Hyzon posts first-quarter loss, marks progress

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Hyzon Motors Inc. this morning reported a first-quarter operating loss of nearly $27 million on $356,000 in revenues.

At the same time, the Honeoye Falls-based company highlighted a number of milestones achieved in the first three months of this year, among them producing its first domestic hydrogen fuel cell stack and system, ahead of schedule.

Challenges that Hyzon faced in the quarter include ongoing global supply chain disruptions heightened by the COVID-19 surge in China and the outbreak of war in Ukraine. As the Beacon has previously reported, company also is defending itself against class-action shareholder litigation and is the subject of a Securities and Exchange Commission inquiry into allegations against it.

Its stock this morning was trading around a 52-week low of $3.61 a share, down from a high of $11.37.

Hyzon, a global supplier of zero-emissions commercial vehicles fueled by hydrogen fuel cells, was launched in 2020, opening its headquarters in Honeoye Falls at the former General Motors facility that closed in 2012. In February 2021, it announced plans for a nearly $8 million expansion there, with assistance from Empire State Development, Monroe County and Greater Rochester Enterprise.

In addition to its Honeoye Falls facility, Hyzon has U.S. operations near Chicago and Detroit, and international operations in the Netherlands, China, Singapore, Australia, and Germany.

Last July, Hyzon shares began trading under the ticker symbol HYZN, shortly after the completion of its merger with Decarbonization Plus Acquisition Corp., a “blank check” public company. After expenses, the transaction injected $512.9 million into Hyzon. For the year ended Dec. 31, Hyzon reported total revenue of $6 million, a loss from operations of $101.4 million and a net loss of $13.8 million.

In the three-month period ended March 31, Hyzon had a net loss attributable to the company of $8.5 million. Its operating loss was offset by non-cash gains totaling more than $17 million. It logged operating expenses of $6.2 million for research and development and $20.5 million in selling, general, and administrative expenses.

As of March 31, Hyzon had $407.3 million in cash, down from $445.1 million on Dec. 31.

In a conference call with analysts this morning, Hyzon CEO Craig Knight acknowledged the revenue number for the first quarter was “not glamorous,” but said he was happy with the company’s progress.

“We celebrated the significant achievement of building our first American-made heavy truck fuel cells for validation and testing,” Knight said. “This milestone is the realization of our vision for Hyzon, which showcases our proprietary intellectual property and manufacturing capabilities.”

Other highlights from the quarter, he said, include:

■ signing a definitive agreement to increase ownership in Hyzon Motors Europe B.V. from 50.5 percent to 75 percent;

■ reaching a vehicle supply agreement with Hylane GmbH, a wholly owned subsidiary of DEVK Versicherung, one of Germany’s largest motor insurers, for five additional Hyzon fuel cell trucks, bringing total Hylane agreements to 23 trucks;

■ winning a public procurement bid in China for up to $8 million to supply municipal trucks to Hanjie Urban Environmental Management Co. Ltd., on top of the previously announced memorandum of understanding with Foshan Dump Truck Association for eight Hyzon trucks.

Looking ahead, Knight said, Hyzon is “uniquely positioned to capture the significant momentum in decarbonization mandates in Asia, Europe, Australia and North America.”

Paul Ericson is Rochester Beacon executive editor. The Beacon welcomes comments from readers who adhere to our comment policy including use of their full, real name.

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