Hyliion Reports Q2 2025 Financial Results, KARNO Power Module Qualifies for 30% ITC

• Hyliion Holdings reports Q2 2025 financial results. • KARNO generator platform qualifies for 30% Investment Tax Credit. • Production resumes with delivery of second U.S. Navy unit. • Two additional KARNO Power Modules nearing completion. • All linear electric motor production transitioned in-house. • Supporting 2025 deployment targets.

Hyliion Holdings Corp (HYLN) reported its second-quarter 2025 financial results, highlighting the company's progress in the development and commercialization of its KARNO™ generator platform. The company reported revenue of $1.5 million, driven by research and development services performed under a contract with the Office of Naval Research. Despite the revenue, the company incurred a net loss of $13.4 million, primarily due to higher research and development expenses and supporting activities.

A significant milestone for Hyliion was the qualification of its KARNO Power Module for a 30% Investment Tax Credit (ITC) under the One Big Beautiful Bill Act (OBBBA). This tax incentive, effective for projects beginning construction in 2026 or later, aims to promote advanced energy technologies like the KARNO system. The 30% ITC covers both the generator system and its associated supporting infrastructure, potentially accelerating adoption and driving growth in key sectors such as data centers and commercial and industrial power consumers.

Production of the KARNO Power Module resumed with the delivery of the second U.S. Navy Early Adopter Unit. Two additional KARNO Power Modules are nearing completion, with one unit designated for UL certification and the other planned for delivery to a commercial customer. Additionally, Hyliion was awarded a Phase II SBIR contract valued at up to $1.5 million to advance the development of its multi-megawatt KARNO system.

The company has transitioned all linear electric motor (LEM) production in-house, addressing production and quality issues with a contract manufacturer that had previously constrained Early Adopter deployments. This transition supports the company's 2025 deployment targets, with the expectation that all ten Early Adopter customer units will be deployed this year.

Hyliion also signed a strategic Memorandum of Understanding (MOU) with Alkhorayef Industries during the Saudi-U.S. Investment Forum, outlining a potential $1 billion opportunity to deploy KARNO Power Modules in Saudi Arabia. The MOU is non-binding and subject to the execution of a definitive purchase agreement prior to deliveries.

The company's financial guidance for 2025 has been adjusted downward, with the expected revenue range now forecasted at $5 to $10 million, down from $10 to $15 million previously. This adjustment reflects the expected product commercialization in 2026 instead of late 2025.

The company ended the quarter with $185 million in cash and investments, expecting a year-end balance of approximately $155 million.

In summary, Hyliion Holdings Corp reported mixed financial results for Q2 2025, with significant progress in the development and commercialization of its KARNO Power Module. The qualification for the 30% ITC and the resumption of production are key milestones for the company, positioning it for growth in the coming years.

References:
[1] https://finance.yahoo.com/news/expect-hyliion-holdings-corp-hyln-133225068.html
[2] https://finance.yahoo.com/news/hyliion-holdings-reports-second-quarter-203000088.html