The volatility surrounding Plug Power Inc (NASDAQ:PLUG) stock continues today, as Wall Street expresses appreciation for the company’s latest bit of news. Today the electric forklift fuel cell supplier said it won an order from Illinois-based Central Grocers Inc. Plug Power will supply the company’s warehouse with 182 forklift systems.
Plug Power gets validation
That contract comes with a five-year service contract, according to the statement provided by Plug Power Inc (NASDAQ:PLUG) today. This announcement especially provides validation to a company many have scoffed, saying it will not be successful. The company said Central Grocers has already been using its GenDrive forklift fuel cell system since 2009. This new order of 182 units will replace the original systems the company ordered, which operated for over 2 million hours.
“This is a success story for Plug Power, as nothing validates our solution better than a satisfied customer who orders more,” said Andy Marsh, CEO of Plug Power Inc (NASDAQ:PLUG), in a statement. “Central Grocers was an early adopter that has been reaping the benefits of GenDrive fuel cell solutions, and will now see additional benefits through our GenCare services.”
Plug Power Inc (NASDAQ:PLUG) said Central Grocers runs a first-of-its kind grocery warehouse in Joliet, Ill. The company used only forklifts powered by hydrogen fuel cells. In February, Wal-Mart Stores, Inc. (NYSE:WMT) agreed to purchase at least 1,700 systems from Plug Power this year.
Plug Power still needs to break even
Plug Power Inc (NASDAQ:PLUG) has yet to report net income since its initial public offering in 1999, according to Bloomberg. Plug Power said in December that it must ship 3,000 systems this year in order for it to break even on its EBITDA (earnings before interest, taxes, depreciation and amortization). In spite of the net losses, however, shares of Plug Power have soared by over 1,300% over the last year.
Plug Power Inc (NASDAQ:PLUG) also announced today that it will release its next quarterly earnings report on May 14