Hyliion (HYLN) Q4 2024 earnings summary

Executive summary

• Delivered first early adopter customer unit of the KARNO generator in early 2025, with initial deployment to the U.S. Navy for testing and validation in Ohio and plans for ten more units by mid-year.

• Secured contracts and LOIs for over 100 KARNO generator units, including a major data center partner with a 2MW generator and a 70MW multiyear opportunity, as well as international opportunities in the Middle East and Hong Kong.

• Awarded a $6 million Department of Energy grant for methane emissions reduction and signed a non-binding LOI for up to 12 KARNO generators in Saudi Arabia.

• Completed wind-down of powertrain business, shifting focus to KARNO generator development and commercialization.

Financial highlights

• Q4 2024 revenue was $1.5 million, all from R&D services; gross margin was $100,000, and net loss was $14.4 million, improved from $29.1 million in Q4 2023.

• Full-year 2024 net loss was $52.0 million, down from $123.5 million in 2023; operating expenses were $64.4 million, reflecting lower powertrain exit costs and SG&A.

• Ended 2024 with $219.7 million in cash and investments after $79.6 million cash use for the year.

• Share repurchases totaled $14.1 million in 2024; repurchase program suspended in May.

Outlook and guidance

• 2025 revenue expected between $10–$15 million, including generator sales and R&D services, with cash expenditures projected at approximately $60 million.

• Plans to deliver 10 early adopter units by mid-2025, ramp up production, and commercialize a 200kW generator in the second half of 2025, with a 2MW generator targeted for 2026.

• Commercialization of the KARNO generator targeted for the second half of 2025, with break-even gross margins anticipated by end of 2026.

• Expected to end 2025 with around $160 million in cash and investments.