Hydrogen Fuel Cell Stocks Under Pressure: Plug Power and FuelCell Energy Struggle in 2025

Plug Power Inc. and FuelCell Energy, Inc.—two of the biggest names in the U.S. hydrogen fuel cells space—aren’t having the easiest time in 2025. Their stocks have taken a nosedive, with Plug down around 50% and FuelCell shedding nearly 60% year-over-year as of July 27, 2025. It’s a tough look for the green hydrogen and fuel cell technology sector, and it’s making some investors a little shaky on whether clean hydrogen can truly deliver.

The financials aren’t pretty

To understand what’s going on, take a peek under the hood:

• Plug Power came in hot with a brutal -55% gross margin in Q1 2025. That’s got folks worried about its sky-high cash burn and continuing losses—despite all its ambitious moves in green hydrogen production, fuel cells, and partnerships with major brands like Amazon and Walmart.
• FuelCell Energy hasn’t fared much better. Despite a more focused business (mainly stationary power fuel cells for cities and industrial sites), it’s still losing money. The company’s market cap now sits around $900 million, a steep drop, mostly thanks to high capital costs and tepid demand.

Now, these headline numbers don’t capture the full picture—both companies are still pushing tech boundaries—but let’s face it: Wall Street isn’t known for its patience, and the shine has definitely dulled when it comes to hydrogen equities this year.

Different segments, shared struggles

Even though they both wave the green energy flag, Plug Power and FuelCell Energy play in different sandboxes. Plug’s strategy is wide-ranging—it’s building hydrogen hubs, selling electrolyzers, and targeting mobility and logistics. Think forklifts, delivery trucks, and industrial-grade hydrogen for warehouses.

Meanwhile, FuelCell is more about steady, local electricity generation from its carbonate and solid oxide fuel cell systems—great for powering microgrids and backup systems but tougher to scale quickly. Its tech generates cleaner electricity close to where it’s needed, but commercial traction has been slow going.

Why are investors heading for the exits?

The stock drops aren’t just about the numbers. They speak to a broader skepticism setting in across the hydrogen sector. A few big reasons why investors are nervous right now:

• Manufacturing fuel cell systems and producing clean hydrogen is still expensive—too expensive for widespread adoption just yet.
• Rolling out the infrastructure is taking longer than hoped and costs a fortune.
• Policy support is there, but massive, game-changing purchase orders just haven’t shown up yet.

The result? Investors are weary, some are walking away, and many are waiting to see if the promise of a hydrogen economy can ever live up to the hype.

Two companies, two very different vibes

Curiously, Plug Power and FuelCell Energy don’t really move in lockstep. With a market correlation of just 0.37, their stock prices can diverge quite a bit. Plug’s fortunes tend to swing with news in retail and transportation, while FuelCell rides on government grants and infrastructure contracts.

Still, for all their differences, one thing’s clear: neither has cracked the code to consistent profitability.

What this means for clean hydrogen as a whole

This rough patch isn’t happening in a vacuum. What happens to Plug and FuelCell could ripple across the whole green hydrogen movement. Here’s why it matters:

• If investors keep pulling back, that could discourage new startups from entering the space and slow down innovation.
• Cost-cutting moves—like scaling back operations or laying off skilled workers—could also put a dent in R&D and long-term momentum.
• That said, both companies are still committed to big-picture innovation, and if they can unlock cheaper electrolyzers or better hydrogen storage, there’s still hope for a turnaround.

Government officials keeping an eye on subsidies and performance benchmarks are watching closely. The faith of policymakers and institutional investors might hinge on how these firms bounce back—or don’t.

What’s next: a rebound or a reckoning?

Let’s be real—Plug Power and FuelCell Energy aren’t going anywhere anytime soon. They’ve still got the know-how and industry relationships to stay in the game. But their bumpy ride in 2025 is a stark reminder that being a tech leader doesn’t always translate to profit—or stability.

Some see this stumble as a temporary speed bump, one that’ll be smoothed over as infrastructure catches up and policies strengthen. Others view it as a fundamental red flag, a sign that this sector might struggle unless something big changes—like a collapse in production costs or major consolidation.

For anyone banking on sustainable energy and industrial decarbonization, the next few years will be telling. The trajectory of these two players will help determine just how close—or far—we are from making the hydrogen economy a lasting, profitable reality.