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Dec 31, 2023
Hyliion Q4 2023 Earnings Report
Reported fourth-quarter and full-year 2023 financial results, focusing on KARNO generator development and powertrain wind-down.
Key Takeaways
Hyliion Holdings reported its Q4 and full-year 2023 financial results, highlighting the strategic shift to focus on the KARNO generator and the wind-down of the powertrain operations. The company ended the year with a strong cash position of $291 million and is progressing with KARNO generator development, expecting initial customer deployments in late 2024.
KARNO generator is expected to qualify for up to a 40% tax credit under the Inflation Reduction Act.
Detmar Logistics executed a letter of intent for an initial KARNO unit to be deployed in the Permian Basin.
Plans to deliver initial KARNO generator units to customers in late 2024 were confirmed.
Ended the year with $291 million of total cash and investments.
Forward Guidance
Hyliion anticipates total cash consumption for the KARNO generator business to be between $40 and $50 million in 2024. Projections for 2025 include growth of KARNO generator deliveries with proceeds from sales in the low double-digit millions of dollars. The company also projects gross margins to be approximately break-even or slightly negative and cash spending to grow modestly compared to 2024.
Positive Outlook
- Initial KARNO generator deployment units with customers late in 2024.
- Ramp-up in production and additional deliveries in 2025.
- Growth of KARNO generator deliveries with proceeds from sales in the low double-digit millions of dollars in 2025.
- Gross margins to be approximately break-even or slightly negative in 2025.
- Achieve commercialization of the KARNO generator with the capital on hand.
Challenges Ahead
- Ongoing wind-down of powertrain operations.
- Cash payments associated with the stock repurchase program.
- Gross margins to be approximately slightly negative in 2025.
Historical Earnings Impact
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