Electric heavy-truck maker Hyzon Motors (HYZN 1.44%) said that it remains on track to ship its first 85 vehicles by the end of the year. The company also announced that its two U.S. manufacturing facilities will be fully up and running by mid-2022.
Hyzon reported an operating loss of $50.6 million for the third quarter, but it was technically profitable on a net income basis, thanks to a bit over $80 million in non-cash accounting credits related to earnout liabilities and privately held warrants.
Including those credits, Hyzon's net income was $32.4 million, or $0.13 per share, on revenue of about $962,000. Hyzon had told electric-vehicle (EV) investors in August that Q3 would be its first quarter with positive revenue -- and it was.
That was both a beat and a miss. Wall Street analysts polled by Thomson Reuters had expected a loss of $0.08 per share on revenue of $5.51 million, on average. Hyzon's shares were trading sharply higher after the news was released.
Hyzon began deliveries of its hydrogen fuel-cell heavy trucks in the third quarter. It expects to ship 85 of the trucks before the end of 2021. Image source: Hyzon.
Highlights of Hyzon's Q3 report
- Despite the ongoing global supply chain challenges that have affected just about every vehicle manufacturer, Hyzon delivered its first vehicles and reported its first revenue in the quarter.
- Hyzon has received two purchase orders, for 62 trucks in total, from Shanghai Hydrogen HongYun Automotive, a zero-emissions, heavy-truck fleet operator in China. Hyzon said in September that HongYun has agreed to order 500 of its trucks by the end of 2022.
- Hyzon completed an agreement with TC Energy (TRP -0.33%) to collaborate on building a network of hydrogen-production hubs across North America. The hubs will supply hydrogen gas to refueling stations serving Hyzon's fuel-cell heavy trucks.
As of Sept. 30, Hyzon had $498 million in cash remaining.
What Hyzon's chief strategy officer had to say
Parker Meeks, Hyzon's chief strategy officer, reminded EV investors that the company is committed to building a complete hydrogen "ecosystem" that includes producing hydrogen gas, dispensing at refueling stations, and financing.
"This is further underpinned by our recent announcement with TC Energy to collaborate on development, construction, operation, and ownership of hydrogen production facilities across North America," Meeks said. "The collaboration has the goal of hydrogen delivery to fuel cell heavy duty vehicles as soon as 2022, producing up to 20 tons of hydrogen per day at each hub."
Looking ahead: Hyzon's near-term guidance
As noted above, Hyzon confirmed that, despite supply chain issues, it's on track to ship 85 trucks to customers before the end of 2021. (It delivered the first two of those in Q3.) By year's end, it will have trucks on the road in Asia, Australia, Europe, and North America, it said.
The company also confirmed that construction of its manufacturing centers in Rochester, NY and Bolingbrook, IL is on track. Both should be operational by the end of the first half of 2022.
