Hyliion Holdings Reports Second-Quarter 2025 Financial Results
Key Business Highlights
-
KARNO Power Module qualifies for
30% Investment Tax Credit (ITC) under the One Big Beautiful Bill Act (OBBBA), recognizing its role in advancingU.S. national energy security -
Production resumed with delivery of second
U.S. Navy Early Adopter Unit and with two additional KARNO Power Modules nearing completion - Successfully transitioned all linear electric motor (LEM) production in-house, improving throughput and supporting 2025 deployment targets
- Confirmed resolution of regen depowdering challenge and redesigned critical regen part to address performance
-
Signed
MOU with Alkhorayef Industries as part of Saudi-$1 billion U.S. commercial agreements, with initial deployment targeted for 2026 inSaudi Arabia -
Awarded Phase II SBIR contract for up to
to advance multi-megawatt KARNO system development$1.5 million - Reiterated delivery of ten Early Adopter Units in 2025, with commercialization shifting to 2026
-
Recorded revenue of
in the quarter for research and development services$1.5 million -
Ended Q2 with
in cash and investments and expect year-end balance of approximately$185 million $155 million -
Adjusted 2025 revenue forecast to
to$5 from$10 million to$10 due to expected product commercialization in 2026$15 million
Executive Commentary
“We are pleased that linear generators like the KARNO Power Module were recognized under the OBBBA as an emerging technology vital for advancing
“During the past quarter, we addressed the significant issues that slowed deployments earlier in the year, including successfully transitioning LEM manufacturing to our
Investment Tax Credit under OBBBA
Under the recently enacted OBBBA, energy projects incorporating Hyliion’s KARNO Power Module that begin construction in 2026 or later will qualify for a
KARNO Commercial Updates
Hyliion has resumed producing KARNO systems including delivery of its second Early Adopter KARNO unit to the
In addition, Hyliion was awarded a Phase II Small Business Innovation Research contract valued at up to
The Company also signed a strategic MOU with Alkhorayef Industries during the Saudi-
KARNO Power Module Development
Hyliion has fully transitioned all LEM production in-house to resolve production and quality issues with a contract manufacturer that had been constraining Early Adopter deployments earlier in the year. LEM output is now ramping up to meet planned Early Adopter deployments in 2025, with additional capacity expansions underway to support higher volumes in 2026.
The Company achieved another key technical milestone by confirming the effectiveness of a new process to remove residual powder from complex printed parts. With this depowdering challenge resolved, Hyliion was able to redesign the regen component of the KARNO Core, moving to a more intricate mesh structure optimized for heat exchange inside the generator. The new design is expected to improve power output and efficiency to expected levels and has been successfully bench-tested in Hyliion’s flow lab. Regens are currently being printed for a complete KARNO Core to validate performance during full-power operation.
The Company continues to expect that all ten Early Adopter customer units will be deployed this year and anticipates that the commercial launch of the KARNO Power Module will extend into 2026, instead of late 2025 as previously planned.
Financial Highlights and Guidance
Hyliion reported second-quarter 2025 revenue of
Operating expenses totaled
Year-to-date revenue was
Cash and investments at quarter-end totaled
Hyliion revised its 2025 revenue guidance to
About Hyliion
Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company’s primary focus is to provide modular power plants that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in
Forward Looking Statements
The information in this press release includes “forward-looking statements� within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,� “should,� “will,� “may,� “believe,� “anticipate,� “intend,� “estimate,� “expect,� “project,� the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage company with a history of losses, and our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business; our ability to comply with governmental regulations related to defense spending and procurement; the suitability of our products for defense applications; and the other risks and uncertainties described under the heading “Risk Factors� in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the “SEC�) on February 25, 2025 for the year ended December 31, 2024 and in our subsequently filed Forms 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion’s operations and projections can be found in its filings with the SEC. Hyliion’s SEC Filings are available publicly on the SEC’s website at , and readers are urged to carefully review and consider the various disclosures made in such filings.
HYLIION HOLDINGS CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollar amounts in thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Revenues |
|
|
|
|
|
|
|
||||||||
Research and development services |
$ |
1,515 |
|
|
$ |
� |
|
|
$ |
2,004 |
|
|
$ |
� |
|
Total revenues |
|
1,515 |
|
|
|
� |
|
|
|
2,004 |
|
|
|
� |
|
Cost of revenues |
|
|
|
|
|
|
|
||||||||
Research and development services |
|
1,384 |
|
|
|
� |
|
|
|
1,861 |
|
|
|
� |
|
Total cost of revenues |
|
1,384 |
|
|
|
� |
|
|
|
1,861 |
|
|
|
� |
|
Gross profit |
|
131 |
|
|
|
� |
|
|
|
143 |
|
|
|
� |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
10,137 |
|
|
|
8,311 |
|
|
|
22,367 |
|
|
|
16,279 |
|
Selling, general and administrative |
|
5,963 |
|
|
|
6,262 |
|
|
|
12,044 |
|
|
|
12,854 |
|
Exit and termination costs (benefits) |
|
(346 |
) |
|
|
(556 |
) |
|
|
1,077 |
|
|
|
3,875 |
|
Total operating expenses |
|
15,754 |
|
|
|
14,017 |
|
|
|
35,488 |
|
|
|
33,008 |
|
Loss from operations |
|
(15,623 |
) |
|
|
(14,017 |
) |
|
|
(35,345 |
) |
|
|
(33,008 |
) |
Interest income |
|
2,209 |
|
|
|
3,129 |
|
|
|
4,677 |
|
|
|
6,525 |
|
Gain on disposal of assets |
|
� |
|
|
|
� |
|
|
|
� |
|
|
|
3 |
|
Other income, net |
|
� |
|
|
|
32 |
|
|
|
� |
|
|
|
32 |
|
Net loss |
$ |
(13,414 |
) |
|
$ |
(10,856 |
) |
|
$ |
(30,668 |
) |
|
$ |
(26,448 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share, basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding, basic and diluted |
175,308,965 |
|
|
|
173,829,107 |
|
|
|
174,829,257 |
|
|
176,156,001 |
HYLIION HOLDINGS CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share data) |
|||||||
|
June 30,
|
|
December 31,
|
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
15,591 |
|
|
$ |
9,227 |
|
Accounts receivable |
|
1,192 |
|
|
|
1,923 |
|
Prepaid expenses and other current assets |
|
4,784 |
|
|
|
6,401 |
|
Short-term investments |
|
92,964 |
|
|
|
110,918 |
|
Assets held for sale |
|
� |
|
|
|
2,563 |
|
Total current assets |
|
114,531 |
|
|
|
131,032 |
|
|
|
|
|
||||
Property and equipment, net |
|
32,563 |
|
|
|
25,920 |
|
Operating lease right-of-use assets |
|
4,439 |
|
|
|
5,431 |
|
Other assets |
|
932 |
|
|
|
1,079 |
|
Long-term investments |
|
76,745 |
|
|
|
99,584 |
|
Total assets |
$ |
229,210 |
|
|
$ |
263,046 |
|
|
|
|
|
||||
Liabilities and stockholders� equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
2,689 |
|
|
$ |
5,243 |
|
Current portion of operating lease liabilities |
|
2,570 |
|
|
|
2,426 |
|
Accrued expenses and other current liabilities |
|
5,000 |
|
|
|
6,622 |
|
Total current liabilities |
|
10,259 |
|
|
|
14,291 |
|
|
|
|
|
||||
Operating lease liabilities, net of current portion |
|
3,040 |
|
|
|
4,366 |
|
Other liabilities |
|
41 |
|
|
|
� |
|
Total liabilities |
|
13,340 |
|
|
|
18,657 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders� equity |
|
|
|
||||
Common stock, |
|
19 |
|
|
|
18 |
|
Additional paid-in capital |
|
410,463 |
|
|
|
408,315 |
|
Treasury stock, at cost; 10,610,070 and 10,610,070 shares as of June 30, 2025 and December 31, 2024, respectively |
|
(14,132 |
) |
|
|
(14,132 |
) |
Accumulated deficit |
|
(180,480 |
) |
|
|
(149,812 |
) |
Total stockholders� equity |
|
215,870 |
|
|
|
244,389 |
|
Total liabilities and stockholders� equity |
$ |
229,210 |
|
|
$ |
263,046 |
HYLIION HOLDINGS CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(30,668 |
) |
|
$ |
(26,448 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
2,428 |
|
|
|
1,285 |
|
Amortization and accretion of investments, net |
|
(992 |
) |
|
|
(1,839 |
) |
Noncash lease expense |
|
992 |
|
|
|
849 |
|
Gain on disposal of assets, including assets held for sale |
|
(585 |
) |
|
|
(1,078 |
) |
Share-based compensation |
|
2,681 |
|
|
|
2,445 |
|
Carrying value adjustment to assets held for sale |
|
1,590 |
|
|
|
5,564 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
764 |
|
|
|
(333 |
) |
Prepaid expenses and other assets |
|
1,920 |
|
|
|
(5,131 |
) |
Accounts payable |
|
1,015 |
|
|
|
(3,239 |
) |
Accrued expenses and other liabilities |
|
(1,962 |
) |
|
|
(4,427 |
) |
Operating lease liabilities |
|
(1,182 |
) |
|
|
(1,044 |
) |
Net cash used in operating activities |
|
(23,999 |
) |
|
|
(33,396 |
) |
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Purchase of property and equipment |
|
(11,575 |
) |
|
|
(8,054 |
) |
Proceeds from sale of property and equipment |
|
800 |
|
|
|
3,470 |
|
Receipt of security deposit |
|
41 |
|
|
|
� |
|
Purchase of investments |
|
(18,397 |
) |
|
|
(32,623 |
) |
Proceeds from sale and maturity of investments |
|
60,026 |
|
|
|
83,234 |
|
Net cash provided by investing activities |
|
30,895 |
|
|
|
46,027 |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of common stock options |
|
� |
|
|
|
50 |
|
Taxes paid related to net share settlement of equity awards |
|
(532 |
) |
|
|
(365 |
) |
Repurchase of treasury stock |
|
� |
|
|
|
(13,982 |
) |
Net cash used in financing activities |
|
(532 |
) |
|
|
(14,297 |
) |
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
6,364 |
|
|
|
(1,666 |
) |
Cash and cash equivalents and restricted cash, beginning of period |
|
9,892 |
|
|
|
21,464 |
|
Cash and cash equivalents and restricted cash, end of period |
$ |
16,256 |
|
|
$ |
19,798 |
|
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Hyliion Holdings Corp.
[email protected]
Investor Relations
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Source: Hyliion Holdings Corp.