Plug Power shares jumped 3.68% to $2.67 after the company announced that it had signed a master sales agreement (MSA) with a “large footwear manufacturer” in North America. The fuel cell maker did not offer further details about its new customer. Plug Power will initially deploy its GenKey hydrogen and fuel cell solution at three sites of the new customer.
The footwear manufacturer may place more orders
The Latham, New York-based company revealed that the unnamed footwear manufacturer was also analyzing the adoption of its fuel cell technology at its 30 sites worldwide. The GenKey solution combines GenDrive fuel cells, GenCare service, and GenFuel hydrogen infrastructure. Plug Power CEO Andy Marsh said that the company had “proven the value of our solutions” to repeat customers such as Wal-Mart, BMW and Kroger.
Tollymore Investment Partners 2Q20 Letter: ESG ≠ sustainable investing
The company said its executives would discuss highlights of the deal live at PowerTrip stop in San Francisco. Plug Power management has launched a six-city roadshow starting May 19th to interact with investors. Earlier this month, Plug Power disappointed investors with its weaker-than-expected first quarter results. The company reported sales of $9.4 million, much lower than the consensus estimate of $18.13 million. It incurred a net loss of 7 cents per share during the March quarter.
Plug Power aggressively adding new customers
However, the company is optimistic about meeting its full-year revenue target of $100 million. Last week, Plug Power added packaging materials provide Uline to its list of customers. It will deploy more than 130 GenDrive units at Uline’s Pleasant Prairie, Wisconsin distribution center. Uline said the first set of Plug Power’s GenDrive units will power its forklifts. It plans to add a second fleet of lift trucks powered by GenDrive in the next few months.
On May 19th, Plug Power also signed an unnamed big box retailer as a customer. The unnamed customer had ordered GenKey solution for its new distribution center in Toledo, Ohio.