Hyliion Awarded $41.7 Million U.S. Navy Contract to Scale Multi-Megawatt KARNO Power Modules

• Hyliion’s largest military contract to date: $41.7 million U.S. Navy award to design, develop, and deliver two multi-megawatt KARNO Power Modules
• Deepening Navy Partnership: This award brings Hyliion's cumulative ONR funding to more than $58 million, spanning initial validation, testing, upcoming at sea trials, and now multi-megawatt development
• Built for military missions: KARNO technology’s fuel-flexible operation, high efficiency, and low-maintenance design are the attributes driving continued Navy investment in the platform

AUSTIN, Texas--(BUSINESS WIRE)--Hyliion Holdings Corp. (NYSE American: HYLN), a developer of modular power plant technology, today announced it has been awarded a $41.7 million contract from the Office of Naval Research (ONR) to design, develop, and deliver two multi-megawatt KARNO™ Power Modules for validation in land and maritime applications at NAVSEA, Philadelphia. This contract represents Hyliion’s largest military contract to date and marks a significant milestone in scaling the KARNO platform toward multi-megawatt power solutions for both defense and commercial applications.

Under the contract, Hyliion will develop and deliver two KARNO Power Modules rated at 2+ MW and 3+ MW scale, expanding the platform to support a broader range of U.S. Navy vessels and applications. These systems build on the company’s modular 800 kW architecture to meet the higher power requirements of naval and land-based missions.

“This contract accelerates the development of our multi-megawatt KARNO systems and expands the range of naval platforms the technology can support,” said Thomas Healy, Founder and CEO of Hyliion. “The Office of Naval Research has been a tremendous partner in advancing the KARNO technology, and their continued investment reflects the confidence they have built in both our team and the platform.”

The multi-megawatt KARNO Power Modules are expected to expand the capabilities that have driven Navy interest in the technology: unmatched fuel flexibility, high electrical efficiency, and a low-maintenance design optimized for demanding operating environments. These attributes can reduce logistical burden, extend mission endurance, and deliver resilient power for maritime and expeditionary operations while maintaining low acoustic and thermal signatures.

This award underscores the critical role of investment in accelerating innovative power technologies that support national security and the domestic industrial base. It also validates Hyliion’s strategy of deploying a common KARNO architecture across diverse markets, enabling the same scalable platform to serve both defense missions and high-growth distributed power applications including data centers.

The views expressed are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government.

About Hyliion

Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company’s primary focus is to provide modular power plant technology that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, Ohio, Hyliion is initially targeting the commercial and waste management industries with a locally deployable KARNO Power Module that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine vessels. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy. For further information, please visit www.hyliion.com.

Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage Company with a history of losses; our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business, and the other risks and uncertainties described under the heading "Risk Factors" in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 25, 2026 for the year ended December 31, 2025 and our subsequently filed Form 10-Qs. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion’s operations and projections can be found in its filings with the SEC. Hyliion’s SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.