Origin Materials 2025 Q2 Earnings 35.7% EPS Improvement

Origin Materials (ORGN) reported its fiscal 2025 Q2 earnings on August 14th, 2025. The company delivered a 35.7% improvement in its net loss per share, narrowing it to $0.09 from $0.14 in the same period last year, while total revenue declined by 17.3% year-over-year to $5.81 million. Management revised revenue guidance for 2026 and 2027 downward due to ongoing production delays.

Revenue
Origin Materials reported a 17.3% year-over-year decline in total revenue, falling to $5.81 million in Q2 2025 from $7.03 million in Q2 2024. The drop reflects ongoing challenges in scaling commercial operations and production bottlenecks linked to manufacturing and tariff-related delays.

Earnings/Net Income
The company significantly narrowed its net loss in Q2 2025, reporting a loss of $12.75 million, a 34.6% reduction compared to the $19.50 million loss in Q2 2024. This represents a per-share loss of $0.09, a 35.7% improvement from the previous year’s loss of $0.14 per share. While the result marks progress in curbing losses, the company continues to operate at a deficit.

Price Action
ORGN shares recorded a 6.81% drop on the latest trading day and a 1.07% decline over the past full trading week. However, the stock surged 43.76% month-to-date, indicating a mixed short-term performance.

Post Earnings Price Action Review
A strategy of buying ORGN shares following a revenue increase in the quarter-over-quarter financial report and holding for 30 days proved highly ineffective. Over the past three years, this approach returned -78.14%, significantly underperforming the benchmark’s 46.48%. The excess return was -124.62%, and the compounded annual growth rate (CAGR) was -40.79%, highlighting a steep value decline.

CEO Commentary
John Bissell, CEO of Origin Materials, highlighted a commercial breakthrough with PET bottle caps now available on store shelves and announced a strategic review to accelerate market entry. He emphasized the company’s innovation as the “world’s first and only commercially viable PET caps” but noted challenges with OEM manufacturing delays and tariffs. Bissell outlined a revised go-to-market strategy targeting $7 billion in water and $20 billion in food and pharmaceutical closures, aiming to unlock pent-up demand and create long-term shareholder value through partnerships with Berlin Packaging and Royal Hordijk.

Guidance
Revenue guidance for 2026 and 2027 was reduced to $20M–$30M and $100M–$200M, respectively, representing a 50% and 15% cut from prior estimates due to CapFormer FAT delays. The company now expects adjusted EBITDA breakeven to shift from 2026 into 2027. Origin ended Q2 with $69 million in cash and $17.9 million in accounts receivable, with $9 million in land held for sale.

Additional News
In Nigeria, Sokoto State announced a N2.5 billion grant for over 13,900 SMEs through the second phase of its N-G CARES program. Meanwhile, Lagos State introduced a groundbreaking forensic interview protocol to better protect child victims of sexual abuse. Political developments also emerged, including the PDP’s formation of a 44-member zoning committee ahead of its National Elective Convention, and the APC’s confidence in a landslide victory in Rivers State local government elections. On the international stage, YouTube introduced AI tools to detect minors falsely presenting as adults, and Serbia witnessed violent clashes during anti-government protests.