Cummins for electrified heavy-duty truck powertrains.

The Intel inside for heavy-duty electric truck powertrains.

• Hypertruck ERX: A range-extended electric powertrain system for Class 8 commercial trucks, fueled by compressed natural gas to provide extended range and lower emissions than traditional diesel.

• Dana Incorporated (DAN)
• Cummins Inc. (CMI)

Thomas Healy, CEO and Founder

Thomas Healy founded Hyliion in 2015. He is a serial entrepreneur, having founded two start-ups prior to Hyliion while in college, and holds over twenty patents. Healy led Hyliion to go public in 2020 through a merger with Tortoise Acquisition Corp. He was named one of Forbes' "30 under 30". His background includes dual engineering degrees in mechanical engineering and engineering & public policy from Carnegie Mellon University.

Jon Panzer, Chief Financial Officer

Jon Panzer joined Hyliion as Chief Financial Officer in September 2022. He previously spent 26 years at Union Pacific Railroad Company, where he gained extensive financial leadership experience. At Union Pacific, he held roles such as Senior Vice President of Intermodal Operations, Senior Vice President of Technology and Strategic Planning, Vice President and Treasurer, and Vice President, Financial Planning and Analysis. Panzer also served in the United States Navy as a nuclear engineer.

Cheri Lantz, Chief Strategy Officer

Cheri Lantz is a seasoned strategy and functional leader with 20 years of experience developing and leading operations and growth strategies for manufacturers in the mobility sector.

Jose Oxholm, Chief Legal and Compliance Officer

Jose Oxholm serves as Hyliion's Vice President, General Counsel, and Chief Compliance Officer. His previous experience includes working as a Corporate Associate at Akin Gump Strauss Hauer & Feld, International Legal Manager at SERVICIOS ALESTRA, S.A. DE C.V., and Attorney, Worldwide Direct Market Operations at Ford.

Josh Mook, Chief Technology Officer

Josh Mook previously worked for GE for 20 years before joining Hyliion.

The public company Hyliion (HYLN) faces several key risks to its business, primarily centered around the successful commercialization of its core product and its financial viability as an early-stage company in a competitive market.

1. Development and Commercialization Risks of the KARNO Generator: Hyliion's primary focus has pivoted to the KARNO generator, which remains in the testing phase with commercial deliveries initially planned for 2025 but now delayed to 2026. Any further delays in its design, production, or launch could significantly harm the company's business and financial condition. The company has limited experience in large-scale manufacturing of the KARNO generator and relies on single or limited-source suppliers for key components, posing operational risks. Furthermore, Hyliion must prove the KARNO generator's cost-competitiveness against existing technologies and secure crucial off-take agreements to establish market demand. The company has already lowered its 2025 revenue guidance due to these anticipated commercialization delays.
2. Financial Risks (History of Losses, High Cash Burn, and Need for Capital): Hyliion is an early-stage company with a history of significant losses and anticipates incurring substantial expenses and continuing losses for the foreseeable future. The company has consistently experienced negative operating cash flow and a high cash burn rate, raising concerns about its liquidity. Hyliion requires substantial capital investment to develop and grow its business, including investments in additive manufacturing technology, and there is uncertainty regarding its ability to raise additional funds when needed. Its net loss for the first nine months of 2025 was $44 million, with a projected year-end 2025 cash balance of approximately $155 million, highlighting ongoing capital needs.
3. Market and Competitive Risks: Hyliion operates within a highly competitive commercial electric vehicle and clean energy market, which has seen a notable influx of new entrants. This intense competition necessitates significant differentiation for Hyliion's products to succeed. There is also a risk that the target markets for the KARNO generator may develop more slowly than anticipated or may not materialize at all, impacting revenue and the ability to recover development costs. Hyliion's solutions may also be perceived as outside the mainstream, and some transportation companies might prefer fully electric or hydrogen-specific truck solutions, posing a challenge to adoption.

The accelerated development and market entry of proprietary battery electric (BEV) and fuel cell electric (FCEV) Class 8 trucks by traditional truck manufacturing incumbents (e.g., Volvo, Daimler Truck, PACCAR, Navistar).

These established OEMs possess significant advantages in manufacturing scale, existing sales and service networks, deep relationships with large fleet customers, and the ability to offer fully integrated, branded solutions. As these manufacturers bring their own electric truck lines to market at scale, they directly compete with and could potentially displace the need for third-party electrification solutions like those offered by Hyliion, particularly for new truck purchases and as fleets seek comprehensive, single-vendor solutions for their decarbonization efforts.

Hyliion (HYLN) has shifted its primary business focus from electrified powertrain solutions for Class 8 trucks to its KARNO generator technology. The company is now concentrating on developing and commercializing the KARNO generator as its main product.

The KARNO generator is a fuel-agnostic linear heat generator designed for various applications, including stationary power generation for prime power and backup. Hyliion is initially targeting the commercial and waste management industries, and also sees potential in EV charging infrastructure, industrial sites, and data centers.

While specific addressable market sizes directly for the "fuel-agnostic linear heat generator" segment are not readily available, the market for its target applications provides insight into its potential. The KARNO generator aims to compete in the broader distributed power generation market.

For context, the global Class 8 truck market, where Hyliion previously focused its Hypertruck ERX powertrain, was valued at approximately $32.81 billion in 2024 and is projected to reach $49.69 billion by 2033. The North American Class 8 truck market alone registered over 280,000 new units in 2023. However, Hyliion has paused new orders and development work for its Hypertruck ERX powertrain.

Given the pivot, Hyliion's addressable market is now aligned with the various sectors that require distributed and flexible power generation. These include:

• Data Centers: The KARNO generator is seen as ideally suited to meet the increasing power demands of data centers.
• Commercial and Industrial Generation: The technology is adaptable for commercial and industrial generation applications, as well as for on-site electric vehicle (EV) charging.

Without explicit market sizing data for "fuel-agnostic stationary generators" or the specific subsets of commercial, industrial, and data center backup power that Hyliion is targeting with KARNO, a precise overall addressable market size cannot be identified in the provided information. Therefore, a definitive addressable market size for their main products or services is currently null.

Here are 3-5 expected drivers of future revenue growth for Hyliion (HYLN) over the next 2-3 years:

1. Commercialization and Customer Deliveries of KARNO Power Module: Hyliion's primary revenue growth driver is the commercialization and subsequent customer deliveries of its KARNO Power Module. While full product commercialization is now anticipated in 2026, the company expects to deliver 10 Early Adopter Customer Units in 2025. Hyliion has already secured customer commitments exceeding its 2025 production capacity and has additional Letters of Intent for 2026 deliveries.

2. Expansion into New Markets and Applications: Hyliion is actively targeting new markets beyond its initial applications. The company plans to develop a 2-megawatt KARNO generator product specifically for the data center market, with deployment expected in 2026. Significant opportunities also lie within the military sector, as Hyliion holds contracts with the U.S. Navy's Office of Naval Research for research and development services and potential deployment of KARNO generators for naval applications. International expansion is also underway, with an MOU signed with Alkhorayef Industries for a potential $1 billion opportunity in Saudi Arabia and an LOI with MMR Group for deployments starting in the second half of 2026.

3. Benefits from the 30% Investment Tax Credit (ITC): The "One Big Beautiful Bill Act" introduced a 30% Investment Tax Credit for businesses deploying linear electric motors or fuel cells, a category that includes Hyliion's KARNO Power Module. This tax credit, applicable to projects starting construction in 2026 or later, is expected to significantly increase customer interest and support for the KARNO, by helping to offset the upfront adoption costs.

4. Growth in Research and Development (R&D) Service Revenue: Beyond direct product sales, Hyliion is generating revenue from R&D services, particularly through contracts with the Office of Naval Research. The company anticipates higher R&D revenue in upcoming quarters as deployment activities resume and expects to maintain positive gross margins from these services.

5. Scaling Production and Achieving Gross Margin Neutrality: Hyliion's revenue growth will be driven by its ability to scale up production of the KARNO Power Module. The company is investing in additive manufacturing capabilities, including the installation of numerous 3D metal printers, to vertically integrate and expand component production. Management projects achieving gross margin neutrality on a cash basis by late 2026, which is crucial for sustainable revenue growth and future profitability.

Share Repurchases

• Hyliion authorized a stock repurchase program of up to $20 million in December 2023.
• As of the first quarter of 2024, Hyliion repurchased 8.7 million shares for $11.3 million as part of the program.
• For the full year 2024, $14.1 million was spent on share repurchases.

Share Issuance

• Hyliion went public in 2020 through a merger with Tortoise Acquisition Corp., a special purpose acquisition company (SPAC).
• As of July 29, 2024, there were 173,583,438 shares of common stock issued and outstanding.
• The 2024 Equity Incentive Plan reserved 8 million shares for issuance, with provisions for additional shares under certain conditions.

Inbound Investments

• Hyliion was awarded a $6 million federal grant in late 2024 to support methane emission reduction efforts in the oil and gas industry using KARNO generators.
• The KARNO Power Module qualifies for a 30% Investment Tax Credit (ITC) under the One Big Beautiful Bill Act (OBBBA), recognizing its role in advancing U.S. national energy security.

Capital Expenditures

• In 2024, total cash consumed for KARNO development and capital investments amounted to $58.0 million.
• First-quarter 2025 cash outflows included $7.3 million in capital expenditures, primarily allocated to additive manufacturing equipment.
• Hyliion anticipates full-year 2025 cash outlays of approximately $65 million, reflecting R&D acceleration and increased capital expenditures for expanding additive printing capacity.