By Robb M. Stewart

Plug Power's shares were under pressure after the hydrogen-technology provider laid out plans to further scale back its operations and costs after spinning deeper into the red last year.

Ahead of the opening bell Tuesday, the shares were 4% lower. Plug Power has already fallen 30% in the new year and its shares are down about 60% over the last 12 months. It has struggled with cash burn and the outlook for renewable-energy companies has dimmed on the prospect President Trump's policies won't be as favorable to green energy as those of a Democratic administration.

Plug Power last year moved to cut its workforce, consolidate facilities, raise prices on some offerings and scale back working capital in an effort to improve margins and cash flows. It said the steps, which also included reprioritizing certain hydrogen and new product investments drove a substantial reduction in cash burn throughout 2024 with a notable improvement in the fourth quarter.

Given market conditions remain tough, the company on Monday said it would take additional measures to shrink its operational footprint, resources and ongoing expenses, targeting an annual cut in expenses of between $150 million and $200 million. It also said it recorded $971.3 million in charges for varied asset impairments and a bad debt provision in operating expenses in the fourth quarter of 2024.

Plug Power's loss widened to $2.1 billion, or $2.68 a share, last year from a loss of $1.37 billion, or $2.30, in 2023.

Annual revenue declined 29% to $628.8 million, with a slump in sales of equipment and related infrastructure more than offsetting a rise in revenue from power-purchase agreements and fuel deliveries.

Revenue for the final quarter of last year was $191.5 million, which the company said reflected a commercial inflection point in electrolyzer deployments, the continued expansion of its hydrogen network and increased use of its manufacturing footprint.

The company said it closed 2024 with more than $200 million in unrestricted cash on its balance sheet and projected cash burn would continue to improve this year. The company in January secured a $1.66 billion loan guarantee from the Energy Department, which it expects to use to build six hydrogen production projects in the U.S.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

March 04, 2025 07:47 ET (12:47 GMT)

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