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Introduction & Market Context
Hyliion Holdings Corp (NYSE:HYLN) presented its first quarter 2025 earnings results on May 14, revealing progress in its KARNO power generation technology commercialization efforts while maintaining a disciplined approach to cash management. The clean energy technology company’s stock closed at $1.79 on May 13, up 6.42% ahead of the earnings release, though it retreated 3.13% in after-hours trading.
The company continues its transition from its earlier powertrain business to focus fully on its KARNO generator technology, which offers a fuel-agnostic approach to power generation targeting multiple market segments including EV charging, data centers, and defense applications.
Quarterly Performance Highlights
Hyliion reported Q1 2025 revenue of $0.5 million from research and development services, with a net loss of $17.3 million. Total (EPA:TTEF) expenses reached $19.7 million for the quarter, with R&D costs increasing due to accelerated KARNO generator development activities.
The company highlighted several key developments during the quarter, including the unveiling of its KARNO Power Module at ACT Expo 2025 and ongoing unit testing with the US Navy. Management also introduced a new naming convention, distinguishing between the KARNO Power Module (the complete power generation system) and the KARNO Core (the fundamental generator technology).
As shown in the company’s financial results slide:
Hyliion ended the quarter with a strong cash position of $198.8 million in cash and investments, after using $20.9 million during Q1. This represents a decrease from the $219.7 million reported at the end of 2024, as noted in previous earnings reports. Capital spending accounted for $7.3 million of the cash use, primarily for printing-related assets, while ongoing operations consumed $13.7 million.
The company’s cash use and financial outlook are illustrated in this detailed breakdown:
Strategic Initiatives
A significant development highlighted in the presentation was Hyliion’s Letter of Intent (LOI) with Mesa Natural Gas Solutions for a 200 kW KARNO Power Module with potential deployment of up to 2.4 MW. While the company noted that this LOI is non-binding and subject to definitive agreements, it represents a meaningful commercial opportunity.
The details of this business relationship are shown here:
Hyliion also reported strong market interest across multiple segments, claiming over 100 KARNO units under contract and non-binding LOIs. The company has identified five key market segments for its technology: EV Charging, Data Centers, Waste Gas/Heat, Prime Power, and Mobility.
The breakdown of customer commitments across these segments is illustrated in this comprehensive overview:
The company’s defense sector penetration continues to advance, with ongoing testing of KARNO technology by the US Navy. This represents a potentially significant market opportunity as the defense sector seeks reliable, efficient power generation solutions.
Evidence of the US Navy relationship is shown in this image:
Detailed Financial Analysis
Hyliion’s financial strategy shows a focus on extending runway while funding commercialization efforts. The company projects full-year 2025 revenue of $10-15 million, with anticipated cash use of approximately $65 million, down from $79.6 million in 2024. This reduction in cash burn comes despite planned capital expenditures of approximately $30 million for the year.
The company also highlighted a potential tariff impact of $2-3 million for 2025, though specific details about these tariffs were not elaborated in the presentation.
Based on current projections and cash position, Hyliion appears to have sufficient funding to reach its commercialization milestones, with a path to gross margin neutrality on a cash basis projected for late 2026.
Forward-Looking Statements
Hyliion outlined its 2025 roadmap, focusing on delivering 10 early adopter customer units throughout the year while continuing testing and validation of the KARNO Core performance. The company plans to ramp up its production supply chain and commercialize the 200 kW Power Module in the second half of 2025.
The key milestones for 2025 are detailed in this roadmap:
To support these objectives, Hyliion is expanding its manufacturing capabilities in Austin, Texas. The facility will enable increased production capacity as the company transitions from development to commercial delivery.
The manufacturing expansion is showcased in this image of the Austin facility:
While Hyliion’s presentation emphasized progress and opportunity, investors should note that the company continues to operate at a significant loss with revenue generation still in early stages. The projected $10-15 million in 2025 revenue would represent substantial growth but remains modest relative to the company’s ongoing expenses and investment requirements.
The path to profitability depends on successful execution of the commercialization strategy, scaling of production, and market adoption of the KARNO technology across the identified target segments. The company’s strong cash position provides runway to pursue these objectives, but investors should monitor progress against the outlined milestones throughout 2025.
Full presentation:
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