HYLN lands $42 million Navy contract for megawatt-scale power units
A $42 million cost-plus-fixed-fee contract from the Office of Naval Research puts HYLN in focus, with Hyliion Holdings Corp. tapped to design, develop, build, test, and deliver megawatt-scale power generation units…
A $42 million cost-plus-fixed-fee contract from the Office of Naval Research puts HYLN in focus, with Hyliion Holdings Corp. tapped to design, develop, build, test, and deliver megawatt-scale power generation units under the Navy's HELMUR program. The 36-month base period carries no option periods and is scheduled for completion by July 2029. Funding was fully obligated at the time of award using fiscal year 2025 and fiscal year 2026 Navy appropriations.
The contract and its terms
The work falls under the High Efficiency/Low Maintenance Ultra Reliable Megawatt Scale Power Generation Units program. Hyliion will produce both 2-megawatt and 3-megawatt units for ONR, covering the full cycle from design through testing and delivery. The Office of Naval Research awarded the contract through its Long Range Broad Agency Announcement, BAA No. N00014-25-S-B001.
The dual-fiscal-year funding structure means the $42 million is already committed. Draws on FY2025 and FY2026 Navy Research, Development, Test and Evaluation appropriations have both been obligated. There is no conditional funding language in the filing, and the contract carries no option periods that would require future exercise.
Scope beyond unit delivery
The contract reaches further than the physical units. Hyliion is also contracted to advance its core technology platform, develop alternative core components to broaden system capabilities, reduce supply chain exposure tied to magnet availability, and progress its additive manufacturing processes. Primary work will be performed at the company's Cedar Park, Texas headquarters at 1202 BMC Drive.
The magnet supply chain scope is one of the more operationally specific elements in the award. ONR is paying to address that constraint at the component level. The filing frames it as supply chain risk reduction, which signals the Navy views magnet sourcing as a vulnerability worth resolving inside program execution rather than managing around it at the procurement stage.
What to watch
The 8-K was announced July 22, 2026, and signed by Chief Executive Officer Thomas Healy on July 23, with the filing date listed as July 21. Hyliion shares trade on NYSE American. The next concrete milestone for the HYLN tape is any subsequent filing or contract modification that revises deliverables, timeline, or the July 2029 completion date.