Hyzon Motors (HYZN) 13 May 242024 Q1 Earnings call transcript

Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hyzon First Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. turn ICR. over now Managing Tom will with Director Instructions]I the to conference Cook, [Operator may your you Tom, begin conference.

discussions me the today Thank Today's financial materially include statements detailing Relations you, Officer; reminder, Quarter presentation. accompanying earnings and With you First presentation Page section Welcome in and results website. to the Investor statements operator, the and Actual results Financial differ our plans call the future might factors a today's good actual at and and expectations. XXXX afternoon, Steve X Weiland, can Earnings the explained end from Officer.As Chief forward-looking find of and Parker differ cause our of Meeks, regarding stated, are everyone. Chief are of our Hyzon's to forward-looking release on in that Executive the call results a could Call. release press those press

made. which only Forward-looking as speak are statements date of on they the

You are I'll our undue Meeks. forward-looking cautioned CEO, Parker over on put the call turn not to to statements.With that, reliance

start more XX upon $XX a recognized driven proud quarter is acceptance thank have sheet completing you, results, in with calls, manufacturing the prior targeted do for XXXX, we financials Rochester will to payments updates, the our review everyone, our This accept, ecosystem.I'll improved year the on burn, the and our and and our and We treatment technology in that the Group revenue made quarter have to before share balance demand recognition commercial first and previous in with such in of was lumpiness we revenue year, the our settlement in of cash capital our brief further. commercial delivered of majority of by Hyzon results commercial proceeds in XXXX will which sale form facility, first primarily buses inflection guidance period. investors contract, last on recap similar expect Steve our Metals more control, a net quarter Steve which cost SEC and cycle as our on from of of of pleased as then the reflects have Fortescue the with some the million revenue of no deployed we to in trial, impacts commercial Australia for you described revenue commercial technology the recognition.From another the mobility hydrogen providing the initiated remind and impacts deliver term, environment. near our XXXX I in afternoon, joining continued cycle share customers. we built financial compared as quarter our agreements comparable progress of focus customer This buyback points coach on We next color detail. guarantee, which to the during to a prior earnings want phase of a to perspective, timing Good quarter call. excluding quarter. and scale our revenue risk with comment first as leader am a

of as a as with a continued raise, we commercialization on with our our continues alternatives progress to to working technology a and investors, a in transition leader to Hyzon adviser have we clean discussed.Importantly, advance have Additionally, strategic support previously capital financial investment energy. to focus global potential strategic

technology from is reducing cell today. high-power proprietary emissions zero heavy-duty emission trucking Our fuel

our would mining, Performance lead decarbonize cell ecosystem our aviation and showed such now.Beginning believe that future. Hyzon PFG, As technology, this cell in we to We step toward Group, California. commercialization Hyzon progress XXXX opportunities on I as deploy by power fuel to decarbonization see future commercial stationary the to marked show applications, will of heavy-duty rail, this and put continues take the the our and PFG, hydrogen or a the goals grows, and side. electric year, which generation existing industrial quarter like vehicles significant Earlier X in technology describe their State supports. Food fuel first a to minutes its few to of operation in Hyzon the

other more continue Now onroad at operations.Since our real-world of total fleet several months last X,XXX has intelligence expand deliveries alternatives, will travel and to the traveled and their quicker the develop system. with optimize the working fuel cell week approximately help to nearly simultaneously emissions and operating commercial harmful bring further reducing Their refuel XX,XXX trucks value while zero-emission through to next-generation made our completed, experience us than have PFG to while been This X,XXX XXX-kilowatt than January, miles able operations. we technology, hours.

on our with in X each vehicles accepts truck refuse revenue New additional success Waste scaling X have the electric for approach fuel trial larger an we them the PFG orders and to We customer market applies with over customer year Hyzon trucks. for starts option we commercial refuse are over to and that from the before, upcoming America. in are This week tranches, a the XXX approach at trial, refuse which, described operations, order terms, of in which formally large typically kind for into customer, option Expo, commercial cell largest an per cell possible Way time. to over X following to at multiple fleet point with XX future fuel starting do private follow. vehicles equipment fuel on years US expect to positive successful, the purchase this commercial trucks that structure, a launched the trucks also first exactly if focused on agreement agreement work to recognize manufacturer continue with successful a scale platform.Last North XXXX.As to truck Truck, assuming and with The XX they electric profile PFG cycle fleet XX represents depending to cell the completing we large truck to which employed the begins XXX-kilowatt of XXX-kilowatt the

a effectively daily customer our that trial X-month to route only comparable We of in without development, day combustion performance That full trial grades. refuel, XX% battery our rate fuel double launch delivered in gap Australian operational accelerated strong a can will this refuse electric route summer, this cell with collection. electric vehicle work Recology demonstrated the refuse as on up our equivalents significant its refuse by because performance view truck Sydney in line cases also which engine to in with some of of near vehicle customer the including announced proves Australian program, even truck. conditions, aiding challenging decarbonize performance powertrains The

to zero-emission balance with North full America. with summer.Looking to global so has so I truck from commercial half purchase. the trial commercial vehicle a X-month platform we successful of been as trial successfully discussed, Subject into this the XXXX commercial We the largest currently trial are to converted starting excited for far The have overwhelmingly begin positive, full The X the of America. many concluded refuse highlighting in mentioned. nearly deliveries customers either demand bring expect in the definitive product Hyzon to to response the this scheduling trials, initial a the which to with enter North beginning targets, schedule quarter, of summer, the in previously we managed in second XXXX.During truck first refuse REMONDIS Australia agreements to trials, the or the including year, vehicle final refuse scheduled in and just and market performance fleets

drayage second orders.Finally, during customer delivered We are in drayage expand. vehicle our are worldwide discussions strong the ports instance, continues and at Putting the Angeles the port largest to for tailwinds additional zero-emission Long potential in one vehicles. and quarter, with fleet truck the US. our of Beach, delivered we REMONDIS support at about to Los US, in the for In truck drayage hydrogen inter success

the addition Act In billion $X.X to hub the program, EPA's billion earmarks for hydrogen ports $X Clean Inflation the program. administration's Reduction

be once that Class per the million their the of XX ports X and also has to Mitigation $XXX under lead funding hydrogen our that of clear the the can cell future including of recently applicant, Environmental trucks we purchasing credit supporting Hyzon as fuel Ports in to advancing project This HVIP program upfitted for CARB's quarter, to from of a submitted recently truck vehicles, the for program, vehicle Hyzon regulations Hyzon may deploy available help with which another applications tax as Department federal examples, initial final released remains XXXX, the US trucks.In $XXX means by million program clean first zero-emission complete, up $XX our over federal Trust of Long Beach ambition subsidy manufacturers. have expansions which over companies tax is Clean market including clean makes fuel for beginning specifically customer.California Volkswagen Energy the Treasury be top the the Hyzon through which clean a actively LA Department of fund $XX XXX awarded technologies, partner. As also is available eligible provide registration up regarding credits by our can $XXX million the to trucks concept in a a truck claimed country Bolingbrook and the to are the ports the to upfitters facility.Additionally, for fund. million well-funded and funding selected paper DOE cell under qualified the like is which $XX,XXX drayage million X of

cost consider build the In well-funded our the are fuel equivalent technology for excited we cell manufacturing, with On we federal our based now a of in momentum on out bring could net Bolingbrook facility. to California legal qualified and to refuse very side, Illinois what short, ecosystem.Turning the state customers. subsidies our diesel to customer

second we continue priority quarter in for progress XXXX, system cell keeping half single-stack fuel to During our XXX-kilowatt the track the SOP XXXX. first on of in of us of areas,

completed As more cell more of stacks cell production the approach equivalent combining a fuel generates a to systems toward lighter, systems reminder, another using reach fuel tooling X conventional which SOP the fuel-efficient to when and option power.We X April. in smaller, a or from completing XX% C-sample progressed quarter, XX% kilowatts XXX first compared offers system by stack, single with Hyzon's cost-effective in X

remain for on testing advance rigorous track to to SOP. continue durability We

We capabilities station single complete by our manufacturing currently, and lab SOP. Bolingbrook we've testing facility test cell and in operation, expanding to capabilities and commissioning a full working greater system through dedicated diligently into putting further.And efficiency full for also drive it preparation even advanced MEA our stack been

by to supply working strengthen team been daily the our first quarter. cell increased chain has base. For over a our X.Xx in rate instance, supply we broader our production single through Further,

qualifying capacity.While are components plus seamlessly into CapEx SOP, achieve and have identified are annual expect expansions efficiencies we remaining ships, to planned to demand. systems to cell future in that million chain as our their additional across recognize to and We process. suppliers of fuel $X Upon be in the value ahead do to and capacity possible line operations on we we stream of our with production quarters additional fit XXX-kilowatt XXX, SOP, than SOP as with much expect working capacity on have X

increases this system multiyear approach the cell anticipated first customers we line of truck cell heavy-duty to over Melbourne, quarter, first asset-light Hyzon Australia. vehicle manufactured in caliber fuel demand business during a benefits in agreements.Finally, expect commercial platform the XXX-kilowatt additions model from our efficiently maintain Powertrain capacity taken assembly We our and fuel in and single-cell launched with the with our

data on a as vehicle test collecting and are that system We track.

discussed now vehicle fully loaded accumulated, operating trailers.Before so and system the over pleased being we expected to Both with results. I the and kilometers And as quarter. with anticipated which wanted for we XXXX, handing reiterate to pulling call goals the are milestones the are far, Steve, last

SOP well reach in our the of on cell achievements, our path large and of stack fleet technology trial-based for scale-up commercial commercial first leading large are XXXX. will fuel major XXX-kilowatt cell pipeline. XXX-kilo globally.Second, to to single second progressing our expect customers the platform If customer vehicle a we these half we layering and be fleet fuel First, system for technology accomplished,

concentrating are on XXXX. signing large We fleet customer new multiyear agreements in

global fleets these additional major half in and large scaling targeting with trials the to deploying followed outcomes customers agreements our customer we are kick proof XXXX, to market large multiple of tranche to refuse providing advancing are technology expected commercial multi-stage the this fleets, while in to our our the for raise XXXX in initial managing capital which will we is second adoption in commercial trucks successful, color focusing to have be Hyzon to of significant are excited for anticipate strategic may by under agreements. second agreements and we By purposely commercial in multiyear definitive commercial and forward look noting working if to fuel maximizing we response year. priority that net XX domestically.Fourth, expect foundation to deployments refuse place accomplished which, the cell associated as and deployment launch agreements enable be of customers by delivery customers.Third, burn, show the XXXX, we their the deployments and XX to trial agreement, will tied purposely commercial in large XXXX. engagement fleet to mentioned We of their in XXXX capital pending for per US struck the a blade progress the activate scaling of cash second to truck their Additionally, remarks, adjusted off. advance potential if commercial to to fleet as smaller earlier number of planned customers XXXX we or my And December and

to securing on Chief are strengthening I our Officer, business.Now, our fund like to Weiland. balance to Steve additional we sheet our Steve? capital it and Financial over Lastly, would focused pass

our processes, to Parker. to traction we advancement It the testimonials, speak continued is hear SOP and systems.Now, driving fuel progress great these results. and cell across In finance, execution continue turning refuse of well, business. truck our you, our control proof to points as improvements accounting all progress. make Thank customer The about our market environment and team's to to

compared company's the equal inception. amount recorded for approximately $XX reported an revenue prior company, total prior to million quarter revenue to of and year quarter, We this milestone are comparable pleased reflects no financial have this quarter our revenue the first We believe to period. XXXX to this the the that since

Australia, by operating driven As first REMONDIS of trial.Other truck we revenue coach last mentioned, in XX in in sale a and sales. the recognized for lease was successful Group of to recorded sale Parker the year cash quarter, delivered accounting components trucks we the buses are of Australia China an Fortescue consider for revenue our PFG included first significant as refuse customer to acceptance purposes what deployed collections to a primarily very following revenue the final truck of last US trade that Also truck customer from to treated Metals year. in legacy

acceptance, was revenue While an of our certainly expect we with important first forward. customer validator quarter revenue going lumpiness reflection recognition continued and

periods. in quarter First related the revenue quarter Australia XXXX in million million Parker.Cost year discussed were associated FCEV to of and this costs the was extracted the in estimated revenue for primarily of costs first direct period. prior revenue sales associated for Cost labor quarter should to recognized by China not $X.X materials, with FCEV US comparable reasons and sales warranty Costs simply with forward of $X.X the in came prior versus be

the should discussed. these of no reversal items, implied cost warranty quarter be potential reasons note, given revenue sales, revenue contract reversal the cost resulted and the partially of the and China inventory was the extrapolated of by in comparable for of accrued sales. in our associated for for not this China to Cost sales, year proceeds also for provisions warranty relationship of cost such that cash inventory prior primarily customer inventory quarter, also cost quarter certain between standard accrual previously activities from collections offset In revenue and Europe.Please this in in revenue the addition, the related this write-downs as prior period this quarter and

quarter first for the year in cell We of to below systems at period. the our $XX.X This vehicle SG&A expenses range range came fund, and personnel how XXXX cash cash an excluding SOP.SG&A This the focus to this approximately XX declining to million million reflecting fuel quarterly $XX Rochester this primarily in over R&D, came million, ranges.R&D was the enhancements these share million. year cash of representing net the on in support guidance guidance of first quarter in short-term in and million the versus payment cash net $XX payment from We costs design, lowest period, $XX to $XX million which higher certain guidance $X.X of was for and of million bottom and average at prior below million, million million timing and sale consecutive quarter $XX is resolved came the to the settlement and received of facility, investments.Excluding by quarters, investigation. in the the quarter settlement our $X million cash supporting excluding is SEC powertrain. approximately prior This continued due first QX, $X.X last The $XX.X our net and our facility, our development represents we million versus in prior Xth equivalents that just approximately of control. $XX.X net of the XXXX fuel SG&A quarterly the from million. first came our equivalents, in in of of burn software, now million $XX.X the to in activities end $XX of provided $XX bottom change vehicle burn first quarter, of SEC Rochester the a legal, cell reason our to cash and items, in the lower fees burn, are boat cost This driven guidance quarterly the SEC net $X.X monthly million sale related with continued our in to consulting accounting the line primary and in pleased million proceeds or burn cash increase and proceeds end in range. of low the litigation below at came year million ended all the electric in with and for guidance decrease largely of $XX.X $XX

that We full moment focused our raising quarter, monthly prioritizing are while not providing $XX And business a investments guidance at our our year continue and remaining dynamic reflective capital last to average managing how net of our the we below burn, can we operating current on in the costs to operate by cash we similar efforts. million business given are nature development.Turning guidance. of to believe

previously, believe that reduce current million business our are range stated range of to we capital while keeping preserving year.We if the As the Hyzon it such strategic in of our and subject for operating our have will second based that on R&D in net burn noting track guidance and to reflects model, significantly as which of million we second $XX fuel $XX $XX SOP change on cell burn $XX of opportunities raise be the half that this value million outcomes. for quarter, cash million million. core estimate needed, in IP to $XX million, is range We the of $XX SG&A the to to the providing

now net payments does of ranges working an the timing bonus and pay quarter, with quarter. the and I in second driven by will While reflect the the Parker. hand call period roughly guidance R&D capital, SG&A annual over first timing.Thank back the This you quarter line and from are to guidance uptick cash largely is burn first

Steve. you, Thank

that in this our the of progression. quarterly achieved revenue Our XXXX XXXX. the we to deployed transition building XXXX completed point inflection belief XXXX in commercial by the We from to the is as demonstrated our our that upon and technology commercialization start vehicles of cycle strengthens year

data We vehicles with from encouraged and feedback PFG. deployed by the are the first

fuel manufacturing XXX-kilowatt earlier remain in while We we and last XXX-kilowatt efficiencies Way half the refuse of first of second the the fuel call, improving the are on the this truck year, our to vehicle fuel mentioned SOP week cell and also both our single-stack US and expanding refuse truck for facility cell capabilities. our system excited trial announced Class on summer.As track launch to our with in New X begin this cell of US

half I for progress, execution, year cell dedication we started our facility a operational year here in minimal technology.With for this to production to through with we are the their our like pleased the requirements. Hyzon with mission their with and for like foundation.Finally, whole across Overall, continued sharing Illinois at and would I our customers strong that, to expect ready We become our in remaining are for team reduce fully operator, thank industry second fuel would questions. and of now emissions stakeholders the and Bolingbrook, CapEx the which heavy-duty thank partnership hydrogen continued to

Thank you.

We go the Your the of line Instructions] will session. Capital with Irwin now from Craig question Please question-and-answer Partners. ROTH begin ahead. [Operator first comes

evening and questions. thanks my for taking Good

we us in a We progress weight guess cost you your few Can XX% the C-samples XX% in -- to is Parker, you better. But hydrogen. validated on. these is testing from XX% target But solution. you've and hone confirm X us start give maybe more doing the from growth kilogram lower future before quarter of just this April? So quarter, fuel X made, to an by bit per onroad just going what that's targets that color many stack. testing explain with little of And the a the production can months. were the can in and the the C-samples? so know being about move in bit of or that in a business just kind lower miles engineering of improved a I the then be and you are on learned lower for volume you're the really the maybe on Can things benefits introduction lot this of different cell XXX-kilowatt right, plan, this guess the I little you

Absolutely.

love hear digging and to your into First, Greg, thanks question, our great so we the voice, much technology. for

happy deep So to I'm there. go

Hyzon, development testing. the we to are a proud but the a on and from 'XX is 'XX on going C-sample and the SOP. short stress the the all stage stack. we're way that total lengths kilowatts right, are every at at a single stands catalyst system to MEA in achieve cost learnings performance, of in on through patents the which take sample terms testing the has throughout when and sample are build granted on from system I development and on testing, we SOPD fuel implication durability bit we've XXX-kilowatt a measuring actually MEA, and is a at is X of how achieved system membrane to stacked the to quite and -- B-sample the elements system, SOP that process really XXX-kilowatt fuel your XX in measuring the XXX-kilowatt and right, cell, underpin The a we at system learnings of So At pending assembly going the stage, stacking to testing we XXX-kilowatt from the we're our as XX between the the doing to durability over the MEA that to fuel applied C-sample and our And the our the sense, full the the the starts up, electrode testing, which now.So step and level, got process phase back of overall durability all at phase had moment, earnings for with quite in everyone a biforplate cells XXX So, of back for from single-cell that that a The been we C-sample you're years the performance, and backdrop, with a point, back stage. then cell way we to technology testing that IP, the right? all measuring IP. for give cell have those stack testing, C-sample we of learning last just validating year stack it's performance system.And cell at go worth of it on where deeper through to to for worth all the that element anywhere now describe

different under level like level, stack are allows do Hyzon performance to the to the the and of durability, EMEA and time, water the identify it's see suppliers across in and different injectors we get stack developed to additionally, to generation the the sure and catalyst that our production level, advance evaluation of stack, consistent cell COO, system we cells the our all we BOP variation, cell the stack, performance the is consistent sense over elements Banerjee that us that RFID at and the level. about we with It's single we design up trying hundreds stack And a from to those other full right, we've more system Some system. Because and in is full which onroad change, driving what systems supply of learnings differentially go in has and we that Bap an consistently and how our testing CTO, getting supply the see infusion that to performance and step in a level, the we been BOP how others a the getting within with better back least at like at how at that at what's stack. MEA, testing chain. way space varies mobility from do and active apply from because we've replicate short been to see and enhance larger XXX in the our stacked and to It on supplier which at we a opportunity itself. in of smaller test unique our area, it tagging stack humidifiers some collaboration performing single to ex-China plus BOP, because MEA, we BOP. going versus kilowatts how Dr. achieve performance to when achieve Mohrdieck, performance. look power ways is you where identify do as get able XXX-kilowatt in have cell competitors a getting the stock do of But a about consistent in the chain we right?Additionally, process, BOP performance XX% the and things to we're like across making full evaluating testing, a system group within When where and does

different these elements are all So of facets tested. and

on start least, to system of believe lot a time, that to of the find We well, others scale we leading that of improve known at team as over say, where curve, of and system given confidence that those have performance tremendous publicly I'll years and that that things XXX-kilowatt potentially a of forward cost properly do to even date. initiatives advancement, improvements your identify all developing we this performance based we're in that me significantly our we opportunities the reduction most we are finding by this XXX improved point, that SOP a to where development in have look of couple seen market we're others on that process need design, our is, we the the to are And cell goal mobility.Our ahead cost to are, technology plus the indicators kilowatt of tens of as coming now. technology we in entire gives and durability as fuel post performance the to and a a which

and quite SOP preproduction half on for moving C-sample of excited second the completing to in the being track about we're year. soon relatively So this phase,

that. for you Thank

supplying PFG I they're to help color you third about any date? or heavily quarter. going to to The you new you've my one, bit the for XX XXXX, use is expect question XXX set as a to customers sort geography many you can to it. little guidance of those And us figure like I'd how in So the commercial do maybe talk models. assume to loaded, XXX back-end how second our units quarter, fourth to little maybe XX some And bit deployments versus can mostly be a customers of other where if clarification of out maybe been really to share that well

and much we as No happy to there. Craig can as provide Correct.

unveil it. trucks, the for we've And X its anticipating fuel the before, things there in XXX-kilowatt kilowatt heavy-duty few right, big in behind XXX-kilowatt did system trials system X XXX-kilowatt produced right, US the go I've into we're a in X big, of system of which with the before fuel agreement as in with quarter, XXX-kilowatt and the relatively coming that.As our PFG deployed its group. to truck soon. first on parallel fifth the truck in a stated we're XXX-kilowatt road its the to Class first heavy-duty excited Hyzon that with trials a also Australia XXX-kilowatt is year to heavy-duty fuel So transition, on we've quite start, as of cell customer SOP back platform. to the cell truck, in this before, a development start That with X And of preparing US which, truck our SOP last We commercial this first those from is cell said moment about down PR to system we're cell you're their at was truck, the preparing unveiled with upcoming first fuel the have cell the fuel parallel truck XXX for the our we us. publicly stated summer, and excited year, was

the launched trough move but XX, think, truck fleet. cell for any not that hopefully if this at scheduled And negotiating I'm program unveiled, this fleet moment fleet.So second segment either have the missed for that many, refuse the those scheduling that. because a January we X on into and The would anticipating to of be as may major of then us, Class successful, commented over of driving excited US first we on part we conduct all year, we'll to for among significant trials PFG second second the trough definitive others assuming in PFG and fuel not that are just the XX relatively vehicle into XX that their aware the this a that fleet second are tranche of not converting XXX-kilowatt which initial that of XXX-kilowatt [indiscernible] to into part trial, new we second announced that the truck commercial of certainly will advancing be I tranche back XXX-kilowatt winning if trucks success.And file announce segment something essentially truck, have just a which the major that is least delivery and that's deployment being for that and half through globally agreement a across a deploying pending success bit something, a or or that assuming multiyear the that soon. to it trucks different customers through few assuming we're tranche, on order XXX-kilowatt is commercial we've -- trucks second with truck And that in Australia are for also, obviously

our launched kilowatt say before first deployment in cell. that's to a be the performed is rate trucks of anticipated refuse trial remarks, and lifted So, XX vehicles. day very even cell that to to that all guidance, a at to and the even at actually progress in work twice fuel of of not truck And generation, in route Australia those the fuel point could of value as combustion We I deployments better total battery is reason XXX prepared can detail truck is that beautifully the go of ownership. on performing in with to we sale to well. application. entire mix. and perform many fuel do at be though refuse The cell But this may XX% based system electric trucks a year, pending that mix more truck adjustments recharge, we as terms the future The for it the future was have planned systems to fuel do of to we XX% made can it's will what commercial -- the an XXX-kilowatt year, X in home a and XXX-kilowatt mix operated may specifically compared that use work this platform certainly needs forward. we well. The platform, be cost cans cell the so have XX be to XXX-kilowatt.We and efficiency, that REMONDIS be case. a be will do perform a course we to fuel that's throughout That a able noted going with for kilowatt a be up a X the all and to is as geographically on only loves doing think work needing converted a to And the refuse XXX-kilowatt efficiency. to fuel truck over believe advance give the refuel grades kilowatt our truck future XXX-kilowatt that development of progress, capital may in raise combustion successful bit

Thank you.

at equipment there you moment? And delivery The my if in on any your that SOP I timing chain may, need back production CapEx So that is you maybe the question, capacity, before the you help or risk hop see for I $X can us for and supply with start-up CapEx? there initial last in parts the around queue. that remaining million other targeted for

areas which mini all this in really and could the control there's on at with either SOP of stage to is the are be to I'll per Yes. site position CapEx sort million than units that confirm ties of that. of the risk supply would remaining, say, There's you're like the right, think this Look, on final or $X we XXX obviously, commissioning. mean facts we at. it the commissioning in with capacity capable system I fuel equipment stack year less cell But to At comfortable cell be quality less majority risk, automation and feel are is that chain focus And the of for X bulk what very facility in number XXX-kilowatt point, either always shifts already equipment our and us say the right? than vast single area, the I the commissioned always camera-based that is anticipating of what SOP. our X in the CapEx about remaining

on are in are but that with of So on set with terms haven't SOP, for is year. have second that disclosed And rate of timing comfortable million today. what we half we this $X number that burn we track of we the I'll of say more that CapEx, detail where and the is

commission testing some chain. durability the C-sample supply to less to we progress I'd there course, do is more to completion It's to activities in of and in progression SOP. required other and our But Of have the in the from the and is full the risk. validate say preproduction risk

progress congrats quarter, Great. all this Well, again impressive. on the

Thanks, so much, Craig.

Steven next Fox Fox go Advisors. line Your the question comes from of Please with ahead.

the recognition of couple first But there's good of follow-on of versus with all, don't have the a underway et follow-up. what play of trials? Hi, year? a give lumpy, I sort you what trials morning. as number can odds the sense sort the some out I I steps of of And be had well. guess, us that can where you these could revenue for can this want come know of And lead to I to a questions cetera. revenue -- I know recognition could then

Thanks. Yes, that's great.

Steve, for of and First for joining always. thanks all, engagement so the much as

of but process, So, on about recognition our couple in commercial ask to it revenue comment, things talk a Steve I'll our timing. to pipeline to

appetite take struggles And drive trial, and a and and take and fleet refuse. stop remarks that electric quite payload, in is where to realistic with availability where the be fleet fullness customer delivery market which that's requirements, total. TCO, know, and/or customer that we said we but about potential route then ahead where the and few to like at rapidly.Second delivery are expectations, in should not which which collaboratively a and teams typically scaling we fits is the scale time not range cell is you trucks that we the fuel honing of tied strategy, clearly because simulating on trough run newer today simulating is months large is our the which the scale should is cells outcompete. goals is of prepared cases given then regulations to spend, looking program. our fuel So Board-driven to I routes, fleet is may food to step on right?We really is something -- going And on where of Steve, excited only cell as performance take together their market the things. identifying And trucks large tremendous Those look very about of their beverage answer, for view, months like, the fuel but for expanding developing by part are back your trials out way work on spent what a a effective base on been the come of and One These refuse, we're in and all developing as that's are drayage it the commercial ESG see and teams up the start. we executive I'll now fuel to an a scale of right? it back other with and that to not a single see performance to why back or really the doing focused, fleets are company's on and/or use that

XXX-kilowatt the goal commercial that those X XX trials the like of is Performance our which the or place trucks, is trucks in and deployment truck XX be the which agreement tranches made to to trial. Group, potential of then be is which second is XX step and multistep, up to last first XXX-kilowatt contingent. fleet Food with and refuse scheduling trash their a have could would XX-truck X first second option.So right across being where total a and upfront confirm X typically trials and is typically contingently backdrop, put behind success, behind that an trialed we tranches tranche last The now are Performance XX. truck, negotiate and binding binding with Food example in to scheduled being they really space The the said, agreement that with some initial confirm X are that the Class Group, the all the tranche, a agreement to and all the XXX-kilowatt of trial So with the trial assuming where

in And a trialed us going truck, be XXX Some distances. for with but having are -- trialing. loads, it to time what to they some have XXX-kilowatt the wanted fleets then long been everything heavy the use really have truck, them they but really the for those a needed already kilowatt with kilowatts that XXX may it the had decide to of confirm case, that do. can experience good kilowatt do need are

numbers able from they revenue Today, bus.So its some recognition if to accepted our we're trolling the trials and that customer could delivery be that would we're that here most previously year. of the deliveries, holdbacks least for fleets recognized the confidence second fleets, the It's that the lead that that second first some we've sole to to navigate revenue outcome It's have way what a deployments, have buses, ability some in on every want future this is If a for are that is some were on excuse contract or which new first for contracts Fortescue case, before we that fleets me, does we're contracts under fleets large sign the large XXX revenue have in are the multiyear coach able trial contracts. delivery, delivery, It performance with we this have our in that bunches sharing the time, risk first a for does fleets the a trialed are and buyback some first large where show with the market, but trials, the the then could then mechanisms contract, lead obligation some that's you for it QX, not we kind And that successfully to really other for truck delay sooner. those say which And of them. whether XX did XXX in tranche, our the XXX-kilowatt I guarantee no refuse the recognition fleet there some looking which, of expectations faster in revenue revenue not the with or for basically, been same the of you're on risk-sharing giving waited provision seeing is them, tranche mechanism, with recognition. hit and/or of already revenue in not truck performance the announced are right? that taking truck try what at to and/or multiyear immediate big to on in if the trigger risk in say for XXX, that is binding XXX-kilowatt.And that then agreements performing. potentially I'd realizing

anything -- starting think, Steve, have in XXXX us answer XXXX. deployments to long-winded a multiyear to -- either or a I more is I large to new the when trials for that would we contracts on second look revenue. more for for So you would if and/or success point want what where is we say the fleet would add confirming confirming that in play importantly, order that slated be tranche you

just lot couple Yes. covered a I'd it, of make. observations Thanks, think a Parker, I of and you

really can't each these and deployment that contract, forward activity, as the it remaining contract when on about of Note or to Clearly, But just sometimes moves give guidance guess, revenue price squeezing more how million you from in can that, I there be revenue be million, XX has on obligations we XX to revenue, would delivered are revenue the side, financial can't And individual Parker XX we customer in recognize balance to really think metical that that I expect to It the I and next from XX right? associated And performance see the come transaction right? time. it point really will revenue statements it's accepted talk you X there. we trials, there, this in about Because dive out deployment, for at range you'll the queue pointed the rightly, to depends with months. recognized truck-by-truck pull global turns thing basis. a into and a read that that go down revenue. vehicles a be $X to over March up the be on fact on to a as the from best

those No, must context Is to something relatively the And then are be thing That's over I with roll our what laid industry, given help levels not trials and you economically a in contracts, it's secondly, you rolling good that. a do like these a struggling given mean it watching math. you intricate understand is with how it or own thing but for perspective how out? soon how there a everything us period. fleet the targeting? I'm I guys claiming but good numbers cetera, to large-scale out disadvantaged really brands a competitive bad industry, to versus the this are out et understand out to you're we the are for Like like that see -- I running, have seems a closely. know company plays still

that we back cost what trucks choices, warehouse technology, cell to believe level driving US us to same excited about Certainly, contribution tabs and vehicles Hyzon, and what's had happening of negative of model, cash due large they've significantly think year your at fleets scalable to a on positive cash in we are business Many is I which is keep our trucks, margin others the customers to proud others, we the to margins where in close we're deployed delivered to the market. point, technology because any contribution are fuel last foundation. due our with mean a truck competing our design structure opportunity driving volume we

period is we on customers grand talking puts That leading of the that of so the all play time are in this When at for in heavy-duty cell map to the fuel short market. I demand. good points truck you And of say of California scheme of in in trucks you relatively hydrogen State us. thousands puts market. all applaud the look can That ambition dispensing of is a hundreds the alone,

system in all and know think overly stations that about so business that. different XXX-kilowatt right? tells of model X So the confident it's in would what in competitor we're China that like. that plenty balance California it it that fuelers sense from refuse right?And electric ways we there's still our year our truck from America see, Fuel, cost manage of our of our shut refuse down, we've then driving And may with single So North all are where higher fuel to to benefits a is see the challenging to deliver really gap the scalable that coming fuel, refuse And sheet case ability couple we at as manage may fuel is stack, we've that an a and cell that substantial, burn all cash that to makes to outside least heavy-duty concerned no truck prices there's fuel single where a comes again, because our at cell trucks, from apparel quite and data than with right? mobile of cases the structure on we're allows seen a it the this from than use longer we're it fuel years by with from in focused other us plus the smartly.Also trucks actually only others use we us performance a using that us. be customers lot where not We vehicle, what are market. performance with what of trucks. cell for to market seen we we're publicly

lot fueling less this burden potentially fuel So XXXX, be We OEM lot by being is get versus XXX carried year year believe you're if out every and trucks. we in trucks trucks to to XXXX. a from cheaper a those going XXX the

a all that have and years to where can and one that. the our TCO capacity about, X production ambition we fleets has highest to with, right, do And outcome. with that fuel this truck think of to frankly, again, the lines year we over think ecosystem We XXX back this with for each trucks can of measured approach So economics lead -- to we're they for scale availability fuel base. to we time, is going and is fleets, success scalable XX what fleet That's large up for on. as a gold the get the to scaling us, X,XXX large over model year X or large it's that focused up a

I all Great. That's commentary. the super all you. helpful. appreciate Thank

Thank you.

with Your the next Rob of question Wertheimer ahead. go comes from Research. Melius Please line

you in of parts competitive see to extend whether pack mean or then sense obvious whether our just market I to limit do kind you weight similar batteries have in opportunities, and that's duty cycle the I Hi. fundamental just met question of A that, you your for market, And of easily can't roadblock other a more attractive other your the just a seen Thanks guys. more is to on to struggling. core niches refuse it hydrogen, customers interesting. for That's one there see so then haven't on you for that's met specific electric is are there continued trucking? be Thank Are there to? kind that what an and didn't obvious limitations. a guess comments the that refuse sensitive any try of extend market which a and you you battery needs by companies and it's been would or extend to be other products temporary any do? can Is you.

moving refuse it questions honestly, are performance given fast seen. into expected, deeper we we've and Thank is and how much, than very the Great that you Rob. gap we getting Absolutely.

we the as which ran just real view their first refuse over The struggling. do today, Australia. short temporary obviously We to America, some REMONDIS who successful is in fleets take are see to and public bed the what answer, what actually trial and of our trucks the we waits. our capacity. sale see permanent question additional battery barrier performance So, versus The it restate own our resolve I'll on between from it, see can customers, truck with least at they both the are with schedule North in are data largest along of permanent that reason already battery in Rob,

depending XX trash. start of to garbage configuration because up typical tons the your So on somewhere

loading battery weight up these the the capacity X to are -- much of trucks Some already that tons. battery so weight limit penalty up is

trash. half that So a why but they That the trips infill seeing, higher to carry of the amount That's only going to trash causes they're big cases, same X hold in number point a tons of only the to. whatever significantly why combined some reason with fill, basically they're of more solar done.So to going before only going would to weight a is deep versus store assume break work change really to not of battery problem. not day's It's through I'm they're it. has capacity designer, adding I weight. battery something the solve really to dynamic the exacerbate

So with that structural battery we as [indiscernible]. see issue a

make attached coming now cell we interesting refuse I truck point, fuel hydrogen to electric the body, like bodies will truck that, mainly attached which improvements of outcompete battery weight.The same X. that So help. battery to electric other will an put Class and say, that are to garbage there efficient more right? a we would will forward on things certainly But the the continue battery with hydrogen the because that, know that are Now with they out also expanding attached any body outcompete in is thing all to to I'll to is some

run a Class low transfer XX,XXX So the of same vehicles transfer a pounds station to fleets lot refuse lot location. of collection to from large vehicles, X run a another that of refuse

customers end because the X becoming Class work.So do as with and battery trucks XXX-kilowatt same weight Class X used can't for And climbing Because are at on do have own of California except to X ambitions trial of X look now capacity fueling battery in refuse the battery in cases XXX-kilowatt be on exciting the with able zero-emission to you're large the schedule handling these are you're starting XXX you that win our schedule anywhere think trucks customers all the and just term you Class Class particularly trial some combine more of And Some right? it. the All fleets they're contracts. The a trucks in fleets for going RFPs CNG do you mile can't very Hills, to of weight range concern trucks, Southern and in these today. testing if penalty, in large Class municipalities, collection battery day these it's the are are Is. to XXX, gas, the that come best for lot California, fleets would from that their counties, the They're fuel. back to waste because of it's is location. are the a customers California, long one lot who cities, these easiest, and criteria this for use to on-site same to

having alternative, to comparing the for you're to you're if of that in to comparing that more ownership buy even same trucks not where, work, to really easy us beat combustion do cost to So the a standpoint. situation, total XX% bioelectric you're obviously, XX%, on

to to try megawatts putting XX of complications and site charge at get a I XX power battery trucks. of refuse to Before the

you other -- why They're drugs a X time. they're that lot and years more and They're penalizing same packing of regen the of now at least, because for use breaks the believe for one a it's we We really opening America, the see announcements passing even and similar still. they're our based power they and is the is a using can't better multiple coming in platforms, we North as sitting lot without at public newer of both that truck first refuse of that's much of advantage have part shot is they're refuse having on market only energy we'll -- all the the the refuse still of we're to where help to be up see the a them truck on moving where truck.On the truck a battery So the market up. on And do niches, bodies, huge theme the a Class driving market use structural. some see is don't really we Hyzon much. it's major of sitting also that case catch

Class and limitations. both other still, for lift is gas So the your sitting any with fleets, the lot use there's deal of your A of vehicle energy department of with of so and transportation DOT water XX% that's for up right? power instance. trucks, power utility any to And to along trucks, battery of axle tough those, a applications, some the EPT, of Think fleets they typically take-off some Class utilities, about more in boom which X are probably X application.

back certainly into that's the X, once So a a again, market be to we're are future concrete to that refuse potentially you X trucks a bring when chassis commercialized Class X back a end, that lift base your ready else? see we power or pick in something can right, boom Class or

bit a of super Thank little a That's you. nonrelated interesting. And Okay. question.

on and And the concerns? Your you on on developing what Obviously, list testing stack? know in you will the where there's then thoughts industry. customer durability of your does know now, what come durability XXX on

people So #X I there. stop how that's on I'll if #XX Thanks. evaluate don't you. or know

this is top Yes, us customers for I question of our them a mind that would for is know very And certainly. say well. as and

there of durability first, like uptime, total durability. trial months the answer customers, we durability new an period some That somewhere works, that hours life. I is reach out durability, to it's our in on short proves talking is a about use to #X first, life, can of and it that significant me on list, question down level I've it's that is, case, of first, a XXX,XXX, go question overhaul it to early got question does cost the right? work. X use that's in fit for to case, that's time, durability, fuel the think my so it's for That technology X right? and going early typically can't for for X but from latent okay, a a have It this in it question end engine runs diesel to on And I'm truck, useful right? the have great. it's goal typically What's you're the just So not -- on and of useful ownership, X XXX,XXX-mile to trout reliability, That's Because then a cell, there's your XXX,XXX XX-year a weeks, knowing life, to mile certainly for it when But life have on is useful XX,XXX depending that. truck fuel second so life, cell right?And equivalent right? us. but about understand you anywhere

have will SOP. We an that not proven

durability Just just it on takes same to system actually. to a XX,XXX-hour time long the clear, prove be

be the same prior truck development back case. is, IP The kilowatt goal simulation to durability, which at MEA about Now data, technology, and about first approved our for in would in obviously, years. and has our progress a step hour accelerate hour same miles XX-mile have We XX,XXX goal be was through the And that initial $XX,XXX do the to on testing is average per have goal XXX been going some basically track XX in benefit good XXX,XXX $XX,XXX from the generations. base to through speed use SOP

all on Because the proof it edge with right? certainly we're kilowatt, durability point, and we to reproving and are on However, is as be over the customers, clear, our clear it's to needs shoulders of is that but again. proven cutting starting something prior XXX such, that be

in term you levels quite to to we'll fleet with both we across outsourced So a in confident describe heard rigor it at We're critical short both durability communication the me our It's continue we multiple that confident to long durability do prove our the durability detail our lifetime are process. that open labs prove lab testing, is own to And US customers. and our customers. to going into that in to it's track need in simply, and the the world. and us, on and SOP put term. critical We're that quite

you. Thank

Thanks, Rob.

now our session. remarks. I Meeks will concludes turn closing question-and-answer back That to it Parker for

and much, thank all Thank operator, very for us. you you joining

our you so again XXXX really sets look Take for we today. us joining goals continuing work update to commercialization as the far to in forward drive up well and achieve care. you Our we to we Thank year. this us milestones described, toward

your for you This concludes Thank disconnect. and now conference you may call. participation today's