Hyliion Announces Modest Third Quarter Revenue As Net Loss Widens

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Hyliion Holdings Corp., which went public in 2020, posted a higher net loss on modest revenue in the third quarter. But the electrified powertrain provider ended the quarter with more than $455 million in cash and marketable investments, which it described as sufficient to bring its Hypertruck ERX system to market and fund further development activities.

Hyliion’s products include a hybrid electric axle and an all-electric long-haul powertrain, the Hypertruck Electric Range Extender (ERX).

Net loss for the period ended Sept. 30 was $63.3 million, a loss of 36 cents per share, compared with net loss of $25.6 million, a loss of 15 cents, a year earlier .

Revenue was $499,000, compared to none for the 2021 period, largely due to sales of its hybrid electric axle.

Healy

The Austin, Texas-based company said it has an order book of about $1.3 million for its hybrid product.

“We achieved several milestones in the third quarter, including the start of controlled fleet trials for the Hypertruck ERX and our acquisition from GE Additive of Karno Generator Technology, a breakthrough hydrogen and fuel generator that will be core to our long-term product roadmap,” said Thomas Healy, Founder and CEO of Hyliion, in a statement.

“In addition,” he said, “Trucks equipped with the Hypertruck ERX system are now fully eligible under the Cut Inflation Act, which came into effect in August, for a credit of 30% tax up to $40,000 Incentives like this can reduce upfront costs for customers and allow for an easier transition to electrification technology.”

Healy said the company has fulfilled its Founders program with fleets that will get the initial 200 production slots starting in late 2023, with deliveries by the first quarter of 2024.

The Founders program also comes with a premium service and maintenance program centered on the Hyliion launch facility in Dallas, which is also expected to provide onsite renewable natural gas refueling capability. The company said it is also working on a nationwide service plan with partners who will be authorized to work on the Hypertruck ERX powertrain.

Initially, the powertrains will be installed at the Austin plant and at modification centers near the truck manufacturers’ factories. As sales volumes increase, Hyliion’s strategy is to be a powertrain company selling solutions directly to truck manufacturers for integration into their production lines.

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The initial price, including the Inflation Reduction Act tax credit, for a truck equipped with a Hypertruck ERX system is expected to be in the range of three hundred thousand. The company described this price as being cheaper than battery and fuel cell electric trucks and offering a total cost of ownership comparable to that of a diesel when considering the purchase price of the truck and the cost of fuel.

Also during the quarter, the company announced that it had successfully completed summer testing of the Hypertruck ERX system using four design verification vehicles at varying weight loads at Davis Dam in Arizona, which exhibited some of the toughest road conditions in the US, including a 6% grade that stretches for approximately 11 miles.

Hyliion noted that it remains on schedule to begin winter testing by the end of this year. This is the fourth consecutive quarter the company has said it met the marketing targets originally set out in its third quarter 2021 earnings call.

Meanwhile, the company said it continues to install and deliver its hybrid powertrain in the face of continued shortages and extended lead times for commercial trucks.

Also in the third quarter, the company announced its acquisition of the Karno generator and its associated intellectual property from GE Additive, part of General Electric. GE received $15 million in cash and approximately $16.1 million, or 5.5 million shares, in Hyliion stock.

Hyliion forecasts full-year 2022 revenue of approximately $2 million – up from a nine-month total of $1.1 million – from hybrid powertrain sales and complete truck sales with systems hybrids.

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