Hyliion Holdings Corp.

Hello everyone. Thank you for joining us and welcome to Hyliion Holdings first quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Greg Standley, Chief Accounting Officer. Please go ahead.

Thank you, and good morning, everyone. Welcome to Hyliion Holdings' first quarter 2026 earnings conference call. Joining us today are Thomas Healy, Chief Executive Officer, and John Panzer, Chief Financial Officer. A slide presentation accompanying today's call is available on Hyliion's investor relations website at investors.hylion.com. Please note that during today's call, we will be making certain forward-looking statements regarding the company's business outlook. Forward-looking statements are predictions, projections, and other statements about anticipated events that are based on current expectations and assumptions that such are subject to risk and uncertainties. Many factors could cause actual results to differ materially from forward-looking statements made on this call. Factors that may cause such differences are discussed in our presentation and press release, as well as our filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on forward-looking statements, and we undertake no duty to update this information except as required by applicable law. With that, I'll turn the call over to Thomas.

Hello, and thank you for joining us for Hyliion's first quarter 2026 earnings call. On our last call, we had said 2026 would be the year we shifted from development to deployment of the Carno Power Module. The first quarter delivered tangible progress against that plan. We successfully completed the UL certification non-recurring test milestone for the Carno Power Module. We signed a new data center partnership with VFG Holdings, broadened our military engagement, and further demonstrated multi-fuel flexibility. We also saw a significant increase in revenue growth, recording $2.8 million this quarter, a fourfold increase from the prior quarter. This growth reflects the accelerating pace of work with the military. Today, I'll walk through each of these areas in more detail, then turn the call over to John for the financial update. Starting with UL certification. This was a high priority milestone for us, and I am pleased to share that we successfully passed the UL certification non-recurring tests for the Carno power module. This is the gating item we discussed last quarter, and clearing it now enables us to begin delivering early adopter units to customer sites. To frame what this means going forward, each individual power module will still undergo a final operating test prior to receiving its nameplate certification, but the foundational testing we have completed does not need to be repeated. As a reminder, this testing covers the electric motor, battery system, and the complete power module, with each subsystem undergoing separate UL certification. As we continue working towards our full 200 kilowatt design power rating, we expect to move to facility level certification, after which we will no longer need to certify each unit independently. That progression is an important step towards enabling production at scale. Turning to deployments, we continue to operate Carno units at our Cincinnati facility while building additional systems. We remain on track to complete the approximately 10 early adopter units this year ahead of commercialization, which we expect around year end, depending on the timing of the early deployments. With UL non-recurring testing now complete, we are beginning to work with customers to move these systems to their sites. This is an important transition. Until now, customer units have been operating at our facility under controlled conditions. Over the next couple of quarters, we expect these same units to begin operating in real-world customer environments. We continue to see strong interest from the military in deploying our Carno technology. We are now in active discussions not only with the Navy and Air Force, but with additional branches of the U.S. military as well. This interest is being driven by the platform's differentiated capabilities, including true fuel-agnostic operation, low maintenance requirements, and low acoustic and thermal signature, which are particularly important for applications such as autonomous operation and mobile power generation. We continue to expect to sign $40 to $50 million of additional military contracts this year on top of the approximately $20 million in ONR contracts we are currently executing. We are also seeing strong and growing demand from data center customers. The need for on-site fuel flexible power generation is becoming increasingly important, and we are actively engaging with the leading players in the market. In that context, I am pleased to announce a new strategic partnership with VFG Holdings. Hyliion and VFG Holdings have executed a non-binding letter of intent to deploy up to 250 Carno cores, or approximately 50 megawatts of power, over the next five years. VFG is a developer of advanced next-generation data centers and offers turnkey solutions including power, infrastructure, compute, and financing. The team at VFG is comprised of industry veterans from some of the largest data center companies and is planning multiple gigawatts of power production in the years ahead. Under this partnership, the parties plan to deploy Carno power modules at VFG data center sites to demonstrate the unique benefits of the Carno platform, including lower than grid electricity production costs, true fuel agnostic operation, and direct 800-volt DC integration. We plan to share more details on the partnership in the periods ahead. The LOI between Hyliion and BFG is subject to the execution of a definitive purchase agreement. Building on our partnership with ABM Industries, which we announced in early 2026, we have been engaging prospective customers alongside ABM. The opportunities span light and heavy commercial applications from single-unit 200-kilowatt deployments to multi-megawatt installations. ABM brings deep capabilities in site engineering, integration, construction, and ongoing site management, which complements our focus on advancing and commercializing the Carno Power Module. Now shifting to updates on our product development. We continue to make progress towards our full 200 kilowatt design power rating. During the quarter, the team conducted isolated testing on new software and component improvements that yielded additional power and efficiency gains. We plan to incorporate these and other advancements into the product over the coming quarters and remain on track to reach the full design power rating by year end. Beyond the broader fuel flexibility we have previously demonstrated, The first quarter included a particularly meaningful product development milestone. We successfully demonstrated dynamic fuel switching within the Carnot reactor across diesel, natural gas, and hydrogen without shutting the system down. Said differently, the system can operate on both gaseous and liquid fuels with very different characteristics. This achievement validates true fuel flexibility on the platform. Not just dual fuel, but the ability to operate on liquid fuel, pipeline gas, and zero carbon fuel through a single architecture with the ability to transition seamlessly between them during operation. The strategic significance of this capability is meaningful as many of our target applications desire this kind of flexibility. For example, data center operators often prefer pipeline natural gas as their primary fuel source. while maintaining diesel fuel onsite as a backup in the event of a disruption in natural gas supply. The Carno Power Module enables both within a single platform, eliminating the need for separate primary and backup generation systems. This capability also expands our addressable market in defense applications, where mission requirements frequently depend on fuel availability and the ability to adapt in real time. With diesel fuel operation now demonstrated, we have commenced building an 800 kilowatt Carnot power module for the U.S. Navy. This system will be deployed on an unmanned Navy vessel as part of our existing ONR program. We expect to complete this build during 2026 alongside other Navy product performance and reliability milestones. Importantly, The 800 kilowatt system we are building for the Navy serves as the same architectural building block for our data center offering. By combining multiple 800 kilowatt units, we can scale to 1.6 megawatts, 2.4 megawatts, 3.2 megawatts, and higher, aligning with the modular power configurations required by data center customers. On manufacturing capacity, our focus today remains on building systems, establishing the supply chain to meet our quality requirements, and continuing to scale print capacity. We are continuing to make meaningful progress with our additive printers, particularly in improving part production speeds. We expect to install a few additional printers this year, and with those additions, our existing fleet is expected to support our planned production needs for 2026, 2027, and into 2028. We remain on track to take delivery of and begin testing one or more printers equipped with the latest laser technology from GE Calibrium later this year. We believe that technology has the potential to further improve print speed and throughput. On supply chain, we noted last quarter that magnet supply was a potential risk given export constraints from China. I'm pleased to share that during the first quarter, we began to see progress with alternate sourcing options for the high strength magnets we require, increasing our confidence in our ability to support planned production. To recap, our 2026 milestones. At the start of the year, we outlined a clear set of objectives. With one quarter complete, we are making solid progress. We have completed UL non-recurring testing on the Carnot power module. We have demonstrated multi fuel switching, including liquid fuel operation, and have begun building the 800 kilowatt Navy system. Looking ahead, we remain on track to achieve our full 200 kilowatt design power rating, complete our remaining early adopter unit deployments, secure $40 to $50 million in additional military contracts, and deliver approximately $10 million of revenue for this year. Looking beyond this year, Our three-year outlook remains unchanged. In 2027, we expect to ramp commercial deliveries and expand the range of Carno deployments, specifically with the military and data center customers. We view 2027 as the year we transition from initial commercialization into meaningful production scale. By 2028 and beyond, we expect to accelerate commercial growth as production capacity enables us to serve a broader portion of customer demand. including expansion into multi-megawatt configurations for data center customers. With that, I'll turn the call over to John to walk through the financial results for the quarter.