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Hyliion Holdings Corp. (HYLN)
XASE:HYLN
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Hyliion Holdings
(NYSE MKT:HYLN)
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Rating:49Neutral
Price Target:
$2.00
▲(4.17% Upside)
Action:ReiteratedDate:02/26/26
The score is held down primarily by weak financial performance (small revenue base, large losses, and persistent cash burn), partially offset by a low-debt balance sheet. The latest earnings call adds support via clear commercialization milestones and customer/contract pipeline commentary, while technical indicators are broadly neutral and valuation is constrained by negative earnings and no dividend.
Positive Factors
Low leverage and sizeable liquidity
Very low debt combined with a material cash balance provides a durable runway to complete certification and early deployments. This reduces near-term insolvency risk, preserves strategic optionality for scaled production investments, and supports negotiated customer pilots without immediate financing pressure.
Meaningful technical progress toward certification
Advancing UL testing and moving toward full module certification is a structural de-risking event. Achieving UL approval unlocks broader commercial procurement and reduces counterparty hesitancy, materially improving the firm's ability to convert LOIs into long-term contracts and scale production in 2027–2028.
Robust commercial pipeline and partnerships
A large LOI backlog plus a service/integration partner provides durable market access and distribution leverage. ABM partnership supports site engineering and energy-as-a-service delivery, improving commercialization odds and recurring revenue potential as units scale beyond initial pilots.
Negative Factors
Very small and concentrated revenue base
Revenue scale is insufficient to absorb fixed operating costs; persistent large losses indicate the business remains pre-commercial. Until product sales meaningfully replace R&D services, margins and cash generation will stay weak, constraining reinvestment and making profitability contingent on successful scale-up.
Certification and design power still unmet
Certification completion and achieving design output are structural gating items for fleet deployments. Delays or technical refinements raise execution risk, push out revenue recognition windows, increase unit costs, and could impair conversion of LOIs and military opportunities into durable contracted sales.
Negative cash flow and potential need for external capital
Sustained cash burn and a projected drawdown to ~$100M imply dependence on external financing to scale production. This creates dilution and execution risk; raising capital during commercialization could constrain margins, slow manufacturing ramp, or delay strategic investments if markets or terms are unfavorable.
Hyliion Holdings (HYLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$360.96M
Dividend YieldN/A
Average Volume (3M)945.94K
Price to Earnings (P/E)―
Beta (1Y)2.12
Revenue GrowthN/A
EPS Growth10.52%
CountryUS
Employees93
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.07
Shares Outstanding177,812,790
10 Day Avg. Volume1,152,295
30 Day Avg. Volume945,937
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)1.68
Price to Sales (P/S)92.89
P/FCF Ratio-4.59
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue97.51
Enterprise Value/Gross Profit1.99K
Enterprise Value/Ebitda-6.18
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.34
Revenue Forecast (FY)$10.85M
Hyliion Holdings Business Overview & Revenue Model
Company DescriptionHyliion Holdings Corp. designs, develops, and sells electrified powertrain solutions for the commercial vehicle industry. It also provides battery management systems for hybrid and fully electric vehicle applications; and battery packs. The company was founded in 2015 and is headquartered in Cedar Park, Texas.
How the Company Makes MoneyHyliion generates revenue through the sale of its powertrain systems, including both hybrid and fully electric solutions, to manufacturers and fleet operators in the commercial vehicle market. The company also engages in partnerships with truck manufacturers to integrate its technology into their vehicles, which provides additional revenue through licensing agreements. Furthermore, Hyliion may benefit from government incentives and grants aimed at promoting clean energy technologies, which can supplement its earnings. The ongoing transition towards electrification in the transportation sector and increasing regulations around emissions are significant factors that contribute to Hyliion's revenue potential.
Hyliion Holdings Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call emphasized strong technical progress (UL testing advancement, 175 kW demonstrated toward a 200 kW target, diesel capability, dynamic fuel switching), expanding commercial and military interest (~500 LOIs, potential $40M–$50M in additional military opportunities), and manufacturing readiness (30+ printers, throughput improvements). Financially, revenue remains small and concentrated in R&D services ($3.5M FY2025), net losses widened to $57.2M, and the company forecasts cash declining to ~ $100M by end of 2026 with the expectation that additional capital will be needed to scale beyond initial commercialization. Overall, the operational and technical wins and clear commercialization roadmap outweigh near-term financial and execution risks, but successful certification, commercialization execution, and controlled capital deployment are critical to realize the opportunity.Q4-2025 Updates
Positive Updates
UL Certification Progress
Completed UL testing for the linear electric motor and battery pack (2 of 3 required certifications). Initial full power module testing identified small refinements; next round of UL testing to begin shortly with certification expected in Q2 2026.
Power Output Improvements
Demonstrated 175 kilowatts (up from >150 kW previously) and expect to reach the 200-kilowatt design rating by year-end 2026 through incremental piston, cylinder liner and thermal optimizations.
Fuel Flexibility and Emissions Milestone
Successfully demonstrated dynamic fuel switching between natural gas and propane and ran a KARNO core on diesel while exporting power to the grid meeting Tier 4 final emissions without aftertreatment — expanding addressable market to diesel-dominant prime and military applications.
Early Deployments and Customer Interest
Five KARNO units on-site (2 development, 3 early adopter units). Nearly 500 units under nonbinding letters of intent and strong demand across commercial, data center and military markets. Plan to deploy ~10 early adopter units in 2026 (including Navy units).
Multi-KARNO Modular Scaling Roadmap
Developed modular architecture to scale in ~800 kW increments (e.g., 800 kW, 1.6 MW, 2.4 MW), leveraging 200 kW cores to build multi-megawatt systems for data centers; initial 2 MW concept sized to a 20-foot shipping container footprint.
Strategic Partnership with ABM Industries
Entered strategic partnership with ABM to support site engineering, integration, operations and energy-as-a-service offerings to accelerate deployments across commercial, industrial, data center and mission-critical markets.
Manufacturing Readiness and Capacity
Operating >30 additive manufacturing printers (majority at Austin); additional printers on order and planned optimizations underway to improve throughput and printer utilization. Testing upcoming GE Colibrium laser-equipped printers to further boost print speed.
Military Contract Pipeline and Revenue Outlook
Identified potential additional U.S. military opportunities representing $40M–$50M of new revenue on top of ~ $20M of R&D contracts currently executing. Company expects to generate approximately $10M of revenue in 2026 from R&D services and initial commercial activity.
Cash Position and Financial Planning
Ended Q4 2025 with $152.4M of cash and investments (vs projected $155M). Management expects net spending of just over $50M in 2026 and a year-end cash balance of ~ $100M; filed an S-3 shelf for future capital flexibility.
Negative Updates
UL Certification Still Pending
Full KARNO power module UL certification is not yet complete and remains a near-term gating item for broader customer deployments; certification is expected in Q2 2026 but is not guaranteed.
Design Power Not Yet Achieved
Design target of 200 kW has not been reached; current demonstration at 175 kW with further incremental refinements required (new piston designs, cylinder sleeves, thermal blankets). Full rating expected by year-end 2026.
Limited Revenue Base and Ongoing Losses
FY2025 revenue was $3.5M (all R&D services) despite increased product activity; FY revenue grew from $1.5M in 2024 to $3.5M in 2025 (+133%), but full-year net loss widened to $57.2M from $52.0M in 2024 (+10%).
Operating Expenses and Cash Burn
Full-year operating expenses were $65.7M (+2.0% vs $64.4M in 2024). Cash used was $67.4M in 2025; management forecasts net spending just over $50M in 2026, reducing cash to ~ $100M by year-end which may require additional capital for larger-scale production beyond commercialization.
Deferred Financing and Minor Shortfall
Year-end cash/investments of $152.4M were slightly below the $155M projection (~-1.7%), driven in part by a deferred $10M equipment financing. While management says current capital is sufficient through commercialization, additional capital will likely be needed for expansion beyond 2026–2027.
Residual Supply Chain Risk
Magnet supply risk remains a potential vulnerability despite meaningful progress and receipt of components; mitigation reduces exposure but does not fully eliminate supply chain risk for scaling production.
Company Guidance
The company guided that 2026 will be a transition year from development to deployment and commercialization, with UL certification for early-adopter KARNO power modules expected in Q2 2026 (2 of 3 UL tests—linear motor and battery—already complete, full module testing underway), deployment of roughly 10 early-adopter units this year (including the 2 Navy units delivered in 2025 and additional Navy and commercial deliveries), and continued field validation as they push from the current demonstrated 175 kW toward the full 200 kW design rating by year-end; they reiterated nearly 500 nonbinding LOIs, cited $40–$50 million of potential new U.S. military revenue atop roughly $20 million of Navy/O&R work in progress, and expect about $10 million of revenue in 2026, while slowing capital spending, pursuing up to $10 million of equipment financing, targeting net spending of just over $50 million for the year and ending 2026 with approximately $100 million of cash and investments (down from $152.4 million at year-end 2025); manufacturing plans call for leveraging a base of more than 30 additive printers (with several more arriving and testing of new GE Colibrium laser technology) and a modular multi-core roadmap (2 MW concept scaling in ~800 kW increments to 800 kW, 1.6 MW, 2.4 MW, 3.2 MW, etc.) toward a commercialization ramp in late 2026 and meaningful production scale in 2027–2028.Hyliion Holdings Financial Statement Overview
Summary
Financials are the primary weakness: revenue remains very small (~$3.5M in FY2025) with large operating and net losses (EBIT about -$65.6M; net loss about -$57.2M) and deeply negative free cash flow (about -$70.3M in 2025). The main offset is a low-debt balance sheet (about $4.4M debt vs ~$192M equity), though equity has declined materially over time.Income Statement
Revenue remains very small and volatile (2025 annual revenue of ~$3.5M) with a sharp decline in growth in 2025 (about -18.7%) after a rebound in 2024. Profitability is weak: the company continues to post large operating losses (2025 EBIT around -$65.6M) and net losses (2025 net income around -$57.2M). While gross profit turned slightly positive in 2024–2025 versus deeply negative gross profit in 2021–2023, the scale of operating expenses still overwhelms the business, keeping margins and earnings meaningfully negative.18
Very Negative
Balance Sheet
The balance sheet is a relative bright spot due to very low leverage: total debt is modest (about $4.4M in 2025) versus a sizable equity base (about $192.0M in 2025). However, equity and assets have been shrinking materially over time (equity down from ~$553.9M in 2021 to ~$192.0M in 2025), consistent with ongoing losses and cash burn, which weakens the long-term cushion despite low debt.64
Positive
Cash Flow
Cash generation is weak and consistently negative: operating cash flow remains meaningfully negative (about -$46.5M in 2025), and free cash flow is also deeply negative (about -$70.3M in 2025). While cash burn improved versus 2022–2023 levels, free cash flow deteriorated slightly in 2025 (free cash flow growth about -7.7%), indicating the company is still reliant on existing liquidity and/or external funding until it scales revenue and improves operating efficiency.22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.48M | 1.51M | 672.00K | 2.11M | 200.00K |
| Gross Profit | 170.00K | 94.00K | -1.04M | -6.67M | -2.54M |
| EBITDA | -51.23M | -58.15M | -122.38M | -157.80M | -95.16M |
| Net Income | -57.19M | -52.05M | -123.51M | -153.36M | -96.05M |
Balance Sheet | |||||
| Total Assets | 203.56M | 263.05M | 328.38M | 446.74M | 578.44M |
| Cash, Cash Equivalents and Short-Term Investments | 92.36M | 120.14M | 163.18M | 313.21M | 377.23M |
| Total Debt | 4.37M | 6.79M | 7.64M | 7.32M | 8.64M |
| Total Liabilities | 11.55M | 18.66M | 22.12M | 23.17M | 24.52M |
| Stockholders Equity | 192.01M | 244.39M | 306.27M | 423.57M | 553.91M |
Cash Flow | |||||
| Free Cash Flow | -70.29M | -73.26M | -124.36M | -134.19M | -82.88M |
| Operating Cash Flow | -46.55M | -56.74M | -116.96M | -116.88M | -80.50M |
| Investing Cash Flow | 60.93M | 59.49M | 18.31M | -22.02M | -65.99M |
| Financing Cash Flow | -670.00K | -14.33M | -15.00K | -78.00K | 15.90M |
Hyliion Holdings Technical Analysis
Negative
1.92
Price Trends
2.04
Negative
2.02
Positive
1.82
Positive
Market Momentum
<0.01
Negative
49.10
Neutral
65.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HYLN, the sentiment is Negative. The current price of 1.92 is below the 20-day moving average (MA) of 2.04, below the 50-day MA of 2.04, and above the 200-day MA of 1.82, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 65.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HYLN.
Hyliion Holdings Risk Analysis
Hyliion Holdings disclosed 44 risk factors in its most recent earnings report. Hyliion Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hyliion Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $360.96M | -5.64 | -26.21% | ― | ― | 10.52% | |
48 Neutral | $839.32M | ― | -258.38% | ― | 89.90% | 5.13% | |
47 Neutral | $177.84M | ― | -86.56% | ― | 46.09% | 46.01% | |
47 Neutral | $624.27M | -8.16 | -33.69% | ― | ― | -15.43% | |
45 Neutral | $47.57M | -10.01 | -68.35% | ― | -14.88% | -43.30% |
* Consumer Cyclical Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.