Every plug power investor should pay attention to these numbers.

From a business perspective, plug power (plug -0.41%) has clearly succeeded in promoting the value of its fuel cell and hydrogen business to customers this year. On the other hand, investors haven’t exactly sold what Plug Power stock is worth. during S&P 500 While up more than 24% since the beginning of the year, Plug Power’s stock price has plummeted about 43%.

However, management remains hopeful that the company is on the right track and that financial success is just around the corner. There are a variety of numbers that investors should pay close attention to. One particularly important number to monitor at this point is the company’s gross profit.

The end of 2025 could be a key moment for Plug.

Even if Plug fails to consistently generate gross profits, management believes the company will reverse this trend by the end of 2025. In an investor presentation last November, management expected the company to report a gross margin of minus 20% to minus 5% in 2025 and end the year with a positive gross margin. For context, Plug Power had a gross margin of negative 57% in 2023.

If the company achieves this guidance, it further reflects management’s belief that the company will achieve profitability on an EBITDA (earnings before interest, taxes, depreciation, and amortization) basis by the end of 2026 and positive operating income by the end of 2027. It gives me a lot of trust. .

Is it time to strengthen your portfolio with plug stocks?

For those who find management’s 2025 gross profit forecasts encouraging, it’s important to recognize that companies typically give wishful forecasts – predictions that don’t necessarily come true. So those who are skeptical of management’s guidance are not unfairly critical.

It is also important to recognize the following: flower energy (BE 0.54%)one of Plug’s peers, is already generating gross profits. Moreover, Bloom Energy is much closer to generating positive EBITDA. This could therefore appeal to growth investors who want exposure to fuel cells and hydrogen, but are equally interested in taking on a lower level of risk.