Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hyzon Motors Inc (HYZN, Financial) has launched a 200 kilowatt class 8 fuel cell truck trial program with multiple large fleets, receiving positive initial customer feedback.
- The company has decided to focus on the North American class 8 and refuse vehicle markets, which have the highest immediate commercial potential.
- Hyzon Motors Inc (HYZN) has successfully raised $4.5 million in gross proceeds via a registered direct offering, improving liquidity and increasing average daily trading volume.
- The company has met its guidance and delivered a monthly average cash burn at the low end of that guidance, with further reductions expected by year-end.
- Hyzon Motors Inc (HYZN) is seeing increased commercial interest in its fuel cell technology from the stationary power market, including applications for data centers.
Negative Points
- Hyzon Motors Inc (HYZN) has halted operations in the Netherlands and Australia due to challenging international market conditions and waning government support.
- The company incurred charges of approximately $21 million related to exit activities in Europe and Australia, with $4 million being cash.
- Second-quarter 2024 revenue was only $0.3 million, reflecting continued recognition of trucks delivered to PFG and spare parts sales.
- Cost of revenue increased significantly to $18.4 million in Q2 2024, primarily due to inventory write-downs associated with restructuring actions.
- The company is not providing further financial guidance at this time due to dynamic conditions, ongoing cost actions, and capital raise efforts.
Q & A Highlights
Q: Can you discuss the practicalities of hydrogen fuel cell implementation on refuse trucks and why customers are showing strong interest?
A: Parker Meeks, CEO: Hydrogen fuel cell refuse trucks can handle the power requirements, payload, and operational demands that battery electric trucks struggle with. For example, our truck in Sydney completed a 125-mile route with 1,200 garbage can lifts and steep grades without needing to refuel, which battery trucks cannot achieve. This performance, combined with superior fuel efficiency, makes hydrogen fuel cells a more viable and economical option for refuse trucks.
Q: How are you handling refueling for your trials, and what are the timelines and permitting necessary for hydrogen refueling infrastructure?
A: Parker Meeks, CEO: We start with mobile fuelers, which can fuel 25-30 trucks per day. For larger fleets, we plan to transition to permanent on-site fueling solutions. This approach is more feasible and less expensive compared to the extensive infrastructure required for battery electric charging, which often involves significant grid upgrades and long lead times.
Q: How might the commercial production of the 200 kilowatt stack change things in the class 8 market for you?
A: Parker Meeks, CEO: The 200 kilowatt stack is a critical validation for our fleet customers, who prioritize quality, durability, and longevity. Our transparent process and rigorous testing give them confidence in the technology. Successful trials and the commercial viability of the 200 kilowatt stack will likely encourage more customers to place orders.
Q: Can you clarify the potential ramp-up with Performance Food Group (PFG) and how fueling infrastructure would work for them?
A: Parker Meeks, CEO: PFG has the option to purchase up to 50 trucks, starting with 5 already deployed and potentially 15 more following successful trials. Initially, mobile fuelers will be used, but as the fleet grows, we will transition to permanent on-site fueling solutions. This approach ensures a smooth and scalable fueling infrastructure.
Q: How confident are you in executing 25 fleet trials over the next year or two?
A: Parker Meeks, CEO: We are confident due to the concentrated geography of the trials, primarily in California and Alberta, and the strong performance of our trucks in initial trials. The compact trial schedule and regional focus allow us to efficiently support and fuel the trucks, ensuring successful execution.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
