Hyliion Holdings will deliver two multi-megawatt KARNO Power Modules to NAVSEA Philadelphia as part of a $41.7 million contract from the Office of Naval Research (ONR), the company confirmed. The award pushes the total ONR funding for Hyliion above $58 million and represents the firm's largest military contract to date.
The delivery follows an award first disclosed on July 22. The Austin, Texas-based developer is supplying modules at 2-plus megawatt and 3-plus megawatt scales. Both units are derived from Hyliion's existing modular 800 kW architecture and are being prepared for validation in both land-based and maritime settings.
According to company statements, the ONR funding to date has supported the initial stages of validation and testing, includes upcoming at-sea trials, and now extends into multi-megawatt deployment. The multi-phase support indicates a progression from early technical proof points toward operational demonstrations.
In June, Hyliion founder and chief executive Thomas Healy said the company expected to add $40 million to $50 million in military contracts across multiple branches during the year. Healy also noted that "the commercial structure of those agreements will evolve. But the foundation right now is a deep technical partnership, not just a transaction."
Healy described the ONR contract as accelerating the development timeline for the company's multi-megawatt KARNO systems and expanding the array of naval platforms that can employ the technology. Navy interest in the KARNO platform has emphasized three features: fuel flexibility, electrical efficiency, and a low-maintenance design.
Hyliion states the KARNO modules are intended to reduce logistical burden for operators and to extend mission endurance. The company also highlights the modules' low acoustic and thermal signatures, characteristics that are particularly relevant for maritime and expeditionary operations where detectability and thermal management are concerns.
The ONR award aligns with Hyliion's broader strategy of deploying a common KARNO architecture across multiple markets. The company plans to apply the same platform to defense missions as well as distributed power uses, including deployments for data centers.
On the market front, Hyliion's shares have shown strong gains this year despite some pullback from mid-June highs. The stock was up 110% year-to-date to $3.94 per share as of Wednesday's close, and the 12-month performance exceeds a 160% rally.
What this means
- The ONR contract advances Hyliion along a staged testing and deployment path that moves from validation to at-sea demonstrations and multi-megawatt fielding.
- The two modules expand the naval platform options for the KARNO architecture while preserving the company's approach of a common technical base across commercial and defense markets.
- Market investors have responded to the company's momentum with substantial year-to-date and 12-month gains in the stock.