Financial Data and Key Metrics Changes - The company reported Q1 revenue of $78.7 million, reflecting a 17% year-over-year decline, aligning with expectations for the quarter [15] - Adjusted EBITDA for Q1 was $4.9 million, with a negative adjusted operating income of $2.9 million [18] - Gross profit margins increased to 29%, but gross profit fell by 35% year-over-year to $22.8 million [17] Business Line Data and Key Metrics Changes - The Energy Industrial segment's revenue increased by 2% year-over-year to $29.8 million, indicating a modest recovery [15] - EV Thermal Barrier revenue decreased by 25% year-over-year to $48.9 million, attributed to lower vehicle production schedules [16] Market Data and Key Metrics Changes - The company noted a destocking trend in the distribution channel, which is expected to stabilize and lead to revenue growth in the second half of the year [10] - Major oil and gas companies maintained their capital expenditure guidance for 2025, providing a stable outlook for the Energy Industrial business [10] Company Strategy and Development Direction - The company aims to strengthen resilience by broadening commercial activities in EV thermal barriers and energy industrial businesses, optimizing the cost structure, and building a flexible supply chain [7][11] - The target for adjusted EBITDA breakeven is set at approximately $245 million in revenue, significantly lower than the previous year's levels [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of both core segments and adjacent markets, despite current uncertainties in the energy markets [11] - The company anticipates a revenue range of $70 million to $80 million for Q2, with a net income loss projected between $4 million and $11 million [29] Other Important Information - The company is actively working to mitigate tariff risks through pricing strategies and optimizing raw material sourcing [12][23] - The balance sheet remains strong with $192 million in cash and equivalents, providing flexibility for future operations [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 hold an auction for the remainder [41][42] Question: Signals from customers regarding inventory clearing - Management noted a decrease in inventory levels held by distributors and contractors, indicating a potential revenue build-up in the second half of the year [44][45] Question: Trends in content per vehicle for thermal barriers - 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 [55][56] Question: Engagement with South Korean EV OEMs - The company is actively engaged with South Korean OEMs and aims to partner with them for future product launches [64][65] Question: Timeline for additional OEM wins to impact P&L - Additional OEMs could contribute over $200 million in revenue by 2027, with production start dates for some awards expected in early 2028 [66]

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]