Hyliion selected for Air Force fuel resilience project

AUSTIN, Texas - Hyliion Holdings Corp. (NYSE American: HYLN), a $200 million market cap company trading near its 52-week low of $1.14, has been chosen by the Department of the Air Force and the Department of Defense’s Chief Digital and Artificial Intelligence Office (CDAO) to provide its KARNO™ Power Modules for a project aimed at maintaining critical operations during fuel supply disruptions. This selection, announced today, allows the Air Force to transition to more resilient energy sources. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 13.85, indicating ample liquidity to support its operations.

The KARNO Power Modules are designed to enable seamless transitions between different fuel types, aligning with the Department of Defense’s energy strategy to reduce reliance on a single fuel source. The Air Force, through the Tradewinds Solutions Marketplace, identified Hyliion’s technology as a solution that could support its objective to simplify logistics and cut costs over time.

Hyliion’s technology was recognized for its innovation, scalability, and potential impact on DoD missions among a competitive field of applicants to the Tradewinds Solutions marketplace. The marketplace is a digital repository of awardable pitch videos that address significant challenges in Artificial Intelligence, Machine Learning, and resilient energy technologies for the DoD.

The KARNO system’s adaptability to various fuel types and its environmental benefits make it suitable for deployment scenarios where resilience and sustainability are crucial. Hyliion’s technology also aims to reduce logistical burdens by eliminating the need for separate generators for each fuel type.

The Tradewinds Solutions Marketplace and the Air Force Office of Energy Assurance are part of the DoD’s efforts to develop energy solutions that strengthen the resilience of Air Force and Space Force installations. By collaborating with innovative companies like Hyliion, the Air Force seeks to enhance its operational capabilities in the face of fuel supply challenges.

Hyliion, headquartered in Austin, Texas, with research and development in Cincinnati, Ohio, focuses on creating modular power plant technology that operates on various fuels. The company targets the commercial and waste management industries with its KARNO™ Power Module for prime power and energy arbitrage opportunities. Despite current challenges, InvestingPro analysis shows impressive gross profit margins of 76% and projects revenue growth of 5.65% for the current year. For deeper insights into Hyliion’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering over 1,400 US stocks.

This announcement is based on a press release statement and includes forward-looking statements regarding Hyliion’s future performance and strategy. These statements are subject to risks and uncertainties, and actual results may differ materially from those projected.

In other recent news, Hyliion Holdings reported disappointing financial results for the first quarter of 2025, with earnings per share at -$0.10, missing the forecasted -$0.07. The company’s revenue also fell short of expectations, coming in at $489,000 against a projected $800,000. Hyliion faced a net loss of $17.3 million, up from $15.6 million in the same period last year, indicating ongoing challenges in revenue generation and operational expenses. Despite these financial setbacks, Hyliion remains optimistic about launching its Carnot Power Module commercially by the end of 2025, with expected revenue for the year ranging between $10 million and $15 million.

In addition to its financial results, Hyliion has entered a memorandum of understanding with Alkhorayef Industries Company to scale its KARNO Power Modules for the Saudi market, highlighting a potential business opportunity valued at $1 billion. This collaboration aligns with Saudi Arabia’s Vision 2030 agenda and involves validating two KARNO Power Modules in Saudi Arabia by 2026. The agreement, although non-binding, signifies a move towards actionable plans for deploying KARNO solutions in the region. Hyliion’s CEO, Thomas Healy, expressed confidence in the company’s product performance and strong customer interest, despite the production challenges faced with linear electric motors and increasing capital expenditures.

Furthermore, Hyliion has signed a non-binding letter of intent with Mesa Natural Gas Solutions for joint demonstration of the Carnot Power Module, representing a potential deployment of up to 12 units. The company plans to deliver 10 early adopter units in 2025, with some deployments shifting to the second half of the year. Hyliion anticipates achieving breakeven gross margin by the end of 2026, as it continues to address production issues and scale up manufacturing capabilities.

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