Hyliion Holdings Corp. Reports Q4 and Full-Year 2025 Financial Results, Highlights Major Advances in KARNO™ Generator Development
Hyliion Holdings Corp, a pioneering developer of modular, fuel-flexible power generation technology, has reported its financial results for the fourth quarter and full year ended December 31, 2025. Alongside the financial disclosure, the company provided substantial updates on the progress of its KARNO™ generator platform, a cutting-edge modular power solution designed for both military and commercial applications.
The fourth quarter and year-end results reflect Hyliion’s continued investment in research and development, operational readiness, and strategic partnerships, all aimed at advancing the commercialization of the KARNO Power Module. The company’s approach centers on combining advanced engineering, modularity, and fuel flexibility to address a broad range of energy needs, from military operations to high-demand data centers and industrial applications.
Key Business Developments
Throughout 2025, Hyliion achieved several critical milestones for the KARNO platform. The company is on track to deliver the initial KARNO units to customer sites and military applications in 2026, with full commercialization of the 200-kilowatt Power Module expected by the end of the year. Currently, five KARNO units are in operation at Hyliion’s Ohio facility. These units not only support ongoing validation efforts but also allow early adopters and military partners to evaluate the system under real-world operating conditions.
Hyliion anticipates securing between $40 million and $50 million in follow-on U.S. military contracts in 2026, reflecting the growing defense sector interest in fuel-agnostic, low-signature, and reliable power solutions. In addition, demand from the commercial and data center markets is robust, with nearly 500 KARNO Cores represented under non-binding letters of intent, signaling substantial early market interest.
In early 2026, Hyliion also entered into a strategic partnership with ABM Industries, aimed at delivering integrated distributed energy solutions to commercial and industrial customers. This collaboration leverages Hyliion’s innovative KARNO technology alongside ABM’s extensive capabilities in site engineering, integration, construction, and ongoing operational management. The partnership is expected to streamline deployment, reduce integration complexity, and offer flexible commercial models while enabling Hyliion to focus on further advancing the KARNO platform.
Product Performance and Validation Milestones
The fourth quarter of 2025 marked significant advancements in the performance, durability, and validation of the KARNO Power Module. Five units currently operating in Ohio are meeting the functional requirements of early adopters, demonstrating both reliability and enhanced power output. These units form the foundation of Hyliion’s controlled testing environment, enabling continuous refinement and validation of the system ahead of widespread commercial deployment.
A major milestone was achieved in certification readiness. Hyliion successfully completed UL certification testing for the linear electric motor and the battery pack. Furthermore, initial testing of the complete Power Module was completed, with full UL certification anticipated in the second quarter of 2026. Achieving UL certification is a critical step, allowing for broader deployment to early adopter customers and supporting the planned commercial launch of the 200 kW KARNO Power Module later in the year.
Testing conducted during the fourth quarter confirmed the KARNO platform’s ability to generate 175 kilowatts of power, approaching the full 200 kW design target. The system demonstrated stable and reliable power delivery under a range of operating conditions, including a mission-representative U.S. Navy load profile on a Navy-owned KARNO asset. During these tests, the system managed rapid load changes and sustained high-stress operational performance, validating its suitability for shipboard and defense applications.
Fuel flexibility remains one of the KARNO platform’s most distinctive attributes. During the quarter, Hyliion successfully operated the full KARNO Core system on diesel fuel while exporting power to the grid. Remarkably, the system met Tier 4 Final emissions standards without the need for exhaust aftertreatment, reinforcing the environmental advantages of the platform. Additionally, dynamic fuel switching was successfully demonstrated under load conditions, allowing seamless transitions between gaseous and liquid fuels without interrupting power output.
Strategic Commercial Deployments
Hyliion has strategically deployed early adopter KARNO units to its Ohio facility for intensive testing and evaluation. These deployments complement the two military deployments completed earlier in 2025 and provide customers with the ability to monitor system performance in a controlled environment. The company is on track to deliver approximately 10 early adopter units throughout 2026, further validating the system and preparing for broader commercialization.
The partnership with ABM Industries enhances Hyliion’s commercial reach, offering an end-to-end solution that combines the KARNO Power Module with ABM’s site engineering, integration, and operational management capabilities. This collaboration is designed to reduce deployment complexity for customers and accelerate adoption across commercial and industrial markets.
Hyliion plans to prioritize deployments for prime power applications, military operations, and data center facilities in 2026. Notably, the company is demonstrating compatibility with high-voltage DC architectures, including an 800-volt DC integration with a data center, highlighting the KARNO system’s suitability for space-constrained, high-power applications.
Within defense markets, Hyliion expects additional military contracts totaling $40 million to $50 million in 2026. These contracts represent a significant long-term revenue opportunity as the military increasingly prioritizes resilient, fuel-agnostic, and low-emission power solutions. The company’s work with the Office of Naval Research continues, with approximately $20 million in contracts currently underway. A major milestone was reached with the first autonomous U.S. Navy vessel powered by KARNO systems now undergoing sea trials. The vessel is designed to accommodate multiple megawatts of KARNO power, demonstrating both the scalability and strategic relevance of the technology for defense applications where reliability and energy security are mission-critical.
Customer interest in the KARNO platform has steadily increased, with nearly 500 KARNO Cores represented under non-binding letters of intent spanning military, data center, and commercial applications. This growing demand underscores the market’s recognition of the KARNO system’s reliability, fuel flexibility, and environmental benefits.
Financial Performance
Financially, Hyliion recorded $0.7 million in revenue for the fourth quarter of 2025, all derived from research and development services related to its Office of Naval Research contract. This compares to $1.5 million in R&D revenue for the same period in 2024. Cost of sales for the quarter totaled $0.6 million, resulting in a modest gross margin of $0.1 million.
Operating expenses for Q4 2025 were $15.0 million, down from $17.2 million in Q4 2024, reflecting lower R&D and SG&A expenses, along with $0.5 million in gains from asset sales related to the company’s Powertrain Exit and Termination activities. The net loss for the quarter was $13.2 million, slightly improved compared to a $14.4 million net loss in the same quarter of 2024.
For the full year 2025, Hyliion generated $3.5 million in revenue, all from R&D services, achieving a gross profit of $0.2 million. Operating expenses totaled $65.7 million, up from $64.4 million in 2024, primarily due to higher R&D activity, partially offset by lower SG&A and Powertrain Exit-related expenses. The full-year net loss was $57.2 million, compared to $52.0 million in 2024.
Cash expenditures for Q4 2025 were $12.4 million, including $1.7 million in capital spending. For the full year, cash use totaled $67.4 million, with $23.7 million allocated to capital investments such as additive printers, facility enhancements, and machining equipment. The company ended 2025 with $152.4 million in cash and investments, positioning it well to fund operations through product commercialization.
Looking ahead to 2026, Hyliion anticipates revenue of approximately $10 million, encompassing R&D services and initial sales of commercial KARNO generators. The company expects total cash use in 2026 to be roughly $50 million, which will result in a year-end cash and investment balance of approximately $100 million. The reduction in cash burn reflects higher revenue, lower capital expenditures, and approximately $10 million in planned equipment financing. Capital expenditures will continue to focus on additive printer and facility investments, ensuring the company remains on track for commercialization.
Executive Perspective
Thomas Healy, Founder and CEO of Hyliion, commented: “2025 was an important year of advancing product development and completing initial customer units for the U.S. Navy. We closed the year with the KARNO Power Module delivering the power levels that our early adopter customers need. This accomplishment gives us confidence as we enter 2026, where our focus shifts to completing all early adopter customer deliveries, expanding business development opportunities, and reaching commercialization by the end of the year.”
About Hyliion
Hyliion is dedicated to creating innovative energy solutions that enable clean, flexible, and cost-effective electricity production. The company’s primary mission is to provide modular power plants capable of operating on diverse fuel sources, designed to future-proof against the evolving energy landscape. Headquartered in Austin, Texas, with research and development operations in Cincinnati, Ohio, Hyliion initially targets commercial and waste management industries with its KARNO Power Module. This modular system offers both prime power and energy arbitrage capabilities. Beyond stationary power, Hyliion aims to address mobile applications, including vehicles and marine platforms. The fuel-agnostic KARNO Power Module leverages additive manufacturing and a linear heat generator architecture, reflecting the company’s commitment to practical, environmentally responsible, and innovative energy solutions.
As Hyliion moves into 2026, the company is well-positioned to transition from development and validation to commercialization, leveraging strong demand across military, commercial, and data center markets. With nearly 500 KARNO Cores represented in non-binding letters of intent, a strategic partnership with ABM Industries, and ongoing military contracts, Hyliion continues to establish itself as a leading innovator in modular, flexible, and fuel-agnostic power generation solutions.
