AUSTIN, Texas - Hyliion Holdings Corp. (NYSE: HYLN), a developer of electricity-producing technology, has started additive manufacturing of parts for its KARNO generator at its Austin headquarters. This move is part of the company's efforts to increase production capacity ahead of its planned distribution of generators to customers later in 2024.
The company, which also operates a research and development facility in Milford, Ohio, currently operates over a dozen additive printing machines. Hyliion intends to significantly expand its manufacturing capacity in the future, incorporating advanced Colibrium Additive M Line printers known for their production speed and efficiency.
Thomas Healy, Founder and CEO of Hyliion, stated that the commencement of additive production in Austin is a crucial step in enhancing the company's manufacturing capabilities. He highlighted that additive manufacturing allows for the economical scaling of production for the KARNO generator, which is expected to feature enhanced efficiency due to the precision of the 3D printing process.
Additive manufacturing offers benefits such as design flexibility, material waste reduction, and increased component durability. The first parts produced using this method were aluminum cooling jackets for the KARNO generator, which help manage the heat from the linear electric machine.
Hyliion plans to begin producing additional additive components for the KARNO generator in the upcoming months, scaling up alongside its Ohio facility. The first units of the KARNO generator are slated for delivery to early adopter customers in the second half of 2024, providing real-world data and feedback for further technology refinement.
Hyliion focuses on creating innovative solutions for clean, flexible, and affordable electricity production. The company targets the commercial and waste management industries with its distributed power generators that can operate on various fuel sources. Beyond stationary power, Hyliion also aims to address mobile applications such as vehicles and marine.
In other recent news, Hyliion Holdings reported its Q1 2024 earnings, with notable progress on its KARNO generator. The company has seen an expansion in its customer base and has built a backlog of orders for the KARNO generator, with customer deliveries anticipated in the upcoming quarters.
Hyliion has maintained its capital expenditure guidance for the year between $40 million to $50 million. The company also announced a non-binding LOI with H2 Energy for up to 10 KARNO generators, which could potentially generate about 2 megawatts in total.
Despite recording $4.4 million in exit and termination expenses related to the shutdown of its powertrain business, Hyliion reported a lower net loss than the same quarter last year.
The company ended the first quarter with $264 million in cash and investments. Analysts noted the company's focus on transitioning to the KARNO generator and its potential to generate low-double-digit millions in revenue from KARNO generator deployments next year.
InvestingPro Insights
As Hyliion Holdings Corp. (NYSE: HYLN) forges ahead with its additive manufacturing strategy for the KARNO generator, investors are closely monitoring the company's financial health and market position. According to InvestingPro data, Hyliion currently holds a market capitalization of $259.31 million. The company's aggressive share buyback strategy, as highlighted in an InvestingPro Tip, suggests a strong belief by management in the company's potential.
Despite the optimism surrounding the production of the KARNO generator, the company's financial metrics reveal some challenges. The latest data shows a negative P/E ratio of -2.68 for the last twelve months as of Q1 2024, and a significant revenue decline of -82.56% during the same period. Additionally, the company's gross profit margin stands at a concerning -183.15%, indicating that Hyliion is facing difficulties in maintaining profitability as it scales up operations.
However, not all signals are bearish. Hyliion holds more cash than debt on its balance sheet, a positive sign for its financial stability. Furthermore, the company's liquid assets exceed its short-term obligations, providing a cushion for near-term financial demands. These insights could be particularly relevant for investors considering the company's potential for long-term growth in the electricity-producing technology sector.
For a deeper dive into Hyliion's financials and to access additional InvestingPro Tips, such as the company's cash burn rate and analysts' expectations for profitability, visit https://www.investing.com/pro/HYLN. Investors seeking to make informed decisions can benefit from the full list of 15 InvestingPro Tips available on the platform. Plus, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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