Hyliion Holdings (HYLN, Financial) has been awarded a $1.5 million contract from the U.S. Navy under the Phase II Small Business Innovation Research program. This contract aims to enhance the development of Hyliion's scalable multi-megawatt power systems for naval and stationary military applications. This award follows the successful completion of Phase I, where the company finalized the initial design and planning for a naval-compliant power generator.
In Phase II, Hyliion will focus on refining key technologies within its multi-KARNO Core architecture. This includes upgrading integrated software, power electronics, motion control, and essential communication systems, which are crucial for the system's scalability. The company plans to initiate this phase immediately, expecting it to last for 18 months.
Hyliion views this development as a significant step towards creating a robust power solution that can adapt to various defense missions, both stationary and mobile, reflecting its commitment to meeting the U.S. Navy's future energy needs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Hyliion Holdings Corp (HYLN, Financial) is $2.80 with a high estimate of $2.80 and a low estimate of $2.80. The average target implies an upside of 77.22% from the current price of $1.58. More detailed estimate data can be found on the Hyliion Holdings Corp (HYLN) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Hyliion Holdings Corp's (HYLN, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hyliion Holdings Corp (HYLN, Financial) in one year is $4.47, suggesting a upside of 182.91% from the current price of $1.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hyliion Holdings Corp (HYLN) Summary page.
HYLN Key Business Developments
Release Date: May 14, 2025
- Revenue: $500,000 for research and development services related to contracts with the Office of Naval Research.
- Cost of Sales: $500,000, resulting in approximately breakeven operating income.
- Operating Expenses: $19.7 million, up from $19 million in the first quarter of 2024.
- Research and Development Costs: $12.2 million, compared to $8 million in 2024.
- SG&A Expenses: $6.1 million, down from $6.6 million in 2024.
- Exit and Termination Costs: $1.4 million related to the shutdown of the former powertrain business.
- Net Loss: $17.3 million, up from $15.6 million in the first quarter of 2024.
- Cash and Investments: $198.8 million at the end of the first quarter.
- Capital Spending: $7.3 million, primarily for additive printing machines and related equipment.
- Interest Income: $2.5 million, down from $3.4 million in the prior year quarter.
- Expected Revenue for 2025: Between $10 million and $15 million, driven by early adopter unit deployments and R&D activities.
- Expected Total Cash Outlays for 2025: Approximately $65 million.
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.
