Aspen Aerogels Q2 Earnings Call Highlights

Aspen Aerogels expects a sharp third-quarter rebound, forecasting revenue of $65 million–$80 million and adjusted EBITDA of $7 million–$15 million, driven by energy-industrial deliveries, higher GM EV production and stronger European demand. The East Providence plant is undergoing a staged restart after an April explosion, with full capacity expected in the first half of 2027. Aspen anticipates $5 million–$10 million in additional incident-related costs during the third quarter. European growth prospects improved after Jaguar Land Rover selected PyroThin, making it Aspen’s seventh European OEM customer; the company raised its 2026 European Thermal Barrier revenue outlook to $20 million–$30 million.

Aspen Aerogels NYSE: ASPN said it expects a sharp sequential increase in revenue and adjusted EBITDA in the third quarter, supported by energy-industrial project deliveries, rising General Motors EV production and expanding European demand for its PyroThin thermal barriers. The company forecast third-quarter revenue of $65 million to $80 million and adjusted EBITDA of $7 million to $15 million. The outlook follows second-quarter revenue of $49.8 million, up 32% from the prior quarter, and adjusted EBITDA of negative $6.6 million, compared with negative $12.7 million in the first quarter.

President and CEO Don Young said the third-quarter outlook is supported by “robust energy industrial project deliveries,” higher North American demand for PyroThin as GM increases EV output, and production ramps among European EV manufacturers.

Second-quarter revenue included $20.4 million from the Energy Industrial business and $29.5 million from Thermal Barrier. Thermal Barrier revenue included $4.9 million of previously deferred revenue recognized in connection with the GM settlement received during the first quarter. Energy Industrial revenue declined 6% sequentially, which Chief Financial Officer and Treasurer Grant Thoele attributed to logistics and inventory challenges related to the conflict in Iran, as well as customer demand that shifted from the second quarter into the third quarter. The company expects Energy Industrial revenue to reach about $40 million in the third quarter, roughly double the second-quarter level, driven by LNG and subsea projects.

Gross profit was $3.3 million, or a 7% gross margin, reflecting lower production volumes and $5.3 million of incremental costs associated with the April incident at Aspen’s East Providence manufacturing facility. Excluding those incident-related costs, adjusted gross profit was $8.6 million, or a 17% margin. Reported operating expenses were $32 million, including an $8.9 million property-damage loss tied to the incident. That charge was offset by an $8.9 million insurance receivable recorded in other income, as the company said it determined insurance proceeds were probable and expected in the third quarter. GAAP net loss was $23.3 million, compared with a $23.7 million loss in the first quarter.

Aspen began a staged restart of the East Providence aerogel plant on May 14, slightly more than a month after an explosion in a high-temperature oven damaged a specific area of the facility. Young said no employees were seriously injured. The company expects to restore full production capacity during the first half of 2027. Aspen said it has avoided significant customer supply disruptions by using existing inventory, output from an external manufacturing facility and production from the staged East Providence restart.