Hyzon reports Q1 loss of $30.3 million, shifts geographic focus

As Hyzon Motors Inc. narrows its geographic focus to areas transitioning more quickly to clean energy vehicles, the Honeoye Falls-based company reported an overall net loss of $30.3 million for the first quarter of 2023 on Thursday morning.

Hyzon, a supplier of zero-emission heavy-duty fuel cell electric vehicles, told investors that EBITDA (earnings before interest, taxes, depreciation and amortization) was a negative $29.3 million and adjusted EBITDA was a negative $27.3 million.

The company reported unrestricted cash, cash equivalents and short-term investments of $209 million as of March 31, and $185 million as of May 31.

The company reported a Cost of Revenue of $800,000, research and development expense of $9.3 million and selling, general and administrative expenses of $30.9 million.

Net loss attributable to Hyzon was $30.2 million, with basic and diluted loss per share of 12 cents. That compares to a net loss of $6.5 million and diluted loss per share of 3 cents for the quarter ending March 31, 2022.

The earnings announcement came one day after Hyzon said it will be supplying up to 20 zero-emission, heavy duty fuel cell vehicles to Performance Food Group, Inc., one of the largest food and foodservice distribution companies in North America.

The first five vehicles will be upfitted with the Hyzon Class 8 110kW fuel cell system. An additional 15 vehicles will be upfitted with the next-generation single 200kW fuel cell system, pending successful vehicle trials. Hyzon said there is an mutual option for an additional 30 vehicles.

Hyzon is now focusing business expansion on markets where there is “strong government support for energy transition, high growth expectations and margin expansion opportunities, along with large fleet customers with clear decarbonization ambitions,” the company said.

Those areas include California in the United States and Germany, Austria, the Netherlands in Europe, as well as Australia and New Zealand. For the same reason, Hyzon is exiting China.

“Hyzon has made tremendous progress over the past year to restructure our operations and focus on the development and commercialization of our proprietary fuel cell technology,” CEO Parker Meeks said in a news release. “We now have a strengthened leadership team, streamlined vehicle offerings and a rationalized geographic footprint to focus on three core markets.

“As we look to the balance of 2023, we aim to deliver our first commercial Class 8 FCEV to a major U.S. fleet customer, produce and validate 25 200kW fuel cell system prototypes, and declare C-sample of the 200kW fuel cell system.”

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