Summary of Hyliion Holdings Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: $700,000 from R&D services related to contracts with the Office of Naval Research, down from $1.5 million in Q4 2024.

Gross Margin: Small gain, with cost of sales at $600,000.

Operating Expenses: $15 million, reduced from $17.2 million in Q4 2024, due to lower R&D and SG&A costs.

Net Loss: $13.2 million, an improvement from $14.4 million in Q4 2024.

Full Year Revenue: $3.5 million, compared to $1.5 million in 2024.

Full Year Net Loss: $57.2 million, up from $52 million in 2024.

Cash Position: Ended Q4 with $152.4 million in cash and investments, slightly below the projected $155 million.

2Strategic Updates and Business Highlights

KARNO Power Module: Progressing towards UL certification, with two of three certification levels completed. Expected to finalize certification in Q2 2026.

Power Generation: Achieved 175 kilowatts in testing, aiming for a full 200-kilowatt rating by year-end.

Fuel Flexibility: Demonstrated dynamic fuel switching capabilities between natural gas and propane, with plans to incorporate diesel functionality for military applications.

Market Demand: Nearly 500 units under nonbinding letters of intent, with strong interest in commercial, military, and data center markets.

Partnerships: Formed a strategic partnership with ABM Industries for integrated energy solutions, enhancing deployment capabilities.

3Forward Guidance and Outlook

2026 Revenue Expectation: Projected to generate approximately $10 million from a mix of R&D services and commercial customers.

Deployment Plans: Aim to deploy around 10 early adopter units in 2026, with half allocated to military applications.

Long-Term Growth: Anticipate scaling production and expanding into data center applications, with significant opportunities in military contracts valued at $40 million to $50 million.

4Bad News, Challenges, or Points of Concern

Net Loss Increase: Despite revenue growth, the net loss widened compared to the previous year.

Certification Delays: While nearing UL certification, any delays could impact deployment timelines.

Supply Chain Risks: Although progress has been made in mitigating magnet supply risks, uncertainties remain.

Revenue Recognition: Initial units may not immediately translate to recognized revenue until commercialization milestones are met.

5Notable Q&A Insights

Market Focus: Military applications are a priority, with ongoing discussions for additional contracts beyond the Navy.

Capacity Expansion: Current focus is on optimizing existing printer throughput rather than expanding the number of printers significantly in 2026.

Competitive Positioning: The KARNO system is positioned competitively against traditional internal combustion engines and fuel cells, with a focus on efficiency and lower maintenance costs.

Software Development: Hyliion is developing its control systems in-house, aiming for integration with existing site systems while enhancing user interface capabilities. Overall, Hyliion is transitioning from development to deployment, with a focus on commercialization of the KARNO power module and expanding its market presence amid ongoing challenges in financial performance and supply chain management.