Aspen Aerogels 2025 Q3 Earnings 51.2% Net Loss Reduction Amid Revenue Decline

Aspen Aerogels reported Q3 2025 earnings with a 37.8% revenue decline to $73.02 million and a narrowed net loss of $6.33 million, representing a 51.2% improvement year-over-year. The company cut its full-year revenue guidance to $270–280 million from $297–317 million, citing weaker U.S. EV demand and supply chain challenges.

Revenue

Aspen Aerogels’ Q3 revenue fell 37.8% to $73.02 million, missing the Zacks Consensus Estimate of $74.39 million by -1.85%. The Energy Industrial segment reported $24.3 million in revenue (-9.3% YoY), while the Thermal Barrier segment declined 46.3% to $48.7 million. Gross profit for Thermal Barrier dropped to $11.93 million from $15.15 million estimated, and Energy Industrial gross profit fell to $8.87 million versus $9.49 million projected.

Earnings/Net Income

The company reduced its net loss to $6.33 million (-51.2% YoY) and narrowed the per-share loss to $0.08 from $0.17. While the reduction in losses is a positive sign, the continued negative net income underscores ongoing profitability challenges.

Post-Earnings Price Action Review

The strategy of buying Aspen Aerogels shares on earnings release dates and holding for 30 days has historically underperformed, with a -10.8% average return and a -27.91% maximum drawdown over three years. Recent price action reflects heightened volatility, with a 49.01% month-to-date decline and significant intraday drops.

CEO Commentary

CEO Robert F. Levesque highlighted efforts to navigate cost pressures and supply chain issues while advancing R&D for high-performance insulation. He emphasized strategic partnerships and production scaling to drive 2026 profitability, alongside a 10% SG&A expense reduction target for Q4 2025.

Guidance

Aspen Aerogels guided for Q4 2025 revenue growth of 5–7% and breakeven net income by mid-2026. CAPEX is projected to remain flat at $12 million, with incremental investments in automation and sustainability.

Additional News

Recent non-earnings developments include the appointment of Glenn Deegan as Chief Administrative Officer, bringing 25+ years of legal and HR expertise. The company also secured a PyroThin contract with a major European OEM for 2027 production and participated in industry conferences like Barclays Energy-Power. Notably, Aspen Aerogels incurred a $152.4 million impairment charge related to its Georgia manufacturing plant, reflecting strategic reallocation of resources.

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