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- **EV Market Reset**: Aspen thermal barrier volumes tied to GM EV production; 2026 European OEMs $10-15M.
- **Energy Industrial Stability**: Subsea projects offset EV volatility; 2026 LNG exposure $15M.
- **Breakeven 2026**: $200M revenue with 2026+ subsea/EV split ($45M).

**【Management Opening Remarks】**
- CEO Don Young highlighted Q3 revenue of $73 million, driven by a 6% quarter-over-quarter decline in Thermal Barrier segment and stabilization in Energy Industrial segment.
- CFO Grant Thoele emphasized cost control, reducing OpEx by 7% YoY, and guided Q4 EBITDA breakeven at $200 million revenue.
- Leadership transition: Grant Thoele (CFO) and Glenn Deegan (CAO) focus on EV demand resilience and Energy Industrial growth.

**【CEO Summary Section】**
- EV market reset: GM EV production aligned with consumer demand, with Aspen's thermal barrier volumes tied to GM's U.S. EV share (16.5%).
- Energy Industrial stabilization: Subsea projects offset EV volatility, with Q4 $25M+ LNG exposure.
- Aerogel adjacency: Battery storage and construction markets (e.g., Tesla fire resistance) diversify 2026+ growth.

**【CFO Financial Commentary】**
- Q3: $73M revenue (-6%); Thermal Barrier gross margin 24% (down 700bps). Energy Industrial 36% stable.
- Q4 guide: $40-50M revenue, EBITDA -$6M to breakeven; 2026 EV exposure $135M (IHS), 2026+ European OEMs $15M.
- Liquidity: $152M cash; 2025 CapEx <$10M, 2026+ subsea/EV split ($45M) supports breakeven at $200M.

**【Q&A Highlights】**
1. **EV Demand**: GM EV production rate reset, Aspen thermal barrier volumes directly tied to GM EV share. 2026+ European OEMs ($10-15M). 2. **Battery Storage**: Aerogel fire resistance in EVs and construction. 3. **Energy Industrial**: Subsea projects ($15M) and LNG exposure. 4. **CapEx**: $10M 2025, 2026+ subsea/EV split.

Aspen Aerogels, Inc. (ASPN) Q3 2025 Earnings Call Transcript

- **CFO Transition & Cost Efficiency**: $65M annualized cost reduction, 2x EBITDA growth in H2 2025, and seamless leadership transition.
- **Q2 Financial Resilience**: EBITDA beat ($9.7M vs. $7M), GM-driven EV segment stability, and $168M cash position.
- **2026 Growth Catalysts**: Energy & Industrial project pipeline (Subsea, LNG), EV tax credit expiration Q4 surge, and 2027 OEM launches (ACC, Daimler).
- **Risk Management**: Flexible U.S. manufacturing, distributor destocking resolution, and prismatic cell technology alignment with industry trends.


**【CEO Summary Section】**
- **CFO Transition**: Ricardo Rodriguez will step down by Q3 end, with Grant Thoele succeeding him. Ricardo's tenure elevated financial strategy, while Grant's experience in cost optimization positions him for seamless transition.
- **Cost Optimization**: Achieved $65M annualized cost reduction, including OpEx back to 2022 levels. Fixed cost restructuring aims to generate 2x EBITDA in H2 2025 vs. H1.
- **Q2 Performance**: Revenue $78M (34% YoY decline), EBITDA $9.7M (vs. $7M guidance). EV thermal barrier segment grew 14% QoQ, driven by GM production stability.
- **Energy & Industrial Challenges**: Subsea revenue down 38% YoY due to project delays; LNG dip offset by 2026 project pipeline. Gross margin maintained at 36% via flexible sourcing.
- **2026 Outlook**: Anticipate revenue and profitability growth in Energy & Industrial, supported by U.S. energy policy focus and project wins (e.g., Technip FMC subsea projects).

**【CFO Financial Commentary】**
- **Q2 Financials**: GAAP net loss $5.2M, Non-GAAP EBITDA $9.7M (38% above $7M guidance). Gross margin 32% (EV: 31%, Energy: 36%).
- **Cash Flow**: Operating cash outflow $16.8M, CapEx $12.9M (Plant II: $3.6M). Ended with $168M cash, targeting $50M+ from Plant II asset sales.
- **H2 Outlook**: Revenue $140-160M, EBITDA $20-30M (vs. H1 $15M). GM EV production stability supports EV segment; $7.5K tax credit expiration may drive Q4 EV sales surge.

**【Q&A Key Highlights】**
- **Energy & Industrial**: Distributor destocking persists, but 2026 project pipeline (Subsea, LNG) signals recovery. Management confident in 2026 growth despite 2025 softness.
- **EV Thermal Barrier**: GM market share gains (Chevy Equinox, Cadillac EVs) sustain demand. 2027 ACC and Daimler launches expected to drive incremental revenue.
- **Cost Flexibility**: $65M cost reduction enables 35% gross margin target. Continuous improvement projects in Rhode Island plant enhance resilience to volume fluctuations.
- **New OEMs**: Active quoting activity in Europe and U.S., with prismatic cell focus. 2026 European EV ramp-up positions Aspen for share gains.


Aspen Aerogels (ASPN)-7 Aug 25-2025 Q2 Earnings call transcript

- **EV Thermal Barrier Momentum**: GM prismatic cell award and record quoting activity signal 2026+ growth, despite near-term content per vehicle decline.
- **Energy Industrial Resilience**: Q1 inventory rebalancing sets stage for 2025 revenue matching 2024's $145.9M; long-term $225M+ potential via new markets.
- **Cost Optimization Success**: Target $245M breakeven for $90M EBITDA (vs. $453M in 2024); Q1 fixed costs reduced to 2022 levels.
- **Tariff-Proof Supply Chain**: USMCA compliance and Annex 2 listings minimize tariff exposure to <$1M annually.
- **2027 Growth Pipeline**: EV Thermal Barrier potential $350M+ (50%+ CAGR); Energy Industrial targeting $225M annual revenue.


**【CEO Summary Section】**
- **EV Thermal Barrier Business**: Secured a major PyroThin award with GM for a next-gen prismatic EV platform, alongside recent wins with Mercedes-Benz and Volvo Trucks. Record quoting activity signals strong OEM investment in future EV platforms. Content per vehicle is expected to decline (e.g., $800/vehicle for pouch cells vs. $200-250/vehicle for prismatic cells), but focus remains on 35%+ gross margins and capital payback.
- **Energy Industrial Business**: Q1 revenue $29.8M (2% YoY growth), with inventory rebalancing in distributors post-2024 supply constraints. Full-year 2025 revenue expected to match 2024's $145.9M. Long-term potential to grow to $225M annually by expanding into new geographies and adjacent markets.
- **Supply Chain Resilience**: Diversified raw material sourcing across US, Europe, and Asia; USMCA-compliant EV parts production in Mexico reduces tariff risks. Targeting $245M revenue breakeven for adjusted EBITDA by 2025, down from $360M in 2024.

**【CFO Financial Commentary】**
- **Q1 2025 Results**: Revenue $78.7M (-17% YoY), adjusted EBITDA $4.9M (-72% YoY). EV Thermal Barrier revenue $48.9M (-25% YoY) due to lower vehicle production; Energy Industrial gross margin 39%, offsetting EV segment's 23% margin (below target due to lower volumes).
- **Cost Optimization**: Fixed costs reduced to 2022 levels; target $245M revenue breakeven for $90M adjusted EBITDA (vs. $453M in 2024). Q1 cash consumption $7.4M, with $20M debt repayment and $13M CapEx (split between Mexico and RI for 2026 launches).
- **Tariff Mitigation**: Energy Industrial products in Annex 2 (tariff-exempt); EV parts USMCA-compliant. 2025 tariff exposure <$4.5M, potentially <$1M with US raw material sourcing.
- **Outlook**: Q2 2025 revenue $70-80M, adjusted EBITDA breakeven to $7M. 2025 full-year revenue ~$280M, adjusted EBITDA $20M+.

**【Q&A Key Takeaways】**
- **Georgia Plant Closure**: Selling equipment via strategic buyers and auction; plant listed for sale. Target to recoup $20M+ from $20M+ liquidation costs.
- **Inventory Rebalancing**: Distributor/contractor inventory levels declining; Q1 2025 Energy Industrial revenue on par with 2024 Q1-3. Expect sequential growth in 2H2025.
- **European Expansion**: Supply Europe from Mexico to leverage lower labor costs; no immediate plans for European manufacturing.
- **South Korean OEMs**: Engaged with LG/Samsung for cell-to-cell thermal barriers; potential 2027+ wins with Korean OEMs.
- **Long-Term Growth**: 2027 EV Thermal Barrier revenue potential $350M+ (50%+ CAGR from 2025 Q1 $196M annualized). Energy Industrial targeting $225M annual revenue.


Aspen Aerogels (ASPN)-8 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: 90% YoY to $453M in 2024, driven by EV thermal barriers ($307M) and Energy Industrial ($146M). Q1 2025 guide $75-95M reflects GM inventory reset.
- **Profitability**: 38% gross margin in Q4, $90M adjusted EBITDA for the year. 2025 fixed cost savings ($35M/year) protect EBITDA margins >20%.
- **Strategic Shifts**: Ceased Plant II ($671M capex) in favor of modular EMF expansion. China-based capacity to supply 2026+ EV demand at no incremental capex.
- **Liquidity Strength**: $228M cash + $57M revolver enables M&A, shareholder returns, and flexibility through macro uncertainty.
- **Long-Term Vision**: 35%+ gross margins, 20%+ EBITDA margins, and $150-200M annual Energy Industrial growth. Volvo Trucks award adds $45M+ annual revenue from 2027.


**【CEO Summary Section】**
- **2024 Performance Highlights**: Revenue of $453 million (90% YoY growth), adjusted EBITDA of $90 million, and net income of $13 million. PyroThin Thermal Barriers revenue surged to $307 million in 2024, up from $110 million in 2023.
- **Strategic Wins**: Secured a second Commercial Vehicle segment award with Volvo Trucks (production start in H2 2026) and transitioned Energy Industrial production to an external manufacturing facility (EMF), achieving 40%+ gross margins.
- **2025 Strategy**: Ceased Plant II construction, reduced fixed costs by $8M/Q (to 2023 levels), and shifted to modular capacity expansion via EMF. Focus on tariff mitigation and EV thermal barrier demand alignment with GM's 300,000 vehicle target.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Revenue $123.1M (46% YoY), EV thermal barrier revenue $70M (32% YoY), gross margin 38%, adjusted EBITDA $22.7M. Full-year free cash flow $20.9M, ending with $220.9M cash.
- **2025 Outlook**: Q1 revenue $75-95M (EV segment $35-40M), breakeven to $15M EBITDA. 2025 EV thermal barrier revenue expected to align with 2023 baseline ($110M) plus new program ramps (e.g., Volvo $45M+ annual contribution from 2027).
- **Liquidity**: $228M cash + $57M revolver, enabling strategic flexibility (M&A, cap structure optimization, shareholder returns).

**【Q&A Key Takeaways】**
- **Capacity Strategy**: China-based EMF to supply 2026+ EV demand ($150-200M annual capacity), complementing Rhode Island's $600M capacity. No tariffs impact gross margin targets (>35%).
- **Cost Efficiency**: $35M annualized fixed cost savings (vs. 2024 levels) protects profitability through demand variability.
- **Customer Dynamics**: GM inventory normalization in Q1 2025, with potential upside post-Q2. European OEMs delayed launches due to Northvolt cell supply challenges.
- **Free Cash Flow**: 2025 CapEx < $25M (excluding Plant II demobilization), prioritizing cash generation over growth capital.


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