Prediction: You Won't Recognize Plug Power in 2028. Should You Buy the Hydrogen Stock Before It's Too Late?
2026-08-11 11:17
•Emma Newbery •The Motley Fool
•• • Axe Cap view
Plug Power’s Bold Bet on Hydrogen Profitability by 2028
Plug Power aims to turn profitable by 2028 amid tougher-than-usual hurdles.
Plug Power’s promise to hit profitability by 2028 is a headline grabber, but the road remains tough. The company posted 22% revenue growth last quarter and trimmed losses, signaling some operational progress. Still, we’re talking about a heavily indebted firm in a capital-intensive green hydrogen space, where massive infrastructure is needed before profits can flow. South African investors should watch USD/ZAR closely, as any dollar strength will make Plug’s debt repayments costlier. The ambition is clear, but the execution risk is equally real. If Plug can deliver, it might reshape energy stocks globally, but for now, it’s a play more for the brave than the faint-hearted. this is just our opinion and not financial advice
Avoid buying Plug Power at this stage but keep an eye on USD/ZAR movements for broader risk sentiment. If looking globally for energy exposure, consider safer South African counters like Sasol, which has cleaner balance sheets and strong local relevance.
- PLUG
- USD/ZAR
- Sasol
- High debt servicing costs undermining profitability
- Execution risks in capital-intensive green hydrogen rollout
6/10
Plug Power, a hydrogen fuel cell company that has never been profitable in 25 years, claims it will achieve profitability by 2028 through its Project Quantum Leap turnaround plan. Q1 2026 results show progress with 22% revenue growth and reduced operating losses, but the company still faces challenges from high debt servicing costs and the capital-intensive nature of green hydrogen production. Analysts remain cautious about whether the ambitious 2028 profitability target is achievable.
Our take is based on reporting first published by The Motley Fool.