Plug Power Inc (NASDAQ:PLUG) CEO Andy Marsh said Wednesday that the fuel cell manufacturer has been signing on bigger customers to break even and will swing into profitability in 2019 after increasing revenue by 40% in 2018.
The Latham, New York, company is projecting revenue between $235 million and $245 million in 2019.
Plug Power is an architect of hydrogen and fuel cell technology. It makes fuel cells used to power forklifts in warehouses and distribution centers.
READ: Plug Power shares surge on Amazon deal
With its range of hydrogen and fuel cell products, Plug Power replaces lead acid batteries to power electric vehicles, such as fork lifts customers use in their distribution centers.
"If you look at trends, we’re starting to routinely break even. You look into 2019, we expect that to be routinely positive and those trends to continue to be positive," Marsh said during a business update conference call. “I have never been more optimistic about the possibilities."
The company announced full fourth-quarter and year-end results with Marsh sharing numbers of how the business did in 2018.
Fuel cell sales
Marsh said revenue for 2018 will be between $182 million and $185 million, exceeding its target of more than $175 million. Revenue increased more than 40% from 2017, when Plug Power had $103.26 million in revenue.
For the fourth quarter of 2018, the company broke even. The company needs $60 million in revenue a quarter to break even. Plug expects to break even for all of 2019, and to be positive from the third quarter onward.
“2018 has been an important year, not just for Plug Power, but for the industry it leads with recording-holding metrics, including 23,000 fuel cell units deployed in the material handling market, 200 million hours of product runtime, and 16 million hydrogen fills enabled,” said Marsh.
“We look forward to continuing to grow the global market in 2019.”
In recent years, the company has won key contracts. Amazon.com Inc (NASDAQ:AMZN), Walmart Inc. (NYSE:WMT) and Nike Inc (NYSE:NKE) now use Plug Power's powerful fuel cells and technology in their warehouses while FedEx Corp (NYSE:FDX) delivers packages via its hydrogen fuel cell electric delivery vans.
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