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]

Company Overview - Aspen Aerogels, Inc. is a technology leader in sustainability and electrification solutions, focusing on resource efficiency, e-mobility, and clean energy [3] - The company's aerogel technology supports customers in addressing global megatrends, particularly in the electric vehicle (EV) market [3] - Aspen's PyroThin® products are designed to tackle thermal runaway challenges in EVs, while its carbon aerogel initiative aims to enhance lithium-ion battery performance, reducing charging time and costs for EV manufacturers [3] Upcoming Events - Aspen Aerogels is scheduled to participate in the 25th Annual B. Riley Securities Investor Conference on May 21-22, 2025, at the Ritz-Carlton in Marina Del Rey, CA [1] - The company's President & CEO, Donald R. Young, and CFO & Treasurer, Ricardo C. Rodriguez, will host one-on-one and small group meetings with investors during the conference [2] Strategic Partnerships - Aspen aims to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets [3] - The company's Cryogel® and Pyrogel® products are recognized and valued by major energy infrastructure companies globally [3]

Aspen Aerogels (ASPN) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Company Participants Neal Baranosky - Senior Director, Head of Investor Relations & Corporate StrategyDonald Young - President & CEORicardo Rodriguez - CFO & TreasurerColin Rusch - Managing Director - Head of Sustainable Growth & Resource Optimization ResearchLeanne Hayden - Senior Associate - Equity Research Conference Call Participants David Anderson - Analyst Operator Good morning. Thank you for attending the Aspen Aerogel First Quarter ...

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $78.7 million, a 17% year-over-year decline, aligning with expectations for the quarter [14] - Adjusted EBITDA for Q1 was $4.9 million, with a negative adjusted operating income of $2.9 million [18] - The net income for Q1 was negative $301.2 million, or $3.67 per diluted share, which would have been negative $4.8 million or $0.06 per diluted share excluding impairment and restructuring costs [18] Business Line Data and Key Metrics Changes - The Energy Industrial segment's revenue increased by 2% year-over-year to $29.8 million, reflecting inventory rebalancing [14] - EV thermal barrier revenue was $48.9 million, representing a 25% decrease year-over-year due to lower vehicle production schedules [15] - Gross profit margins for the company were up 29%, with gross profit of $22.8 million, a 35% decline year-over-year [17] Market Data and Key Metrics Changes - The company noted that major oil and gas companies maintained their 2025 capital expenditure guidance, indicating stability in the energy markets [9] - The company is experiencing destocking in its distribution channel, which is expected to stabilize and lead to revenue growth in the second half of the year [9][44] Company Strategy and Development Direction - The company aims to build resilience by broadening commercial activities in EV thermal barrier and energy industrial businesses, optimizing cost structures, and enhancing supply chain flexibility [6][10] - The focus is on reducing fixed cash costs to 2022 levels and lowering the revenue required for positive adjusted EBITDA performance to approximately $245 million [12] - The company is strategically positioned to leverage its technology in both energy industrial and EV thermal barrier segments, anticipating significant growth opportunities by 2027 [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt and innovate, emphasizing the importance of electrification as a major driver for growth [35] - The company expects Q2 revenue to range from $70 million to $80 million, translating to a net income loss of $4 million to $11 million [29] - Management highlighted ongoing efforts to mitigate risks associated with international trade and tariffs, which are not expected to significantly impact operations [28] Other Important Information - The company has successfully diversified its raw material supply chain and created a second source for aerogel, enhancing resilience against fluctuating tariff regimes [10] - The company ended the quarter with $192 million in cash and equivalents, indicating a strong balance sheet [20] Q&A Session Summary Question: Plans for the Georgia facility - The company aims to capture value from the Georgia facility as soon as possible, with plans to sell equipment and list the plant for sale [41][42] Question: Signals from customers regarding inventory clearing - The company has observed a decrease in inventory levels held by distributors and contractors, indicating a potential for revenue growth in the second half of the year [44] Question: Trends in thermal barriers and content per vehicle - The company expects a decrease in content per vehicle due to the shift towards prismatic cell battery packs, but remains focused on maintaining gross margins [50][51] Question: Opportunities for European expansion - The company prefers to supply products from Mexico to European customers, leveraging existing investments and minimizing risks associated with European labor costs [56][57] Question: Engagement with South Korean EV OEMs - The company is actively engaged with South Korean OEMs and is determined to partner with them for future product launches [65][66] Question: Timeline for additional OEM wins - The company anticipates that new OEM partnerships could contribute over $200 million in revenue by 2027, with ongoing demand expected to build from 2027 onwards [67]

Q1 2025 Financial Performance - Revenues decreased to $78.7 million, including $48.9 million from Thermal Barrier revenues and $29.8 million from Energy Industrial revenues, which increased by 3% year-over-year[11] - Net loss was $(301.2) million, which included a $286.6 million impairment charge for Plant II and $9.8 million of restructuring and demobilization costs[11, 12] - Adjusted EBITDA was $4.9 million[11] - Capital expenditure was reduced by 50% year-over-year to $13.0 million[11] - Operating cash flow was $5.6 million[11] - Gross margins were 29%[10] Cost Optimization and Outlook - Fixed costs were lowered by $35 million in February with a goal of further reduction to 2022 levels[9] - Q2 2025 outlook projects revenues between $70 million and $80 million and Adjusted EBITDA between $0 million and $7 million[17] - The company aims to reduce the revenue required for breakeven EBIT to $270 million[21] Market Trends and Strategy - GM and Honda accounted for approximately 16.6% of all electric vehicles sold in the United States year-to-date in 2025[31] - Global EV production is projected to increase at a 17% compound annual growth rate (CAGR) through 2030[40]

Core Insights - Aspen Aerogels reported total revenues of $78.7 million for Q1 2025, a decrease of 17% compared to $94.5 million in Q1 2024 [2][6] - The company experienced a net loss of $301.2 million, which included a significant impairment charge of $286.6 million related to the demobilization of a planned manufacturing plant [3][21] - Adjusted EBITDA for Q1 2025 was $4.9 million, down from $12.9 million in Q1 2024 [4] Financial Performance - Revenue breakdown: Thermal Barrier segment generated $48.9 million (25% decrease YoY), while Energy Industrial segment saw $29.8 million (3% increase YoY) [6] - Gross margins were reported at 29%, reflecting an eight-percentage point decrease year-over-year [6] - Operating cash flow for the quarter was $5.6 million, with cash and equivalents at the end of the quarter totaling $192.0 million [6][24] Business Developments - Aspen secured a new PyroThin contract with a leading American OEM for a next-gen prismatic lithium iron phosphate (LFP) vehicle platform, with production expected to start in 2028 [5][6] - The company is focusing on optimizing its cost structure and fortifying its supply chain to enhance financial performance [5] Q2 2025 Financial Outlook - Revenue is projected to range between $70 million and $80 million, with a net loss expected between $11 million and $4 million [7] - Adjusted EBITDA is anticipated to be between breakeven and $7 million [7] - Capital expenditures, excluding costs related to the Statesboro plant, are expected to be less than $10 million [7]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Aspen Aerogels (ASPN) as a strong candidate for value investors due to its favorable metrics and Zacks Rank [3][6]. Value Investing - Value investing is a popular strategy that relies on fundamental analysis and traditional valuation metrics to identify undervalued stocks [2]. - The P/S ratio is a preferred metric for value investors, as it is less susceptible to manipulation compared to earnings [4]. Aspen Aerogels (ASPN) Metrics - Aspen Aerogels currently has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is among the strongest value stocks available [3]. - ASPN has a P/S ratio of 0.95, significantly lower than the industry average of 1.52, suggesting it is undervalued [4]. - The P/CF ratio for ASPN is 9.60, which is attractive compared to the industry's average of 12.31, indicating a solid cash outlook [5]. - Over the past year, ASPN's P/CF has fluctuated between a high of 75.47 and a low of -332.05, with a median of 25.87 [5]. - These metrics contribute to ASPN's strong Value grade and suggest it is likely undervalued at present [6].