Hyliion Raises Revenue Outlook as Navy Work Accelerates
The company lifted its 2026 revenue forecast 50% to approximately $15 million.
Hyliion Holdings (HYLN), a developer of modular power generators, more than tripled second-quarter revenue to $4.9 million as work accelerated under Office of Naval Research contracts.
The quarter sharpened Hyliion’s shift toward military-funded development of its KARNO generator technology. The company also disclosed a new $41.7 million Navy contract for two multi-megawatt systems, with most of the work expected in 2027 and 2028.
Revenue rose from $1.5 million a year earlier, while the net loss widened to $13.9 million from $13.4 million. The loss held at $0.08 a share. Gross profit increased to $0.4 million, though gross margin narrowed to about 7.4% as cost of revenue climbed alongside contract activity.
Operating expenses were nearly flat at $15.7 million. Research-and-development expense fell 6% to $9.5 million as activity shifted toward revenue-generating Navy work, while selling, general and administrative expense rose about 8% to $6.4 million. For the first half, revenue climbed to $7.8 million and the net loss improved 16% to $25.7 million as operating expenses declined.
Hyliion now expects full-year revenue of approximately $15 million, up from its previous forecast of $10 million. It also expects to finish 2026 with $115 million to $120 million in cash and investments, compared with its earlier outlook of approximately $100 million, reflecting higher revenue, lower capital spending and planned equipment financing.
Commercialization of the 200-kilowatt KARNO Power Module is now expected in 2027, when deliveries will prioritize existing military contracts. Commercial deployments will focus particularly on data-center operators, which accounted for more than half of nonbinding letters of intent covering approximately 750 KARNO Cores.
The company cut second-quarter net cash spending to $6.9 million from $13.5 million a year earlier and expects full-year net cash use of $30 million to $35 million. After installing about 30 additive-manufacturing printers, Hyliion shifted its production plan toward increasing utilization and throughput of that fleet, with new printer purchases and the start of its production scale-up moved to 2027.