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RIYADH - Hyliion Holdings Corp. (NYSE American: HYLN), an innovator in modular power technology, has entered a strategic memorandum of understanding (MOU) with Alkhorayef Industries Company. The agreement, signed during the Saudi-U.S. Investment Forum 2025 in Riyadh, outlines a collaboration to adapt and scale Hyliion’s KARNO Power Modules for the Saudi market, representing a potential business opportunity of $1 billion. According to InvestingPro data, Hyliion maintains a strong financial position with more cash than debt and impressive gross profit margins of 76%, though the company faces challenges with rapid cash burn.
The forum coincided with a state visit by President Donald J. Trump and saw the signing of investment agreements totaling $600 billion, highlighting the strengthening economic relationship between the U.S. and Saudi Arabia. Hyliion’s KARNO technology is poised to contribute to Saudi Arabia’s energy needs, aligning with the Kingdom’s Vision 2030 agenda for industrial and infrastructure growth. With a current market capitalization of $221 million and trading significantly below its 52-week high of $4.09, InvestingPro analysis indicates the stock may be undervalued.
Hyliion’s CEO Thomas Healy expressed pride in the U.S.-Saudi collaboration, emphasizing the global impact of American innovation. Mohammed Alkhorayef, CEO of Alkhorayef Group Company, highlighted Hyliion’s technology as a leap forward in clean power generation, supporting Saudi Arabia’s clean energy transformation.
The collaboration will include validating two KARNO Power Modules in Saudi Arabia in 2026, customizing solutions for regional energy requirements, and establishing partnerships for local assembly and deployment. Alkhorayef Industries Company’s GulfPower division will oversee the local strategy, adhering to Saudi environmental and energy standards.
This MOU follows a Letter of Intent from December 2024 and moves the partnership towards actionable plans, with the intention to deploy KARNO solutions in Saudi Arabia starting in 2026. Both the MOU and LOI are non-binding and contingent on definitive agreements.
Hyliion focuses on providing modular power plants that operate on various fuels, targeting industries such as commercial and waste management with their KARNO Power Module. Alkhorayef Group Company, with its GulfPower brand, offers energy solutions across multiple sectors, supporting Vision 2030’s sustainable energy goals. InvestingPro data reveals the company’s strong liquidity position with a current ratio of 13.85 and projects revenue growth of 13.31% for 2025. For deeper insights into Hyliion’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The information in this article is based on a press release statement and does not include any speculative content regarding the industry or the companies involved.
In other recent news, Hyliion Holdings reported disappointing financial results for the first quarter of 2025, with both earnings and revenue falling short of expectations. The company posted an earnings per share of -$0.10, missing the forecasted -$0.07, and revenue came in at $489,000, below the anticipated $800,000. Despite these setbacks, Hyliion continues to advance its Carnot Power Module, with plans for a commercial launch by the end of 2025. The company has also signed a nonbinding letter of intent with Mesa Natural Gas Solutions for joint demonstrations of the Carnot Power Module, potentially expanding its deployment applications. Hyliion aims to deliver 10 early adopter units in 2025, although some deployments may shift to the second half of the year due to production challenges. The company remains optimistic about its financial stability, with CFO John Kanzer stating that current capital should suffice through the commercialization phase. Additionally, Hyliion plans to increase its capital expenditures to $30 million, up from an initial estimate of $25 million, in order to support production growth. Analysts continue to monitor the company’s progress as it navigates these operational challenges and market competition.
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