AUSTIN, Texas - Hyliion Holdings Corp. (NYSE: HYLN), known for developing electricity-generating technologies, has secured a contract exceeding $15 million from the Office of Naval Research (ONR) to advance its KARNO generator. The technology is earmarked for potential use aboard Navy ships and in stationary power settings, aiming to enhance the U.S. Naval operations with a focus on efficiency, reduced maintenance, and lower fuel consumption.
The KARNO generator, a linear generation system, is powered by heat and incorporates 3D metal printing in its design. It features a hermetically sealed architecture, which boasts minimal moving parts, promoting longevity and low maintenance. Its quiet operation and efficiency are seen as ideal for naval vessel applications.
Hyliion's CEO, Thomas Healy, expressed pride in the partnership with the ONR, emphasizing the company's commitment to delivering power generation solutions that meet the needs for efficiency and reliability. The contract aligns with the ONR's strategic goals to decrease carbon footprint and boost operational efficiency across naval operations.
The KARNO generator's versatility is highlighted by its adaptability to the diverse power requirements of maritime environments and its potential to address broader U.S. Defense power needs in stationary applications without sacrificing economic or emissions objectives.
This development is part of Hyliion's broader mission to offer clean, flexible, and affordable power generation. The company focuses on distributed power generators that can operate on various fuel sources, catering to the commercial and waste management industries, as well as mobile applications such as vehicles and marine.
The ONR, a leader in science and technology for the Navy and Marine Corps, supports innovation across a wide spectrum, collaborating with numerous educational, non-profit, and industry partners.
The information about this contract and the capabilities of the KARNO generator is based on a press release statement from Hyliion Holdings Corp.
In other recent news, Hyliion Holdings Corp. has made significant strides in sustainable power tech through a non-binding Memorandum of Understanding (MOU) with Jardine Engineering Corporation Limited (JEC). The partnership aims to deploy Hyliion's KARNO™ technology in power generation projects across Hong Kong, Macau, and other regions. This technology offers fuel-agnostic power solutions capable of running on a variety of fuels, promising lower maintenance costs and reduced emissions.
Hyliion has also secured a Small Business Innovation Research (SBIR) contract from the U.S. Navy to design a modular generator system using the KARNO™ technology. This collaboration is intended to meet the power requirements of the Navy's Unmanned Surface Vessel program.
The company's Q2 2024 financial results revealed a net loss of $10.9 million. However, all KARNO generator units planned for 2024 deployment have secured letters of intent, with over half secured for 2025. Despite the financial loss, Hyliion anticipates breakeven gross margins by late 2025 or early 2026 and projects revenue in the low double-digit millions of dollars in 2025.
These recent developments underscore Hyliion's commitment to innovation and sustainable energy solutions, as they continue to target various industries with their distributed power generators.
InvestingPro Insights
Hyliion Holdings Corp. (NYSE: HYLN) has recently made headlines with its innovative KARNO generator and a significant contract with the Office of Naval Research. Alongside these developments, the company's financial health and market performance provide a broader context for investors. Here are key metrics and insights from InvestingPro:
With a market capitalization of $282.94 million, Hyliion is navigating the competitive landscape of electricity-generating technologies. The company's aggressive share buyback strategy, as highlighted in one of the InvestingPro Tips, indicates management's confidence in the company's future. This is further supported by the fact that Hyliion holds more cash than debt on its balance sheet, suggesting a strong liquidity position to fund its operations and investments, such as the KARNO generator project.
However, the company's financials also reveal challenges. Hyliion's revenue for the last twelve months as of Q2 2024 was just $0.1 million, with a significant revenue decline of 95.58% from the previous period. This aligns with another InvestingPro Tip citing the company's rapid cash burn. Additionally, the gross profit margin was deeply negative at -647.92%, reflecting the costs exceeding the generated revenue, which is a concern for sustainability and profitability.
Investors should be aware of the high price volatility in Hyliion's stock, as it has experienced a notable price decline over the last week and month, with total returns of -12.83% and -20.87%, respectively. Yet, it's worth noting that the company has seen a strong return over the last three months, with an 18.12% increase, demonstrating the stock's potential for rapid shifts in investor sentiment and market value.
For those interested in a deeper analysis, InvestingPro offers additional tips on Hyliion's financial health, market performance, and industry position. There are currently 17 more InvestingPro Tips available, which can provide investors with a comprehensive understanding of the company's strategic moves and market dynamics.
These insights and data points underscore the multifaceted nature of investing in technology-driven companies like Hyliion, where innovation, financial health, and market perception all play critical roles. For further information on Hyliion's financial metrics and stock analysis, investors can visit https://www.investing.com/pro/HYLN.
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