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HM

Hyzon Motors Inc. (HYZN)·Q4 2023 Earnings Summary

Executive Summary

  • Hyzon delivered its first commercial heavy-duty fuel cell truck in the U.S., recognized $0.30M in Q4 revenue, and advanced its single‑stack 200kW fuel cell system to the C‑sample phase, positioning SOP in 2H 2024 .
  • Net cash burn improved for the fourth straight quarter to $25.5M in Q4 (average monthly ~$8.5M), the lowest in nine quarters, driven by operational focus and lower legal/professional fees .
  • Q1 2024 guidance introduced: SG&A $22–24M, R&D $12–14M, net cash burn $24–27M excluding the $8.5M SEC payment; management emphasized liquidity levers and prioritization of fuel cell IP .
  • Commercial milestones include 19 vehicle deployments in 2023 (5 U.S., 3 Europe, 11 Australia), foundational PFG deliveries (4 trucks) and a successful refuse truck trial with REMONDIS, as Hyzon targets 20–40 deployments in 2024 .
  • S&P Global Wall Street consensus estimates for Q4 2023 were unavailable for HYZN; beat/miss cannot be assessed and estimate revisions may be needed once coverage is mapped or initiated [GetEstimates error; S&P Global consensus unavailable]*.

What Went Well and What Went Wrong

  • What Went Well

    • First U.S. commercial truck delivery and Q4 revenue recognition; 19 global deployments achieved the high end of guidance, evidencing commercialization momentum .
    • 200kW single‑stack fuel cell advanced to C‑sample; SOP tracking for 2H 2024 with < $5M CapEx remaining and an initial SOP capacity of ~700 systems on three shifts .
    • Cash discipline: Q4 net cash burn fell to $25.5M (avg. ~$8.5M/month), with four consecutive quarters of decline; management highlighted levers to extend runway and prioritization of fuel cell IP .

  • What Went Wrong

    • FY 2023 revenue collapsed to $0.30M vs. $3.73M in FY 2022, reflecting conservative accounting under commercial trial constructs and inventory write‑downs/cost provisions in cost of revenue .
    • Elevated SG&A ($121.2M) driven by legal/accounting/consulting and a $25M SEC charge; restructuring and asset impairment ($7.8M) weighed on operating results .
    • Continued net losses and negative Adjusted EBITDA (Q4: $(36.0)M; FY 2023: $(134.2)M), underscoring early commercialization stage and burden of non‑recurring regulatory/legal expenses .

Financial Results

Quarterly comparison (oldest → newest)

Metric ($USD thousands unless noted)Q2 2023Q3 2023Q4 2023
Revenue$0 $0 $295
Cost of Revenue$2,410 $3,286 $9,122
Research & Development$12,597 $10,857 $10,935
SG&A$49,098 $21,044 $20,165
Restructuring & Related$0 $4,885 $2,880
Loss from Operations$(64,105) $(40,072) $(42,807)
Net Loss Attributable to Hyzon$(60,248) $(44,054) $(49,492)
Basic & Diluted EPS ($)$(0.25) $(0.18) $(0.20)
Cash & CE + ST Investments$172,415 $137,807 $112,280
Net Cash Burn$(36,600) $(34,608) $(25,527)
EBITDA$(59,135) $(43,088) $(49,133)
Adjusted EBITDA$(35,193) $(33,364) $(35,956)

Annual comparison

Metric ($USD thousands unless noted)FY 2022FY 2023
Revenue$3,726 $295
Cost of Revenue$23,320 $15,656
Research & Development$39,132 $43,729
SG&A$114,073 $121,164
Loss from Operations$(172,799) $(188,019)
Net Loss Attributable to Hyzon$(32,186) $(184,042)
Basic & Diluted EPS ($)$(0.13) $(0.75)
Free Cash Flow$(163,230) $(143,455)

KPIs and Operating Metrics

KPIQ4 2023 / FY 2023
Vehicles deployed (2023)19 (5 U.S., 3 Europe, 11 Australia)
PFG deliveries4 FCEVs delivered; multi‑year structure with 15 (+30 option) contingent on 200kW trial
Refuse truck trial (Australia)4‑month trial completed successfully with REMONDIS; transferring ownership under commercial agreement
200kW fuel cell systems25 B‑samples completed; advanced to C‑sample
SOP timing2H 2024 (fuel cell system and truck platforms)
SOP capacity~700 200kW systems per year on 3 shifts; potential debottlenecking beyond
CapEx remaining to SOP< $5M
Headcount (rounded)360 at Q4
Cash & equivalents$112.3M at 12/31/2023
Average monthly burn (Q4)~$8.5M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SG&AQ1 2024Not previously provided$22–24M New
R&DQ1 2024Not previously provided$12–14M New
Net Cash BurnQ1 2024Not previously provided$24–27M (ex‑SEC $8.5M; Rochester sale ~$3M timing excluded) New
Fuel cell SOPFY 2024 (2H)2H 2024 (prior)2H 2024 reaffirmed Maintained

Earnings Call Themes & Trends

TopicQ2 2023 (Q‑2)Q3 2023 (Q‑1)Q4 2023 (Current)Trend
200kW fuel cell progress9 B‑samples completed; plan for 25; roll‑to‑roll MEA line commissioned 18 B‑samples; targeting 25; durability ~20% complete 25 B‑samples; C‑sample phase; SOP 2H 2024; < $5M CapEx Advancing to SOP
Commercial deployments10 vehicles YTD; PFG agreement; trials expand First U.S. revenue delivery (drayage); 13 vehicles at Q3; guidance raised to 15–20 19 vehicles in 2023; PFG 4 deliveries; refuse truck trial success Scaling
Subsidies & hydrogen hubsPolicy tailwinds (IRA ports, HVIP) $7B hydrogen hubs; ~$400M HVIP pool Deep dive on CA vouchers, IRA Clean Ports, DOE hubs; 45V/45W discussion Strengthening tailwinds
Refuse trucksPlatform in Australia; planning U.S. trial Announced rigid refuse platform; trial expected Australian trial success; U.S. JV with New Way; U.S. trials 1H24 Accelerating
Cash burn disciplineBurn ~$12M/month Q2; roadmap to $110–120M FY24 Lowest burn in 8 quarters; flexibility despite SEC timing Lowest in 9 quarters; Q1 guidance sub‑$10M recurring monthly Improving
Financing/SECSEC accrual ($22M); options under review Settlement $25M; strategics/funding options $8.5M first tranche paid Jan; evaluating capital raise Progressed, ongoing
Production capacitySOP capacity planning; Fontaine assembly 700 systems/year on 3 shifts; debottleneck path 700 SOP capacity; asset‑light scaling Maintained

Management Commentary

  • “Our single stack 200‑kilowatt fuel cell technology is coming to start of production… We believe our accomplishments in the fourth quarter of 2023 demonstrate the inflection point we have achieved for Hyzon's technology commercialization.” – Parker Meeks, CEO .
  • “We met or beat the financial guidance… on both the second half and full year basis for SG&A, R&D and net cash burn.” – Stephen Weiland, CFO .
  • “Our U.S.-based fuel cell production facility is nearing completion with less than $5 million in remaining capital investment to reach SOP… initial annual capacity of 700 200‑kilowatt fuel cell systems.” – Parker Meeks .
  • “The operating cost of the Hyzon fuel cell truck was equivalent to the operating cost of the diesel alternative without subsidies.” – Parker Meeks on REMONDIS trial .
  • “Recurring monthly Net Cash Burn below $10 million is representative of how we are currently operating.” – Q1 2024 outlook .

Q&A Highlights

  • Trial learnings: Extensive multi‑environment testing refined powertrain integration and driver experience; durability and performance improved; transparency with customers built credibility .
  • Subsidy pathway: Near‑term California vouchers, IRA Clean Ports ($2.6B), and DOE hubs form a three‑step funding path supporting scale; Hyzon involved in Port Houston application .
  • Cash burn drivers: Strategic focus, cost efficiencies, and declining legal/consulting fees reduced burn; sub‑$10M recurring monthly indicated .
  • Durability & platform transition: 200kW durability being reproved; 110/120kW trials accelerate customer readiness and de‑risk 200kW adoption .
  • Fueling strategy: Mobile fuelers mitigate first‑year delivery risk; permanent onsite fueling aligned to second‑year tranches; Europe advantaged by existing infrastructure .

Estimates Context

  • Attempts to retrieve S&P Global consensus for HYZN Q4 2023 EPS and revenue were unsuccessful due to missing mapping; thus, a beat/miss assessment versus Wall Street consensus is not available. Expect estimates to adjust as coverage initiates or mapping is resolved [GetEstimates error; S&P Global consensus unavailable]*.

Key Takeaways for Investors

  • Commercialization inflection: First U.S. delivery and 19 global deployments validate customer demand; focus shifts to scaling multiyear fleet agreements in 2024 (target 20–40 deployments) .
  • Technology edge: Single‑stack 200kW fuel cell advances to SOP with lighter, smaller, more efficient design; expected economic advantages vs. dual‑stack alternatives support truck‑level positive cash contribution margins to large fleets .
  • Cash discipline continues: Four consecutive quarters of improved burn; Q1 guidance implies sustained sub‑$10M monthly recurring burn, providing operational runway amid funding plans .
  • Refuse truck opportunity: Demonstrated parity vs. diesel operating costs in Australia trial; U.S. JV with New Way and 1H24 trials could catalyze a faster‑developing, back‑to‑base market .
  • Policy tailwinds: California HVIP and IRA Clean Ports funding plus DOE hydrogen hubs should underpin medium‑term demand, particularly in drayage and back‑to‑base routes .
  • Accounting conservatism: Lease‑like revenue recognition and risk‑sharing constructs depress near‑term GAAP revenue; watch for second‑tranche orders that reduce buyback provisions and enable traditional sale accounting .
  • 2024 catalysts: SOP achievements (fuel cell systems and truck platforms), conversion of trials to second‑stage orders, and U.S. refuse trials/agreements are likely stock‑reaction drivers .

Estimates disclaimer: Wall Street consensus values retrieved from S&P Global were unavailable for HYZN at the time of analysis; assessment of beats/misses cannot be performed until consensus data is accessible.