Hyliion Raises 2026 Revenue Outlook to About $18 Million

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue reached $7.5 million, and the company lifted full-year guidance from $15 million after faster Office of Naval Research work.

Hyliion Holdings Corp. (HYLN), a developer of modular power plant technology, raised its full-year 2026 revenue outlook to approximately $18 million after third-quarter revenue of $7.5 million, up from $4.9 million in the second quarter.

The Austin-based company said the increase followed stronger-than-anticipated revenue from military research and development services, primarily accelerated progress on the 800-kW KARNO Power Module being developed for the Office of Naval Research and additional funding under that program. At the start of 2026, the company had guided to about $10 million.

Revenue in the three months ended September 30, 2026, was $7.5 million from research and development services, compared with $0.8 million a year earlier. Cost of revenues was $6.9 million, producing gross profit of $0.6 million.

Operating expenses were $13.0 million, down 15% from $15.3 million in the third quarter of 2025. Research and development expenses declined 14% to $8.7 million, which the company attributed primarily to a continued shift toward revenue-generating work under military contracts. Selling, general and administrative expenses were $4.3 million. The net loss narrowed to $11.1 million from $13.3 million a year earlier, a 17% improvement, or $0.06 a share versus $0.08.

Hyliion delivered another early-adopter KARNO Power Module to the U.S. Navy and began moving equipment to its first commercial customer site, where it expects to complete the deployment in the coming weeks. Additional early-adopter units are in assembly, including a second commercial customer unit and systems for the Navy’s USX-1 Defiant autonomous vessel.

The 800-kW system for the Defiant is now expected to be completed in early 2027, later than the 2026 completion the company had previously anticipated, partly because of a component redesign to address thermal fatigue identified during extended operation. Remaining early-adopter deliveries are expected by the February 2027 earnings release. The company remains on track for a 200-kW power-output target from the KARNO Core by year-end.

Following the $41.7 million Navy contract announced in July, Hyliion said it is in final stages of negotiations on two additional awards: an anticipated $1 million Navy contract to evaluate KARNO for a new application and an approximately $7 million contract with another branch of the U.S. military. Together with existing awards, those contracts would bring total new military awards for 2026 to approximately $50 million, the high end of its original $40 million to $50 million objective. The company also received about $3 million of additional funding under the existing Navy contract supporting the 800-kW module for the Defiant.

As of September 30, remaining authorized funding under existing military contracts was $45.5 million, excluding the anticipated year-end awards. The company expects the majority of that contracted work to be performed over the next two years.

Hyliion now expects approximately $3 million of fourth-quarter revenue as work on the 800-kW Navy system nears completion and activity ramps under the July Navy contract, with the majority of that contract’s work expected in 2027 and 2028.

Net cash spending in the third quarter was $11.0 million, compared with $20.6 million a year earlier, reflecting mostly a decline in capital spending. Year-to-date capital spending was $2.4 million versus $22 million in 2025. Cash and investments ended the quarter at $121.4 million. The company continues to expect to end 2026 with $115 million to $120 million in cash and investments and said higher expected revenue, lower expenses and improved working capital are anticipated to replace proceeds previously expected from an equipment financing transaction it elected not to pursue in 2026.

Additive-manufacturing operations are being consolidated to Texas, including relocating six printers and KARNO Core assembly from Ohio. Current printer capacity is expected to deliver up to 15 MW of yearly throughput once speed enhancements of up to three times are achieved.