Financial Data and Key Metrics Changes - In Q4 2025, the company recorded revenue of $700,000 from R&D services, a decrease from $1.5 million in Q4 2024, with a gross margin gain of $100,000 in the previous year [26] - Total operating expenses for Q4 2025 were $15 million, down from $17.2 million in Q4 2024, driven by lower R&D and SG&A costs [27] - The net loss for Q4 2025 was $13.2 million, an improvement from $14.4 million in Q4 2024 [27] - For the full year 2025, total revenue was $3.5 million, compared to $1.5 million in 2024, with a net loss of $57.2 million, up from $52 million in 2024 [28] Business Line Data and Key Metrics Changes - The company has made significant progress in UL certification for the KARNO Power Module, nearing completion of testing for the full module after successfully completing tests for the linear electric motor and battery pack [6][8] - The company achieved over 175 kW of power production in testing, with expectations to reach the full 200 kW design power rating by year-end [9][10] Market Data and Key Metrics Changes - The company has nearly 500 units under non-binding letters of intent, indicating strong demand across commercial, data center, and military markets [12] - The data center market is seeing particularly strong long-term interest, with a shift towards 800V DC architectures for next-generation AI facilities [13][14] Company Strategy and Development Direction - The company is focused on transitioning from development to real-world field deployments and commercialization, with plans to deploy approximately 10 early adopter units prior to commercialization [12][13] - A strategic partnership with ABM Industries aims to support the deployment of integrated distributed energy solutions, enhancing customer access across various applications [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving UL certification for early adopter units in Q2 2026, which will enable broader customer site deployments [21] - The company anticipates generating approximately $10 million in revenue during 2026 from a combination of commercial customer activity and R&D service contracts [32] Other Important Information - The company operates more than 30 additive manufacturing machines and plans to optimize printer throughput to meet production needs for 2026 and 2027 [19][20] - The company has made progress in mitigating supply chain risks related to magnet supply, improving confidence in supporting planned production [20] Q&A Session Summary Question: About commercialization and end markets for units - Management highlighted military applications as a major focus, with additional opportunities in prime power and data centers [37] Question: Manufacturing capacity and costs - Management indicated that improvements in printer speed and throughput are the current focus, with confidence in production capacity for 2026 and 2027 [39][40] Question: Potential military revenue opportunities - Management clarified that the $40 million-$50 million potential is focused on additional applications and unique development for the military [45] Question: Comparison of KARNO technology with competitors - Management provided insights on cost comparisons with internal combustion engines and fuel cells, emphasizing the efficiency and lower maintenance of the KARNO system [48][49] Question: ABM partnership details - Management described ABM's expertise in power generation and their role in site engineering and Energy-as-a-Service solutions [52][53]

Financial Data and Key Metrics Changes - In Q4 2025, the company recorded revenue of $700,000 from R&D services, a decrease from $1.5 million in Q4 2024 [27] - Total operating expenses for Q4 2025 were $15 million, down from $17.2 million in Q4 2024, driven by lower R&D and SG&A costs [28] - The net loss for Q4 2025 was $13.2 million, an improvement from $14.4 million in Q4 2024 [28] - For the full year 2025, total revenue was $3.5 million, compared to $1.5 million in 2024, with a net loss of $57.2 million, up from $52 million in 2024 [29] Business Line Data and Key Metrics Changes - The company achieved over 150 kilowatts of power generation, later demonstrating 175 kilowatts, with expectations to reach 200 kilowatts by year-end 2026 [9][10] - Five KARNO units are currently at the facility, including two development units and three early adopter customer units [9] Market Data and Key Metrics Changes - The company has nearly 500 units under non-binding letters of intent, indicating strong demand across commercial, data center, and military markets [12] - The data center market shows particularly strong long-term interest, especially with the shift towards 800V DC architectures for next-generation AI facilities [13] Company Strategy and Development Direction - The company is focused on transitioning from development to real-world field deployments and commercialization in 2026 [12][25] - A strategic partnership with ABM Industries aims to support the deployment of integrated distributed energy solutions, enhancing customer access across various applications [18][19] - The company plans to demonstrate its 800V DC capability in live environments in 2026, aligning with industry trends [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving UL certification for early adopter units in Q2 2026, which is crucial for customer deployments [21] - The company anticipates generating approximately $10 million in revenue in 2026 from a mix of R&D services and commercial customers [31] - Management highlighted the importance of execution in 2026 as the company transitions to scaled operations and seeks opportunities in data center infrastructure and military applications [34] Other Important Information - The company has made progress in mitigating supply chain risks related to magnet supply, improving confidence in supporting planned production [20] - The company plans to slow capital spending in 2026 while optimizing the output of existing printers [31] Q&A Session Summary Question: About commercialization and end markets for units - Management indicated that military applications are a major focus, with other applications including prime power and data centers [38] Question: Manufacturing capacity and costs - Management did not provide specific capacity numbers but emphasized improving printer speed and throughput as a priority for 2026 [40][41] Question: Potential military revenue - The $40 million-$50 million potential from military contracts is focused on additional applications and unique developments, not just standard purchase orders [46] Question: Comparison of KARNO module with competitors - The company highlighted its competitive positioning in terms of cost and efficiency compared to internal combustion engines and fuel cells [50] Question: ABM partnership details - ABM has extensive experience in power generation and offers Energy-as-a-Service solutions, enhancing deployment capabilities for the company [56]

Financial Data and Key Metrics Changes - In Q4 2025, the company recorded revenue of $700,000 from R&D services, a decrease from $1.5 million in Q4 2024 [26] - Total operating expenses for Q4 2025 were $15 million, down from $17.2 million in Q4 2024, driven by lower R&D and SG&A costs [27] - The net loss for Q4 2025 was $13.2 million, an improvement from $14.4 million in Q4 2024 [27] - For the full year 2025, total revenue was $3.5 million, compared to $1.5 million in 2024, with a net loss of $57.2 million, up from $52 million in 2024 [28] Business Line Data and Key Metrics Changes - The company achieved over 175 kilowatts of power production in testing, up from 150 kilowatts previously, and expects to reach the full 200 kilowatt design power rating by year-end 2026 [9][20] - The company has five KARNO units at its facility, including two development units and three early adopter customer units [8] Market Data and Key Metrics Changes - The company is seeing strong demand across commercial, data center, and military markets, with nearly 500 units under non-binding letters of intent [12] - The data center market is particularly promising, with a shift towards 800V DC architectures for next-generation AI facilities [13] Company Strategy and Development Direction - The company is focused on transitioning from development to real-world field deployments and commercialization in 2026 [12][24] - A strategic partnership with ABM Industries aims to support the deployment of integrated distributed energy solutions [17] - The company plans to demonstrate its 800V DC capability in live environments in 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving UL certification for early adopter units in Q2 2026, which is crucial for customer deployments [20] - The company anticipates generating approximately $10 million in revenue in 2026 from a mix of R&D services and commercial customers [30] - Management highlighted the importance of military applications and the potential for $40 million-$50 million in new revenue opportunities from military contracts [15][46] Other Important Information - The company is working to optimize its additive manufacturing capabilities and plans to slow capital spending in 2026 [30][31] - The company has made progress in mitigating supply chain risks related to magnet supply [19] Q&A Session Summary Question: What are the end markets for the units going to the U.S. Navy? - Management indicated a focus on military applications, including unmanned autonomous ships, prime power for facilities, and data centers [37] Question: What is the manufacturing capacity expected as the year ends? - Management did not provide specific numbers but emphasized improving printer throughput as a priority for 2026 [40] Question: Can you elaborate on the $40 million-$50 million potential from military contracts? - Management clarified that this potential is focused on additional applications and unique development for the military, not just standard purchase orders [46] Question: How does the new 800 kilowatt module compare to existing solutions? - Management noted that the KARNO system is positioned between traditional internal combustion engines and fuel cells in terms of cost and efficiency [48] Question: What is the status of the control systems development? - Management confirmed that all software is developed in-house, which is seen as a key part of their solution [90]

4q25 AND full year Earnings call KARNOTM PRODUCT DEVELOPMENT Power System & Performance UL Certification February 25, 2026 DISCLAIMER The information in this presentation 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 presentation, regarding Hyliion and its future financial and operational ...

分组1 - Hyliion Holdings Corp. reported a quarterly loss of $0.07 per share, which was better than the Zacks Consensus Estimate of a loss of $0.08, representing an earnings surprise of +12.50% [1] - The company posted revenues of $0.71 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 43.04%, and a decline from $1.51 million in the same quarter a year ago [2] - Over the last four quarters, Hyliion has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] 分组2 - The stock has added about 6% since the beginning of the year, while the S&P 500 has declined by 0.1% [3] - The current consensus EPS estimate for the coming quarter is -$0.08 on $1.5 million in revenues, and -$0.32 on $14.25 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Automotive - Original Equipment is currently in the top 37% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Total revenues for the year ended December 31, 2025, increased to $3,475 million, a 130.3% increase from $1,509 million in 2024[169] - Research and development services revenue rose by $1,966 million, reflecting a 130.3% increase compared to the previous year[169] - Gross profit for 2025 was $170 million, an increase of 80.9% from $94 million in 2024[169] - Cash flows used in operating activities for 2025 were $(46,549) million, an improvement from $(56,738) million in 2024[175] - Cash flows provided by investing activities for 2025 were $60,930 million, compared to $59,493 million in 2024[178] Expenses - Research and development expenses increased by $5,463 million, or 14.8%, due to higher spending on the KARNO Power Module[169] - Selling, general and administrative expenses decreased by $1,625 million, a reduction of 6.7% from the previous year[169] Assets and Liabilities - At December 31, 2025, total current assets were $98.6 million, with cash and cash equivalents of $22.9 million[181] - The company expects to have approximately $100 million in cash and investments remaining at the end of 2026, assuming completion of $10 million in equipment-backed financing[184] - The company has federal net operating loss carryforwards of $447.4 million and state net operating loss carryforwards of $12.5 million as of December 31, 2025[197] Future Expectations - The company anticipates continued net losses in the short term as it focuses on the development and commercialization of the KARNO Power Module[185] - The transaction price allocated to remaining unsatisfied performance obligations under contracts was up to $13.7 million as of December 31, 2025, expected to be recognized primarily in 2026[191] Stock and Compensation - The company granted 2.7 million restricted stock units in 2025, valued at $1.46 per unit, contingent upon achieving underlying closing stock price thresholds[195] - Share-based compensation expense is recognized based on grant-date fair value, with adjustments made in the period forfeitures occur[193] Tax and Regulatory - The company has R&D credits of $4.7 million that begin to expire in 2037[197] - Deferred tax assets are assessed regularly, and a full valuation allowance is maintained on net deferred tax assets until sufficient evidence supports reversal[199] - The company intends to maintain a full valuation allowance on deferred tax assets until realizability is supported by sufficient evidence[199] Commercialization Status - The company has not yet commercialized the KARNO Power Module, with costs incurred for components prior to commercialization expensed as R&D costs[192] Invoicing and Commitments - The company generally invoices monthly for R&D services, with payment due within 90 days of invoice submission[191] - There were no non-cancelable purchase commitments as of December 31, 2025[189]

Financial Performance - Hyliion recorded fourth-quarter 2025 revenue of $0.7 million and full-year revenue of $3.5 million, all from research and development services[16]. - Operating expenses for the fourth quarter were $15.0 million, a decrease from $17.2 million in the same period of 2024, resulting in a net loss of $13.2 million[17]. - Hyliion's full-year net loss was $57.2 million, compared to a net loss of $52.0 million in 2024[18]. - Net loss increased to $57,188 million in 2025 from $52,048 million in 2024, representing a rise of about 9.2%[29]. Cash and Investments - The company ended the fourth quarter with $152 million in cash and investments, expecting a year-end 2026 balance of approximately $100 million[5]. - Cash and cash equivalents rose significantly from $9,892 million at the beginning of the period to $23,603 million at the end of 2025, an increase of approximately 138.5%[29]. - Total cash expenditures for the fourth quarter were $12.4 million, with full-year cash use totaling $67.4 million[19]. - Net cash used in operating activities improved to $46,549 million in 2025 from $56,738 million in 2024, a decrease of approximately 17.9%[29]. - Cash flows from investing activities provided $60,930 million in 2025, compared to $59,493 million in 2024, reflecting a slight increase of about 2.4%[29]. - Proceeds from the sale and maturity of investments amounted to $128,837 million in 2025, down from $166,886 million in 2024, a decrease of about 22.8%[29]. Assets and Equity - Total assets decreased from $263,046 million in 2024 to $203,559 million in 2025, a decline of approximately 22.6%[27]. - Total current assets decreased from $131,032 million in 2024 to $98,632 million in 2025, a reduction of about 24.8%[27]. - Total stockholders' equity decreased from $244,389 million in 2024 to $192,009 million in 2025, a decline of approximately 21.4%[27]. Operational Developments - Hyliion is on track to deliver initial KARNO units to customer sites in 2026, with plans to commercialize by year-end[5]. - The company expects to secure $40 million to $50 million in follow-on U.S. military contracts in 2026, reflecting strong demand in military and data center markets[5]. - Hyliion demonstrated 175 kilowatts of power generation during testing, with a full 200 kilowatt design power rating expected by commercialization in late 2026[7]. - The company has executed non-binding letters of intent for nearly 500 KARNO Cores, indicating growing customer demand for distributed power solutions[14]. - The company plans to focus 2026 deployments on prime power, military, and data center customers, highlighting the KARNO system's suitability for high-voltage DC applications[11]. Depreciation and Asset Adjustments - The company reported a depreciation and amortization expense of $5,956 million in 2025, up from $3,147 million in 2024, an increase of about 89.5%[29]. - The carrying value adjustment to assets held for sale was $1,590 million in 2025, compared to $6,464 million in 2024, indicating a decrease of approximately 75.4%[29].

Core Insights - Hyliion Holdings Corp. reported financial results for Q4 and the full year 2025, highlighting advancements in the KARNO generator platform and its commercialization plans for 2026 [1][2]. Key Business Highlights - The company achieved significant milestones in product development, particularly with the KARNO Power Module, which is now meeting the power requirements of early adopter customers, including the U.S. Navy [2][3]. - Hyliion is on track to deliver approximately 10 early adopter units in 2026, with strong demand across military and data center markets, evidenced by nearly 500 non-binding letters of intent for KARNO Cores [6][12]. Product Performance and Readiness - The KARNO Power Module demonstrated 175 kW of power generation during testing, with a full design power rating of 200 kW expected by commercialization [5][10]. - The system has successfully completed UL certification testing for key components, with final certification anticipated in Q2 2026, enabling broader deployments [4][6]. Financial Performance - For Q4 2025, Hyliion recorded revenue of $0.7 million, down from $1.5 million in Q4 2024, with a full-year revenue of $3.5 million [14][16]. - The company reported a net loss of $13.2 million for Q4 2025, an improvement from a loss of $14.4 million in the same period of 2024, and a full-year net loss of $57.2 million compared to $52.0 million in 2024 [15][16]. Cash Position and Guidance - Hyliion ended 2025 with $152 million in cash and investments, expecting to reduce cash burn to approximately $50 million in 2026, with a projected year-end balance of around $100 million [17][18]. - The company anticipates revenue of approximately $10 million in 2026 from R&D services and initial sales of generators following the commercialization of the KARNO Power Module [18]. Strategic Partnerships - Hyliion entered a strategic partnership with ABM Industries to deliver integrated distributed energy solutions, enhancing deployment efficiency for commercial and industrial customers [9].

Summary of Hyliion's Conference Call Company Overview - **Company**: Hyliion - **Industry**: Power Generation - **Focus**: Enabling on-site, behind-the-meter electricity production to reduce dependency on the grid [2][4] Core Product and Technology - **Product**: KARNO generator, capable of producing approximately 200 kilowatts of power [2][5] - **Technology**: Linear heat generator based on Stirling engine technology, utilizing 3D printing for manufacturing [8][9][15] - **Fuel Flexibility**: Can operate on over 20 different fuels, including natural gas, propane, diesel, hydrogen, and ammonia [11][24] - **Efficiency**: Targeting up to 50% electrical efficiency, significantly higher than the average U.S. wall outlet efficiency of 36% [12][36] Market Dynamics - **Growth in Power Sector**: Significant demand driven by data centers, with one hyperscaler projected to increase electricity usage from 6 gigawatts in 2025 to 40 gigawatts by 2030 [3][4] - **Shift to Distributed Grid**: Transitioning from centralized power plants to on-site generation systems [4] Financial Performance - **Revenue**: Estimated to generate approximately $4 million for the full year 2025, with $3 million reported year-to-date [18] - **Expenses**: Total expenses of $15 million in Q3 and $51 million year-to-date, with a focus on maintaining flat spending [18] - **Cash Position**: $165 million in cash and investments at the end of Q3, providing a runway for approximately three years [20][21] Customer Engagement and Contracts - **Key Contracts**: Engaged with the U.S. Navy for research and development services for autonomous ships [18][30] - **Interest in Data Centers**: Strong interest from data centers and commercial sectors for on-site power generation solutions [33][35] - **Letters of Intent (LOIs)**: Signed non-binding LOIs for nearly 500 KARNO units across various sectors, indicating strong demand [35] Regulatory Environment - **Non-Regulated Technology**: KARNO technology is classified as non-regulated by the EPA, simplifying deployment for customers [27][28] Future Outlook - **Growth Potential**: Anticipates rapid growth as the product is commercialized and demand increases [21][46] - **Supply Chain Focus**: Plans to optimize existing 3D printing capabilities to increase production efficiency before investing in new printers [41][42] - **Certification Goals**: Aiming for UL certification by early 2026 to facilitate customer deployments [36] Additional Insights - **Low Maintenance**: The KARNO generator has only one moving part, leading to reduced maintenance needs compared to traditional internal combustion engines [12] - **Environmental Standards**: Exceeds strict emissions standards, particularly in California, enhancing its market appeal [12][28] This summary encapsulates the key points discussed during the conference call, highlighting Hyliion's strategic positioning in the power generation industry, its innovative technology, and its financial health.

Core Viewpoint - Hyliion Holdings Corp. (HYLN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, Hyliion is expected to earn -$0.33 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.9% over the past three months [8]. - The upgrade reflects an improvement in Hyliion's underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the system [7].