Plug Power Inc. (PLUG) just landed something new: a contract with NASA. The hydrogen company announced it's begun supplying liquid hydrogen to support operations at NASA's Glenn Research Center in Cleveland and the Neil A. Armstrong Test Facility in Sandusky, Ohio.

The deal is worth $2.8 million and covers up to 218,000 kilograms (that's roughly 480,000 pounds) of liquid hydrogen. It's Plug's first liquid hydrogen supply contract with NASA, which opens a fresh revenue stream in the aerospace sector.

Why This Matters for Plug

Securing this NASA contract isn't just about the dollars—it's about market positioning. The space industry is expanding, and liquid hydrogen plays a critical role in rocket propulsion and testing. By getting a foothold with NASA, Plug Power is diversifying beyond its core markets in material handling, industrial applications, and mobility.

The company plans to deliver the liquid hydrogen using its dedicated cryogenic transport fleet, drawing from its growing network of U.S.-based hydrogen production facilities. Having multiple generation sites provides built-in redundancy, which is essential when you're supplying critical operations like space research. Plug will continue serving its industrial, mobility, and energy customers while adding NASA to the mix.

This contract extends Plug's hydrogen ecosystem into high-specification markets, reinforcing its broader strategy to build out infrastructure capable of supporting aerospace, industrial operations, and next-generation energy systems.

Recent Financial Moves

The NASA news comes at a time when Plug has been navigating some financial turbulence. Shares tumbled after the company announced it's raising $375 million through a private offering of convertible senior notes due 2033.

The proceeds will be used to retire $243 million in high-interest debt and repurchase part of its 2026 convertible notes. It's a debt refinancing move aimed at cleaning up the balance sheet.

JP Morgan analyst Bill Peterson maintained a Neutral rating on the stock but withdrew his price forecast. His take? While the refinancing supports deleveraging efforts, he wants to see consistent progress on profitability, margins, and cash burn before getting more optimistic.

What's Ahead

Plug has reiterated its fiscal 2025 and 2026 guidance, projecting sequential and year-over-year margin improvements, stronger equipment sales, and better absorption of fixed costs.

For fiscal 2026, the company expects fourth-quarter sales to hit around $300 million with 15% gross margins. That would help drive positive EBITDA and support longer-term targets for operating income and net profitability by 2027 to 2028.

Growth prospects remain supported by the 2026 renewal of investment tax credits, fleet upgrades, capacity expansion, and greenfield projects that avoid the costs of legacy infrastructure.

PLUG Price Action: Plug Power shares were down 2.48% at $1.96 during premarket trading on Friday.