Hyliion (HYLN) Q2 2024 earnings summary

Executive summary

• Focus shifted from powertrain business to KARNO generator technology, with all 2024 units committed and over 50% of 2025 capacity under LOIs; initial deployments expected in late 2024 and significant ramp-up in 2025.

• Target markets expanded to include data centers, waste heat utilization, EV charging, and industrial applications, driven by strong customer demand.

• Awarded a U.S. government SBIR grant for multi-megawatt KARNO generator development for Navy applications.

• Signed LOIs with US Energy and Flexnode for 2025 deployments and MOU with Jardine Engineering for Asia Pacific expansion.

• Beta version of the generator in final development, with customer deliveries on track for later in 2024.

Financial highlights

• Q2 2024 net loss was $10.9 million, down from $35.2 million in Q2 2023; H1 2024 net loss was $26.4 million, down from $64.1 million in H1 2023.

• Q2 2024 operating expenses were $14 million, down from $38.5 million in Q2 2023, reflecting the wind down of the powertrain business.

• Revenues for Q2 2024 were $266K, with a gross loss of $41K.

• Cash and investments at quarter end were $249 million; $15.2 million used in Q2 and $50.6 million year-to-date.

• Share repurchases totaled $14 million for 10.6 million shares; average repurchase price was $1.32.

Outlook and guidance

• 2025 revenue expected in the low double-digit millions, with more than half of the required backlog already secured.

• Initial gross margins expected to be negative, improving to break even by late 2025 or early 2026 as production scales.

• 2024 cash expenditures for KARNO generator business now expected to be ~$55 million, up from prior guidance due to accelerated additive manufacturing investments.

• Year-end 2024 cash balance projected at $220–$230 million; no additional equity capital raises anticipated.

• Sufficient capital on hand to fund commercialization and near-term growth.