Investing.com -- Plug Power Inc. (NASDAQ: PLUG) shares dropped 2% in premarket trading Wednesday following the release of softer-than-expected revenue guidance for 2025.
In a press release ahead of its sixth annual Plug Symposium at the company's Vista headquarters and manufacturing facility in Slingerlandshe, the hydrogen solutions provider outlined its plans for the coming years, targeting a revenue range between $850 million and $950 million in 2025, with gross margins anticipated to improve to between -20% and -5%.
The guidance reflects tempered expectations amidst Plug's ambitious growth and development in the green hydrogen sector.
The company, however, remains optimistic about longer-term growth, projecting a compounded annual growth rate (CAGR) of around 30% for its Energy and Applications segments from 2025 to 2030.
This growth will focus on Plug's electrolyzer and cryogenic solutions, along with expanding its middle-market applications in Material Handling and large-scale stationary products.
The company also announced the promotion of Sanjay Shrestha to President.
Previously Plug's Chief Strategy Officer and General Manager of Energy Solutions, Shrestha is said to have played a pivotal role in expanding the company's product offerings and building out its hydrogen production capabilities.
In his new role, Shrestha will drive Plug's strategic initiatives with an eye toward enhancing shareholder value.
"As I take on this new responsibility, I'm profoundly appreciative of the confidence vested in me to guide the strategic implementation of our path to profitability and delivering on our 2025 objectives," Shrestha stated.