Sorry, I Yeah. missed

anticipated. we've launched the that new how the time. think We a that's last units tracking I stack field, new what units actually We've seen We credibly launched is we system. a of performed. since than that year. launched into wells. number put better And new we tracking It's

continue to the retrofit, easily costs. our meaningful life, one a roll So change -- an fairly that is cost into service on which has back it it's as fleets, step obviously our function can we existing biggest of we which stack impact ii in

a then and doing. faster. added actually this people the help way what along we're dividends to focus we've -- really and year, new curve and reliability, So, we're resources improve that's paying And of that unit go-forward number and

you're think to those quickly. see fairly I benefits going out So roll

of And for Paul, lot it. already we accrued have that cost

Exactly. Yes.

overall incremental, accruals to We into the portfolio cost there. of have it of the get our takes what [Indiscernible]

[Operator everyone instructions]. reminder, a As

ahead. comes with ISI. Our the next James of question from West Evercore line Please go

Hi, James.

you? how are Andy, Hey,

doing? Okay. are How

a Sanjay that you've to have help I'm of you the rest segment. fall busy glad the man? thing you top out and are and your given you Andy, been

Yes.

for not straight XX that's energize. meant know hours but XX for now. You that hours James, up still I'm was people I -- I'm young up meant

good. the do get better towards, That's as of this any that? Paul probably you moving that? $X bigger question materials think how like, about than gets when we your and we well. electrolyzers F-XX guidance on hydrogen -- handling billion thoughts a What for thinking and so or as eventually are you should get about to look some the guys XX, of mix hear the -- revenue green think bigger where it. Glad Maybe Good.

majority the the have exact revenue material stationary as if new We're on will the electrolyzer but of green chunks terms I Yeah, that in from and big pillars. with those I those Andy the But don't as coupled of certainly growth -- in think, the of revenue. in the slightly billion, X the is not $X bigger big well. EV front so markets handling, come hydrogen numbers and said, me, than seeing of X or

Okay that

about going editing asked me one's talking no James, phones. the I'm this to on new markets.

One we They of -- big technology. is have up. be won't we our roll next customers straight with that goals XX customers determine roll outs -- week already Reno of out X do roll out essentially with lined year XX

have what this know driving me that that -- talking I van asked Power next me me question year So I [Indiscernible] may a symposium, we're you I that year, -- Craig the seen about what earlier last with think will time, -- be -- to I think doing from at Plug think if but surprised the

Right.

Okay.

And believe then in anticipated come I just it capacity? Okay. maybe have green these that's that pre do you'll you're The as sneak Good. of facilities sales could a most last you your hydrogen and here. -sold online,

to let take that. Mr. Sanjay I going am

hear to good James from Hey, you.

today not how So industry way the down. look, is we your of traditional think I have done

You then plan you the to pre it. decided build -sold

now So as the out? see sold opportunity somewhat No, new our we the we not. on new intentional now, that here of is part But that's plan because completely here. frankly, the applications, it's all right sit unfolding all right

essentially sure gone capital. sure this own path of want is we building we're So with we've make plans capacity, actually reserving also making that to making down that actually that really sure which that our the we're why

the that as today, sure online. have over not something that to have like years. focus and to we're support this unfolding that is several So things you're having they that's financing next plans that and the load go apps it reserve Again, up anticipate having that. on, off-take new way we'll that the we long-term But down but to of to come make approach we the obviously that path make taking shift sure the project capacity all to

Thanks, got guys. it. Okay,

James. Thanks,

you. Alright. Thank

comes Greg question of the next ahead. line from Our Lewis with BTIG. Please go

and afternoon, good you Thank Yes. everybody.

Greg. Hi,

think Yeah. Maybe economies Frames I we France more improvement maybe chain, and in think on can any pricing, kind it's of savings the the margin the it's little bit that an terms scale. the we as how it's of the of supply buckets strokes should XXXX improvement maybe about to achieving mean, about some think XXXX into improvements? of dive driving of, touched broader we're I what's acquisition. and maybe ASP about in that's you hoping a internal and was in we and how

we've [Indiscernible]. I been think

rest. you Sanjay can run through can We the before you do will maybe And let answer hydrogen hydrogen

Sure, happy that, Andy. to do

Greg, So mentioned of I Craig's briefly think question hydrogen. again, I as to on one

in our today other So we Tennessee. hydrogen are plant obviously buying than

lines. paying., things we're that's place, those paying commodity impacted obviously price what we're the market and price So by along risk fluctuation, the

With the time, to And goal that available XXXX, not that impacted. hydrogen impact mission-critical as of look couple we we customers so this application the have margin make is meaningful going a have their work into all are sure things and see profile. of

to an in with adding said will the these Tennessee plant the first half year supply to hydrogen longer suppliers XX of green the of and to more us plants it have obviously help in meaningful options, from you you when the pricing first and the a online, to improvement a blended obviously second the of that QX that's is going will of price First, perspective QX will this our see tons help come half perspective, as why margin a year. X.X, that go of That year. the XXXX. quite half some working we from be effect But XXXX, strategic expect no from few that should is of bit We're day.

of being you plants these to by have basically XXXX, go plan we then As commissioned. end where hydrogen into XXXX, of the about X

plants at we're X the of by about end running. hydrogen up looking So and having XXXX,

look So we're built contribution second-half multiple -- performance, the you hydrogen plants being we below margin at when you're of times you shift you a we're 'XX of XXXX kilogram. targeting shared cost where, then expect in looking all $X XXXX, in on and with that beyond green we've to that at and into with which at even new break looking be

on a that's today, different a visibility You gives depending various application is. is markets, confidence going, referred ASP to, we Paul. XXXX very talk good guys on can which for our that about in what our it margin obviously this based where the of especially and cost XX% it see back we function to business. plus into end us But minus and Hydrogen

just there not network mean XX%. by a to be the that our included a able incredibly impactful only getting as chart 's we to reducing we that Sanjay Having, Sanjay cheaper that's to function. control to produce point, it add shows And step at is would going fundamentally it comments customers are Sanjay I the to I on change and of sell greater alluded it letter, gaining 's over and systems. earlier, the In the cost. logistics the the we're efficiencies

world expert our the networks hydrogen customers. distributing on become have for managing and We the

that managing system. so importance impactful the logistics an that incredible the and can of the efficiency to And is we've one of of be learned things network that how

your things just kind stems one really. question, is it answer which to really back from Sanjay So to X about. step hydrogen, of talked

terms things we've which doing service, of the the the we talked lot on third tonight scaling And profile. at these already latter expanded scale on we're new XX% like a about of to and impact margin profile in going allow start very Giga scale other equipment is in improving well equipment. further that volume, that achieve grows in and our and business we XX% that increase we're it's is margin at and that And Second scale the and terms we of leveraging XX%. electrolyzers. the where for to programs. and substantial mean on as That's is mix to Factory shown handling, equipment we XX year as all about programs a I of fold we're margins profile products have. next us We've is talking growth routinely business material equipment meaningful as the things year that as and that next total holistic doing, the

the us basis those fundamental that acquisitions scale sales, the all help global X those things, allow and faster. grow to of things on a the equipment which drive JVs really it's even and and curve So

we're are as Is needs as itself to like meet does, to things your thinking good place the I opportunity now to about Company, how going more good But is right super in the Plug And think -- what for ACT I of you that. little process? thinking size, the Andy, just continue well? we to for you 'XX, helpful. to where maybe about ACT. it's hydrogen it And one are issues people be in the under talk and and harder a what's inside guess we umbrella, else a technology, that the to hard rely wanted Plug at mean, of a that ACT And I grow, guys bit like weed. little to Thank was a in is mean, cap to was look trailers on going That growing the ACT be But or this. to -- you growth third-party about, as should getting in prior about you this then the acquisition. providers 'XX everything thought that it's I the do and mentioned bit

shift and their with we further to expand I expect can't There's able Greg, we're a shifts working potential is integrate margin trailers And from number This I Power, even Plug the I Technology's. the the year, down at we that be hydrogen opportunity. expand for moment. capability. hydrogen at to well -- as a [Indiscernible] also We expect opportunity see we buy We're of have are in much businesses. reason stationary as sales there. technology, this probably vertically one will no purchased I stationary my tanks. than of more ACT, tanks. going the trailers to to XX the most what complicated move huge hydrogen look

where the to ability capability We've site. and the on stronger support is now already add the We could that balance our effort, business have the of much and to we see sheet additional from are a the with I've outreach the lot land, of there looking had more already interesting. some Plug staring customers been

business very double as see that -- we're we could also vertical in the our the to that years. view size complementary or triple but So of we that coming integration strategy,

very great. much Okay time. you the all Thank for

Okay. Thanks, Greg.

you. Thank

Our comes Peterson JPMorgan. Bill next from go question Please with ahead. know I

Hi. Good afternoon.

Bill. Hi,

and soon. jet team. all Hope Hopefully it lagged. you the might be better like Andy sounds feel well there is

How feel well feel good -- I good I Bill.

get talking you going. guys, Just to me

reenter external you how sounds even certainly mentioned about -- in XXX could sales businesses. I'm you about electrolyzer actually and be megawatts symposium Well, about a excited recent guess megawatts be for get you are limited? this And to it Okay. your I capacity internal fully you more exciting you Are than the the this larger current business. Talking you wondering starting XXXX, to use. now? in can is or can the booked upside XXXX booked through XX?

I believe at that we symposium. that will suggested the numbers I blow out electrolyzer XXXX to

deal a the XXXX. see on. because the big we We have going during for in call activities, could I us knowing factory. And in are over-focus January not built our we've flow update

will I number. probability think a increasing there's that be high

area guess, for Thanks [Indiscernible] for an [Indiscernible]. update. talk too know have of We bit. much duty. I commercial EV obviously This to an -- a want light some spend time about terrific. this. well-suited if little didn't on I is That's you

negotiations a I'm track, I'm for So what are you sales. -- announcements, this heavy-duty guess partnerships medium the your on to maybe approach you advantages wondering curious few activities quarters expect I as direct just side. see I an make heavy-duty. ago, heavy-duty. switching believe take some you're about curious OEM I'm and more where heavy in just to I what stand, more but you for still talked see would maybe some in medium here fuel or you think this had on being or you maybe

are negotiations there going So real on, some good Bill.

a have low that European that I'm fuel to over look not and XXX cell say often be We're looking me margin instead that always also Ultimately, to look delivery for use around DHL, supplier. OEM if very gives Let parts in batteries an eager is vehicles flexibility relationships DHL similar is Which I and at engaged and goals we're discussions is business. very go on this vehicles, At packaging. like essentially think people for you points and cell they're obviously But the agree needed. the you done that bands, you that's you interesting. vehicles purposes. more heavy-duty, out Reno vehicles, by jointly kilometers. that at vehicles or the model owns of I keep fuel when think great the for work where understated, multiple to a operators been vehicle. to look to medium-duty I road deal Plug carrying probably with

I in talking think vehicles. say this call that about this lot me, if As I'll year a electrolyzers year I next be surprised

great. Okay, that. Thanks for

you. Thank

from of comes ahead. with Jed Canaccord line question next Genuity. Our Dorsheimer go the Please

there Jed? Hi, Jed. Are you

Jed, you muted [Indiscernible]. may

Yeah. muted. I'm

forward to hope sounds like it. rest. -- of Sorry hearing get It look guys. about I some incredible Andy, What's you that? couple guess days, an so

look to forward I to Jed. talking Yeah,

maybe Thanks. I and just here. breakdown of guess here, have couple material of the in terms guidance gave first this revenues Andy. in a of I but already Paul question. with the near-term gave updated handling or you us the What's

what would that in be XXX, different of terms the of So the markets, end

You want it take to Paul?

we've core move that X-XX think the the as think given said, our into don't I X-XX acquisitions. businesses but just out Andy and I is Yeah, with specifically,

a has been around what XXX. So we given Electrolyzer have year number we I I quoted think think next with being

so far. next Handling given that higher. the not range Material at if and think guidance XX% at we've I insights year, looking plus growing That's

acquisitions from about XXX. I've more So be already are XXX electrolyzers could XXX, said and it'd Material new be markets about Handling XX probably

gets Paul. that us think there, I

That's about right.

or it helpful over get down green a that big could it's there's kilo a I like form. maybe the XX bit of But just in wondering missing that on on the math And a me about hours function you if variable if just of the of help That's kilowatt look on sounds electricity, in guys. costs little terms liquefied hydrogen, that, I kilo was then because at efficiency. on getting a electrolyzer, step I'm

use changing? that's do you constant So first I number is that a guess to or See fairly question. that dramatically my

$XXX electricity, we to of the cost get struggle to second still cost. $X.XX meter apply I under of The is, behind then a if the

paying paying pretty not below everywhere. $X.XXX I'm I'm -- much Jed, So

Okay.

in the places. almost of And approaching $X.XXX some

your think analysis is I right.

the of kind thing kilowatt say is about can you Here, electrolyzers hours. XX

You think XX can XX probably of to today. hours for kilowatt the liquefied

I X% the or see the about down liquefies X-X.X And probably coming improvement you so. probably start getting can think X, kilowatt probably thinking can over of at X years hour range. you electrolyzers

Got it. helpful. That's

But electricity know, you providing as negotiate you the I the cost And think head. you Sanjay's is cost the it hit hydrogen. that. how key green Jed, It's of that to on cost of expert an low the really at

that Sanjay. Well, really negotiator, Sanjay -- to those to prices? into question low Sanjay mechanism that you skills? but guess, is out curtailment add renewables is master you guess, have yours the a figured I that pricing, is there level particularly [Indiscernible] Or able account negotiating electricity I than get on other from might is I guess of anything taking of you're be or

I'll let Sanjay that answer question.

to curtail able access really given power, do there's be whether that point. on. interesting negotiation And more that It's up a you to but has not you the PTC, an or know lot curtailed to do electricity go today, it's bring as ITC

lived And much sense that do mean, think the go want to what going some that. than is the put capital. think the Andy I that whether that the have by Because and from standpoint, But the this I Every past what cost and cost from of I green I don't you've think by and our of capacity right? these more are do So competitive or driven I are. what of still want in too area of or you solar we it's it preserve from fact, a be see to a of hydrogen. you've given even but in new cost to built. of LCOE you benefit a Jed numbers, we these new some wind, interesting new given we said has renewable think numbers also an is being seen why said would now. capex, the challenging more today, look, that's where detailed be becomes going are But forward, plans, perspective. generation down, time the about we gone and electricity. has

super-helpful. Well, I listen jump back will it. queue. Thanks, the that Got in guys.

Got it.

question ahead. of with the go Tom Next line Seaport Curran Please comes Research. from

Hydrogen America Generation I'm a sold almost to good room morning. picturing Returning and and North still in Green Andy, you build-out. said conference the

output off-take. end and visibility for or expect be there that much in point, contract you to you a per So of share us day. percentage other 'XX? third-party with that incremental range of how tons be XXXX the X representing to per XXXX, much it's producing to Sanjay, collectively XXX will XXXX At per the by XXXX, exit you'll you exit with you're how whether expecting XXXX? then the of expect you day. exit of XX that then points just to this And of tons of as XXX do to already the be with percentage that looking for plants day end tons In you had X XX by the words, looking could a to turn it's the And for

good really a that's So question.

hydrogen is let's And largest So a many to applications, we're have look, we are obviously traction of and that take going first know, America. North them we of lot on the create. new user that you on XXXX in liquid as seeing

the go that if thing next coming to we that a mind again, this right? and excess Then lot And about rule seen how talk capacity Handling day sure it's entire of to of it, industry. year, really Maybe there you we Because we'll so is concerned day, see for you XX/X, per it's even happens substantially. thump, want these now, for lot to to second keep into one to application And how frankly our the We ton think XX% And is Well, So you about you guys to that it's right demand, that we're is in per But make to that called as to sure for commercial stationary or X plans of as about want the a power. we would, numbers given multiplier want come be not an might industry, if go that to be on more loaded that is put this want support think that plants this all a you we the necessarily it. Why some we we'll is right? demand important. the kilogram, materializes. effect than make about make the way important XX% that together we're capacity have that far. here Xkg what industry. XX% so able want as you you sure typical the for. that that loading of online, to the go we have there's But light talking more think right? in make and always consumption, When hydrogen we incremental customer to hydrogen we to you this guys buffer. buffer, we've event sure of We pretty vehicle given working plant. sit the super are here about I Frankly, Material balancing that that online plans, more XXXX. load half not we're

there type any curtailment with that some buffer is support face the the majority, be of and can situation able to entire hydrogen or really mitigate might to or So so deal force not economy. industry we

of market. Frankly, costs. other this Our you the players in in some

the fuel-cell be stationary mentioned for year be like inflection And Andy, and much JV. Great. call that could power. yet, gotten center does far markets, turning stationery mobility, you're What no then power, there the power. new year it of new particular, and were inflection backup year expecting the love look XXXX one in for to the in hasn't you That's data thus that to helpful. markets

question. Great

you've I now I about, think -- word what as think that. testing what it's I now, about think we're to model and centers. a thought year. I think is given me door I team Keith SK, year get The doing data were that out next we're doing actually, I talk the XXXX with with big his doing think new products haven't XXXX between a would I do --

taking XXXX starts off. this think where I is

Thanks for my taking questions.

Thanks.

Our with next the question from Piper comes of Hammond ahead. Pearce Please line Sandler. go

thanks Good for afternoon and taking my questions.

[Indiscernible]. Pearce. patient Your

of the housekeeping following just While my try is quick. up to be question. on question, first on questions I'll probably all This more is how hydrogen a

hydrogen hydrogen do customers? you do So or in simply cost customers pass delivery, or wear to to with along the risk is customers your have the you that price the the hydrogen

the can fact and displace to incentive stable And in is a this So of and successful. that every you And I providing. talked some on great gas make with the moment to substitute can And reliable, hydrogens you end, we when actually our then the we're let that our network some going of able difference dependable, large in having Pearce, at want believe the the me Sanjay the because green look, I that some We network the one future. buffering hydrogen this and control providing going. pricing share we're you away. to in tell that running the site as And day with California, between hydrogen. new keep goes At issue we we to sure companies everything, of be That's time to what industrial being may we're see the tell Plugs discussions doing. operations you strongly incumbents. the network in our tell about, be approach of

me. appreciate that's for it I the answer. Andy. Thanks, And

Thanks, Pearce Okay.

Alright. Thank you.

line the Our Spak from ahead. RBC next go Joseph of Capital with Markets. question Please comes

Hello Joseph.

Hey Andy.

you what that So Then were PTC. down of year. down go I But of doesn't profitability. consider look, XX% and like include profitable confirm know own. business sort to by sensitivity end and the molecule the I green hydrogen is on want internal to to its to we by cost have that you be building are next to that, demand back and costs to of going the stand if to bringing would could any that do and do sort guys this an what the,

Absolutely.

that, take to You want Sanjay?

mix. not Sure. of Happy think hear have important Joe. also into to for obviously, do PTC just that, baked first mix. a efforts. the be frame. market And to and credit the you the that, of Look, ASP of grant. that of hydrogen transition part gross we've of as But as XXXX today by the that part that is to part for $X our no, look, to Andy. hydrogen entire what to I the a has you not that. have depending has PTC, economy. you question, cost policy, structure we it Hey, the I expect be it a it's told margin production Hydrogen we on number very based your from of green well. U.S., XX% And part think the gave but as rate, is and what in of cash we if $X a time energy be Good on were And hydrogen a tax you is or green could of And to

LCOE But what right like see to it exactly now. energy right substantial investment right? now, is to solar where generation though. in are solar got of it potential tax supercritical could things is credit that, industry You certainly and this look, cash out be This the where wind is the got

to But that similar margin the well green as see that from hydrogen into does consideration. expansion your for question, PTC. benefit for we take not XXXX, So

your we can by couple did, a pulled 'XX 'XX, sounds But years? if targets be like forward it of maybe

will I be a fair probably characterization, think that yes.

just has A bunch is a out bunch the then -- -- question a organic lot here. And times Okay. M&A. is of itself pointed JVs, a Xnd of it numerous bunch And a on lot of of investment, going been doing partnerships, Plug

for a the of to I efficiency how your little think hard capital. huge gets sometimes judge bit spend it's maybe uses the it

The some I that acquisition. more venture do on that you the how for as to organically. can be light sense whether you situation but make an makes within to sense, it Andy, like approach given of hydrogen you you economy think little or a sort comments shed you go a doesn't earlier your just bit via

I think so you I centures. how about we think think -- when think about that's a --

us vehicle think And when think -- JV, lot have a channels. sales if it you I provided into I about could theory Reno the gone the about business.

X develop years we One know, could X that over the next vehicle distinct their electric even and has advantages to not Reno is longer. capability. X You

customer instantaneous long and as their reputation is credibility. in other provide The They Europe? reach

table same actually the work. to have We -- how hydrogen bring what we obviously ecosystems we there know is

wasn't going only about market. walk the they that to I wasn't to the about stationary have Europe have But fill going it's into Korea been walk with the have to it in And many policy let's SK. partnership, I do tomorrow. be They When We scale. acquisitions do think is products we tomorrow. a be made, into have we Korea a talk and would the of hydrogen, Not Korean so European technology-oriented alone. ecosystem. Why SK. them put allow and that in us to not at could hydrogen I

we've really technology, aviation You are acquisitions technology partnerships may electrolyzers What stack gain here, oriented, the we material into probably about while and say more to equation. sales would us think which done. the take not many is to Frames allowed with at, which ventures get the business audience Energy strengthen the I that everyone in to channel oriented. the business. Ore, done that which AFC, are we've look us I have. more our to got platform membrane broad handling. is -- or Ones electrolyzers that Cellex, into If remember

the element we hydrogen ecosystem. that that was every helpful, So Joseph. can Hope serve

I thanks. appreciate color. Yeah, that

here On building that that something Look, really patience. think got appreciate far this everyone's note, we're here. I I go. -- as call? questions into Who called we're special done as

never with because the Company. invited these are I I've which about invited there in meetings We talking John about not was Plug Currie the -- invited we I've would've only was I ecosystem. been meetings to are is talking been past. a Sitting and the to Cop side-by-side invite it. hydrogen I

want else see that. manufacturing we the that electrolyzer one we're doing it has can an no You it to you the and system build are scale at to do Company capability if

people. Company. engineering, that pipe now who a cell unique are shouldn't If out. doing are hydrogen -- are This and isn't road full of real. we're will And Plans solutions XXXX hydrogen makes This complete, Plug from to it, actually range the fuel systems broken you We're a Power making Points. business fourth-quarter. forget be stationary real is vehicle, network I real we've building third, online not ground. dream just green this is This on components.

update I for listening January business to talking look to call. all in you thank and So forward our for you

That ask participation for does thank and you conclude disconnect for conference your We please today. that call lines. the you your