Hyliion Holdings Corp.

What they do

Hyliion designs and develops the KARNO Power Module, a modular, fully enclosed, fuel-agnostic power generating solution powered by the KARNO Core, a heat-powered linear generator. The technology originated from General Electric R&D in aerospace and metal additive manufacturing and was initially intended as a range extender for the company's discontinued Hypertruck powertrain. After winding down powertrain operations, Hyliion now targets data center, defense, commercial and industrial sectors, and also performs R&D services under U.S. government contracts. It has R&D facilities in Cincinnati, Ohio and is listed on NYSE American.

Revenue drivers

• ONR / U.S. Navy contracts — Government R&D contracts are currently the only source of revenue; the 2024 ONR contract was for up to $16 million, with earlier contracts up to $2.4 million and a July 2025 Phase II SBIR award up to $1.5 million. In August 2026 the company announced a $41.7 million U.S. Navy contract for multi-megawatt KARNO systems, with work expected primarily in 2027 and 2028.
• KARNO Power Module commercial sales — No commercial sales had been made as of the 10-K; the company is targeting approximately 10 early adopter units in 2026 and says commercialization of the 200 kW KARNO Power Module is now expected in 2027, with data center operators as a priority.
• R&D services — Hyliion provides research and development services under government agreements, including design reviews, simulations and reporting through July 2026 under the SBIR award, with an option to extend through July 2027.

Recent performance

Second-quarter 2026 revenue was $4.9 million, up more than threefold from Q2 2025 and above the $2.8 million reported in Q1 2026. Full-year revenue has grown from $200,000 in 2021 to $672,000 in 2023, $1.5 million in 2024 and $3.5 million in 2025. Net losses were $52.0 million in 2024 and $57.2 million in 2025, with operating cash use of $56.7 million and $46.5 million in those years. At June 30, 2026 the company reported total assets of $179.6 million, total liabilities of $10.1 million, shareholder equity of $169.5 million and $13.2 million of cash and equivalents on the balance sheet. The company said it finished the quarter with $132.4 million in cash and investments.

Strategy

Hyliion has shifted from powertrain development to commercializing the KARNO Power Module as a standalone power generation product and related government R&D services. It is targeting approximately 10 early adopter units in 2026, then plans to prioritize military contract deliveries in 2027 while deploying additional 200 kW modules with commercial customers, particularly data center operators. The company describes a capital-efficient manufacturing scale-up plan in which each megawatt of annual production capacity requires about $1.5 million of one-time capital investment and supports $2.5 million to $3.0 million of annual revenue at current pricing. It is also investing in additive manufacturing, citing expected improvements of up to 3 times in printing speed and throughput depending on the component, and executed a beta machine agreement with Colibrium Additive, a GE Aerospace company.

Risks

• Pre-commercial product — The KARNO generator remains in development and testing, and the 10-K states commercial deliveries were not expected to begin until late 2026 or later and may not occur at all.
• Government funding concentration — ONR contracts are the only current source of revenue, and the 10-K states those contracts may not be extended beyond their current scope.
• Continued losses and cash use — Hyliion has reported annual net losses every year from 2021 through 2025, including $57.2 million in 2025, and used $46.5 million of cash in operations that year.
• Customer incentive and adoption dependence — The 10-K notes some target customers may expect government incentives for deployments and may not purchase KARNO generators if those incentives are delayed or not received.

Outlook

Management increased full-year 2026 revenue guidance to $10 million from $15 million, following second-quarter revenue of $4.9 million, and improved its year-end 2026 cash and investments outlook to $115 to $120 million from prior guidance of $100 million. The company says it remains on track to complete approximately 10 early adopter units in 2026 and expects to begin delivering units to customer sites over the next quarter. It also anticipates additional military contract awards in 2026, including a potential award from another U.S. military branch, which would bring total new military funding awarded in 2026 to nearly $50 million.