Hyzon reports Q2 loss of $60.2M amid production milestones

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Hyzon Motors Inc. reached milestones in production and vehicle deployment during the second quarter while incurring second-quarter losses, according to a financial report released Tuesday.

Hyzon reported a net loss of $60.2 million, which equates to a per-share loss of $0.25 for the second quarter ending June 30.

Headquartered in Honeoye Falls, Hyzon is a global supplier of high-power fuel cell technology for use in zero-emission heavy duty trucks, with the hopes that use of the vehicles in North America, Europe, Australia and New Zealand will mitigate emissions from diesel transportation.

Hyzon reported a cost of revenue of $2.4 million, a research and development expense of $12.6 million and a selling, general and administrative (SG&A) expenses of $49.1 million.

The current quarter expenses also included legal and regulatory charges of $25.9 million, $22 million of which was attributed to management’s assessment of an investigation by the Securities & Exchange Commission.

That all led to a basic and diluted loss per share of $0.25.

The company reported that as of June 30. unrestricted cash, cash equivalents and short-term investments were $172.4 million, approximately $36.6 million lower than the first quarter which ended on March 31. The current quarter net cash outflow is the lowest since Q4 of 2021.

As of July 31, 2023, unrestricted cash, cash equivalents and short-term investments were approximately $158 million

Adjusted EBITDA was minus-$33 million for the second quarter compared to minus-$28 million for the second quarter of 2022, mainly due to higher personnel costs, Hyzon said.

Hyzon has deployed 10 vehicles under commercial agreements with customers so far this year, three in Europe and seven coach buses in Australia. That meets the low end of Hyzon’s 2023 guidance of 10 to 20 vehicles in 2023. That has meant $2.9 million in cash receipts for those vehicles.

Hyzon also has completed the first 110kW truck built with production-tooled components, and it is now undergoing durability testing at a third-party track in Michigan.

The trucks are built in collaboration with third-arty assembly partner Fontaine Modification, and advancement to durability testing means the 110kW program is moving from prototype to production, Hyzon said. The company hopes that eventually will lead to deployment of 200kW fuel cell electric vehicles.

In June, Hyzon signed its first commercial agreement in the U.S. with food distributor Performance Food Group Inc. for five vehicles in a pilot phase, with the potential for a total of 50.

“Hyzon has made significant strides in the second quarter, both in the advancement of our 200kW fuel cell technology and in the commercialization of our heavy-duty fuel cell electric truck platforms,” Parker Meeks, Hyzon CEO, said in a news release. “We have been hard at work streamlining our vehicle offerings, operations and geographies, and we are proud of the progress we have made at our U.S. fuel cell system production facility (in the Chicago suburb of Bolingbrook, Ill.).

“We believe our intense focus and disciplined execution of our operational milestones as well as significant improvements to streamline our business have positioned Hyzon well in the accelerating hydrogen industry.”

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