Plug Power's stock surged 20% Tuesday after newly appointed CEO Jose Luis Crespo reported the company achieved positive gross profit of $5.5 million in the fourth quarter of 2025, marking a dramatic turnaround from negative margins. The hydrogen fuel cell maker, which lost $1.6 billion on $710 million in revenue last year, saw its gross margin improve from negative 122.5% in Q4 2024 to positive 2.4% in Q4 2025.

Crespo, who officially took over as CEO Monday, attributed the progress to cost-cutting measures and efficiency improvements amid rising revenue. For the full year 2025, Plug Power's operating expenses still outpaced sales by $242 million, resulting in a negative 34% gross margin, but this represents significant improvement from the negative 99% margin in 2024. The company's fuel cells power vehicles and provide backup power for cell towers and data centers.

Crespo told analysts that the 125 percentage point improvement in gross margin is "a meaningful milestone in strengthening our operating performance" and expressed confidence in sustaining positive momentum through 2026. The results come as Plug Power finalizes asset monetization deals expected to generate $275 million, including the sale of its Genesee County hydrogen plant site. Shares traded at $2.30 Tuesday afternoon, rebounding from Monday's opening price of $1.72.