Hyliion Holdings Reports Fourth-Quarter and Full-Year 2024 Financial Results

Rhea-AI Summary

Hyliion Holdings (NYSE: HYLN) reported its Q4 and full-year 2024 results, highlighting significant progress in its KARNO generator business. The company delivered its first Early Adopter Customer Unit in early 2025 and secured commitments for over 100 KARNO generators. Key achievements include:

- Q4 2024 revenue of $1.5M from R&D services
- Secured LOI with data center developer for up to 70MW capacity
- Awarded $6M federal grant for methane emission reduction
- Announced deployment with Al Khorayef in Saudi Arabia

Financial highlights: 2025 revenue guidance of $10-15M, ended 2024 with $220M cash position. Q4 net loss was $14.4M, improved from $29.1M in Q4 2023. Full-year 2024 net loss was $52.0M. The company expects 2025 cash expenditures of approximately $60M for KARNO development and commercialization.

Positive

• Secured over 100 KARNO generator commitments
• Major LOI with data center developer for up to 70MW capacity
• Awarded $6M federal grant
• Q4 net loss improved to $14.4M from $29.1M YoY
• Strong cash position of $220M

Negative

• Delayed delivery timeline from late 2024 to early 2025
• Manufacturing challenges with contract manufacturer
• Issues with printed component processing
• Customer LOIs are non-binding

Insights

Financial Analyst

Hyliion's Q4 and full-year 2024 results reveal a company in strategic transition, pivoting from its discontinued powertrain business to focus entirely on its innovative KARNO generator technology. The financial results show meaningful progress toward commercialization, though significant challenges remain before reaching profitability.

The company reported its first meaningful revenue of $1.5 million in Q4 2024 from R&D services, primarily from its contract with the Office of Naval Research. While this represents a positive milestone, the modest gross margin of $100,000 indicates the early-stage nature of the business. For context, this revenue is essentially a proof-of-concept validation rather than commercial product sales.

Hyliion has provided 2025 revenue guidance of $10-15 million, which would represent a 7-10x increase from 2024. This guidance includes both generator sales and R&D services, though the mix remains unclear. Based on the early commercialization stage, I expect R&D services to comprise a significant portion of 2025 revenue, with product sales ramping up gradually as manufacturing capabilities mature.

The company's cash position of $219.7 million provides a substantial runway of approximately 3.5-4 years at the projected burn rate of $60 million annually. This strong balance sheet differentiates Hyliion from many early-stage clean energy companies and gives it time to refine its technology and scale manufacturing without immediate financing pressure.

The most promising commercial development is the LOI with a data center developer for up to 70 megawatts of generating capacity. At an estimated $1-1.5 million per megawatt (industry standard pricing for advanced power generation), this represents a potential $70-105 million opportunity if fully realized. However, investors should note these are non-binding agreements contingent on successful early deployments and performance validation.

Manufacturing challenges with a key contract manufacturer and printed component processing could impact the company's ability to meet its production targets. These issues delayed the first Early Adopter Customer Unit from late 2024 to early 2025, highlighting the technical complexity of scaling production. The company's investment in M Line production additive printers from Colibrium Additive (a GE Aerospace company) represents a strategic move to bring more manufacturing in-house and reduce dependency on external suppliers.

The $6 million federal grant for methane emission reduction and the LOI with Al Khorayef for deployment in Saudi Arabia demonstrate the versatility of the KARNO technology across different applications and markets. The generator's ability to operate on unprocessed wellhead gas with near-zero emissions could provide a compelling value proposition in the oil and gas sector, where methane emissions are increasingly scrutinized.

Overall, Hyliion is showing promising early signs of commercial traction, but investors should recognize that full-scale commercialization and profitability remain several years away. The company's strong cash position provides runway for execution, but manufacturing scale-up and conversion of non-binding agreements to firm orders represent key risks to monitor in 2025.

Energy Technology Expert

Hyliion's Q4 and FY2024 results reveal significant progress in commercializing its KARNO generator technology, a linear heat engine based on the Stirling cycle that represents a fundamental departure from conventional power generation systems. The technology employs a patented heat exchanger design and advanced materials enabled by additive manufacturing to achieve its performance characteristics.

The KARNO generator's primary technical differentiators include:

• Fuel flexibility: Unlike combustion engines or fuel cells that require specific fuel types or extensive preprocessing, the KARNO can operate on natural gas, hydrogen, propane, renewable natural gas, and even unprocessed wellhead gas without modification
• Emissions profile: The external combustion design enables more complete fuel combustion and precise temperature control, resulting in near-zero NOx emissions (90+% reduction compared to reciprocating engines)
• Power density: The compact design delivers approximately 5x the power density of comparable generators, enabling the 2MW system to fit within a standard 20-foot shipping container
• Efficiency: The system targets 40-45% electrical efficiency, competitive with the best-in-class reciprocating engines but with superior emissions performance

The delivery of the first Early Adopter Customer Unit represents a critical validation milestone, though the delay from Q4 2024 to early 2025 signals the technical challenges inherent in scaling novel energy technologies. The company's manufacturing strategy relies heavily on advanced additive manufacturing (3D printing) for critical components, which enables the complex geometries needed for the heat exchanger design but introduces production scaling challenges.

The investment in M Line production printers from GE Aerospace's Colibrium Additive division is strategically significant. These systems represent industrial-scale metal additive manufacturing capability, allowing Hyliion to produce the complex heat exchanger components that are central to the KARNO's performance advantages. However, the manufacturing challenges mentioned in the release - specifically issues with a contract manufacturer and printed component processing - highlight the technical complexity of scaling production and could impact the company's ability to meet its delivery targets for 2025.

The data center LOI for up to 70MW represents a particularly promising application. Data centers require highly reliable power with minimal emissions, and their energy demands are growing exponentially with AI deployment. The KARNO's compact footprint (approximately the size of a 20-foot shipping container for the 2MW system) provides significant space efficiency compared to diesel generators or fuel cells of equivalent capacity, while its fuel flexibility offers operational resilience.

The $6 million DOE grant for methane emission reduction validates another compelling use case. In oil and gas operations, associated gas is often flared or vented due to lack of infrastructure or economic alternatives. The KARNO's ability to operate on unprocessed wellhead gas could convert this waste stream into valuable electricity while reducing methane emissions, potentially creating a $1-2 billion addressable market in North America alone.

From a competitive standpoint, the KARNO positions between reciprocating engines (which have lower upfront costs but higher emissions and maintenance requirements) and fuel cells (which offer zero emissions but at higher costs and with less fuel flexibility). The technology must prove its reliability and durability in field deployments to validate its total cost of ownership advantages over these established alternatives.

As Hyliion transitions from technology development to commercialization, the execution of the Early Adopter program will be critical for validating performance in real-world conditions and refining the system before broader deployment. The company's strong cash position provides runway for this validation process, but manufacturing scale-up remains the critical challenge to watch in 2025.

AUSTIN, Texas--(BUSINESS WIRE)-- Hyliion Holdings Corp. (NYSE American: HYLN) (“Hyliion”), a developer of modular power plant technology, today reported its fourth-quarter and full-year 2024 financial results.

Key Business Highlights

• Delivered the first Early Adopter Customer Unit in early 2025
• Secured commitments for over 100 KARNO™ generators, creating a multiyear backlog
• Executed a Letter of Intent (LOI) with a leading data center developer for initial deployment and multiyear opportunity for up to 70 megawatts (350 KARNO 4-shaft units) of generating capacity
• Recorded revenue of $1.5 million in the fourth quarter of 2024 for research and development services
• Awarded a $6 million federal grant for the deployment of up to 2 megawatts of KARNO generators to support methane emission reduction efforts in the oil and gas industry
• Announced a planned deployment with Al Khorayef for up to 12 KARNO generators in Saudi Arabia
• Provided 2025 revenue guidance of $10 to $15 million including generator sales and research and development services
• Ended the year with $220 million in cash and investments
• Provided 2025 guidance of approximately $60 million in cash expenditures, including KARNO development, product commercialization and capital expenditures

Executive Commentary

"We are pleased to report significant achievements in building customer backlog and delivering our first Early Adopter Customer Unit of the KARNO generator,” said Thomas Healy, Hyliion’s Founder and CEO. “In the fourth quarter, we recognized revenue and operating income from research and development services and secured two notable customer agreements: our first LOI with a data center customer for our recently announced 2-megawatt KARNO generator product and our first Middle East customer for the 200 kW model. We look forward to ongoing customer deliveries and commercialization of the 200 kW generator later this year."

KARNO Commercial Updates

In early 2025, the Company delivered the first of its Early Adopter Customer Units and plans to deliver ten units through approximately the middle of the year, followed by additional deliveries later in the year. Early Adopter Customer Units aim to validate the KARNO generator’s performance against customer requirements, with customer feedback helping to refine and enhance the system, as well as to address any performance issues that may arise. Some of these units will remain at Hyliion’s Cincinnati facility for further testing and validation as outlined in customer contracts, while others will be delivered to customer sites for various applications, including vehicle charging, waste-gas-to-power generation and development units for the Navy.

Hyliion has secured customer contracts and non-binding LOIs for over 100 KARNO generators, creating a multiyear backlog of interest. Hyliion is introducing a locally deployable 200 kW genset this year and plans to commercialize a 2-megawatt model in 2026, targeting markets such as EV charging, data centers, waste gas & heat, prime power and mobility applications.

Hyliion has entered into an LOI with a leading data center developer for the initial deployment of a KARNO 2-megawatt generator in 2026. Beyond the existing backlog, this LOI presents a multiyear opportunity of up to 70 megawatts of generating capacity, equivalent to 350 KARNO 4-shaft units. The KARNO generator is ideally suited to meet the growing electricity demands of data center operations with its high-power, efficient, and low-emission solution, with a compact footprint approximately the size of a 20-foot shipping container. Its unique fuel flexibility and high-power density give data center operators a competitive edge over conventional power solutions. The multiyear deployment is contingent on successful performance and early deployments.

In the fourth quarter of 2024, Hyliion reported its first revenue and operating income from research and development services related to its contract with the Office of Naval Research. The KARNO generator is currently being evaluated by ONR as a potential power source for future maritime platforms and stationary power applications.

Hyliion also recently signed an LOI with Al Khorayef, a leader in the power generation industry in the Middle East. The LOI outlines plans to deliver up to twelve 200 kW KARNO generator units to Saudi Arabia for deployment in agricultural and other power generation applications. The companies aim to explore the wider adoption of KARNO generators in the region, aligning with Saudi Arabia’s Vision 2030 sustainability goals to reduce pollutants and enhance food security.

In late 2024, Hyliion was awarded a $6 million grant from the U.S. Department of Energy’s Methane Emission Reduction Program to advance the reduction of methane emissions in the oil and gas industry. The grant will enable Hyliion to install up to 2 megawatts of KARNO generators in collaboration with oil and gas partners and will demonstrate the generator’s unique ability to operate on unprocessed wellhead gas and produce sustainable near-zero emissions electricity.

Customer LOIs are non-binding in nature and are subject to the execution of binding commercial agreements.

KARNO Generator Development

Hyliion continues the testing and validation of the 200 kW KARNO generator system and the design of the 2-megawatt KARNO generator. The Company primarily faced two challenges related to a key contract manufacturer and the processing of a printed component. Hyliion continues to work with the contract manufacturer to improve output and is enhancing processing of printed parts to enable a ramp-up in generator production capacity throughout the year. As a result, the Company adjusted the initial delivery timeline for Early Adopter Customer Units from late 2024 to early 2025.

Hyliion continues to take delivery of additive printing machines at its Austin, Texas manufacturing facility and has placed orders for additional printers to expand its manufacturing capacity. In December, the Company took delivery of its first M Line production additive printer from Colibrium Additive, a GE Aerospace company, marking the first deployment of an M Line system in the United States outside of GE. Hyliion has placed orders for additional M Line machines, with deliveries scheduled to continue throughout 2025. These advanced printers are designed for volume production, assisting with Hyliion’s manufacturing scale-up.

Financial Highlights and Guidance

The Company recorded $1.5 million of revenue related to research and development services in the fourth quarter and full year in 2024, along with cost of revenue of $1.4 million. Gross margin was $100 thousand for the fourth quarter. The Company reported $672 thousand of revenue in 2023 and a gross margin loss of $1.0 million.

Fourth quarter operating expenses totaled $17.2 million, compared to $32.6 million in the prior-year quarter. Expenses include a $900 thousand write-down of the value of assets held for sale from the Company’s discontinued powertrain business, mostly offset by gains on sales of other powertrain assets. Net loss in the fourth quarter was $14.4 million, compared with $29.1 million in the fourth quarter of 2023. The full-year net loss for 2024 was $52.0 million, including $3.0 million of expenses related to the shutdown of the discontinued powertrain business, net of asset sale gains. Losses in 2024 are down from $123.5 million in 2023, primarily driven by reduced spending related to Hyliion’s powertrain business, partially offset by higher spending for the KARNO generator product.

Total changes in cash and investment balances for the fourth quarter were $17.8 million, driven by net operating losses and capital expenditures, partly offset by cash generated from interest income and powertrain asset sales. Total cash and investments at the end of the quarter were $219.7 million.

For 2024, total cash consumed for KARNO development and capital investments was $58.0 million, excluding $14.1 million spent on share repurchases and $7.6 million of payments related to the shutdown of the powertrain business, net of asset sale proceeds.

Projections for 2025 include $10 to $15 million of revenue related to research and development services and KARNO generator sales. The Company also expects total cash expenditures in 2025 to be similar to the $58 million spent in 2024, net of planned lease financing for some capital investments.

About Hyliion

Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company’s primary focus is to provide modular power plants that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, Ohio, Hyliion is initially targeting the commercial and waste management industries with a locally deployable generator that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine. The KARNO generator is a fuel-agnostic solution, enabled by additive manufacturing, that leverages a linear heat generator architecture. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy. For further information, please visit www.hyliion.com.

Forward Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage company with a history of losses, and our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business; our ability to comply with governmental regulations related to defense spending and procurement; the suitability of our products for defense applications; and the other risks and uncertainties described under the heading “Risk Factors” in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2025 for the year ended December 31, 2024 and in our subsequently filed Forms 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion’s operations and projections can be found in its filings with the SEC. Hyliion’s SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.

HYLIION HOLDINGS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollar amounts in thousands, except share and per share data)
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
	(Unaudited)
Revenues
Product sales and other	$	—			$	—			$	—			$	672
Research and development services		1,509				—				1,509				—
Total revenues		1,509				—				1,509				672
Cost of revenues
Product sales and other		—				41				—				1,716
Research and development services		1,415				—				1,415				—
Total cost of revenues		1,415				41				1,415				1,716
Gross profit (loss)		94				(41	)			94				(1,044	)
Operating expenses
Research and development		11,263				8,768				37,004				82,240
Selling, general and administrative		5,880				12,346				24,382				42,611
Exit and termination costs		61				11,474				3,007				11,474
Total operating expenses		17,204				32,588				64,393				136,325
Loss from operations		(17,110	)			(32,629	)			(64,299	)			(137,369	)
Interest income		2,712				3,463				12,216				13,808
Gain on disposal of assets		—				—				3				1
Other income, net		—				36				32				50
Net loss	$	(14,398	)		$	(29,130	)		$	(52,048	)		$	(123,510	)
Net loss per share, basic and diluted	$	(0.08	)		$	(0.16	)		$	(0.30	)		$	(0.68	)
Weighted-average shares outstanding, basic and diluted		173,764,148				182,885,328				174,915,487				181,411,069

HYLIION HOLDINGS CORP. CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share data)
	December 31,
		2024				2023
Assets
Current assets
Cash and cash equivalents	$	9,227			$	12,881
Accounts receivable, net		1,923				40
Prepaid expenses and other current assets		6,401				18,483
Short-term investments		110,918				150,297
Assets held for sale		2,563				—
Total current assets		131,032				181,701
Property and equipment, net		25,920				9,987
Operating lease right-of-use assets		5,431				7,070
Other assets		1,079				1,439
Long-term investments		99,584				128,186
Total assets	$	263,046			$	328,383
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	5,243			$	4,224
Current portion of operating lease liabilities		2,426				847
Accrued expenses and other current liabilities		6,622				10,051
Total current liabilities		14,291				15,122
Operating lease liabilities, net of current portion		4,366				6,792
Other liabilities		—				203
Total liabilities		18,657				22,117
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value; 250,000,000 shares authorized; 184,428,472 and 183,071,317 shares issued as of December 31, 2024 and 2023, respectively; 173,818,402 and 183,034,255 shares outstanding as of December 31, 2024 and 2023, respectively		18				18
Additional paid-in capital		408,315				404,045
Treasury stock, at cost; 10,610,070 and 37,062 shares as of December 31, 2024 and 2023, respectively		(14,132	)			(33	)
Accumulated deficit		(149,812	)			(97,764	)
Total stockholders’ equity		244,389				306,266
Total liabilities and stockholders’ equity	$	263,046			$	328,383

HYLIION HOLDINGS CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands)
	Year Ended December 31,
		2024				2023
Cash flows from operating activities
Net loss	$	(52,048	)		$	(123,510	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		3,147				3,511
Amortization and accretion of investments, net		(3,078	)			(2,868	)
Noncash lease expense		1,639				1,496
Inventory write-down		—				1,139
Gain on disposal of assets, including assets held for sale		(2,850	)			(1	)
Share-based compensation		4,615				6,217
Carrying value adjustment to assets held for sale		6,464				—
Change in operating assets and liabilities:
Accounts receivable		(1,883	)			1,096
Inventory		—				(1,065	)
Prepaid expenses and other assets		(5,444	)			463
Accounts payable		(2,865	)			1,356
Accrued expenses and other liabilities		(3,588	)			(3,020	)
Operating lease liabilities		(847	)			(1,776	)
Net cash used in operating activities		(56,738	)			(116,962	)
Cash flows from investing activities
Purchase of property and equipment		(16,525	)			(7,401	)
Proceeds from sale of property and equipment		5,385				2
Payments for security deposit		—				(45	)
Purchase of investments		(96,253	)			(189,670	)
Proceeds from sale and maturity of investments		166,886				215,422
Net cash provided by investing activities		59,493				18,308
Cash flows from financing activities
Proceeds from exercise of common stock options		67				257
Taxes paid related to net share settlement of equity awards		(412	)			(239	)
Repurchase of treasury stock		(13,982	)			(33	)
Net cash used in financing activities		(14,327	)			(15	)
Net decrease in cash and cash equivalents and restricted cash		(11,572	)			(98,669	)
Cash and cash equivalents and restricted cash, beginning of period		21,464				120,133
Cash and cash equivalents and restricted cash, end of period	$	9,892			$	21,464

 

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Hyliion Holdings Corp.

press@hyliion.com

Investor Relations

ir@hyliion.com

Source: Hyliion Holdings Corp.

FAQ

What is Hyliion's (HYLN) revenue guidance for 2025?

Hyliion projects revenue of $10-15 million for 2025, including generator sales and R&D services.

How many KARNO generator commitments has HYLN secured?

Hyliion has secured customer contracts and non-binding LOIs for over 100 KARNO generators, creating a multiyear backlog.

What was Hyliion's (HYLN) Q4 2024 financial performance?

HYLN reported Q4 2024 revenue of $1.5M, gross margin of $100K, and net loss of $14.4M.

What is the size of HYLN's data center LOI agreement?

The LOI includes potential deployment of up to 70 megawatts (350 KARNO 4-shaft units) of generating capacity.

How much cash does Hyliion (HYLN) have at the end of 2024?

Hyliion ended 2024 with $219.7 million in cash and investments.