Plug Power’s (NASDAQ:PLUG) news of acquisitions and increased revenue expectations have PLUG stock skyrocketing on Tuesday morning.
The company announced that it completed the purchase of United Hydrogen Group Inc. and Giner ELX, and increased its fiscal year 2024 revenue projection. Plug Power now expects revenue of $1.2 billion in revenue — up from $1 billion.
These moves come as a step in the company’s plan to have more than half of the hydrogen its customers use come from renewable energy sources by 2024. In fact, according to the release, Plug Power “projects that its existing customers will use almost 100 tons of hydrogen per day by 2024.”
Moreover, United Hydrogen is a Georgia-based company that is one of the largest privately held merchant hydrogen producers in North America. Giner ELX, meanwhile, developed one of the world’s largest hydrogen electrolysis generators, and also has other equipment that can be used for on-site refueling stations for hydrogen vehicles.
Andy Marsh, CEO of Plug Power, had this to say about the PLUG stock news:
“Plug Power is working to build the modern clean hydrogen economy. Every decision we make is with an eye to the future, not the past. This closely aligns with the efforts that companies like United Hydrogen and Giner ELX have made to secure broad participation in the hydrogen economy, and to achieve the objectives of a clean environment and reduced dependence on foreign oil. We welcome these organizations into the Plug Power family where, as a team, we can accelerate the adoption of low carbon and zero carbon hydrogen on a global scale.”
Additionally, the acquisitions also boosted other aspects of its FY2024 outlook. This includes Plug Power expecting operating income of $210 million (up from $170 million) and adjusted EBITDA of $250 million (up from $200 million).
Overall, the Plug Power news had PLUG stock up as much as 25% as of Tuesday morning.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.
