AUSTIN, Texas - Hyliion Holdings Corp. (NYSE: HYLN), known for its development of electricity-generating technologies, has secured a Small Business Innovation Research (SBIR) contract from the U.S. Navy.
The contract, announced Today, initiates the first phase of designing a modular generator system, aligning with the Navy's specifications and incorporating Hyliion’s proprietary KARNO™ generator technology.
This collaboration will enable Hyliion to conceptualize the KARNO generator as a megawatt-scale, modular power solution. The design aims to be flexible and scalable, meeting the diverse power requirements of the Navy's Unmanned Surface Vessel (USV) program. Hyliion intends to scale its foundational 200-kilowatt KARNO gensets to achieve the necessary power output by combining multiple units.
Thomas Healy, Founder and CEO of Hyliion, expressed the company's honor in receiving the SBIR contract, emphasizing the KARNO generator's potential for efficient, flexible, and low-maintenance power generation. The company looks forward to supporting the Navy's mission and delving into higher power solutions for USVs.
The SBIR program focuses on fostering scientific and technological innovation to bolster the national economy and defense. The N241-060 program's goal is to develop a megawatt-scale USV modular generator concept that is ultra-reliable and efficient, tailored to the Navy's requirements. The concept aims to configure smaller kilowatt-scale units into a high-density package to achieve 4,000-hour maintenance-free operation in naval environments.
Hyliion's contract highlights its commitment to innovation and leadership in sustainable energy solutions. The KARNO generator, capable of operating on various fuels, including NATO F-76, is designed for maintenance-free operation with a hermetically sealed architecture.
The KARNO generator uses advanced 3D metal printed components and proprietary technology to produce clean electricity with improved fuel efficiency, reduced maintenance costs, and lower emissions compared to conventional generators. It is also versatile, capable of running on over 20 different fuels.
Hyliion, headquartered in Austin, Texas, with R&D in Cincinnati, Ohio, aims to provide distributed power generators for commercial and waste management industries, with future plans for mobile applications in vehicles and marine sectors. The company's mission is to offer practical solutions for a sustainable energy economy. This news is based on a press release statement.
InvestingPro Insights
As Hyliion Holdings Corp. (NYSE: HYLN) embarks on its collaboration with the U.S. Navy to develop a modular generator system, investors and industry observers are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, Hyliion's market capitalization stands at $281.94 million, indicating its size within the electricity-generating technologies sector. Despite the innovative prospects of the KARNO™ generator technology, Hyliion faces financial challenges, as evidenced by its negative gross profit margin of -647.92% and an operating income margin of -87677.08% for the last twelve months as of Q2 2024. These figures suggest that the company is currently struggling to generate profit from its core operations.
However, an InvestingPro Tip highlights that Hyliion holds more cash than debt on its balance sheet, which provides some financial stability and flexibility as it undertakes new projects such as the Navy contract. Another notable InvestingPro Tip is that the company's management has been aggressively buying back shares, a move that can reflect confidence in the company's future and potentially support the stock price.
Investors should also be aware of the company's stock performance over recent periods. Hyliion's stock has seen a large price uptick over the last six months, with a total return of 52.83%. Yet, it's important to note that the stock has taken a significant hit over the last week, with a -19.0% price total return. This volatility may be of interest to investors looking for short-term opportunities or those considering the long-term potential of the company in light of its recent contract win.
For those seeking a more in-depth analysis, InvestingPro offers additional tips on Hyliion, providing a comprehensive look at the company's financials, market position, and future prospects. There are 14 additional InvestingPro Tips available for investors who wish to delve deeper into Hyliion's performance metrics and industry standing.
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