Hyliion’s Earnings Call: Tax Credits and Challenges

Hyliion Holdings Corp. ((HYLN)) has held its Q2 earnings call. Read on for the main highlights of the call.

Hyliion Holdings Corp. recently held its earnings call, revealing a mixed sentiment of optimism and challenges. The company celebrated significant achievements, such as the introduction of a tax credit and successful partnerships, which signal positive momentum. However, financial losses and delays in commercialization continue to pose challenges for the company.

Introduction of 30% Investment Tax Credit

A major highlight from the earnings call was the introduction of a 30% investment tax credit for customers deploying linear generators or fuel cells. This initiative is expected to significantly boost customer adoption of Hyliion’s KARNO Power Module, providing a strong incentive for potential buyers and enhancing the company’s market position.

Resumption of Deliveries

Hyliion announced the resumption of deliveries after overcoming key engineering and manufacturing challenges. A notable achievement was the successful transition of Linear Electric Motor (LEM) production in-house, which is expected to streamline operations and support future production needs.

Successful Navy Partnership

The company reported a successful partnership with the U.S. Navy, delivering its second Early Adopter unit and securing a Phase II small business innovation research contract. This collaboration underscores the strategic importance and reliability of Hyliion’s systems in demanding environments.

Strategic MOU and LOI Signed

Hyliion signed a strategic Memorandum of Understanding (MOU) with Alkhorayef Industries for a potential $1 billion deployment in Saudi Arabia, alongside a Letter of Intent (LOI) with MMR Group for purchasing KARNO Power Modules. These agreements highlight the company’s expanding global footprint and potential for significant revenue growth.

Continued Financial Support

Despite financial challenges, Hyliion remains confident in its financial stability, forecasting a year-end balance of $155 million. This continued financial support is crucial as the company navigates the commercialization of its KARNO Power Module.

Revenue and Net Loss

Hyliion reported a Q2 2025 revenue of $1.5 million, with a net loss of $13.4 million, up from $10.9 million in Q2 2024. The year-to-date net loss stands at $30.7 million, reflecting ongoing financial hurdles that the company needs to address.

Delay in Full Commercialization

The full commercialization of the KARNO Power Module has been delayed to 2026, impacting the 2025 revenue forecast, which has been adjusted down to $5 million to $10 million. This delay presents a significant challenge to the company’s short-term financial outlook.

R&D and Operating Expenses

Increased research and development expenses have led to higher operating costs, amounting to $15.8 million in Q2 2025, compared to $14 million in Q2 2024. These investments are crucial for the company’s long-term innovation and growth strategy.

Forward-Looking Guidance

Hyliion’s forward-looking guidance remains optimistic despite current challenges. The introduction of the 30% investment tax credit is expected to drive customer adoption significantly. The company has also made strides in reducing cash spending and advancing its product design, positioning itself for future success. The adjusted revenue forecast for 2025 reflects the anticipated delay in full commercialization, with expectations set for a significant market impact by 2026.

In summary, Hyliion Holdings Corp.’s earnings call revealed a company at a crossroads, balancing significant achievements with ongoing challenges. The introduction of a tax credit and strategic partnerships highlight positive momentum, while financial losses and commercialization delays require careful navigation. Investors and stakeholders will be keenly watching how Hyliion leverages its current achievements to overcome its challenges and achieve its long-term goals.