• Revenue: $78.7 million in Q1, a 17% year-over-year decline.

• Energy Industrial Revenue: $29.8 million, a 2% year-over-year increase.

• EV Thermal Barrier Revenue: $48.9 million, a 25% year-over-year decrease.

• Gross Profit Margin: 29% at the company level.

• Energy Industrial Gross Margin: 39%.

• EV Thermal Barrier Gross Margin: 23%.

• Adjusted Operating Income: Negative $2.9 million.

• Adjusted EBITDA: $4.9 million.

• Net Income: Negative $301.2 million or $3.67 per diluted share.

• Cash Flow from Operations: $5.6 million.

• CapEx: $13 million in Q1.

• Total Debt: $141.8 million at the end of Q1.

• Cash and Equivalents: $192 million at the end of Q1.

• Q2 Revenue Outlook: $70 to $80 million.

• Q2 Adjusted EBITDA Outlook: Break-even to $7 million.

• Warning! GuruFocus has detected 4 Warning Signs with ASPN.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aspen Aerogels Inc (NYSE:ASPN) secured a major PyroThin award with GM for a next-generation Prismatic EV platform, demonstrating its value and innovation in the EV battery market.

• The company has successfully built a resilient and flexible supply chain for raw materials and Aerogel, optimizing sourcing from Asia, Europe, and the United States.

• Aspen Aerogels Inc (NYSE:ASPN) has taken decisive actions to simplify and streamline the company, aiming to reduce fixed cash costs to 2022 levels and lower the revenue level required for positive adjusted EBITDA performance.

• The company has a strong foundation with PyroThin thermal barrier Design Awards from Mercedes-Benz, Volvo Truck, and GM, positioning it for continued platform expansion with existing and new OEMs.

• Aspen Aerogels Inc (NYSE:ASPN) has a strategic plan to grow its energy industrial business to over $225 million in annual sales and its EV thermal barrier business to potentially over $700 million by 2027.

Negative Points

• Aspen Aerogels Inc (NYSE:ASPN) reported a 17% year-over-year decline in revenue for Q1 2025, reflecting a challenging market environment.

• The company's EV thermal barrier revenue decreased by 25% year-over-year due to lower vehicle production schedules at key customers.

• Gross profit margins for the EV thermal barrier business were below target at 23%, driven by reduced fixed cost leverage and pricing initiatives.

• Aspen Aerogels Inc (NYSE:ASPN) experienced a negative net income of $301.2 million in Q1, primarily due to significant impairment and restructuring costs.

• The company faces uncertainty in the energy markets and potential impacts from international trade policies, which may affect demand for new vehicles and energy capital projects.