Hyliion Holdings Corp. (NYSE: HYLN) experienced a notable after-hours surge last Friday, with its shares rising by 10.24% to $2.80. This followed a relatively stable regular trading session, which saw a modest 2% decline after the release of its Q3 earnings report. The market’s reaction underscores investor optimism fueled by strategic advancements and milestones achieved during the quarter.
Key Achievements and Contracts
During Q3, Hyliion secured significant customer commitments, surpassing its 2025 production capacity for the KARNO generator. Initial customer units are scheduled for delivery by year-end, and HYLN reaffirmed its revenue guidance of low double-digit millions for 2025.
Among its key accomplishments was securing a $16 million contract with the U.S. Navy’s Office of Naval Research (ONR) to explore the KARNO generator for naval and stationary power applications. Additionally, Hyliion executed a Letter of Intent (LOI) with ANA, a prominent industrial equipment leader, for six KARNO units intended for mobile power solutions.
Its KARNO generator has also qualified under California’s Renewables Portfolio Standard for using renewable fuels, including landfill gas, biogas, and hydrogen. Its innovative fuel-agnostic capabilities were successfully demonstrated by transitioning seamlessly between various fuel types during operation.
Future-Focused Developments
Hyliion plans to recognize revenue from military development projects beginning in Q4 2024 and aims to develop a 2-megawatt KARNO generator for data center applications, targeting deployment in 2026. HYLN also expanded its manufacturing capacity by taking delivery of advanced additive printing machines at its Austin, Texas facility. The first M Line production additive printer from Colibrium Additive, a GE Aerospace company, is expected imminently to support Hyliion’s production ramp.
Outlook and Market Demand
These advancements underscore growing demand for the KARNO generator, showcasing its versatility across industries. With initial customer deliveries planned for late 2024 and a ramp-up in 2025, Hyliion (HYLN) is well-positioned to capitalize on its innovative technologies and strategic partnerships, reinforcing its standing as a leader in sustainable power solutions.
