Hyliion (HYLN) investor relations material

Executive summary

• Achieved a fourfold sequential revenue increase to $2.8 million, driven by U.S. Navy contracts and progress on the KARNO Power Module, including UL certification and dynamic multi-fuel switching demonstrations.

• Signed non-binding LOIs, including with VFG Holdings, to deploy up to 250 KARNO cores (50 MW) over five years, with nearly 750 units under LOIs representing $400 million in potential revenue.

• Broadened military engagement with ongoing discussions across multiple U.S. military branches and expectations to secure $40–$50 million in additional contracts in 2026.

• On track to deliver approximately 10 early adopter units and commence 800 kW Navy system build, targeting full commercialization of the KARNO Power Module by year-end 2026.

• Focused on commercializing the modular, fuel-agnostic KARNO Power Module for distributed power markets, including data centers, industrial, defense, and mobility sectors.

Financial highlights

• Q1 2026 revenue was $2.8 million, up 479% year-over-year and quadrupled sequentially, driven by R&D services for the U.S. Navy.

• Gross margin was $210,000 on $2.6 million cost of revenues; gross profit for Q1 2026 was $0.2 million.

• Operating expenses fell to $13.4 million from $19.7 million year-over-year, mainly due to lower R&D spending.

• Net loss narrowed to $11.7 million from $17.3 million in Q1 2025, a 32% improvement.

• Ended Q1 2026 with $139.3 million in cash and investments; year-end cash and investments projected at ~$100 million.

Outlook and guidance

• Reaffirmed 2026 revenue guidance of ~$10 million, with growth expected from R&D services and initial commercial sales.

• Plans to deliver approximately 10 early adopter units in 2026 and achieve full 200 kW design power rating by year-end.

• Expects to sign $40–$50 million in new military contracts in 2026 and ramp up commercial deliveries.

• 2027 projected as the year for commercial delivery ramp and broader deployments, with further acceleration in 2028.

• Capital expenditures projected at $10 million for 2026, offset by equipment financing; total cash use for 2026 estimated at $50 million.