Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hyliion Holdings Corp (HYLN, Financial) unveiled the Karno Power module publicly for the first time at the ACT Expo, receiving positive feedback from current and prospective customers.
- The company signed a non-binding LOI with Mesa Natural Gas Solutions, indicating potential for up to 12 Karno units, expanding deployment applications.
- Hyliion Holdings Corp (HYLN) has over 100 units under non-binding LOIs across various markets, building a healthy backlog of interest.
- The company has initial definitive agreements with early adopter customers, including the US Navy and Fortune 500 companies.
- Hyliion Holdings Corp (HYLN) expects to commercially launch the Karno Power module by year-end and anticipates revenue between $10 million and $15 million for 2025.
Negative Points
- Production issues with linear electric motors have delayed the delivery of early adopter units, impacting the deployment schedule.
- Challenges with depowdering complex printed parts have consumed part of the company's schedule flexibility for the year.
- Operating expenses increased to $19.7 million in Q1 2025, up from $19 million in the same quarter of 2024.
- The company recorded a net loss of $17.3 million in Q1 2025, up from $15.6 million in Q1 2024.
- Tariffs on additive printers assembled in Germany are expected to increase capital spending by $2 million to $3 million in 2025.
Q & A Highlights
Q: Can you tell us more about the Navy's unit performance?
A: Thomas Healy, CEO, explained that the Navy's Karno Core unit has shown consistent reliability. It has been running daily at their Cincinnati facility without any need for teardown or rebuild, demonstrating stable performance. Software improvements are ongoing to enhance performance, but the reliability of the early unit is a positive outcome.
Q: Given the challenges discussed, how will this impact your growth plans for next year?
A: Thomas Healy, CEO, stated that despite challenges with lens production and depowdering of the regen, they are on track for commercialization later this year. The bottleneck in lens manufacturing is being addressed by setting up in-house assembly. These issues are not expected to negatively impact the scale-up of production next year.
Q: What are the financial results for the first quarter of 2025?
A: Jon Panzer, CFO, reported revenue of $500,000 from R&D services, with operating expenses at $19.7 million. The net loss was $17.3 million, up from $15.6 million in the first quarter of 2024. The company ended the quarter with $198.8 million in cash and investments.
Q: How are you addressing the production issues with the linear electric motors?
A: Thomas Healy, CEO, mentioned that production issues with the linear electric motors are being tackled by bringing some manufacturing back in-house. They expect to resume in-house production by the end of the month to supplement the capacity from their contract manufacturer.
Q: What is the status of the Karno Power module commercialization?
A: Thomas Healy, CEO, confirmed that they remain on track to commercially launch the Karno Power module by the end of the year. They expect to deliver additional modules to customers later this year, with a revenue target of $10 million to $15 million for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
