Hyliion Holdings Corp. (NYSE:HYLN) stock traded higher Tuesday as investors reacted to the company's expanding partnership with the U.S. Navy and a broader rally in growth stocks. The Nasdaq gained 1.45%, while the S&P 500 rose 0.53%.

U.S. Navy Partnership Boosts Hyliion Stock

Recently, the U.S. Navy's Office of Naval Research selected the USX-1 Defiant as a test vessel for Hyliion's KARNO technology.

The autonomous naval vessel will use the company's KARNO power system in initial sea trials funded by the Office of Naval Research to advance onboard power-generation capabilities.

The project marks another step in Hyliion's push to commercialize its clean-energy technology for both stationary and mobile applications.

Quarterly Results Top Expectations

Earlier this month, Hyliion reported a first-quarter loss of 7 cents per share, slightly better than analysts' estimates for a loss of 8 cents. Revenue came in at $2.83 million, topping consensus expectations of $1 million.

The company said results benefited from increased activity tied to Office of Naval Research contracts, including development work on an 800-kilowatt KARNO Power Module for the U.S. Navy.

Hyliion also reaffirmed its 2026 outlook. The company expects about $10 million in full-year research-and-development service revenue, along with potential early commercial sales related to the planned late-2026 launch of its 200-kW KARNO Power Module.

Management projects roughly $50 million in total cash usage during 2026 and expects to end the year with about $100 million in cash and investments.

Technical Momentum Remains Strong

Hyliion shares have surged more than 470% over the past year. The stock traded at $6.43 Tuesday, well above its 20-day, 50-day and 100-day simple moving averages, signaling continued bullish momentum.

The stock recently formed a "golden cross" pattern in May, when the 50-day moving average crossed above the 200-day moving average, a technical indicator often viewed as bullish by traders.

Shares were also trading near a key resistance level around their recent 52-week high of $6.24.

What Hyliion Does

Hyliion develops power-generation systems designed to provide flexible and lower-emission electricity solutions across multiple industries.

Its KARNO Power Modules are designed to operate on various fuel sources and support evolving energy and transportation needs.

The Navy collaboration further strengthens Hyliion's position in autonomous and sustainable maritime operations.

HYLN Price Action: Hyliion Holdings shares were up 13.19% at $6.78 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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