Hyliion (HYLN) Q2 2026 earnings summary

Executive summary

• Secured a $41.7 million U.S. Navy contract, the largest military contract to date, with performance expected to begin in Q4 2026 and ramp up through 2029; additional military contracts anticipated in 2026.

• Raised full-year 2026 revenue guidance by 50% to $15 million, up from $10 million, after Q2 revenue more than tripled year-over-year.

• Achieved up to 3x improvement in additive manufacturing throughput, enabling scalable, capital-efficient growth.

• Strong customer demand from data centers and military, with non-binding LOIs for about 750 KARNO cores (~$400 million potential revenue).

• Focused on completing early adopter units and building an 800kW Navy system, with commercialization of the 200kW KARNO Power Module planned for 2027.

Financial highlights

• Q2 2026 revenue was $4.9 million, up from $1.5 million in Q2 2025 and $2.8 million in Q1 2026, driven by Navy R&D contracts.

• Gross profit for Q2 was $0.4 million; net loss was $13.9 million, slightly higher than $13.4 million in Q2 2025; net loss per share was $0.08.

• Year-to-date revenue reached $7.8 million, up from $2 million in the first half of 2025; net loss improved to $25.7 million from $30.7 million.

• Ended Q2 with $132.4 million in cash and investments; year-end 2026 cash and investments expected at $115–$120 million.

• Net cash spending in Q2 was $6.9 million, down from $13.5 million in Q2 2025.

Outlook and guidance

• 2026 revenue guidance increased to $15 million, a 50% rise from prior outlook.

• Q3 revenue expected to be in line with Q2, just under $5 million.

• Most work under the new Navy contract to be performed in 2027–2028, supporting future revenue growth.

• Capital spending for 2026 projected at $4 million, down from $23 million in 2025, offset by $10–$15 million in equipment financing.

• Net cash use for 2026 projected at $30–$35 million, improved from previous forecasts.