Seasoned executive brings 25+ years of legal, HR, and transactional leadership to Aspen’s executive teamNORTHBOROUGH, Mass., Sept. 22, 2025 (GLOBE NEWSWIRE) -- Aspen Aerogels, Inc. (NYSE: ASPN) (“Aspen” or the "Company"), a technology leader in sustainability and thermal management solutions, today announced the appointment of Glenn Deegan as Chief Administrative Officer. Mr. Deegan will report directly to President and Chief Executive Officer Don Young and will be based at the company’s Aerogel Technology ...

Core Insights - Aspen Aerogels is uniquely positioned in the energy services sector, successfully transitioning from traditional energy markets to emerging markets in new energy, particularly as a supplier to EV batteries [1]. Company Overview - Aspen Aerogels has established a product line in traditional energy that is now experiencing significant revenue growth due to its involvement in the electric vehicle battery supply chain [1]. Leadership - Ricardo Rodriguez joined Aspen Aerogels as CFO and Treasurer in November 2021, indicating a strategic move to strengthen the company's financial leadership [2].

Financial Data and Key Metrics Changes - The company reported approximately $145 million in revenues from traditional energy infrastructure markets last year, with EV thermal barrier business growing from about $7 million in 2021 to over $300 million last year [6][7] - The company expects to generate just over $300 million in revenues this year across both segments, maintaining meaningful EBITDA despite a reset in volumes for GM [9][41] - The target gross margin is set at 35% plus, with the company delivering slightly above that last year [7][41] Business Line Data and Key Metrics Changes - The energy industrial segment includes three main applications: hot processes (Pyrogel), cryogenic processes (Cryogel), and pipe-in-pipe insulation for subsea pipelines [12][13] - The company has an installed base of about $1.5 billion worth of product, with a maintenance cycle that drives a healthy base load of business [14][15] - Long-term growth targets for the energy industrial segment are projected between 10% and low teens [16][18] Market Data and Key Metrics Changes - The company has secured business with several major automotive manufacturers, including GM, Toyota, Audi, Scania, Volvo Trucks, and Mercedes Benz, indicating a strong market presence in the EV sector [29][30][31] - GM has invested heavily in EV capacity and has gained significant market share, with the Chevy Equinox being the second best-selling EV in the U.S. [36][37] Company Strategy and Development Direction - The company is focused on leveraging its advanced materials platform and extensive patent portfolio to maintain a competitive edge in the aerogel market [7][10] - There is an emphasis on exploring niche applications for aerogel products beyond the established segments, aiming for additional revenue streams [17][18] - The company is committed to maintaining a strong gross margin while navigating supply chain challenges and increasing production capacity [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of recent policy changes on EV volumes but remains optimistic about long-term consumer preferences for EVs [8][39] - The company is confident in its ability to return to 35% gross margins, citing improvements in cost structure and fixed cost absorption [44][46] Other Important Information - The company has developed a method to encapsulate aerogel to address concerns about silica dust in battery pack plants, enhancing its product offering for EV manufacturers [22] - The company has established manufacturing capabilities in both the U.S. and China to meet growing demand [43] Q&A Session Summary Question: Can you talk about the origins of the thermal barrier business? - GM initially explored aerogels for heat shield applications but later approached the company for a solution in EVs, leading to the development of thermal barriers [20][21] Question: What are other EV manufacturers using to prevent thermal runaway? - Other manufacturers throttle back battery performance and use various materials, but the company’s aerogel provides superior thermal isolation [25][27] Question: What is the outlook for GM's EV production? - GM has invested significantly in EV capacity and is gaining market share, with expectations of maintaining production levels despite regulatory changes [36][38]

Financial Data and Key Metrics Changes - The company reported approximately $145 million in revenues from traditional energy infrastructure markets last year, with EV thermal barrier business growing from about $7 million in 2021 to over $300 million last year [7][10] - The company targets gross margins of over 35% and aims for at least 25% EBITDA margins, achieving slightly more than that last year [8][10] - For the current year, the company expects to generate just over $300 million in revenues across both segments while maintaining meaningful EBITDA [10] Business Line Data and Key Metrics Changes - The energy industrial business has three main applications: Pyrogel for hot processes, Cryogel for cryogenic processes, and pipe-in-pipe insulation for subsea pipelines [13][14] - The company has an installed base of about $1.5 billion worth of products, with a maintenance cycle that drives a healthy base load of business [15][16] - Long-term growth for the energy industrial segment is projected between 10% and low teens, with opportunities for niche applications [17][18] Market Data and Key Metrics Changes - The company has secured business with several major automotive manufacturers, including GM, Toyota, Audi, Scania, Volvo Trucks, and Mercedes Benz, indicating a strong market presence [29][30][31] - GM has invested heavily in EV capacity and has gained significant market share, with the Chevy Equinox being the second best-selling EV in the U.S. [36][37] - The company is positioned to benefit from increasing incentives for U.S.-made EVs and components, which may enhance its market opportunities [40][41] Company Strategy and Development Direction - The company is focused on leveraging its advanced materials platform and extensive patent portfolio to maintain a competitive edge in the aerogel market [8][12] - There is an emphasis on expanding applications beyond the current segments, with plans to assess additional opportunities over the next 12 to 18 months [18] - The company aims to maintain its gross margin targets while navigating supply chain challenges and increasing production capacity [43][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of recent policy changes on EV volumes but remains optimistic about long-term consumer preferences for EVs [9][10] - The company is confident in its ability to return to 35% gross margins, citing improvements in cost structure and fixed cost absorption [45][46] - Management believes that the investments made by GM and other OEMs in EVs will continue to drive demand for their products [39][42] Other Important Information - The company has developed a method to encapsulate aerogel to address concerns about silica dust in battery pack plants, enhancing its product offering for EV applications [22] - The company has been proactive in securing external manufacturing partnerships to scale production while maintaining quality control [12][44] Q&A Session Summary Question: What is the long-term growth target for the energy industrial segment? - The company expects growth between 10% and low teens, focusing on developing niche applications [17] Question: How does the company differentiate its aerogel products from competitors? - The company emphasizes its unique chemistry and manufacturing process that results in superior mechanical properties and thermal isolation [11] Question: What is the current status of GM's EV production forecast? - GM has invested significantly in EV capacity and is gaining market share, with the Chevy Equinox being a strong performer [36][37] Question: How does the company plan to maintain its gross margin targets? - The company is focused on improving fixed cost absorption and has shown progress in achieving its margin goals [45][46]

Company Participation - Aspen Aerogels, Inc. is scheduled to participate in the 39th Annual Barclays Energy-Power Conference on September 3, 2025, at the Sheraton Times Square Hotel in New York, NY [1] - The Chief Financial Officer, Ricardo C. Rodriguez, and Senior Director, Neal Baranosky, will host one-on-one meetings with investors during the conference [2] Fireside Chat - A Fireside Chat with CFO Ricardo C. Rodriguez is scheduled for September 3, 2025, from 9:45 a.m. to 10:15 a.m. Eastern Time, with a live webcast available for one year on the Investor Relations section of Aspen's website [3] Company Overview - Aspen Aerogels is a technology leader in sustainability and electrification solutions, focusing on resource efficiency, e-mobility, and clean energy [4] - The company's PyroThin® products address thermal runaway challenges in the electric vehicle market, while Cryogel® and Pyrogel® products are utilized by major energy infrastructure companies [4] - Aspen aims to partner with industry leaders to expand its Aerogel Technology Platform® into high-value markets [4]

Summary of Aspen Aerogels (ASPN) FY Conference Call - August 12, 2025 Company Overview - **Company**: Aspen Aerogels (ASPN) - **Key Speakers**: Don Young (CEO), Ricardo Rodriguez (CFO), Neil Baranowski (Investor Relations) Key Points Financial Performance - Q2 performance was at the higher end of expectations for revenue, gross profit, and adjusted EBITDA [3][4] - Significant modifications to fixed cost structure were made, allowing the company to maintain profitability at lower revenue levels, especially in light of uncertainties in the EV space [3][4] - Outlook for the second half of the year indicates similar revenue to the first half but with double the EBITDA due to cost structure changes [4] Energy Industrial Business - The energy industrial business, which includes thermal management and fire safety systems, has seen a lull after two record-breaking years (2023 and 2024) with average revenues of $30 million per year in subsea projects [5][6] - The business is divided into maintenance (60% of revenue) and project work (40% of revenue) [5][6] - Despite the current lull, the company has a strong reputation and has won 14 out of the last 15 projects awarded in the subsea space [7][8] - Gross margins in this segment have improved from 15-20% to above 35%, with recent quarters in the low 40s [10] - The company expects growth to resume in 2026, targeting long-term growth rates of 10-20% per year [10] Pyrothin Business and GM Relationship - GM remains a key customer, with a 20% increase in volumes quarter-over-quarter in Q1 and Q2 [16] - The company anticipates steady production volumes from GM in Q3 and Q4, despite regulatory changes affecting EV sales [16][19] - The relationship with GM is expected to remain strong, with GM's market share in the EV space at 16-17% [17] - The company has confirmed that GM's recent battery architecture changes do not negatively impact their thermal management solutions [28][29] OEM Partnerships and Future Revenue - The company has potential revenue of approximately $700 million from awarded business, which is expected to be discounted to around $350 million for practical projections [32] - Partnerships with other OEMs like Mercedes, Stellantis, Audi, and Porsche are expected to diversify revenue streams by 2027 [33] - Ford is also seen as a potential customer, with ongoing collaboration on new electric vehicle designs [35] Capital Expenditure and Financial Outlook - The company has shifted to a CapEx-light model, with sustainable CapEx levels projected in the mid-teens ($15-17 million) [12][41] - The relationship with external manufacturing partners is strong, allowing for efficient production and cost management [39][40] - Future EBITDA margins are projected to be around 25% with gross margins above 35% [45] - The company has a net income breakeven point close to $280-290 million in revenue [46] Additional Insights - The company has successfully navigated tariff changes and has a strong balance sheet with over $300 million in net operating losses (NOLs) [45][46] - The management remains optimistic about the recovery of the energy industrial business and the stability of GM's volumes, despite broader market uncertainties [10][19] This summary encapsulates the key insights and financial outlook for Aspen Aerogels as discussed in the conference call, highlighting the company's strategic positioning and future growth potential.

Summary of Aspen Aerogels (ASPN) FY Conference Call - August 11, 2025 Company Overview - **Company**: Aspen Aerogels (ASPN) - **Industry**: Electric Vehicle (EV) Thermal Barriers and Aerogel Technology Key Points and Arguments Industry Dynamics - The EV market is experiencing growth, particularly in the U.S., Europe, and Asia, despite challenges such as policy changes and the expiration of federal tax credits [2][3][7] - General Motors (GM) is a significant customer, contributing a large portion of revenue from EV thermal barriers [4][6] - The EV market's performance is expected to improve as new models launch, with GM's Equinox being a leading non-Tesla EV in the U.S. [5] Financial Performance - Aspen Aerogels has successfully reduced fixed costs by approximately $65 million, which is expected to enhance EBITDA margins moving forward [8][10] - The company anticipates flat revenue from the first half to the second half of the year but expects to double EBITDA due to cost structure optimization [8][9] - The breakeven point for EBIT is projected at around $280 million in revenues, with a goal of maintaining 35% gross margins [33][36] Product and Technology - The company specializes in flexible aerogel blankets, which provide thermal insulation and fire safety for EV batteries [19][21] - Aerogels are described as the lightest solid material and the best thermal insulator, with applications in various industries including energy and industrial sectors [18][20] - The aerogel technology allows EV manufacturers to push battery cells closer to their limits, improving performance and safety [15][21] Customer Base and Future Growth - Future revenue growth is expected from new contracts with Stellantis and Daimler, with anticipated revenues of over $15 million from Stellantis in 2026 [38] - Additional potential revenue streams are identified from Audi, Scania, and Porsche, contingent on their supply chain transitions [39][40] Strategic Outlook - The company is positioned to diversify revenue streams and capitalize on existing market opportunities without the need for significant new capacity [41][42] - A streamlined organizational structure is expected to enhance operational efficiency and effectiveness in pursuing growth [44][46] Intellectual Property and Manufacturing - Aspen Aerogels has established strong protections for its intellectual property, particularly in partnerships with major global companies [27][28] - The company is exploring external manufacturing capabilities to provide flexible supply options, enhancing responsiveness to market demand [25] Conclusion - Aspen Aerogels is optimistic about its future growth prospects, driven by a strong customer base, innovative technology, and a restructured cost framework that supports profitability [41][42][43]

Core Insights - Aspen Aerogels (NYSE: ASPN) has experienced significant stock volatility following its transition from industrial insulation to electric vehicle (EV) adoption, which initially drove business momentum and stock performance [1] Group 1: Company Performance - The shift towards EV adoption has been a key factor in Aspen Aerogels' recent business growth and stock performance [1] - Despite the positive momentum from the EV sector, the company has faced challenges that have impacted its stock [1] Group 2: Investment Opportunities - The investing group "Value In Corporate Events" focuses on identifying actionable investment opportunities related to major corporate events such as IPOs, mergers & acquisitions, and earnings reports [1] - The group provides coverage of approximately 10 major events each month, aiming to find the best investment opportunities for its members [1]

Core Insights - Aspen Aerogels reported a revenue of $78.02 million for the quarter ended June 2025, reflecting a decline of 33.8% year-over-year [1] - The company's EPS was -$0.04, a decrease from $0.21 in the same quarter last year [1] - Revenue exceeded the Zacks Consensus Estimate of $72.07 million by 8.26%, while EPS surpassed the consensus estimate of -$0.12 by 66.67% [1] Revenue Breakdown - Energy Industrial revenue was $22.8 million, significantly below the average estimate of $33.49 million, marking a year-over-year decline of 38.2% [4] - Thermal Barrier revenue reached $55.2 million, exceeding the average estimate of $37.69 million, but still represented a year-over-year decrease of 31.7% [4] Profit Metrics - Gross Profit for Thermal Barrier was $17.01 million, outperforming the average estimate of $7.61 million [4] - Gross Profit for Energy Industrial was $8.31 million, which was lower than the average estimate of $10.98 million [4] Stock Performance - Aspen Aerogels shares have returned +8.1% over the past month, compared to a +1.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited financial statements show a significant decline in assets and equity, driven by a substantial net loss from a major impairment charge [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet reflects a significant reduction in total assets and stockholders' equity as of June 30, 2025, due to a large impairment charge and accumulated deficit Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $310,467 | $409,448 | | **Property, plant and equipment, net** | $156,271 | $459,276 | | **Total Assets** | **$525,132** | **$895,144** | | **Total Current Liabilities** | $78,046 | $110,112 | | **Total Liabilities** | $216,364 | $280,439 | | **Total Stockholders' Equity** | **$308,768** | **$614,705** | - A significant impairment charge related to the cessation of construction at the Statesboro Plant led to a **$286.6 million reduction** in the construction in progress balance during the first quarter of 2025[57](index=57&type=chunk) - Assets held for sale of **$26.5 million** were recognized as of June 30, 2025, related to the planned divestment of assets from the Statesboro Plant[57](index=57&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss of $310.3 million for the first half of 2025, primarily due to a major impairment charge and a 26% revenue decline Consolidated Statement of Operations Summary (in thousands, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $156,747 | $212,271 | | **Gross Profit** | $48,128 | $86,721 | | **Impairment of property, plant and equipment** | $287,567 | $2,702 | | **Income (loss) from operations** | $(304,496) | $22,422 | | **Net income (loss)** | **$(310,305)** | **$14,983** | | **Diluted Net income (loss) per share** | **$(3.78)** | **$0.19** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was positive despite a significant net loss, while investing and financing activities resulted in cash outflows for debt repayment and capital expenditures Consolidated Statement of Cash Flows Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $1,702 | $(10,906) | | **Net cash used in investing activities** | $(25,883) | $(50,690) | | **Net cash provided by (used in) financing activities** | $(29,063) | $13,400 | | **Net decrease in cash** | $(53,244) | $(48,196) | | **Cash at end of period** | $168,032 | $91,775 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the business structure, accounting policies, a significant impairment charge from ceasing plant construction, new debt facilities, and declining segment performance - The company operates in two reportable segments: **Energy Industrial** and **Thermal Barrier**, with the latter focused on the electric vehicle (EV) market[20](index=20&type=chunk) - A restructuring plan initiated in February 2025 involved ceasing construction of the Statesboro Plant, resulting in impairment charges of **$286.6 million in Q1 2025**[57](index=57&type=chunk) - In August 2024, the company entered into a new credit agreement (MidCap Loan Facility) comprising a **$125.0 million term loan** and a revolving facility up to **$100.0 million**[24](index=24&type=chunk)[69](index=69&type=chunk) Revenue by Segment (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Energy industrial | $52,615 | $66,005 | | Thermal barrier | $104,132 | $146,266 | | **Total** | **$156,747** | **$212,271** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 26% revenue decrease and a substantial net loss due to an impairment charge, while affirming sufficient liquidity for near-term operations [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Financial performance declined significantly in H1 2025, with a 26% revenue drop, a 45% gross profit decrease, and a large operating loss from impairment and restructuring costs Revenue Comparison (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Energy industrial | $52,615 | $66,005 | $(13,390) | (20)% | | Thermal barrier | $104,132 | $146,266 | $(42,134) | (29)% | | **Total revenue** | **$156,747** | **$212,271** | **$(55,524)** | **(26)%** | - The decrease in Thermal Barrier revenue was driven by **reduced order volume** from a major U.S. automotive OEM and lower contractual component pricing[191](index=191&type=chunk) - The company incurred significant one-time costs in H1 2025, including **$14.7 million in restructuring** and a **$287.6 million impairment charge** related to the canceled Statesboro Plant[202](index=202&type=chunk)[204](index=204&type=chunk) Adjusted EBITDA Reconciliation (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income (loss) | $(310,305) | $14,983 | | Depreciation and amortization | $11,589 | $11,772 | | Stock-based compensation | $5,284 | $7,677 | | Restructuring and demobilization costs | $14,728 | $— | | Impairment of property, plant and equipment | $287,567 | $— | | **Adjusted EBITDA** | **$14,672** | **$41,871** | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash and credit facilities despite significant cash usage in investing and financing activities during the first half of 2025 - The company's principal sources of liquidity are cash on hand, availability under its Revolving Facility, and cash from operations[216](index=216&type=chunk) - Cash and cash equivalents stood at **$167.6 million** as of June 30, 2025[214](index=214&type=chunk) - Cash flow from operations improved to a **$1.7 million source of cash** in H1 2025 from a $10.9 million use in H1 2024, primarily due to large non-cash charges offsetting the net loss[218](index=218&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks involve interest rate fluctuations on its variable-rate debt and foreign currency exchange exposure, particularly with the Mexican Peso - The company is exposed to interest rate risk through its Term Loan Facility and Revolving Facility, which bear interest rates tied to **Term SOFR**[232](index=232&type=chunk) - Foreign currency exchange risk is primarily from the **Mexican Peso** against the U.S. dollar, with the company recording foreign currency transaction gains of **$0.8 million** in H1 2025[235](index=235&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - Based on an evaluation as of June 30, 2025, the principal executive officer and principal financial officer concluded that the company's **disclosure controls and procedures were effective**[238](index=238&type=chunk) - **No changes in internal control** over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[239](index=239&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in stayed patent infringement proceedings in Korea and a stayed lawsuit from a former distributor seeking over $16 million in damages - Patent infringement proceedings in Korea against several entities **remain stayed** pending the outcome of appeals[243](index=243&type=chunk) - A lawsuit filed by former distributor APN seeking over **$16 million** has been stayed by the court, which granted the company's motion to compel arbitration[244](index=244&type=chunk) [Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of its Quarterly Report for the quarter ended March 31, 2025 - There have been **no material changes** in the company's risk factors from those previously disclosed[245](index=245&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company conducted no unregistered sales or repurchases of its equity securities during the second quarter of 2025 - **No unregistered sales** of equity securities occurred during the quarter[246](index=246&type=chunk) - The company **did not repurchase any of its equity securities** during the quarter ended June 30, 2025[246](index=246&type=chunk) [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) Significant executive transitions include the upcoming departures of the CFO and CHRO, with a new CFO appointed from within the company - CFO **Ricardo C. Rodriguez will depart** the company effective October 1, 2025[249](index=249&type=chunk) - **Grant Thoele**, currently Chief of Staff to the CEO, will be promoted to Chief Financial Officer and Treasurer, effective October 1, 2025[250](index=250&type=chunk) - CHRO **Stephanie Pittman will also depart** the company effective October 1, 2025[253](index=253&type=chunk) - On June 3, 2025, departing CFO Ricardo C. Rodriguez adopted a **Rule 10b5-1 Sales Plan** for the sale of up to 25,353 shares plus shares underlying certain RSU awards[256](index=256&type=chunk)