HYLN - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the Hyliion Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ prepared remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the conference call over to Adam Bresser, Hyliion’s Senior Director of FP&A and Investor Relations. ahead. go Please

Adam Bresser

good quarter and Welcome Hyliion to Thank earnings morning, conference second XXXX call. Holdings you, everyone.

On the that statements The business call Officer; today at certain available are Thomas Healy, forward-looking Relations Investor call, Baker, this call website Chief outlook. we on accompanies make Hyliion’s and Please our company’s our Financial today’s presentation regarding Officer. note the slide investors@hyliion.com. conference is during Sherri Chief Executive will

are statements statements to current based the predictions, call. factors this that and results anticipated Forward-looking from as risk subject differ statements actual to Many on other and are about and are uncertainties. assumptions, could expectations cause on forward-looking materially events projections such, and

from such statements, to about release, well earnings Commission. refer information as forward-looking press that the more Exchange our Securities the and factors the materially filings company’s with as cause please For differ may results to

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

to undertake to With forward-looking will You applicable on law. the are that, reliance to not unless by information over call duty put this turn no cautioned required undue we Thomas. I and statements update

Thomas Healy

the on dozens insights ERX Hypertruck valuable operators, fleet of suppliers, of with trends are and we our investors our you, Clean Long We everyone. Thank you evolving meet from we last gathered Expo needs of Hybrid analysts, for Transportation Thank to had trucks industry’s we of spoke largest with number on Adam. trade and and able customers. Beach, it a and was where us one today. the in you, display joining Hello, When Advanced shows. industry

and despite markets Hypertruck host headwinds, revolutionize over remains persistent ERX. poised market X are able changing during Additionally, The ride-alongs XX to semi-trucks. and Class were in for we macroeconomic the to Hyliion rapidly the our energy transportation conference,

our schedule our on deposits Moreover, design in and development and ERX verification on milestones, received orders have XXX secure testing. interest to-date, industry with to track swaps. we backed orders, technology remain by including into on-road we turning Hypertruck are We production and

Hypertruck in early ERX ERX a recently Logistics, one Importantly, we The development Innovation achieved first our completing has trucks. Alpha our of a of Council with who movement to largest of one accomplished by delivery GreenPath development truck, nation’s version retailers. Hypertruck is the adopter This order placed for in was our milestone freight was an Hybrid significant of an partnership of member with the product. Hypertruck ERXs and active XX freight an

take shift afternoon, collaboration a recharge sharing the gas American productive Hypertruck ERX stations. for GreenPath’s Please electrification. North addition, fueling natural a generator with go as announced, we In a Cummins been onboard range the This power we is on Hypertruck second as generation quarter, optimize towards the to of the released engine of engine together collaboration video pursue Working a President, with by as a experience will approximately available The environmental will batteries. goal and more the extender of powertrain. certifications network XXX the key publicly to serve what for providing this In that successful engine gas look. their natural yesterday we leverages gas their ERX’s Cummins. has natural formalized with previously Cummins,

R&D of orders were achievements, the another them of and the also orders earlier, for backed slots only Hypertruck were our end I of of ongoing success XXX we for by production announced. the This As units XXX secured reflects placed quarter, ERX, ride-and-drive but the second mentioned have by our deposits these not early events. recently of XX

production subject XX orders second to X,XXX In of slots. approximately previously ordered quarter, Hypertruck NFI and remain the received to have addition units the announced, reservations as ERX commercial orders, Industries we These In finalization for the reservations to-date. units terms. of

came Hypertruck Innovation of to XX Hypertruck their focus on a of to in them perspective, addition the founding production member North low that alternative reducing Hyliion’s to leader make a strategic utilize of a Hypertruck more NFI sustainability from in ordered they supply the to greenhouse commitment an plan in ERX U.S., CNG and emissions trucks. Ruan, Also units was adopter proponent Hypertruck history being a we the ERX quarter, and shortly slots. a office announced drive order fuel after with ERX XX provider construction NFI Their announced They In where and is a visit leader Texas ordered Oklahoma and tracking units X,XXX Austin, Council carbon Hypertruck their approaches participated Innovation ERX In solutions of a clear with member transportation. previously of sustainable slots. a and chain experience. Ruan fuels second Holcim gas July, zero in XX-year and is Council, innovative a in a a solutions in integrated units Hyliion’s American fleet global Hypertruck emission building fully early than ride-and-drive of to a production operations. trucks.

continue the of hear the low ultimately of shift that offer are operating struggles some plug-in This vehicles. attempt positive fleets in the emissions and that Hypertruck well feedback as electric need We like can a that events, solution are fact a towards far benefit. ERX facing practical they underscores to to from superior our ride-and-drive cost as as fleets

building earnings This current to count the we of mandate the capabilities Hypertruck fleet order and CARBs our credits orders well continue On will today backlog calls, of mentioned OEMs, X% the increase to our that customer’s written. the ERX that as under reservations. mandate previous approximately we a currently time, proposition of start our of at as for qualify size fleets while technology. ZEV value reflects production, we our near and same expect have as for Our for recognize represent truly as customers the

recently up $XX,XXX credit for deployed and which Inflation that will the currently zero that near emission means including the are all Reduction any vehicles, This qualify. is heavy-duty drafted, initiative, a Act and ERX. a tax for vehicles federal as allow announced state We to pleased or zero Hypertruck will in announce XX% to

the are with of our operating main and upfront officials with This trucks, major excited way to new work the of win towards low cost elected reduced decrease hurdles is makes bill upfront space for cleaner its when our technology. adopting vehicle legislation Congress. Hyliion’s a A is fleet cost, often potential through fleets as coupled which transportation. shift costs We electric this will one

to Turning Hybrid on updates product. our

now a the ship powertrain. great a stated, booked a the Hybrid to As effective customers greener solution commitment of electric without QX, financial we units more provides alternative we continue additional cost for In fully have and who Hyliion want fleet revenue. to

on hit for sequential basis, share we down our pleased was have revenue targets quarter and second that we still established a revenue sales plan our million to $X.X a are this approximately to backlog While of year.

last specifically reduction related around install trucks in revenue to receiving primarily our sequential able Our Hybrid quarter and supply to system. chain from is disruptions, being continued global

plans. a generate solution, target characteristics rolling that good terrain. to hilly continue see ESG our solution their We as as continue Hybrid use Hybrid we who performance Also, and cases from fit for such fleets broader interest to match of with areas the our

Hybrid the for trucks we another will trucks Hybrid product market the possibility with For selling our installed Hybrid system. the path the products full customer continue will of of and to updating balance as year, explore the with we

current book targets global fill While our we order times, longer can sales persistent orders. need contribute the to our we with supply XXXX. closely and for work confident and disruptions partners With continue to to achieving secure delivery our we to pipeline, remain sales parts in

our we milestones our hit milestones, to continue ERX Hypertruck Hypertruck can see on you ERX. Turning that new to development

process ERX and we the the year. consecutive by verification, Hypertruck commercialization to of and of of milestones start our quarter fleet winter remain on of we the this work trials end earnings testing. these start the began call. phase on-road our second out fourth marks In We complete Our quarter team design laid third this the have through growing second continues the schedule with the XXXX on initial controlled verification milestones diligently met to quarter, testing including design

we next to secure production. goal this miles we suppliers As pursuing a up time, we With with are with development shared that formal to reach as have X into delivery components in year. same approvals includes of goal bring our the production late multiphase our regulatory mind, program before, At our of commercial product to final million work closely milestones. starting key and to we continue development test

grow evolve will the and with ahead, further industry. we Looking

is gas. our designed Today, we utilize we when have platform will hydrogen, to and natural economically In more the generator viable agnostic. Hypertruck readily available We customers. be transition to future, it for product

and a passion the I to everyone our my then fuel generator natural stages. on eventually Sherri. three our updating of the year. over a natural shares consists engine and confidence I fuel gas business that, our approach in you know hydrogen It and our commercialization Hyliion for development half with call can moves progress my that of will both on to solution. the forward cell shifts plans. With look and second over gas I hydrogen, technology into current starts agnostic turn at to Our run

Sherri Baker

will highlights. Thank financial morning, our you, Thomas, now and I review everyone. good quarter second

year-over-year. development with we in in spend As and the ago Thomas loss spend, $XX QX, $X key second XXXX. In million, included up sequentially and year sequentially was of approximately we quarter, was roadmap. Overall, compared with million Hyliion which and up R&D support QX net million million, million to of which commercialization quarter, compared our ramped up solution, in QX up as million investing $XX net approximately At our $X $XX our our totaled a QX. powertrain loss the SG&A the $X.X initiatives R&D up loss net expenses product Operating to revenue on Hybrid product million development. million million and in $X roughly continue for $XX reported of recognize totaled in million for QX in approximately $XX period, $X a mentioned, we time, a expansion million the million year-over-year. second nearly $XX infrastructure same of operations are for $XX of the

and fund the Hypertruck cash short-term million both million cash available Turning the to million our commercialization the quarter investments in investments. balance nearly for equivalents, includes in plans and long-term million sheet, with and we $XXX $XXX figure in ended second to ERX. This Hybrid $XXX $XXX the

of with maturities beyond and months portfolio. a long-term credit are investments quality short-term no maturity our Our and weighted high instruments, across average XX months XX

company’s Our long-term to the requirements. operating preserve while investments are capital, meet designed providing to liquidity

Turning to the and sales range potential XXXX, we revenue million our outlook, to of now number $X of truck the The be from our Hybrid full sale installed. our installations. in of trucks Hybrid million revenue the and of to expect for Hybrid year versus mix recognized actual $X with will on we the system sell, retrofit of units full with amount depend new full sales

impact milestones for to development key to we year and costs to a the we expenses remain range. discussed will the expect with timing today. closing call Hypertruck Thomas to the Additionally, between today’s commercialization operating be R&D This milestones well of back representing associated have million, full due remarks. our $XXX I a reduction to laid outlined it $XXX presentation. out no primarily With our with on in Moreover, million $X we are in today’s driven the expected that, million have we ERX and few capitalized turn to is support commercialization lowering through

Thomas Healy

underscores turmoil The electrification interested everyone launched and in inform Based markets stakeholders the time better recent others conversations we educational decarbonization how on electrification. to Sherri. series you, on an in journey, of feedback decarbonization the now. and and the have current world’s energy recently future video is and from Thank for the

will to video first Our and there our is be website come soon. on more

call, additional those Friday who the give have. you last to may covered you during chance address to today’s collect any Q&A. today’s us For opportunity have questions questions questions of that ask a to This posted will on don’t we aren’t

posting our social a video We with on shortly. answers will media these be

investors on September I share hosting am event for be all virtual excited and we interested. XXth to analysts a who are will Lastly, that ride-and-drive

early share not call, driving share In how what more showcase we it go-forward compares weeks, will only businesses like During a Hypertruck the encourage to we our will next we video at adopters to us the commercial diesel on few vehicle all you and strategy. ERX is inflection recognize industry. this join the will the for event Hyliion’s an the a technology we truck, and it’s The to but industry potential our call. to point transform of link of and

to infrastructure ahead. to its yet solution and a operation. offer With open existing Our go the leverage to we practical Operator, ability call please due innovative, to Q&A. that, lower is widespread of cost will

Operator

[Operator Instructions] Steven Fisher line of first UBS. from the from question Your comes

is line Your open.

Steven Fisher

morning Great. goals. congrats Thanks. commercialization your and on Good hitting

Hybrids, the certainty? visibility risk know take a for that that more do QX, What reiterated there, kind of of might and have a improve there bit any on backlog. Just kind and I $X.X the what those have to little million is you further slip will you guidance it you QX

Thomas Healy

Steven. Thanks, Yeah.

So, million in to the share $X.X backlog. first off, we excited were

product While chain we interest around a from revenue did issues strong there’s past recognition the that lot quarter, a just still see and our I of really and in backlog sequentially that of in for think, supply dip the this customer trucks. slip shows availability came specifically

just that because scheduled have truck did that installs into we were availability. since for QX so of QX have And slipped

we installs reiterating why feel to confidence QX confident to million able $X QX. the and will overall we that be yearly guidance. in in And got So that’s a those $X million with have do high we

Steven Fisher

That’s just all stabilized helpful. that and you supply run the mean, enough components I I everything has clarify, mean the you to rate? to now of achieve receiving now chain as need are that

Thomas Healy

Yeah.

placed to are Hypertruck a get working and where and feeling side components development having with our track to of lot that of actually orders supply those in it still terms we the came that’s So wanted and chain supply base on our back just where the closely a stays on in with be. we while good from

from come really in fleets are is and One with fleets aspects were trucks some were we it there’s specifically, of so the the this. kind from we two Hybrid awaiting trucks different came the to the waiting to down With actually of of OEMs. just working for

new ship brand placed those then to install to have back. and to for us they then they delivered are to So come trucks waiting them them get

had trucks in so couple are actually install. just the do placed is they trucks for while couldn’t logistics and the their on busy they weeks, aspect a orders doing fleet. some But other Hybrid we that had on The fleets planning we of we existing upfits that side the are down of

be with that confident what for closely ahead So we be we the the are will to in played quarter. working in that those into But two feel shape this able year in and here was target. reduction revenue that quarters fleets hit total also we to good

Steven Fisher

few the the and curious into the we of out. what’s XX ahead proven and that year quarters, over there’s a you add additional to of into ERX, being expect bigger obviously, Okay. of orders Great. the to the And then level orders? am shifting the next of Is catalyst next or converting of in particular started is kind getting gears the point in the kind I next commercialization? reasonable over near-term, orders that wave for year certifications in late for if the just of year it really bringing here curious a need, just have production quarter, some you reservations proceed as rest it you

Thomas Healy

start I going that the here mean, demand to goal saying, of forward question, think, off to reservations. catalyst And both a grow of continue with the to of points. and is to I orders will backlog increase your and Hypertruck the I Yeah. different there’s couple continue

to of stemmed letting just of into deposit trials half those with and year, in another the -- experienced slot. that see is, there orders, when we round point them it booked first ride-and-drives production It’s will next really actually We truck The we through expanding events are the The orders. we will we fleet go a a and that’s backed and many as this and firsthand actually of the first we production. ride-and-drive catalyst be we fleet just a by move how really year, as the already was fleet what controlled second starting have actual get launching carry a out doing so it’s which those. year, is to catalyst we and into which into XXX fleets, trials, when that’s trials reminder, this started order an ultimately experience that later the starting we reiterate, commitment

going I in for trucks as run fleets be to another really their think catalyst these us operations. that’s to get

As catalyst with start freight our past actually did on which other is we Logistics this we see will then that moving in actually first XXXX. we quarter. probably delivery noted late reminder as this as call, this the GreenPath a And production, obviously one largest the into

and some just through are, see on depending others do and buying go think we journey, continue want experiences go wanted different and grow will just to their fleets, others to first. in-trial as to a I backlog, confident are cycles production we what So ready ride-and-drive look this for to it after in that to and

Steven Fisher

Okay. Thanks, Thomas.

Operator

from of Morgan. next comes Peterson from the line Your JP Bill question

Your line is open.

Bill Peterson

Thanks models, Hi, the nice should we But Hypertruck that for I $XX,XXX guys. too. for you benefit incentives qualify a under you lot the should, guess of beyond and as to Yeah. at from look Reduction also XXXX Act. the It’s the taking assuming guess, I inflation said, that, questions. will benefit. to the other my companies see truck get that

we think a wondering obviously, this about inflation lot models, stage, until there’s of pricing about think been we I So how as mean, should at our now.

we pricing your the in to customers? it of should sort think older there, rely for any models, we So am how of relates as I obviously, should on, cost sure not but ownership about

Thomas Healy

both MSRP Reason have the seen just Bill. market the from not come Hypertruck lot year, we guidance out specifically, Yeah. system. being standpoint. formal market, fluctuation first, is last a have over we in And with Thanks, I the guess, the of supply on

increases We in pricing, actually. truck even have drastic diesel just substantial increases pretty seen

with that are that from well for a operations, at our works reservations we customers their with But orders we return supply solution a shareholders the we and on well. works as are them well to closely, have it able ultimately, that is working from looking standpoint. bringing announced sure make standpoint, forward we the best obviously to are So for that TCO

of -- the being upfront is the a cost we past the fuel we it’s really said, decrease which is have Inflation with is thing in one So this see our truck Act going than fleet, that truck. And conventional vehicle, ultimately, Reduction we operating of it that conventional cost or that BEV the to the is, things as it with great. positive reiterated the with vehicle a with operation costs a is is running with our actual that our of in cell less the hydrogen

So cost and couple a that’s cost, fleet. operating if reduce lower we win-win our can with that for it upfront a

Bill Peterson

Okay. to XX-liter Thanks I competitor one actually announced for that ago, relationship wanted On with would Hybrid. Cummins. the the that your color. few about you a with Cummins be quarters ask maybe hand a

Cummins how products, a announced your any for I relates as this other the there think generator guess, about helpful? I a should there is partner. collaboration competitor like as And further you we now be this, or are we things other cell, hand, Hybrid. it future On or as view would fuel update have especially areas guess, to collaborator, agnostic

Thomas Healy

Sure.

have go partner that our pleased product because forward we confidence the they think us, new So total are It and I the as that collaborator levels on shows good would go us with bringing collaboration ago, of the system couple gave obviously, certification. I on XX-liter are just really a increases competitive level we as the we quarters confidence Cummins CARB Hybrid after A announced did really market in reducing are overview it through also opportunity with express express a Hybrid. and the the high that it. But think just you to a line. Hypertruck strong solution we to with we threat saw we they

the we opportunities at go So I we -- Cummins to we company to have plan are I will fuel or bring it the hydrogen you look more a on that forward, ways chatted forward benefits solution, future, share based fuel what and partners go out know looking we other solution, laid we continue as the of agnostic think can get we a ways those lot market. ultimately that as about to well from or a come a have we at as various collaborate. we Bill, and as can as work to which and we Ultimately, cell approach are solutions being that. as as with -- able look to three-step we

Bill Peterson

Thanks.

Operator

Andres of Your next Fitzgerald. Cantor question comes from Sheppard the line from

Your is line open.

Andres Sheppard

Congrats with the the my to Hey, grew reservations, for and order if on right? and about -- XX, the recent wanted ask backlog, have taking quarter Hey, book So updated you from maybe you Thomas. question. Sherri. announcement the I thanks include the by Ruan.

the going conservatively convert that wondering, or So X,XXX we don’t could XXX the X,XXX wondering orders if to XXX those maybe should the materialize? am thoughts, your bringing just just get to I assume to total and we expectation is you in all try those orders quantify us reservations. maybe forward? reservations I can of maybe help am some

Thomas Healy

Sure.

So slots, really on these slots for side, these the trucks. production commitments of order build are

So we these, shared into delivered XXXX, have rolling as XXXX have in late XXXX, the are we we discussed, already, launch to and XXXX the part timeframe. from we started vehicles we of fleet will those into -- go end, early so towards the as working our as we are back of a XXXX late deliveries early have

they levels reservations, want those into to the are their indications operations. from really be For units how their fleets of many interest adopting of

looking are those about wanting before with be when going Those Steve milestones should key the fleets things of to are what some Some to that the are at. I of mentioned see. be talking catalysts we about

able some those. experience. to orders be over successfully to just Monet, as even with and and then we who a ride-and-drive able and reservation had different placed to were to of those convert a we of shift had an orders those announcement accomplished into after around reservations We us, one milestones those take hit reservations we of already them So do expect we some

Andres Sheppard

Got it.

the color, I they will with you ASPs with Reduction helpful. competitive, maybe Thanks sense but Thank if the to diesel more for credit, questions, qualify to follow-up Thomas. might be Inflation Do provide credit. that a think I And it’s that regarding That’s Bill’s ERX tax right? XX% Okay. have of on you great Act, when the able for very that competitive there? I the are providing obviously, just could on you. am tax additional still wondering for that wondering those if ERX? plans traditional comments they become do counterparts? or this become, am ASPs any you share they any

Thomas Healy

Sure.

envision as So in chain supply end. able being forward the cost of on just we have do that to ultimately, even changes more But, as we and as that fuel supply of recent go recent. changes the happened in of

stable gas natural seen actual of pricing. pump terms have We stay pretty in

have year, at look seen we tripling diesel of right? last doubling, think maybe diesel we the even probably close seen skyrocket, I to if a have a We pricing.

around sure that and fleets are that are at for we business strong there’s return as as working to product. But able benefits in well. And to at our that standpoint model want to we want of and a from being TCO with, our also make what making we are are cost the we setting we standpoint and COGS the we end They their looking the to operations see want pricing accordingly are understand the supply look so make able on to works we the provide and are a it to targeting model sure the Hyliion we that sure it for from really what are a fleet them. looking at of this just strong to

Andres Sheppard

Got it.

am not regards Thanks, And are but if Thank Those chain industry-wide the what right? the at XXXX? I supply and global impact reservations have Okay. those wondering, affecting you. of just one Thomas. expect and kind we disruptions, do if I continue, one, and in maybe, orders you Hyliion, might just as may, continued a scale. to look last the on that sorry, those so, are to to

Thomas Healy

still don’t Hyliion I up. not it’s we by, it any that things. on on are everyone’s by chain seen being hopeful think think we ease to though have -- side I just affected It’s the So of yet supply means. going a

are think ahead have well working a out as been for specifically suppliers over we through few ago, is we that make working advantage, a to do obtain truck with you while our need ERX years from what’s quarters Hypertruck now we going I plan a confidence seen development have you why us we we in we were for the those what and to the three able we sure what forward and and do at those able to continued that’s that development hit really secure been cycle. go buckled have have components. now we cycle to looking the told supply And to the consecutively hyper down development on we basis, and strong quarters on

just working base. to team closely supply supply our with chain the on props huge So,

Andres Sheppard

much, it Thank you. pass so I Thomas. quarter. Congrats Thanks Wonderful. the will on. on

Operator

comes from the question Barclays. next Stuhldreher line from Your of Jason

open. line Your is

Jason Stuhldreher

this on to quarter. team. apologize I here. follow-up noise there Hey, I the wanted comment background if is Hybrid

It I just nothing on just install I about then and your to-date kind truck revenue to best $XXX,XXX range or at right? scenario, availability, $X.X your think the am I heard are guidance at it, holdups as is have you that And of backlog the done material confirm, process? seems of about end about thinking look I really wanted on of million. but low I the case that like

Thomas Healy

Yes.

first So and share. then will the take I Sherri can part

availability part? we Sherri, maybe We was fleet just vehicle take truck us it’s truck obviously biggest getting has from in our want stemmed is supply that break what the saying, have well, as to fleets. really, you do own availability. That’s a hurdles the well part components. But entire had But But, in also first help driven barrier. the by to down second So the those we been on just yeah, driver will to working supply those. through

Sherri Baker

Sure.

that so but system One, And portion you of I see will only include with will of are a going of the system think not two truck combination our to also installations, backlog see our installed. sales full that you things. a

So the achieve the at availability, is said. going able the truck going confidence to But of we revenue have to mix dependent really be line sight have of Thomas on be that that range. guidance has the but given we that only still availability, to exact customer are not OEM, that that we today, the

Jason Stuhldreher

idle Understood. have install, they don’t to of mean, Hybrid I seen truck maybe do Hybrid orders of Thomas about the any their the And to to headwind to over quarters, your think availability, next there? four because we you cancel six anybody want and as trucks we sort point, for

Thomas Healy

Yeah.

I a think to been right. it’s more just the pushing

fleets interested they very they and and directly working are still getting with are we OEM. that in have closely OEMs with trucks fleet, are from instances, that and the with the the in closely working We it some remain then

why have felt say call I’d coming more work that’s in We getting the sharing Hybrid able are them think to just just fleet’s to in it’s in installed and out been delivery. So the on right just hands. actually back there’s product, fleets because the need some of there on we shift that more the establish interested and we confident that showcases I and backlog this taking to

Jason Stuhldreher

Yeah.

see have expectation Thomas just about sort for think to maybe a this exit growth about as guys headcount Sherri, as control, headcount the rate investors And good perspective. exit you of next financial questions should versus But Understood. guess, will the think Okay. in What we year? of year -- kind we from of I where year well. or OpEx as

Sherri Baker

No. great question. That’s a

we be really be starting as we year in back start headcount about. the that office would and complete majority from level, will so group, expectation appropriate will But have is that the So we because only also and are to we in that roadmap of adding believe will engineering product exit that from that flatten we perspective, invest but the have for year headcount, our the development headcount development the timelines the a really are not we that of our continue we we talked product can a to out the that balance to going to perspective.

exit to out start the that year. we flattening anticipate So start I we would will as

Jason Stuhldreher

the call mind? terms availability up there’s on could Hypertruck, risk side, need here few maybe, XXXX? like milestones One of think factors questions, in I Thomas SOP? like Very any or are And if going for at the Understood. expectation it months Hypertruck to for reservation a design more, those what It XXX initial into SOP sort availability on night what of is anything is that, you Hybrid sales, truck XXX the really helpful. the your about after in you it, so to convert XX from side keeps the those talked when truck just sneak changes not in, I kind how on sounds of be units biggest And of units? slots, then the about in

Thomas Healy

Yeah. Thanks, Jason.

of So there. a parts different couple

has normal through are me problem terms at I what been as, up say, in have a unbelievable very of hundred did mile think my going been able a impressed drive the like we mean into. experience. I and been wouldn’t just keeps on to and got of in an that’s night, CDL So end. a I team cycles I there’s out it went a jumping and truck that the oh, couple development has trip we do technology, anything that running with new of and fantastic this actually honestly what was been

is and control bit. through move go to how the going. development certifications. ISO EPA need with we pleased Obviously, CARB, out of do little things really those our a And So

But no them through. with confidence passing go just are that we a to a we need have obviously checkpoint we go or to need We that to that’s be through barrier going issues.

and of at orders terms just looking the In we are deploying how XXX those.

the plan delivered XXXX our hands the XXXX. fleet’s into start to have back of actual with we deployments of in is then those will by and later end So QX

So shorter I think by had vehicles operation fleets. XX-month maybe will QX of that of you deployed thinking period, XXXX a all mentioned those we be are more and in with period a

Jason Stuhldreher

capacity, to be available you a from able meet And that just the like so confident all the then, trucks capacity standpoint? feel in are

Thomas Healy

do. We

to one other just thing So shared. we reiterate have

market of we and been very the delivery chassis be and trucks. schedule So with have closely going to have those with confidence to we XXX the are going working Peterbilt in Peterbilt

that they going trucks the and the a need has with and to been having any now we secured time orders great kind and when be relationship with placed We Peterbilt been to order have we them in between won’t as be been need on build we there of this technology well the But we issues. when with collaborate slots have very to have to group the amount get are in market. right of working we bringing believe the

Jason Stuhldreher

Guys. Thanks, Thanks. good. Very Okay.

Operator

comes Mark line Goldman from Your Instructions] of the Sachs. next [Operator question Delaney from

open. is line Your

Mark Delaney

for Thank Hybrid Yes. the you offering full you about question. morning. truck. Thomas, potentially Hi. the much Good taking selling spoke by very the

may mechanics there and in a you change that? I some you So talk of could of was make that you could the change will I how implement elaborate believe potentially on hoping why be about approach.

Thomas Healy

Yeah. Absolutely.

add truck little add-on upfit in or is more vehicle. an brand a what new Hybrid shared we the to so a So past color, is to existing the an

is production doing actually vehicle, the supplying the us it of so system margins if and entire A we actually actually appropriately and vehicle. from actually that new fleet. truck the reasons off bundling the it as plus benefits come of line, the we the costs comes this, from that then one One our full we can things thus OEMs, on our that the is source reduce trucks spec and install improve are the OEM as brand from pursuing couple the the package Hybrid truck to

a that’s obviously, So, positive. big

issues chain order do they is of to effectively having for ultimately, as to them the us The been supply period looking and arise where for quicker, into move time supply Hybrid the we be are efficiently at other that more a and down going deploy not are able asset, as it trucks through install, of we operations. able if we in fleets systems have to these issues us and to entire allows to them can just fleet’s

So really it. that’s what stemmed

Mark Delaney

available speak you you many of potentially partner can trucking could providers to potential with? timing how may and And when be sense. that Makes

Sherri Baker

question, that Hybrid for system, thanks are Well, and one, OEM agnostic. we are our on -- we

we able So the that to OEMs. that any of system a are on install is

low the earlier revenue that I do on trucks that truck at is one again, comment back year, from OEMs. our the going perspective. component. mix dependent to we am of full go of a the But, still availability to the So is single really digits expect the This to probably

Mark Delaney

Understood. Thanks you.

Operator

final Research. the question comes And Tuohy Brothers line from your of Noel Parks Investment from

open. Your is line

Noel Parks

morning. Good Hi.

Thomas Healy

Good morning.

Noel Parks

their before I for just Council. yet of along if wondering design envisioning Innovation they was their and you for the who are the ready how are those there commit? haven’t and about the from interested functional they the announcements council you commitments any, -- any members with have from in made I commitments, been before to or -- are made specific have businesses was far some orders function of Council are still refinements

Thomas Healy

Sure.

little the have group Hypertruck others be So or Council was experience we as just before Innovation with our development of probably a a those with vehicles to a And background for Austin. of council given them been have they that us, as innovation like them improve gone year cycle come really cycle. we down members or approaching this have the now. announced part us really They ride-and-drives have in through And fleets They ago give what have goal so the gone listening, that was a we the The us development them to have feedback on have have areas for done invaluable that’s do exactly trucks. to and we along that. feedback. what

noted, orders them placing recent NFI, specifically made around the slots, members some in GreenPath ones of have for As to some the you jump production of Logistics. Ruan, the Those actually are all council. have

technology, They them get some those show trials go excitement through to in Some year. trials. we milestones into run fleet next we of before this want a carry the lot plan that They will start before. that, but later they and want want as so to members control get of and and their year, later other the council through of had trucks firsthand, upon initial operations executing fleet on mentioned into mentioned to

to the coming as council see pleased from look continue members, the to as been we Council outside strong fleets well. in that relationship Innovation well to So member expand we really a interest as of -- have with

Noel Parks

a super the with just is rule it’s early And of forward there know anyway? maybe Inflation negotiations actually and concerns question, going you just even about be that’s for Act, making to Great. sort they people the awaiting so on credit there, incentive are it a that this. on to coming in are But going tax have in as delaying or any I Board the orders process overall pricing sort and making details of just forth that incorporate more do think feel

Thomas Healy

purchasing timing that’s from goes reminder, are a well, because going standpoint, into vehicles. from we the XXXX, fleets will be seeing I think as when it’s up a in so So Hypertruck actually production line late what the to

I is reduce we is low benefits an see upfront allows product. of we the with one one as to product if is a our that that quickly to them it’s And going before, purchase being accelerant to reason we opposed in more So our into operating as the of the fleet, cost cost. really wise or of What think easily just potentially slowdown timing mentioned jump the I more and -- fine. the be see to

cost bunch, gas, helps operating the the the upfront of cost So for big that’s because a win providing cost natural low low a fleets. the reducing them

Noel Parks

Great. Okay. lot. Thanks a

Thomas Healy

Thank you.

Operator

this remarks. today’s Healy, And like turn Thomas this Hyliion’s the concludes At for the of time, over would to closing to I question-and-answer call. portion conference CEO,

Thomas Healy

today’s Thank you everyone for joining call.

As there’s excitement future and developments here. near of are in you milestones exciting the the call, a more within a heard throughout Hyliion and being foresee we lot that achieved lot

event. be join a will be We please with us a hosting dial virtual call called that. and in we to going for encourage so, ride-and-drive September to on that, everyone It’s XXth. And

what sharing not just on going to showcasing the an truck the the well and more in like as as from basis. business go-forward be only a are strategy here standpoint, We it’s showcasing Austin, operations on experience

With will In can September we a weeks a that, join dial you your XXth. so here, in please ahead So week. be link have the of in. great rest sharing

Operator

Ladies and conference call. today’s this gentlemen, conclude does

day. You may all disconnect and have a wonderful

Hyliion (HYLN) 10 Aug 222022 Q2 Earnings call transcript