HYZN - Earnings call transcript Q4 2023

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Operator

Hello, and welcome to the Hyzon Fourth Quarter 2023 Earnings Call. [Operator Instructions] I will now turn the conference over to Henry Kwon. Please go ahead.

Unknown Executive

Thank you, operator, and good morning, everyone. Welcome to Hyzon's Fourth Quarter 2023 Earnings Call. call Chief Parker Financial the Officer; Chief on Weiland, Stephen Officer; me today Meeks, are Executive With and Dr. Technology Chief Mohrdieck, Officer. Christian

end As found to presentation most measures find the financial a press of to our of the can the release discussions section at These reminder, our include and release. measures Today's detailing reconciled references Investor the Relations GAAP results measures. earnings today's can comparable accompanying press the the U.S. website. be call non-GAAP in QX and you are

the This morning's results statements of X and regarding from and the explained plans presentation. press factors earnings might future our of forward-looking differ stated, to results differ release discussions include the and those actual forward-looking expectations. at in Actual Page cause are that could statements materially end

Forward-looking of statements which made. date they are on speak as the only

to are that, the will turn With cautioned reliance Meeks. You statements. to Parker not on forward-looking I CEO, over put call undue our

Parker Meeks

and Good Dr. Mohrdieck, our be have today introduce to thank I'm fourth and joined are by morning, thrilled to CTO. call. earnings you as who to pleased everyone, XXXX Steve quarter joining Hyzon's for

progress in transition clean our the by a continues to commercializing as fuel proprietary developing global and cell zero-emission Hyzon energy high-power technology. to leader

heavy-duty provides cell leading Our in that technology trucks. fuel-efficient system. and cell more fuel fuel fuel more cell technology cost-effective a lighter, smaller, deploy Today, we

these existing both mining, opportunities additional of the our have heavy-duty As deploy rail, power such potential generation our ecosystems, as development. stationary early aviation with and we fuel hydrogen ecosystem technology industrial grows, future in to and cell several and the

commercialization XXXX will believe be We foundational year of for Hyzon. a

to is fuel XXX-kilowatt SoP. production technology Our or single coming start of stack cell

customer support cell hydrogen markets continues even grow We trucks our regulatory And continents. to operations are prioritized commercially stronger. for government, commercial and deploying in fuel X on into

few fourth have commercialization, minutes achieved I will XXXX inflection for quarter a We in demonstrate take and why. believe of the technology Hyzon's our the to accomplishments describe point we

Turning milestone Technology cell Manufacturing. outside verification here significant the in & full Illinois, factory In fuel fourth testing, durability XXXX achieved production In manufacturing operational quarter, single-stack of B-samples. to XXX-kilowatt design U.S. we includes year acceptance and This fuel Chicago, system first XX our testing. facility our full the cell

We to a also production system progressed step cell process these automotive technical C-sample samples the development are stage, product fuel standard tooling crucial all the for to as SOP. with requirements built meet in development

minimal system on are the achieve that the we to SOP track CapEx requirements cell fuel second XXX-kilowatt progress, this XXXX SOP. of With in of remaining with for half

an to expect on XXX-kilowatt annual further we the in facility line SOP Additionally, to have capacity debottleneck with at systems shifts associated manage plans debottlenecking CapEx efficiently XXX, fuel with demand. and of X cell

cell business Fuel assembly multiyear We agreements. our the additions approach anticipated line benefits taken from of maintain this asset-light model. in expect capacity customers with commercial over increases efficiently demand to our

to XX the achieving On to have deployed. across guidance end of XX in vehicles the operations excited agreements vehicles commercially the high of electric XX continents X customer cell commercial deployed under heavy-duty fuel commercial XXXX, in our front, we're

fleet ability by customers. vehicles a to crucial trucks California. California. were of the Of those reduction highlight briefly X a is like PFG large U.S. to Hyzon the deployed Europe to in X a vehicles, in marks deliver cash truck contribution our PFG progress It and as deployment U.S. deliveries, XX The it State would toward demonstrates and achieving to of Australia. X Group, in of both goals margin were I our Performance in fleet with and foundational which Food or customers, to these in also Hyzon's shared level positive step at step emission the large

intend all XXX-kilowatt on if options XX fuel to heavy-duty announced, XXX-kilowatt additional further successful previously are an a an for fuel for the XX and cell cell agreement with Hyzon's bring cell potential and PFG work trucks option fully pending cell a trucks together exercised. Hyzon trucks trial As total fuel fuel XX to truck, potential

exactly agreement structure. commercial customer the profile and multiyear is This scaling

fleets the are North anticipated refuse We of on our a our the similar company. additional converting collection of of full with this fuel focused on to we the trial on We service agreements trials REMONDIS, XXX-kilowatt fuel of platform a U.S. cell through Australia commercial focused heavy in a platform fleets kicking Outside electric recycling half truck truck their America, number already trial launched delivering off global to with large also trial and multiyear schedule back water deployments remain year. fleets first the for program. cell large commercial rigid in and first

alternatives After even with than required. are decarbonization the view demonstrating cases, need. That the significantly Vinlifts X,XXX clear electric that fleet's is only in refuse the option battery completing our to electric some combustion work vehicle delivered refueling seeing, performance in can deliver and truck the in workday, our its the of at cell refuse with full left work engine a better fuel performance daily that battery fuel -- a shifts viable combustion rate fully customers are perform X-month doubling the line trial, trucks including the equivalents, the end engine of no with over best successful over

that the truck of Hyzon right fuel cell operating a the equivalent fuel alternative similar trucks heavy-duty proving fuel operating can subsidies, operating availability, diesel work cell today. the was to the with the cost at cost of the without do cost Additionally,

to New REMONDIS transfer under to Hyzon also of commercial working agreement. cell owner, system. Hyzon's XXX-kilowatt existing Zealand's agreement with With fuel ownership TR to the fleet the revised entered trucks trial XX commercial into single-stack upfit a complete with Group, truck cell the heavy-duty the is and fleet the truck fuel with full successful, largest REMONDIS up team

another commercial the Hyzon's XX Group upfit cell as TR to Following XXX-kilowatt trucks trial, with initial trucks to as an purchase fuel has trial the option systems. X well

significant the executive XXXX, appointing team. steps Turning including of and Directors new to governance. our to leaders Chairman Board Board management, and the new strengthen took to of accomplished X a members, Board Throughout we

Chief our leadership We team globally Mohrdieck his team at from He Technology completed as Truck of us Fuel a venture previous as leader cell Christian Commercial a is GMBH. helped reinforcement the our his the role joins through Cell joint welcoming Dr. in Chief industry. to Volvo Christian role which Officer respected the the Officer. Mercedes-Benz Group, between by and Christian as of CEO Diamward establish AG fuel

extend and fuel cell our place drive system ability Christian cell of and combination and leadership developing accelerate management critically Christian's commercializing Hyzon U.S.-made experience and our XXX-kilowatt the in cell leading fuel bolster will R&D our to leadership both deep technology into fuel With an commercialization. foundation strong have joining to in are generation. technology confident already we governance team IP Board, in forward we and further

We declining our met our net and efficiencies cash delivered Hyzon's XXXX to second performance. driving while technology in by commercialization cash another burn briefly progress, development and guidance cost financial quarter net on further. half in Steve will our which comment burn disciplined and maximizing real cash with Turning remaining burn, structure

including to to thoughtful financing continue valuation about options I'll counterparties being We support dilution. potential our commercialization, strategic and evaluate

milestones strong outlook. a commercial achieved momentum the positive operational and and in we XXXX With start XXXX, with

customer will the fuel and SOPs cell advancing subsequent for realizes as fleet and commercial the advancing trucks, year multiyear heavy-duty scaling XXXX We cementing expect and Hyzon deployments. By their large our portfolio our through agreements meaningful technology respective commercialization. and foundation be XXX-kilowatt

single-stack As mentioned half the in Hyzon's continues XXXX. system towards innovative previously, of cell advance to XXX-kilowatt second fuel SOP its

system fuel-efficient compared of and will to is be stacks said cell production testing, combining year durability the which more are generating kilowatts conventional systems or system midpoint fuel kilowatts to to cell more reach completing cell thereafter. Hyzon significantly from smaller, to We when ready a single fuel fuel currently can start the of offer around favorable X the pending lighter, XXX soon results or By conclude cost-effective more XXX power. approach and

million to remaining Our capital U.S.-based less cell SOP. fuel with nearing reach is facility $X in than investment production completion

systems SOP capacity of conventional Alongside Australia on Hyzon's XXX-kilowatt caliber XXX-kilowatt the platforms. As the in fuel last to as of truck an was X operating powertrain. cell SOP system we facility I annual unveiled also our reach XXX-kilowatt with shifts. system, week X of trucks. fuel a cell the projected fuel over mentioned, to initial XXX, fuel is cell over launch cell expect have and XXX-kilowatt first caliber XXX-kilowatt initial vehicle the and

designed the XXX-kilowatt a U.S. powertrain in efficiencies and The common maximize was solution. regionally powertrain from to adapted

fleets large XXXX fuel advantages trucks each us XXXX cell As X in with deployed production we the achieve our commercially deployment vehicles in first companies and early XXXX, in positions these X continuing U.S. with targets region. in our the commercial high-powered well Starting with to to of mover established heavy-duty only in

truck when large several be these PFG second securing and focused commercial trials, with achieved. commercial is multiyear stage contracts a securing design large company significant the is industry fleets place which successful deliveries to XXXX, it back activating a multiple fleet in cell in agreements, contracts fleets From in similar the on later to of the on advancing and this milestone potential standpoint, XXXX scaling with then of their agreement fuel the year, orders multiyear with initial in large and with deliveries for will vehicle

for and our towards battery internal are shifting with routes long bolsters clearly experiencing the to their decarbonize This heavy to and in downtime of a fleet heavy-duty trucks with of electric that fleets decarbonized government minimal and are These confidence for limitations feedback cell customer mandates real-world operations fuel hydrogen. mix refueling. turning is payloads the trucks

trucks with One or garbage cell compete hydrogen application is battery electric where cannot today refuse fuel trucks. collection

in a truck. operational our similar hydrogen as traditional refuse our with demonstrated delivers trial diesel As drug REMONDIS capabilities

lunch leading Typical deliver. refuse version It work mission The is future is home to X gap electric can charges cell half completes goes only is of hydrogen the us at of that in that refuse X day. performance battery significant, next roughly for fuel collection trucks today believe electric the and clear.

nature see also produce refuse solid use waste. the landfill that the or and develop site We the to can truck given quickly ability as back-to-base of on gas from case the X more hydrogen market

accelerating facing this Hydrogen are circular in program Clean mandates U.S. with ecosystem powered we a under XXX,XXX in in our California's purchase With in the Australia. create zero-emission alone America, Advanced California, an development refuse mind, many emission estimated the North near-term off building expected zero rule. on road refuse funded in Fleet publicly the trucks fleets and can

manufacturer in U.S. with announced way, largest recently refuse a joint for development the equipment We the private agreement trucks America. refuse in North New

commercial fuel The the XXXX cell trial and first in of is an expected to U.S. half projected first waste customer initial assembly full schedule currently with XXXX. a truck deliveries launch collection in

We are schedule. the upcoming customer fleet customers and excited by shown have refuse the strong trial response

to policies All adoption. hydrogen and administration accelerate have tailwinds the for vehicles. of this several $X instance, X worldwide U.S., markets is supported allocated Major Biden directly supported. hubs, which by has billion strong of In the to zero-emission hydrogen globally Hyzon for

under several $XX coastal Beach application. hundred over program, and including California a Reduction EPA's Clean infrastructure, subsidy million as the the million X Act over program of Fund. the Mitigation ports Long $XXX Houston's HVIP Environmental which zero-emission dollars ports part inland available available LA Inflation of to participating the and of fueling for beginning and trade nationwide, trucks Volkswagen XXXX, million funding Clean to specifically trucks market initially $X.X from of and decarbonize as Trust including billion is Class Truck with through Port CARB's drayage truck in Hyzon remains well-funded earmarks

platform with the technology expected customers our excited XXX-kilowatt are XXX-kilowatt focus technology fuel with XXXX. reach SOP half we truck are milestones, momentum be our will milestones major path schedule large XXX-kilowatt to second of for for in the scale-up on the second In commercial to of And cell the SOP fleet XXXX. build we XXXX. for single-stack vehicle to platforms, following half clearing on U.S. this of commercial in These Again, for short, and XXX-kilowatt the our globally. and system

on well to converting large agreements. multiyear progressing pipeline trials additional trial-based large focus a are commercial we our from with on fleets Second, fleet customer

the customers targeting signing well. of to fleet advancement order are multiyear on the customer XXXX their pattern second of We multiyear focused large in new stage agreements and fleet large as

of Third, XXXX. in XXXX, we U.S. their cell their XXXX truck deployments commercial XX second focusing we truck will with agreements XX or to agreements. be expected to agreements to in are to fuel initial of deployments launching advance targeting in commercial purposely second half refuse the Fourth, to trials activate large agreements to globally, customers on on fleet multiyear commercial the delivery customers the

we cash a burn XXXX capital deploying enable have fleet of By commercial in per net scaling fleets, number purposefully large to XXXX. while smaller we the trucks place priority foundation in associated maximizing managing and are and working to

our to additional sheet and our Lastly, securing we capital balance strengthening business. fund are on focused

to tenacity our global and leading for mover production, and this to in make thank manufacturing drive partnerships, as technology, and their industry. our in-house early I an fast-growing team want scale ready us commitment, commercialization

I introduce our appointed Christian? Now Mohrdieck. Technology would to newly Christian Dr. like Chief Officer,

Unknown Executive

recently as Chief Group scale-up technology, to company this and After Parker, joint work a at by for my to Commercial developing fuel having like first thanks most of you, team. having for to I especially of OEMs, AB. venture stage and automotive Thank during refreshing to a AG Volvo career solely me. DunnerTruck, cell commercialization. It excited SelCentriq, Officer I saying start is would fuel Hyzon how the between X/X dedicated technology join am spent off the and cell of

and day. a This existing Hyzon convincing our people for source to products because zero-emission product, joined and of company, a speed brain. Fuel years, more focused based in purpose. purpose enables a passion me time. a helping full on the I every XX we people single based the drive go biggest make the are to work on What delights are this this me Knowledgeable cells and and makes than my physicist strength which and in fully is X to as automotive all stick business asset are attack its Ps: of fuel energy world. power with product fascinating technology, are and decarbonization. because challenges User me heart my to on people purpose cells better high strong

are fuel side, developed hold. a fuel product efficiency, the my brings we the cost. and of XXX-kilowatt was On motivations join developing Hyzon Hyzon the XXX-kilowatt cell advantages and system, single-stack companies few a X weight, stack fuel currently cost technology size cell intellectual cell biggest to to There very which significant manufacture advantage significant property has fuel single product system. in corresponding

me into first And vehicle use a I cell systems also heavy-duty develops only the brings XXX-kilowatt is stack another but manufactures Hyzon heavy-duty reason, at integrates to advantage. believe not per vehicles. with deploy a to Hyzon them and is an which single technology Hyzon its system,

and We have understand the deployed with these directly continents vehicles on to fleet X real-world their work operations. customers

in building portfolio increase we constantly we our With manage can reliability circumstances. and that different doing and data, maintaining fuel environmental to intelligently durability, and competitive property, By our intellectual adjust so, performance edge. our of technology expand

XXX-kilowatt continue to fuel use we expect fuel cell to As view, drive we development, for cell into come new cases for future in the industry generations. both and new

this goal provide we truck first and industries, fuel tomorrow's but Australia. Our ecosystems. mining, only including Earlier system powertrain to and trucking, rail, is mobility hydrogen-powered marine Hyzon's across not for month, the with airport construction, in XXX-kilowatt launched decarbonization

Parker Europe As we mentioned, and XXX-kilowatt introduce year. plan in North to vehicles America this later

working to system to the opportunity XXX-kilowatt grows, forward fuel to based bringing the technology. to expert XXX-kilowatt this increase year the our to Hyzon's by cell with decarbonize all fuel advancing economy look sectors same I hydrogen of the technology in advantage system cell engineers SOP competitive beyond the continue and on future. fuel Hyzon's As growth, team

With like over turn to the for a that, would to call I closer numbers. Steve Steve? look the at

Stephen Weiland

It's to you, on great the Thank have team. Christian. you

I property. to very experts and was closely and affirmation forward cell with why an I One yourself you. primary that to technology much reasons as joined Hyzon differentiated experienced fuel believe intellectual demonstrates of look It Hyzon's compelling, November technology our an attract this ability our as of last I is value. the that such working

we earlier of the of also in to phase production startup the Advancing operational important C-sample XXXX FCEV trials. system in XXX-kilowatt the XXX-kilowatt cell milestones demonstrated achieving first the throughout out track in and our execution later I fuel us year. set the has deploying for that our am proud on year for

trial new activity. continued most Our our trucks with is commercial and progress opportunity PFG, with market refuse evidenced recently customer,

we guidance burn. earlier this cash both net walk year financial year next In addition established and as also our to R&D highlight the operational in through results. and or I'll on the the SG&A, more I achieving detail for half in basis second our milestones, met beat full

pointing first and kick XXXX. versus QX revenue I sale million to our would in the our QX $X.X approximately by XXXX off reflected to truck $X.X revenues X deployments. of like million in my The truck of discussion our U.S., XX

delivered we X in also QX before We begin to shortly trucks starting which PFG to recognize year-end revenue for XXXX. will

we remaining time. over into in lease and if sale collected is QX as for XX was XXXX, and The While are structured a acceptance financials as given contract certain provided. terms translate in a customer XXXX effectively recognized and our the cash terms, revenue contract is accounted achieved this deployments it

Cost not primarily to cost XXXX did our over upfit in increase and $XX.X million primarily XXXX in of decrease is expenses in of below for million personnel in $XX.X $XX.X XXXX driver cost supporting and came range slightly R&D contract revenue costs guidance XXXX. driven customer China XXXX. million. occur of XXXX came revenue $XX is million costs The FCEVs, to other in inventory XXXX write-downs our the $XX in that million charges and development services R&D incurred Europe XXXX efforts. The represents $XX.X in in to versus for XXXX primary provisions. by higher million versus from

by charge. below occur certain The such QX XXXX, the separate because came SEC charges the behind range SG&A million primary activities guidance SG&A $XXX.X in in $XX where cancellation $XXX million. XXXX in that increase as XXXX. offset is range million item over we The in a not to drivers did reason the recognizing guidance line charge, as million our of the fell $XXX.X million versus below asset impairment XXXX to began in and $XXX XXXX we

SG&A our the of in from an behind We elevated of and came relating U.S. compliance us. legal recognized the work investigations, XXXX XXXX, are SEC which portion level ensuring by primarily restructuring in and charges and driven consulting and accounting in impairment legal now fees charges from significant Europe asset million A filing to $X.X

our On X a This sheet, fourth the representing $XX.X in quarter net consecutive with balance brand. cash the we of million and XXXX over million quarterly $XXX.X burn last equivalents, represents and net QX. cash ended quarters cash burn in declining of lowest

in $XXX first $XXX SEC million $X.X of in Our cash full and range burn guidance by to below we XXXX of that QX. tranche came the driven $XXX fallen occurred net timing our payment would our year million the of payment, in million have million had

payment this happen. the could versus January court approval due timing landed That in as discussed to QX previously the of

We due XXXX. end the in $X.X an at of January million have XXXX the $X and additional million of remaining

Turning to guidance.

the We providing timing are of XXXX And outlook. reviewing large a flow net for our time, our capital can impact the currently guidance raise annual are but full any at extent, this for year. cash not assumptions to

do to first we insight our provide on want However, quarter.

$XX net impact We SEC of burn quarter, payment first million million the are January. including targeting a the in approximately in million the $X.X of to cash not range $XX

not the or included of from given impact this either timing the that XXXX. sale could range QX also end of in fall of of Rochester have beginning QX through We of that approximately payment facility our the $X million the the

monthly below Excluding are burn. the this recurring believe average $XX operating in these items, of range onetime net cash we moment representative at how is that million we

million range to anticipating in QX $XX will million of $XX and of come that likely range are will in $XX to likely million million. expenses XXXX a a that $XX We come our R&D our SG&A

raising on to capital. continue remain We focused

updates provide will as We appropriate.

into I'd have to, out cash extend activities our burn XXXX we that continue. levers to to reduce and should as like financing point need we cash also identified

our maintaining focused growth financial We achieve while flexibility positioned are well we ensuring are objectives. that on keenly near-term to

we to our technology our is as Something is that and the clearly in our raised answer IP foundational value. investors strategic is discussion fuel past cell that look exercise discipline The have to over financial quarter XXXX, is our what in priority.

value. cell commitment fuel efforts, clearly and prioritize as will joined our you demonstrates We for technology at ongoing to time, development Thank continue having our CTO our listening. the this and to strategic its Christian

will hand over I call the now Parker. to And back

Parker Meeks

I'm Steve. to promises you, long-term it for excited Thank for XXXX our the incredibly as growth. pave way

clear and technology mix for commercialization centralized on with experience Board model business us seasoned enabling in of Our governance future, team right our to in and vision driving the provide centered fully and streamlined, with us the XXXX. management and concentrate refocused expertise, a

progress achieve the We of early to spending in carbonized and capabilities confident our production as we push favorably differentiated the customer business balance system anticipate model. us asset-light movement of trucking. the to maintaining technology of are and capital large commercial capital second We in in positioning our a our strengthening cell and and fuel fleet capture half XXX-kilowatt center minimal growing substantial expand XXXX, while our sheet, activations, agreements to to critical advantage commercial our the mover requirements

international heavy-duty do. We do a the performance significant set growing leading of of year. major versus yet with addition fleets vehicle fuel of a truck first platform is refuse experiencing fuel needs battery to The this another U.S. that an example cell and the technology cell platform of as it half economic the in alternatives work industry electric requiring technology look advantage hydrogen forward and refuse to to

and throughout here Hyzon to at my dedication all colleagues would execution thank XXXX. for their I of like

Finally, partners technology fuel customers the to cutting-edge, today bring and forefront the we appreciate in other to your the collaborate future. ongoing trucking engagement Hyzon's hydrogen with of various and as industry applications cell we

operator Operator? the questions. Now any for to I'll it hand back

Operator

[Operator question Instructions] of line the Fox from Advisors. Your first with Fox comes Steven

Steven Fox

had I X guess I questions.

other fleets if or trialing I maybe the trials First up speed you a little any And process? you either you off, that throughout wondering the did talk or follow-up. with then could bit from 'XX to just into XXXX applications help a that engage I learnings maybe had about was

Parker Meeks

powertrain. excited question, improving much so trialing and about learning the and for the process talk the of and Steve, to always we're the fuel thanks technology cell

since expanding, XX March right? have our We've Class planned year. in example trials quite in across trials the XXXX we've Class as X in 'XX, that, of XXXX as truck excited calls, just both noted launched XXXX. We in have previous for the We XX March in major program North X we're America completed that's refuse -- trials total calendar X trial And alone. time. in U.S. been truck some and XX the in we trial So

technology, have that, the Tom. trucks over so the much by in has When significant the the still steps exciting where trucks changed out the from the those truck, X powertrain been the course. look trucks, positioned, from at they they the And latest we the of feel and that What's together, is learnings integration trial side driver, are have operate to how of and approach, and first truck. even look of the put you with the truck get side Class how we the first

coming commercial in Mission just to out funding equipment Act. across Port the Inflation which California, hopefully Texas operation And And been and much to in which upgrading expand we couple in when Port do we're improve show driver. I'll of we has, for fuel how examples the cell performance the how the about XXXX, that to the Houston, we the One, have launched for and of we cell of the give optimizing first as experience a fuel us with the are of as shortly learnings, it drayage, the in trucks Zero not country Reduction the frankly, the December did truck that. in at but through trucks interact ready excited, fleet, ever U.S.

weather next That our testing step various environment. of a in trial was

in Canada preheat through with the tested of learnings through paces cold on in trial other XX-degree XX, winter we temperatures, things. up XXXX in its that went in showing which minus starting Edmonton, and the truck weather So minus

done the L.A. with Basin the X testing in winters XXX-degree in for We've up Canada. Now temps. have run to in weather in and summer consecutive Texas Central hot up Fahrenheit

anywhere the When of a Houston. there I'm that and first to weather in was drivers trial through the We comes we it launched wet earnings need Houston a storm that experience are always go. Houston, I that day, test season take significant fleet it because to rain tell trial, test call truck through before. Had of really and We the from going in customers the needs our it monsoon originally, truck than technology cool to keep our our lot learn.

do a long near you since. trial the XX pot miles foot successfully. safely We found it high-voltage that, through that every crevice on the hour. that fourth driver So takes feeder It And to water short, of road standing story that get water drying an later standing the there's back hours rest found the it swapped South issue of want a in operation about truck because permeate shut the full Houston complete Service truck. water out actually the to of source and a of in out to design pay, down. haven't XX into back that that come very We the when and prufault seen

trial see over about thankful trial. to have very transparent that appreciate of quarter customers us great Houston, for it's trials X customers and us been that like tremendous who and our ran for learnings Group And the very a now that with that. Port So the years working their we've from to Food been we're in we're And since Performance since.

who but experience. are motivated these leader really just And these improve to are to learn we've leaders, get able customer not get been fleets why and everyone going, help the

our globally miles we're on have that and in while the powertrain tens kilometers of are the thousands now. and launching developed and powertrain confident we've We of so

Steven Fox

helpful. That's Great. Great.

or you Nexon? on advanced anything could direct funding have new as not of U.S. develops. game opportunities funding 'XX. there Is a more from supply should will an your watching we to that hydrogen if a standpoint, closely the the how that bunch like changer funding/regulatory for ability position mentioned pronounced in a in of, sort -- positive be But to technology Just where you the be sort chain incremental through maybe would a of point could or to That be relate

Parker Meeks

Absolutely, Stephen. well. Thank that you as for

trucks. the deploy are subsidy see pathway We We to excited to here particular continued X-step that in the decarbonize have in for grow and to U.S. subsidy by clear for globally, tailwinds very here. a start

us in over plan. in line to line customers scale capacity production with and our X-year to appetite with with For scaling their X- our a

California, other for of and small that voucher. large Class for trucks State active The per HVA now step on deep, sources fleets fleets go certain various the with base $XXX,XXX is is which still card is The has first X right? right up million very active truck stacking and today over That's available $XXX,XXX top subsea now. can servicing over the of to voucher duration $XXX applications California for

earnings we our California. on in California, decommerzation only would flow fuel-cell that just even share had up fuel its take see said make expect by of we trucks our last XXXX, trucks cell the we opportunity there's breakeven company XXXX, California's to what as we to -- to goals cash call with our of what We if

fund step awarded refueling Reduction Inflation awards funding in The million drayage second infrastructure. Ports to starting funding, which zero-emission is right? $XXX to Act expected year. billion and December under the hydrogen ports, which now be And trucks in includes and And $X.X of Equipment has up port, Clean includes this Port that's the applications of going that's with per

Houston have the we're customer their Port And application we actually program. and a to be that to application a with in fueling mentioned by of be excited a our selected comments, to partner joint to part

see other ports with. go first in, successful. the that, hope Hyzon -- is that There's application we'll we're of that that's discussions in supporting application So we example to

which and hydrogen a filling And drayage put course, that ports, major inland. step, see trucks at hub is, program And infrastructure the critical to and lift we're program, of third then several hubs, the DOE customers fleet working I as the both coastal subs Hyzon and is to think those currently billion with hub have supported were awarded are and of awarded applications. proud our actively to all help we $X X

So tremendous we see on side. have the we opportunity truck

the tax to production credit also On side, in and industry. us critical fueling the the EIR XX is to

initial to come that to anyone are discussions we critical changes up prudent has about hyrogen I think are in that all the seen Now be made. think and Congress significant what going has is guidance back how

we given X,XXX clear that we per said will PTC, think, capacity under truck believe towards publicly, path year there's we we a other significant Even be path TCO still trucks the cell parity opportunity see systems thing at say a without important that that help on this cost X,XXX get that and I'll the per down. I fuel is XX at of The feels side. radar all without provisions that subsequent to meeting us us. are last is But year, subsidy

One right Truck that us we're are truck is gives per to W which qualify ensure trucks credit, for. the working Hyzon XX that to able tax the now $XX,XXX Clean

for see we So very clear subsidy. path

the customers of in hope to with funding major I think application zero in deployments equipment December on port the the of come California things of we're are would And applications by look the under XXXX. to focused first this slated currently for words Hyzon then is emission all continued some program. the for

Operator

ROTH Your next question comes with from Craig the Irwin of line MKM.

Craig Irwin

just wanted with off I to start Parker, cash improved the use.

even the And earlier you 'XX. are for us for Maybe for for ahead maybe what you? You to what results? of . for be guys that of in working what's the you're XXXX? some taken you've us Can sort actions seem describe that these you ahead of outlook were discussing getting of guiding tracking

Parker Meeks

hear Craig, your voice. Thanks great and much, to so

over Steve it pass I'll So for comments. to

Stephen Weiland

here bringing Yes. burn Craig, expenses We're and question, in really of managing performance Hyzon. for our the at thanks up. it proud thanks cash for

just million. the course significant reduction right? million, if cash here burn year. at I you'll see numbers, And net a over that's the you from look was about of our about 'XX, think $XX.X the QX $XX So that

I we in in like that we included that mentioned, And QX, payment range. come have even still would if had SEC

focusing out really represents as most of driving It's important our on we new things early the focus cost in business it renewed number the so really year. rolled a strategy strategic efficiencies. the things. our And It's

And consulting and accounting we're from, investigation. course, move out down also of and seeing benefiting kind fees come that as of we of legal

not per that but month that's doing. right burn. pretty for is operating recurring indicative we're in of representative we're now, giving worked and cash is to level now year, business $X.X the full of about what that of million the sub-$XX pretty million fourth So quarter, That how monthly out level, right I guidance average think

technology key of invest that us it to continue prioritize forward. and And also areas our move lets in and

Parker Meeks

a the our that fuel year. feel reach in this just that And add cell I which believe inflection that Chicago the area, second Bolingbrook the SOP upcoming we're commercialization, we're and system SOP, progress development half of and in towards the point in XXX-kilowatt here anticipating not plant the excited that, about we're very -- would that of we're in I'll Yes. proud real fact really to we just significant showing

then leading brought with get major U.S. for in we've I U.S. Powertrain, us, cell fuel the we're to program this eager a refuse and that truck U.S., just just a but the Global industry coming just the in for Australia mean not into trial platform step, the from additionally, and and plant soon. to here like mean the online, and the I

the Hyzon, think caliber that And cash XXX-kilowatt progress opportunities making this continuing find the produce we've drive to flow. truck month, shows powertrain been down, that additionally, past right-hand technology, launching while and maintaining in of commercialization to continuing to our in all in drive we Australia XX cash the while also effective driving burn

our remains cash managing that it. burn, focus So is driving

We and manage for resources. have that appropriately maximizing pull sure levers we're the prudent to how we're continue and of value our to can clear to a advancing make burn being we with business view shareholders cash the

Craig Irwin

Great.

this benchtop guess continue months. rolling rigs, So those on lessen you're is the Do C-samples, of all bit rigs, not little long-term I the ahead those applicable? how efficiencies tightening from next screws primarily then right, guess, samples call on, of them, the a those as B testing moving are big of year translate over I company that that focus your you've but right, to rigs, shifting, things executing from moving we Are through number likely savings of achieved strategy. sort the to on of learn to

Parker Meeks

Yes.

important us, to really Craig. a that's topic So

come utilized Europe platforms an we each and company time us is we U.S., in in run productive have. and from Bolingbrook, in our any run in to love add is people he have we may any well. test we a the and of trialing system. the answer to visit real that think that a testing for I'll that highly And on-track truck the here facilities to load it think Michigan lab track off truck full-scale which But as ask our programs comprehensive does our the about Mohrdieck how show a and showcase testing, in thoughts Dr. test XXX-kilowatt bank program in to to is trial customer in give So a here the tests bench test at we Australia that

And allows optimize efficiency is that durability, the program, test the performance what's every important test it's a to element of powertrain. us the test multistage the on fuel

system, cell, our it is stack not the cell is throughout fuel stack integrating right? short starts, testing and of there's SOP XXX-kilowatt learnings it's with documenting fuel system, SOP. the the course, testing just It testing and and system So -- is testing itself full full cell is those testing single the

SOP also improvement others think X to the cost So go performance of cell trucks improvements over not we design identified this A-samples quality year, track MEA through system preproduction I and sub we're SOP confident as technology system Bolingbrook and the we that plants just system is is design cell that run in the that that today, system ahead it even of improving be when that and the later have in even already we're the fuel through a are high-performance we on to XXX-kilowatt we've still C-sample that multiple through process. that And findings already exciting can are is in generations past tell but in optimizing we and as also catalyst based that on additional rigorous that XX our on fuel the you very started in itself, built we're it is about the for and here months. will that in

powertrain And so test performance which diesel. of that's an on that that we've performance this way, said all of and than for the XXX-kilowatt the and the XXX-kilowatt the same kilometers industry, better technology, already we've a done thousands the on the the in in validate and truck, the optimization the have way as XXX-kilowatt expectation case. the to use we're truck truck efficiency in by going in scheme grand now miles and across the shown gains fuel truck, of before, XX% test truck the in the technology track even long in case, tremendous XX% from tens the the of in look, all the and But powertrain performance technology the to seeing side, I we the use go testing of better with improve of

cost when total our life the is that a is truck on its of cost of a And with of impact tremendous half ownership progress towards fuel, parity diesel.

it's and case applies also company today, exciting the learning directly for that truck of impacted all So the use long so on what's term, right?

support grand of are concepts power of you upside And the equipment and the evolving. technology near this the that's scheme deliver into we the and technology. relatively look and the valuation when at But term value XXX-kilowatt Hyzon, to ground commercialize stationary need what in option same to the the at putting airports and industry

performance, well. the learnings And cell will as benefit that powertrain real fuel all on these a to is the us in cases all have those come integration

excited. we're -- So

truck it the and trial truck that give which see example Since they're And that us. about. the the the that customers been into through the U.S. with we Our in other the talked testing fuel that's you, cell with then, truck brought shows XXX-kilowatt XXXX. progress, that first we've has March talked we've why all testing I'll about, U.S. the

that that how We've refuse up big down about ran refuse Australia. We've launched Europe. quite build for XX% technology, excited Sydney, a the can't we're grades technology unconstrained, at progression which we tremendous truck our shows X in state vehicle stage we in on, not truck REMONDIS but underscore and just of X well. unplanned cell our are to powertrain fuel is That in outcome with downtime, I X our as Australia, the and enough. Australia launched months That the which had and this near think

Craig Irwin

Excellent. That's really impressive.

we customer customer were other right? you question, like product, we preface back, this selling the look like acceptance maybe to robust. were We if technology with, that the come selling look using But to accounting, So I guess, were the right? if go I coming to simple of Your other possibly accepts weren't widgets, tests FOB, you are we what have if we very up end conservative should would are -- When a but XXXX? all that Parker, my the were not revenue spectrum, if know right? widgets, at it's next innovation guys for

from be scope XX understand mid-teens out potentially others that Just we something separation have how its not that so works this to shipments account. teens, to trucks recognition how using revenue from the might conservative and in and can the compare delivered? the Would we seen you

Parker Meeks

year unlock a a in into this appreciate are in a hand with XX tranches case X total deploying principles. a that PFG Yes. transparency commercial commercial at potential the peer construct, tranche. agreement U.S., correct accounting typically commercial Performance question, and we as appropriate high-level are Look, which it's across of reflect Steve. binding answer which vehicles next year, multiyear and recognizing to great stages as you're group driving total Craig. I where you first year to we -- then that always give I'll PFG's prior the do and it with and deploying we achieve have deliver is vehicles X But agreement it what a this we're the that over are top sorry, the last a the level, we will are

that to have cash have accounting when to in upfront, that very all like lease more And mechanism the of happy will drives we which us, before, may commercial deliveries, tranche agreement is that at operating a of us said important obviously, buyback share typically come kind financially. risk we provision that we're though towards the happened. Even a and look in we first in some place

more of those of that place some of -- given conservative, is but contracts. accounting The a in our most share bit mechanisms all, are most in our risk itself not

but technology a hope proven that our tranche that and a proven all tranche, to will achieve we're want case, our from traditional the when to we that first push use early able is to this in the will hoping flip, to delivered as release is more proven provisions sale, second after those towards second add. that flips, been you orders do buyback to of when at be -- fleet is we've year, see that we So and that's fleets the

Stephen Weiland

Yes. Thanks, few Parker. Craig. I'll things, just add a

to compliance right? We're take recognizing the and we're revenue here is course, rules. very seriously, all Hyzon, and orders are reporting Of solid accounting we make closely -- and So working appropriate sure following there. to everything

could could don't what from you to have guess here I financials I about best next forma revenue translate help into do XX% take necessarily we pro say that months. and -- the I over is disclosure been So $XX.X point a million our maybe about our a just want it's like and the you sheet, to to on the balance look out that at XX XXXX of perspective. expect performance the right, obligation, remaining

think get I an take can look kind at a idea. and you that of

Craig Irwin

was Fantastic. was I That looking what at.

look taking this right? infrastructure as may. a for if So fleets So hubs, hear. ago, question, President whether or seen a really the infrastructure, are IRA was the development support positive billion at of we've something awarded is that or and talk year Can Biden's I that's $X to not hydrogen. far in for not good helpful the Last widening about hydrogen anticipated the for long-term the X market. the you circle that as serious

the the the as term, change you in can you long-term has impact it to people does deliveries this they Is some in I figure where tempo short us what know this But opportunity. funding get done the best of maybe for out country? the guys? future areas changing activity unpack for of

Parker Meeks

our going you really program to look and across fleets, I a it's United it's No, And that to right? would the done when trucking love What the grow it. for States. Yes. this hub because exciting critical of future is decarbonization technology to is how at

in the progress it. our once and is fantastic months, program started RXX start XX trial What's over we really past to start to

that before, these as a customer clear available $XXX trucks picture where of deep I are a and in pushes have to today. price We feasible a the which nets million where voucher, funding, everyone like is on focused California, would to economics fleets go. truck said like because very the place the very the

cell they trucks triangle they're a for there's Triangle, miles the But well very is current East truck Texas, The range the fits of of fuel located, volume. the most Dallas, example. want wherever trucks stage. our today's well, -- already often in Coast great as Houston, run trucks within all trucks -- triangle suited our XXX at leg of That ongoing. most Antonio Midwest and Texas to initiatives San where technology the run or X It's on about per to in is there's perfectly on

already Houston mentioned been scale fortunate are a our under very Port with go applications driving between to been in like before, to for federal funding. X highway instance, small has in X have grant selected with application Interstate prior partners XX their the are hydrogen we're aggressive as decarbonization quite is a hydrogen boards going that mechanism. There Queen insighting the that Houston and in, at Dallas under stations funding And I

X, we is and into to to sub triangle And providers opportunity. program X a fueling drive opportunity, hub see that and with that of and ideally us once so significant hub that with hub example, funded be freight the the and High tremendous right? what for a Hub trucks projects demand of in deployed Texas is a that doing, fleets is put we that to as the so X And Velocity believe, Houston-based is part

they you decade. and the relatively near that performance trials. fleets, midterm certainly And our it's start other is what it's do we to how performance been for the or done thing So California with when visibility trucks additional the tangible outside given of run versus trucks has availability that funds given flow pair a of hope fleet timing those into customers cell battery fuel driver the is in which of can

on battery before. us we even for purchase XX have The looking gotten And hydrogen an and those been not have may fleets experience of to to and decisions trying then trying that electric trucks and to months, up fee at to bigger get been specs electric battery right? making warehouse driver chargers trucks trucks. fleets behind for X battery frankly permitted That's cited coming

parts the The of have country, fact that California, where many where have you of you including in customers parts freight.

also stressed. have that's a grid You

capacity, You than have trucks chargers to some have the in more substations fence. don't that warehouse a single cases, with XX put bind

for times, to chargers X- get some have fleets not have charging. tell have how charger hours, any you of number X-year lead X And customers sit to enough us we're Class to can't there material which with X lot power a to of for

that's and weight case their on of cell fleets performance to on of and viabilities. the profile how given fuel to their part on So use a future be driven view expand infrastructure on the frictions for the trucks range penalty, also operating then frictions needs much --

minutes. $XXX us, of Hyzon why there's up ask if a the CARB still the they've $XX million in you program sitting when anywhere opened XXXX, truck time. million battery at add the up you which is When from million $XXX biggest today. XX California, Care When joined funding, June to challenges, It's driver, I HP the released

on is the trucks were sitting to part The for That truck market built come side. cell is because these battery numbers. trucks fuel battery applied being money insignificant frictions in as all of and

case a battery diesel that trucks seeing of challenges work We're of hydrogen. hydrogen seeing, trucks clear today. do both movement for to we're the the because So expand to the does use

state point, and ports hubs. program the federal that fund certainly showing the the to to the path the and California And in approach X-step is with clear your government from this at level the this

Operator

of Your comes Melius with next Wertheimer line the Research. question Rob from

Unknown Analyst

if have can. I'll X, I

other of -- with you from program for potential, other more Or strategic outreach is pull? that XXX -- demand that end stationary You is at markets, and industrial guys? extend And the the to least mentioned, rail I partners? potential does expansion into guess, including that an

driving what's of mean a and describe can you and just level ecosystem interest that those kind comments? of I

Parker Meeks

to Fuse markets that truck. about and technology future next the talk we're is we see mean the excited I for significant, after

answer other us counterparties identifying is to want entities So much the pushing is decarbonization that and from -- happen. as get opportunity going strategic goals a pull it could real as to where that it have and and directly,

that. with and that. and use from give we can the let you a One, for mobile power, announced industrial of stationary previously power decarbonized development that a me in agreement And There's remote for solution to on work. couple work do Schlumberger a case significant studies appetite joint cases many

in from So that's data be a solution. generators from time from and broad and inbound something for industrial opportunities. other power tug gas is we fine set is and that's and replace and today pretty and both TV batteries generator carbon things shows partners, entertainment inbound to promote inbound that who customers, and that inbound operators, industry, from tough which oil to was operators, using chemicals X of need diesel center with film on a It's power obstacle diesel movies to

funding both of airports. give I'll are Europe and programs at example There to the ecosystem U.S. airports the equipment. is consort today, other start The in decarbonizing airport

going hope time. of out you I planes think at certainly, are the XX% support an equation look, is but when emission we cells some take profile of that people fuel plain the airport in to equipment. is the ground realize, take

power are need that interested cases are airlines slot in ground and in perfect units to aircraft others use who to cell aviation use they today fuel and achieve. have those power in cases quite to XXX-kilowatt ecosystem, airports and tubs, goals the And like

we're a actively working our So we see come scaling, approach have we're and capital we as trucks would to to the prudent like that resources. taking we're manage working market those that and to are -- things on our launched

are markets are believe to as trucks that those soon are the But launched. to be we going as ready go fundamentally

Unknown Analyst

meet. And Perfect. a of California, mandates touched questions this clean different difficult Parker, then But on truck ways. in right. All you've contextualize just are X in couple to

around they the you've What isn't that until cells saying, fuel are a cetera. fully mentioned sometimes to duty waiting customer electric think saying tested potential just customers mature? I cycle, are et battery up your are

when fuel other X like curious not Do And it a you're I'll Or buy your to may, or and what customer at I really like competitive there. if and it. in is you customers, real feels if everybody people benchmarking expect and like have there's they with whatever after you I'm for I wait customers are XX trial they against just then launch point? to that all batteries? stop dealing was It's go typically finding you fuel providers? testing against and between that playing cells. a on know cell questions. this it and environment out

Parker Meeks

Rob. seeing to Thanks, great. that's transparently we're -- how I'm this that's describe No, happy how today.

with, fleets Performance by are we we're need to Food only right? focus, We large first, screening believe all So the scale Group, we at XX our working least that pipeline to to over XXX to X,XXX program fleets per year fleet, per a on back-to-base concentrated trucks trucks focused total, right? X-year scaling So plus up we're large in that's very right? fleets ports,

that XXX mind, now miles that use to large and beyond fleets And sort right? senses break base to concentrated by of It's stretches back our the probably But struggles, battery of fleets point. reducing XXX-mile have with all fleets in trying the has demand PFG case where So XXXX. are stated motivated pacing real truly their everything, are That's the leaders, these Group and fleet a fleets that goal a to to Performance for Food significantly The like typically goal. are by right? right? decarbonize diesel warehouse reduce

to there. that. significant those operation leading proud fleets our a Those on. very they're are get that And we're the taking into going, There's because trucks them see And out number they focused right? want you in of of

in March trials fleet is every multiple right? XXXX. XX They before, of solutions, America are completed trying mentioned I since alone As North

cell majority cost advantage fuel contribution which to margin system on, volume our is against this technology allows being the first versus to fuel significantly are unique all, And large single we statement our focused Class over we're benchmarking the cases confident to for technology, back we're the that we're full and because X them other us base cell XXX-mile fleets And right positive negative. believe that's XXX-kilowatt stack because trying has other cash are be today transition. cash does, of whenever to the our which also significant, business use we advantage, a trucks want of fundamentally cell is who fleets, then to a a advantage, happy wage which a answer long-haul structure in others fuel

and see that see fleets that's And they technology see can that leading model a and a business scale.

Operator

That is for turn all closing questions. the to Parker call time we the I'll have remarks. Meeks for

Parker Meeks

Thank today. questions for you thank tremendous all discussions for the and and and very joining operator, much, you

growth. achieve As our commercial taking care. forward you XXXX. can for so excited pave much year, time and promises with you It And to the you the and tell, engage we relation goals to to -- update we are Take as us. to continuing I for this Hyzon's for we way long-term thank look incredibly

Operator

for We joining. call. conference you today's concludes This thank

You may disconnect your now lines.

Hyzon Motors (HYZN) 22 Mar 242023 Q4 Earnings call transcript