Hyliion Holdings Corp. HYLN, a company focused on sustainable electricity-producing technologies, has signed a non-binding Memorandum of Understanding (MOU) with Jardine Engineering Corporation Limited (“JEC").
This MOU marks the beginning of a potential collaboration between the two companies to explore the use of Hyliion’s advanced KARNO technology in power generation projects and jointly pursue select business opportunities in Hong Kong, Macau and other regions where JEC operates. The KARNO generator, a groundbreaking fuel-flexible solution, uses a linear generator architecture to produce electricity efficiently and economically. It can operate on multiple fuels, such as hydrogen, natural gas, biogas and propane, and is expected to reduce maintenance costs and emissions compared with traditional technologies.
JEC, established in 1923, is a leading player in the power system industry in Hong Kong, representing top electric generator brands from the United States and Europe. Headquartered in Hong Kong, JEC is a listed contractor for public works and a premier provider of electrical and mechanical engineering solutions across the Asia Pacific. This partnership aims to combine the advanced capabilities of Hyliion’s KARNO generator with JEC’s extensive market presence, expertise and project implementation skills to deliver innovative and sustainable power solutions in the region. The MOU between Hyliion and JEC is contingent on finalizing a binding agreement.
In the second quarter of 2024, HYLN incurred a net loss of $10.9 million compared with a net loss of $35.2 million in the second quarter of 2023. As of Jun 30, 2024, Hyliion has cash and cash equivalent of $19.1 million compared with $12.9 million as of Dec 31, 2023. In the second quarter, the company repurchased 1.9 million shares of its common stock for $2.7 million as part of the $20 million share repurchase program announced in late 2023. Given current market conditions, the company does not anticipate making additional repurchases under the program in the near term but retains the option to utilize the remaining $6 million as deemed appropriate.
For 2024, Hyliion expects total cash consumption for KARNO development and capital investments to be around $55 million, up from the previous estimate of $40-$50 million due to increased capital expenditures aimed at accelerating the expansion of additive printing capacity in Austin. HYLN expects that it will be able to commercialize the KARNO generator using the capital it currently has.
Zacks Rank & Other Key Picks
HYLN currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Dorman Products, Inc. DORM, Blue Bird Corporation BLBD and Douglas Dynamics, Inc. PLOW, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2024 sales and earnings suggests year-over-year growth of 6.45% and 60.4%, respectively. EPS estimates for 2024 and 2025 have improved 15 cents and 2 cents, respectively, in the past 30 days.
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