Hyliion signs LOI with MMR Power Solutions for KARNO modules

Published 25/06/2025, 13:38
Hyliion signs LOI with MMR Power Solutions for KARNO modules

AUSTIN, Texas - Hyliion Holdings Corp. (NYSE American:HYLN), a clean energy technology company currently trading below its InvestingPro Fair Value with a market capitalization of $243.57 million, has signed a non-binding Letter of Intent with MMR Power Solutions for the purchase of three KARNO Power Modules with a combined capacity of up to 600 kW, according to a press release statement issued by the company.

The deployment of these stationary power units is expected to begin in the second half of 2026. MMR Power Solutions, a subsidiary of MMR Group, plans to utilize the modules to support its commercial and industrial customers with on-site power generation. According to InvestingPro data, Hyliion maintains impressive gross profit margins of 76% and holds more cash than debt on its balance sheet, though analysts note the company is currently burning through cash reserves.

The KARNO system is designed as an alternative to traditional combustion-based generators for long-duration power needs, featuring a heat-engine architecture that can be used in combined heat and power configurations.

"At MMR, our customers rely on us to deliver forward-looking power solutions that meet operational needs without compromising on reliability or efficiency," said Brian Beaty, Director of Operations of MMR Power Solutions.

Thomas Healy, Founder and CEO of Hyliion, noted that the agreement "reflects growing industry demand for power solutions that combine efficiency with high reliability."

MMR Power Solutions serves customers across oil and gas, manufacturing, and utility markets, specializing in electrical and instrumentation systems. The company develops, owns, and operates on-site energy facilities using various technologies.

The agreement remains non-binding and subject to the execution of a definitive purchase agreement. Hyliion focuses on providing modular power plant technology that can operate on various fuel sources, initially targeting the commercial and waste management industries. With a strong liquidity position reflected in a current ratio of 13.85, the company appears well-positioned to pursue its growth initiatives. For deeper insights into Hyliion’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which offers analysis of 15+ additional ProTips and extensive financial metrics.

In other recent news, Hyliion Holdings Corp announced its financial results for the first quarter of 2025, revealing a wider-than-expected loss and lower-than-anticipated revenue. The company reported an earnings per share of -$0.10, missing the forecasted -$0.07, with revenue totaling $489,000 against an expected $800,000. Additionally, Hyliion has been selected by the Department of the Air Force to provide its KARNO Power Modules, a move that aligns with the military’s strategy to diversify energy sources. This selection is part of a broader initiative to maintain operations during fuel supply disruptions, showcasing Hyliion’s innovative technology.

Hyliion also signed a memorandum of understanding with Alkhorayef Industries Company to adapt its KARNO Power Modules for the Saudi market, representing a potential business opportunity of $1 billion. The collaboration aims to support Saudi Arabia’s Vision 2030 agenda for industrial growth. Furthermore, Hyliion’s technology was recognized for its adaptability and environmental benefits, making it suitable for various deployment scenarios. Despite these advancements, the company’s financial performance in Q1 2025 indicates challenges in revenue generation and operational expenses.

Hyliion’s stock saw a significant decline following the earnings report, reflecting investor disappointment. However, CEO Thomas Healy expressed optimism about the company’s product performance and customer interest, noting plans for a commercial launch of the KARNO Power Module by the end of 2025. Hyliion continues to anticipate revenue between $10 million and $15 million for the full year, driven by early adopter unit deployments and R&D activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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