Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 11, 2026 · Beat 4 of last 6 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
Hyliion's raised guidance and Navy contract win underscore accelerating demand for on-site, fuel-flexible power generation for AI data centers and defense applications. The company's additive manufacturing speed improvements and capital efficiency metrics suggest a path to scale production to meet multi-hundred-megawatt data center interest, positioning KARNO as a potential complement to gas turbines in gigawatt-scale builds.
Hyliion reported Q2 revenue of $4.9 million, up from $1.5 million a year ago, driven by increased production of components for the 800kW Navy power module. The company signed a $41.7 million Navy contract, its largest to date, and expects to close additional military awards totaling near $50 million for the year. Management highlighted additive manufacturing speed improvements that could increase throughput up to 3x, and provided a capital efficiency metric of ~$1.5 million in printer investment per 1MW of annual production capacity. Net loss was $13.9 million, slightly wider than $13.4 million a year ago, but cash burn improved significantly to $6.9 million in Q2.
Management raised full-year 2026 revenue guidance by 50% to approximately $15 million, driven by faster-than-expected ramp of Navy R&D services work. They expect Q3 revenue to be roughly in line with Q2 at just under $5 million, with the existing Navy contracts winding down and the new $41.7 million contract ramping in Q4 and into 2027-2028. They plan to prioritize military deliveries and deploy 200kW units to data center test facilities in 2027, moving commercialization of the 200kW system into 2027. They also see an opportunity to restart printer acquisitions in 2027 (previously expected in 2028) due to additive manufacturing speed improvements, and expect to close an equipment financing of $10-15 million this year. The company established an at-the-market equity program for opportunistic capital raises, while reiterating that current cash is sufficient through commercialization.
“We were awarded a $41.7 million contract with the US Navy, our largest military contract to date, and we still expect to secure additional military contracts before year end.”
on Military contract win
“We have determined how to take advantage of the full laser power and capabilities available in the printers, implementing software enhancements that optimize how parts are printed, and are continuing to refine part design, including evaluating material changes where appropriate.”
on Additive manufacturing speed improvements
“Overall, commercial interest remains strong as we near initial customer site deployments.”
on Customer demand
Did you say 15 megawatts a year or 50 megawatts per year?
Thomas clarified it is 15 megawatts per year from the existing installed base and printers on order, including all advancements discussed.
How do you see the data center pipeline progressing—will you sign additional LOIs or move to test orders?
Thomas noted the 750 KARNO Core LOIs represent ~$400 million potential revenue, but that's only a fraction of engagements. Hyperscalers are asking about scaling to 100-400MW annual capacity, which is why they shared the capital-efficient scaling path.
When will you finalize 2027 CapEx needs and how quickly can you get printers?
Jon said they haven't finalized 2027 CapEx yet, but expect to restart printer acquisitions next year. Lead times could be low quarters or even months, and they may pull deliveries into 2027 or 2028.