Aspen Aerogels 2025 Q3 Earnings Revenue Slumps 37.8% as Net Loss Narrows 51.2%

Aspen Aerogels reported Q3 2025 earnings marked by a 37.8% year-over-year revenue decline and a 51.2% reduction in net losses. The results fell short of Wall Street’s revenue expectations while the company cut its full-year revenue forecast.

Revenue

Energy Industrial revenue declined to $29.8 million in Q3 2025, reflecting softer demand in the U.S. electric vehicle sector, while Thermal Barrier revenue fell to $43.2 million. Combined, these segments contributed to the 37.8% year-over-year drop in total revenue. The company attributed the underperformance to lower near-term EV production and broader market challenges.

Earnings/Net Income

The company narrowed its net loss to $6.33 million in Q3 2025, a 51.2% improvement from the $12.97 million loss in Q3 2024. Adjusted EBITDA reached $6.3 million, signaling progress despite ongoing operational challenges. While the EPS of -$0.08 represents a 52.9% improvement from the prior year’s -$0.17, the result still highlights the need for sustained profitability.

Post-Earnings Price Action Review

The stock price of Aspen Aerogels plummeted 18.85% during the latest trading day, 45.42% over the past week, and 49.01% month-to-date. A backtest of the strategy to buy shares on earnings release dates and hold for 30 days revealed an average return of -10.8% over three years, with a maximum drawdown of -27.9%. This strategy failed to generate positive returns, underscoring the stock’s volatility and weak post-earnings performance.

CEO Commentary

CEO Don Young acknowledged the challenging U.S. EV market environment but emphasized strategic initiatives to revitalize the Thermal Barrier business and capitalize on emerging opportunities in energy industrial markets. He highlighted progress in cost optimization and long-term growth potential, particularly in subsea and LNG projects.

Guidance

Aspen Aerogels revised its full-year 2025 revenue outlook to $270–280 million, down from the previous $297–317 million. The company also adjusted its EBITDA guidance to $7–15 million, reflecting ongoing headwinds in near-term demand. These updates underscore the need for continued operational efficiency and market adaptability.

Additional News

Aspen Aerogels announced the appointment of Glenn Deegan as Chief Administrative Officer, bringing over 25 years of leadership experience in legal, HR, and governance. The company also confirmed its participation in the Barclays 39th Annual Energy-Power Conference, where CFO Grant Thoele will lead a fireside chat. Additionally, Aspen finalized a $152.4 million impairment charge related to its Georgia manufacturing plant, signaling a strategic shift in capital allocation.