Hyliion Holdings Secures Defense Department Approval for Power Module, Forecasting Upside of 145.61%

Hyliion Holdings has secured Defense Department approval for its KARNO Power Module, which enables smooth transitions between different fuel sources and enhances operational resilience. This development underscores Hyliion's growing influence in providing innovative solutions that meet stringent defense requirements. Analysts forecast an average target price of $2.80 with an upside of 145.61% from the current price of $1.14. The estimated GF Value for Hyliion Holdings is $5.32, suggesting a 366.67% upside from the current price.

Hyliion Holdings (HYLN) has achieved a significant milestone with its KARNO Power Module, which has been chosen by the United States Department of the Air Force and the Department of Defense’s Chief Digital and Artificial Intelligence Office. This selection responds to a crucial operational demand aimed at ensuring uninterrupted operations during fuel supply interruptions. The technology enables smooth transitions between different fuel sources, thus enhancing operational resilience.

The selection process involved the Tradewinds Solutions Marketplace, which is known for expediting the procurement of essential technologies needed for mission-critical applications. This development underscores Hyliion's growing influence in providing innovative solutions that meet stringent defense requirements.

Based on the one-year price targets offered by 1 analyst, the average target price for Hyliion Holdings Corp (HYLN) is $2.80 with an upside of 145.61% from the current price of $1.14. The estimated GF Value for Hyliion Holdings Corp (HYLN) is $5.32, suggesting a 366.67% upside from the current price. This indicates a strong potential for growth in the coming year.

Hyliion Holdings Corp (HYLN) unveiled the Karno Power module publicly for the first time at the ACT Expo, receiving positive feedback from current and prospective customers. The company signed a non-binding LOI with Mesa Natural Gas Solutions, indicating potential for up to 12 Karno units, expanding deployment applications. Hyliion Holdings Corp (HYLN) has over 100 units under non-binding LOIs across various markets, building a healthy backlog of interest. The company expects to commercially launch the Karno Power module by year-end and anticipates revenue between $10 million and $15 million for 2025.

However, the company faces challenges such as production issues with linear electric motors and depowdering complex printed parts, which have delayed the delivery of early adopter units and impacted the deployment schedule. Operating expenses increased to $19.7 million in Q1 2025, up from $19 million in the same quarter of 2024. The company recorded a net loss of $17.3 million in Q1 2025, up from $15.6 million in Q1 2024. Additionally, tariffs on additive printers assembled in Germany are expected to increase capital spending by $2 million to $3 million in 2025.

References:
[1] https://finance.yahoo.com/news/hyliion-holdings-karno-power-module-131047880.html
[2] https://www.marketscreener.com/quote/stock/HYLIION-HOLDINGS-CORP-57473461/news/Department-of-the-Air-Force-and-the-Department-of-Defense-Selects-Hyliion-Holdings-Corp-KARNO-Power-50091756/
[3] https://www.gurufocus.com/news/2892618/hyliion-hyln-secures-defense-department-approval-for-power-module-hyln-stock-news