ASPN

Interested in Aspen Aerogels, Inc.? Here are five stocks we like better. Aspen Aerogels expects a sharp third-quarter rebound, forecasting revenue of $65 million–$80 million and adjusted EBITDA of $7 million–$15 million, driven by energy-industrial deliveries, higher GM EV production and stronger European demand. The East Providence plant is undergoing a staged restart after an April explosion, with full capacity expected in the first half of 2027. Aspen anticipates $5 million–$10 million in additional incident-related costs during the third quarter. European growth prospects improved after Jaguar Land Rover selected PyroThin, making it Aspen’s seventh European OEM customer; the company raised its 2026 European Thermal Barrier revenue outlook to $20 million–$30 million. Aspen Aerogels (NYSE:ASPN) said it expects a sharp sequential increase in revenue and adjusted EBITDA in the third quarter, supported by energy-industrial project deliveries, rising General Motors EV production and expanding European demand for its PyroThin thermal barriers. The company forecast third-quarter revenue of $65 million to $80 million and adjusted EBITDA of $7 million to $15 million. The outlook follows second-quarter revenue of $49.8 million, up 32% from the prior quarter, and adjusted EBITDA of negative $6.6 million, compared with negative $12.7 million in the first quarter. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth President and CEO Don Young said the third-quarter outlook is supported by “robust energy industrial project deliveries,” higher North American demand for PyroThin as GM increases EV output, and production ramps among European EV manufacturers. Second-quarter revenue included $20.4 million from the Energy Industrial business and $29.5 million from Thermal Barrier. Thermal Barrier revenue included $4.9 million of previously deferred revenue recognized in connection with the GM settlement received during the first quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Energy Industrial revenue declined 6% sequentially, which Chief Financial Officer and Treasurer Grant Thoele attributed to logistics and inventory challenges related to the conflict in Iran, as well as customer demand that shifted from the second quarter into the third quarter. The company expects Energy Industrial revenue to reach about $40 million in the third quarter, roughly double the second-quarter level, driven by LNG and subsea projects. Gross profit was $3.3 million, or a 7% gross margin, reflecting lower production volumes and $5.3 million of incremental costs associated with the April incident at Aspen’s East Providence manufacturing facility. Excluding those incident-related costs, adjusted gross profit was $8.6 million, or a 17% margin. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Reported operating expenses were $32 million, including an $8.9 million property-damage loss tied to the incident. That charge was offset by an $8.9 million insurance receivable recorded in other income, as the company said it determined insurance proceeds were probable and expected in the third quarter. GAAP net loss was $23.3 million, compared with a $23.7 million loss in the first quarter. Aspen began a staged restart of the East Providence aerogel plant on May 14, slightly more than a month after an explosion in a high-temperature oven damaged a specific area of the facility. Young said no employees were seriously injured. The company expects to restore full production capacity during the first half of 2027. Aspen said it has avoided significant customer supply disruptions by using existing inventory, output from an external manufacturing facility and production from the staged East Providence restart. Thoele said the company expects to continue recording incident-related expenses until the plant returns to full capacity. These costs include expedited freight, professional fees for restoring capacity and, beginning in the third quarter, incremental costs of sourcing certain Energy Industrial products from its external manufacturing partner. Aspen expects third-quarter incident-related charges of about $5 million to $10 million, which are included in its adjusted EBITDA outlook. The company ended the quarter with $153.4 million in cash equivalents and restricted cash, compared with $175.6 million at the end of the first quarter. Its term loan balance was $79.5 million, while its revolver balance was $10.9 million. Management said it expects to at least maintain, and likely increase, its approximately $63 million net cash position by year-end. Aspen raised its 2026 European OEM Thermal Barrier revenue outlook to $20 million to $30 million from its previous expectation of $10 million to $15 million. European revenue totaled approximately $11 million in the first half, including $5.8 million in the second quarter, up from $5.1 million in the first quarter. The company also announced that Jaguar Land Rover selected PyroThin thermal barriers for certain vehicle architectures supporting multiple models across its brands. The award makes Jaguar Land Rover Aspen’s seventh European OEM customer and brings its awarded European portfolio to nine vehicle platforms. Management said most European programs have not yet entered serial production, though most are expected to start production in 2027. Aspen’s awarded Thermal Barrier pipeline represents $135 million of revenue based on customer-provided full-production volume assumptions and normal platform ramp profiles. The company said it is targeting $40 million to $60 million of European Thermal Barrier revenue in 2027 under more moderated assumptions. In North America, Young said U.S. EV demand has stabilized at roughly 6% of new-vehicle sales. GM Ultium accounted for approximately 13% of U.S. EV sales during the first half, implying annual sales above 120,000 vehicles, according to the company. Aspen said GM produced vehicles below its sales rate during the first half, reducing finished-vehicle inventories, and now appears positioned to raise output in line with sales while rebuilding inventory modestly. Aspen continues to target approximately 20% Energy Industrial revenue growth in 2026 and said it sees an opportunity to sustain a similar pace in 2027. Young cited activity in LNG, subsea projects, maintenance and turnaround work, along with customer backlogs extending into 2027 and beyond. The company expects LNG-related activity to more than double in 2026 from 2025 levels, with opportunities in the United States, Middle East and Africa. Young said Aspen is seeking to build Energy Industrial into a $200 million high-margin business without significant incremental capital investment. Aspen is also pursuing battery energy storage systems as an adjacent market. The company said it is engaged in technical qualification programs and commercial discussions with utility-scale and critical-power developers. Management expects initial BESS revenue in the near term but said it is not incorporating meaningful BESS revenue into its 2026 expectations. Aspen Aerogels, Inc, headquartered in Northborough, Massachusetts, develops and manufactures high-performance aerogel insulation materials and custom engineered solutions. Founded in 2001 as a spin-out from Department of Energy research, the company pursued an initial public offering on the NYSE in 2014 under the ticker ASPN. Aspen Aerogels combines proprietary aerogel formulations with advanced manufacturing processes to deliver products known for their low thermal conductivity, lightweight construction and robust mechanical properties. The company's product portfolio spans blanket insulation, boards, and custom shapes built around several proprietary brands, including Pyrogel, Cryogel and Spaceloft. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Aspen Aerogels Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Q2 2026 Thermal Barrier revenue of $29.5 million, up 81% quarter-over-quarterQ3 2026 expected revenue range of $65 to $80 million and adjusted EBITDA range of $7 to $15 millionEuropean Thermal Barrier 2026 revenue outlook raised to $20 to $30 millionPyroThin® award from Jaguar Land Rover for two next-generation vehicle architectures NORTHBOROUGH, Mass., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Aspen Aerogels, Inc. (NYSE: ASPN) (“Aspen” or the “Company”), a technology leader in sustainability and electrification solutions, today announced financial results for the second quarter of 2026, and discussed recent business developments. Second Quarter 2026 Results Total revenue for the second quarter of 2026 was $49.8 million, compared to $78.0 million in the prior year period. Thermal Barrier segment revenue was $29.5 million, compared to $55.2 million in the prior year period, reflecting the impact of changes to North American EV regulatory frameworks and incentive programs. Energy Industrial segment revenue was $20.4 million, compared to $22.8 million in the prior year period. Net loss was $23.3 million, compared to net loss of $9.1 million in the prior year period. Second quarter 2026 results included an $8.9 million loss on property damage related to the April 2026 East Providence incident, offset by a corresponding receivable for an estimated $8.9 million insurance recovery recognized in other income. The Company expects to collect this receivable in the third quarter of 2026. Results also included $5.3 million of other incident-related costs, such as expedited freight and professional fees, for which the Company plans to submit claims under its business interruption insurance. Second quarter 2025 results included a $1.0 million impairment charge related to the demobilization of the Company's previously planned manufacturing facility in Statesboro, Georgia, and $4.9 million in restructuring and demobilization costs. Excluding these items, adjusted net loss for the second quarter of 2026 was $17.9 million, compared to adjusted net loss of $3.2 million in the prior year period. Net loss per share was $0.28, compared to net loss per share of $0.11 in the prior year period. Excluding the items described above, adjusted net loss per share was $0.22, compared to adjusted net loss per share of $0.04 in the prior year period. Adjusted EBITDA was $(6.6) million, compared to $9.7 million in the prior year period. Adjusted EBITDA for the second quarter of 2026 excludes the $5.3 million of incident-related costs described above, which the Company does not consider indicative of its core operating performance. The $8.9 million loss on property damage was offset by a corresponding receivable for an estimated insurance recovery and had no net impact on Adjusted EBITDA. A reconciliation of non-GAAP financial results to GAAP financial results is provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading “Non-GAAP Financial Measures.” Recent Business Highlights & Financial Performance Initiated a staged restart of our manufacturing facility in East Providence, Rhode Island; maintained customer supply throughout the quarter through a combination of existing inventory, production from the external manufacturing facility, and limited production from the East Providence manufacturing facility Delivered total revenue of $49.8 million, a 32% increase quarter-over-quarter (QoQ) Increased Thermal Barrier revenue 81% QoQ to $29.5 million, reflecting stabilizing North American program volumes and continued European OEM revenue momentum Secured a PyroThin® award across two of Jaguar Land Rover's (JLR) next-generation vehicle architectures, supporting multiple JLR brands, with start of production expected in 2027 Ended the quarter with cash, cash equivalents, and restricted cash of $153.4 million Continues to pursue the sale of the Statesboro, Georgia manufacturing assets. The previously disclosed non-binding letter of intent with respect to a potential sale expired without a definitive agreement, and the Company is actively marketing the assets to prospective buyers “The second quarter demonstrated the resilience of our team and the durability of our business. As we managed through the East Providence incident, we kept our customers supplied, advanced the facility’s staged restart, and strengthened the long-term flexibility of our operations. We enter the third quarter with solid momentum, supported by accelerating Energy Industrial project activity, stabilizing North American Thermal Barrier demand, and the continued ramp in European Thermal Barrier revenue. We believe these drivers position Aspen for sustained, profitable growth in 2027 and beyond,” said Don Young, President and CEO. Financial OutlookAspen issues its financial outlook as follows: Q3 2026 Revenue is expected to range between $65 million and $80 million Q3 2026 Net loss is expected to range between $6 million and $9 million Q3 2026 Net loss per share is expected to range between $0.07 and $0.11 Q3 2026 Adjusted EBITDA is expected to range between $7 million and $15 million, which excludes an estimated $5 million to $10 million of costs related to the East Providence incident, including expedited freight, professional fees, and the incremental cost of temporarily sourcing certain Energy Industrial products from the Company's external manufacturing facility until the East Providence facility returns to full production capacity; the Company expects to submit claims related to these costs under its insurance policies FY 2026 Capital Expenditures, excluding costs related to the restoration of the East Providence facility, are expected to be less than $10 million Grant Thoele, Chief Financial Officer and Treasurer, noted, “Our third-quarter outlook of $65 million to $80 million in revenue and $7 million to $15 million in Adjusted EBITDA represents a meaningful improvement in financial performance. Despite elevated costs related to the East Providence incident in the second quarter, we maintained solid liquidity and plan to submit insurance claims for these costs. We remain focused on disciplined cost management and rebuilding our earnings power.” The Company's Q3 2026 outlook assumes depreciation and amortization of $5.0 million, stock-based compensation expense of $3.0 million, net interest expense of $3.0 million, and diluted weighted average shares outstanding of 83.0 million for the quarter. The Adjusted EBITDA range excludes an estimated $5 million to $10 million of costs related to the East Providence incident and described above. The net loss and Adjusted EBITDA ranges do not assume any business interruption insurance recoveries related to the East Providence incident. A reconciliation of net loss to non-GAAP Adjusted EBITDA for the Q3 2026 financial outlook is provided in the financial schedules that are part of this press release. An explanation of this non-GAAP financial measure is also included below under the heading “Non-GAAP Financial Measures.” Aspen may incur, among other items, additional charges, realize gains or losses, incur financing costs or interest expense, or experience other events in 2026, including those related to the recovery from the East Providence incident, the staged restart of the East Providence manufacturing facility, operational disruptions, supply chain disruptions, or further cost inflation, that could cause actual results to vary materially from this outlook. See Special Note Regarding Forward-Looking and Cautionary Statements below. Conference Call and Webcast NotificationA conference call with Aspen management to discuss second quarter 2026 results and recent business developments will be held Thursday, August 6, 2026, at 8:30 a.m. ET. During the call, management will respond to questions concerning, but not limited to, Aspen’s financial performance, business conditions, and financial outlook. Management’s discussion and responses could contain information that has not been previously disclosed. Shareholders and other interested parties may call +1 (833) 461-5787 (domestic) or +1 (626) 884-3620 (international) and reference Meeting ID “735343488” to participate in the conference call. In addition, the conference call and an accompanying slide presentation will be available live as a listen-only webcast hosted at the Investors section of Aspen’s website, www.aerogel.com. Following the live event, an archived version of the webcast will be available on Aspen’s website for convenient on-demand replay for approximately one year. A copy of this press release is posted in the Investors section on Aspen’s website. Non-GAAP Financial MeasuresIn addition to providing financial measurements based on generally accepted accounting principles in the United States of America ("GAAP"), Aspen provides additional financial metrics that are not prepared in accordance with GAAP ("non-GAAP"). The non-GAAP financial measures included in this press release are Adjusted EBITDA, adjusted net loss and adjusted net loss per share. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial measures do not include the impact of items that management does not consider indicative of Aspen's core operating performance. These excluded items include costs related to the East Providence incident, including expedited freight, professional fees, and the incremental cost of temporarily sourcing certain Energy Industrial products from the Company's external manufacturing facility until the East Providence facility returns to full production capacity. In addition, management uses Adjusted EBITDA (i) for planning purposes, including the preparation of Aspen's annual operating budget, (ii) to allocate resources to enhance the financial performance of its business, and (iii) as a performance measure under its bonus plan. Management believes that these non-GAAP financial measures reflect Aspen's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in its business, as it excludes expenses and gains not reflective of Aspen's ongoing operating results or that may be infrequent and/or unusual in nature. Management also believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating Aspen's operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. These non-GAAP measures may not be comparable to similarly titled measures presented by other companies. The non-GAAP financial measures do not replace the presentation of Aspen's GAAP financial results and should only be used as a supplement to, not as a substitute for, Aspen's financial results presented in accordance with GAAP. In this press release, Aspen has provided a reconciliation of Adjusted EBITDA to net income (loss), adjusted net loss to net loss and adjusted net loss per share to net loss per share, in each case to the most directly comparable GAAP financial measure. Management strongly encourages investors to review Aspen's financial statements and publicly filed reports in their entirety and not rely on any single financial measure. About Aspen Aerogels, Inc.Aspen is a technology leader in sustainability and electrification solutions. The Company’s aerogel technology enables its customers and partners to achieve their own objectives around the global megatrends of resource efficiency, e-mobility and clean energy. Aspen’s PyroThin® products enable solutions to thermal runaway challenges within the electric vehicle (“EV”) market. The Company’s Cryogel® and Pyrogel® products are valued by the world’s largest energy infrastructure companies. Aspen’s strategy is to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets. Aspen is headquartered in Northborough, Mass. For more information, please visit www.aerogel.com. Special Note Regarding Forward-Looking and Cautionary StatementsThis press release and any related discussion contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements, including statements relating to Aspen’s financial outlook for the third quarter of 2026. These statements are not historical facts but rather are based on Aspen’s current expectations, estimates and projections regarding Aspen's business, operations and other factors relating thereto, including with respect to Aspen’s financial outlook for the third quarter of 2026. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook," “assumes,” “targets,” “opportunity,” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements include statements regarding, among other things, Aspen’s beliefs and expectations about capacity, revenue, revenue capacity, backlog, costs, expenses, profitability, cash flow, gross profit, gross margin, operating margin, net income (loss), Adjusted EBITDA, adjusted net loss, adjusted net loss per share and related increases, decreases, trends or timing, including with respect to Aspen’s beliefs and expectations about the energy industrial and EV markets; Aspen’s expectations with respect to the financial and operational impacts from the East Providence incident, the recovery from the East Providence incident, and the staged restart of the East Providence manufacturing facility; Aspen’s target revenue capacity and gross margins; Aspen’s efforts to use its external manufacturing facility to meet customer demand; current or future trends in the energy, energy infrastructure, chemical and refinery, LNG, sustainable building materials, EV thermal barrier, EV battery materials or other markets and the impact of these trends on Aspen’s business; the strength, effectiveness, productivity, costs, profitability or other fundamentals of Aspen’s business; beliefs about the role of Aspen’s technology and opportunities in the energy industrial and EV markets; beliefs about Aspen’s ability to provide and deliver products and services to energy industrial and EV customers; beliefs about content per vehicle, revenue, costs, expenses, profitability, investments or cash flow associated with Aspen’s energy industrial and EV opportunities; and the performance and market acceptance of Aspen’s products. All such forward-looking statements are based on management’s present expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, the following: Aspen’s ability to continue the staged restart of the East Providence manufacturing facility; the Company’s ability to manufacture the full array of its products at the facility and to meet expected customer demand; the Company’s ability to mitigate the potential impacts from the operational disruption on the Company’s business, operations and financial performance; Aspen’s ability to execute its growth plan; the right of EV thermal barrier customers to cancel contracts with Aspen at any time and without penalty; any costs, expenses, or investments incurred by Aspen in excess of projections used to develop pricing under the contracts with EV thermal barrier customers; Aspen’s ability to create customer or market opportunities for its products; any disruption or inability to achieve expected capacity levels in any of its manufacturing or assembly facilities, including at its external manufacturing facility; any failure to enforce any of Aspen’s patents; the general economic conditions and cyclical demands in the markets that Aspen serves; and the other risk factors discussed under the heading “Risk Factors” in Aspen’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on March 13, 2026, as well as any updates to those risk factors filed from time to time in Aspen’s subsequent periodic and current reports filed with the SEC. All statements contained in this press release are made only as of the date of this press release. Aspen does not intend to update this information unless required by law. Investor Relations Contacts Neal BaranoskyPhone: (508) 691-1111 x 8 [email protected] Georg Venturatos / Patrick Hall Gateway Group Phone: (949) [email protected] Analysis of Cash Flow The following table summarizes our cash flows for the periods indicated. Reconciliation of Non-GAAP Financial Measures The following table presents a reconciliation of the non-GAAP financial measure included in this press release to the most directly comparable GAAP measure: Reconciliation of Adjusted EBITDA to Net loss We define Adjusted EBITDA as net income (loss) before interest expense, taxes, depreciation, amortization, stock-based compensation expense and other items, which occur from time to time and which we do not believe are indicative of our core operating performance. For the three and six months ended June 30, 2026 and 2025: Other Information The following table reconcile net loss and net loss per share to adjusted net loss and adjusted net loss per share for the three and six months ended June 30, 2026 and 2025: For the 2026 third quarter financial outlook:

This article first appeared on GuruFocus. Revenue: Q2 2026 revenue was $49.8 million, a 32% increase quarter-over-quarter. Energy Industrial Revenue: $20.4 million in Q2, down 6% quarter-over-quarter. Thermal Barrier Revenue: $29.5 million in Q2, including $4.9 million of previously deferred revenue from the GM settlement. European Thermal Barrier Revenue: $5.8 million in Q2, up 14% quarter-over-quarter; 2026 outlook raised to $20 million-$30 million. Gross Profit: $3.3 million, or 7% gross margin, including $5.3 million of incident-related costs. Adjusted Gross Profit: $8.6 million, or 17% margin, excluding incident-related costs. GAAP Net Loss: Negative $23.3 million in Q2. Adjusted EBITDA: Negative $6.6 million in Q2, improved from negative $12.7 million in Q1. Cash Position: $153.4 million in cash, cash equivalents, and restricted cash at quarter end. Term Loan Balance: $79.5 million at quarter end. Q3 2026 Revenue Outlook: Expected between $65 million and $80 million. Q3 2026 Adjusted EBITDA Outlook: Expected between $7 million and $15 million. Warning! GuruFocus has detected 4 Warning Signs with ASPN. Is ASPN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Aspen Aerogels Inc (NYSE:ASPN) reported a strong Q3 2026 outlook with revenue expected between $65 million and $80 million, representing 30% to 60% quarter-over-quarter growth. The company secured a new European OEM design award from Jaguar Land Rover, expanding its European customer base to seven OEMs and nine vehicle platforms. Aspen Aerogels Inc (NYSE:ASPN) raised its 2026 European Thermal Barrier revenue outlook to $20 million to $30 million, up from the prior $10 million to $15 million, driven by strong first-half performance. Energy Industrial segment continues to target approximately 20% growth in 2026, with LNG-related activity expected to more than double compared to 2025. The company successfully initiated a staged restart of its East Providence plant in May, mitigating supply disruptions to customers through inventory, external manufacturing, and the partial restart. Aspen Aerogels Inc (NYSE:ASPN) is making progress in developing Battery Energy Storage Systems (BESS) as a potential third growth segment, with initial revenue expected in the near term. Aspen Aerogels Inc (NYSE:ASPN) reported a GAAP net loss of $23.3 million in Q2 2026, with adjusted EBITDA still negative at $6.6 million. The April incident at the East Providence plant resulted in $5.3 million of incremental costs in Q2, and the company expects to continue incurring incident-related charges until full production capacity is restored in the first half of 2027. Energy Industrial revenues declined 6% quarter-over-quarter in Q2, below expectations, due to logistics and inventory challenges tied to the conflict in Iran and some demand pushed to Q3. The sale of Plant 2 assets is now most likely a 2027 event after the non-binding letter of intent expired without a definitive agreement, delaying potential debt reduction. Refinery and petrochemical activity has lagged expectations, with customers prioritizing uptime and compressing maintenance windows, which could delay turnaround work. Cash used by operating activities was $8 million in Q2, and the company expects working capital to be a use of cash as it builds safety stock and inventory for upcoming production ramps. Q: Can you provide a breakdown of the strong Q3 Energy Industrial guidance, particularly between subsea, LNG, and maintenance work, and what are your expectations for Q4?A: Don Young (President and CEO) stated that subsea project revenue is primarily falling into Q3, with strong LNG activities supporting the robust outlook in both Q3 and Q4. The guidance does not count on a recovery in refinery or petrochemical work, though he believes that work will return over time as facilities focus on reliability. Q: What is the difference between the $135 million awarded pipeline and the more conservative $40 million to $60 million revenue outlook for 2027, and what would give you more confidence to narrow that gap?A: Don Young explained that the gap is based on experience, as the company has learned to be careful with volume projections. He noted that they started 2026 expecting $10 million to $15 million in European revenue and have already raised that to $20 million to $30 million. The company is prepared to supply more than the conservative 2027 target, which represents potential upside. Q: How should we think about the Energy Industrial growth opportunity in 2027, given the 20% growth target for 2026 and the LNG capacity expectations?A: Don Young indicated the company has the opportunity to continue growing the Energy Industrial business at approximately 20% in 2027, which would bring it to roughly $200 million in revenue without requiring significant capital investment. He cited strong customer backlogs through 2027 and beyond, driven by LNG, subsea, and broader energy infrastructure investment cycles. Q: Can you give us a sense of the potential volumes or cadence related to the new Jaguar Land Rover (JLR) award?A: Don Young stated that JLR has the ability to be a noticeable contributor in 2027, describing it as a robust multi-vehicle program that can be a meaningful part of the European business over 2027, 2028, and 2029, though he did not provide a specific revenue number. Q: Could you talk about the latest customer conversations in the Battery Energy Storage Systems (BESS) business and any potential validation milestones?A: Don Young reiterated the expectation for near-term initial BESS revenue, which he described as the best milestone the company can provide. He noted the company is completing qualification processes with large developers, after which they will win projects and utilize Aspen's product. He expects to provide a good update on the next earnings call. Q: How is the company managing inflationary pressures on raw materials and what mitigation strategies are in place?A: Grant Thoele (CFO) explained that the company has a robust and diverse supply chain, including an external manufacturing partner. They are being opportunistic with bulk ordering, particularly for European program materials, to lower per-part costs and build inventory ahead of the ramp, which will result in working capital being a use of cash. Q: What is the expected cadence of the GM deferred revenue recognition in Q3 and beyond?A: Grant Thoele clarified that the $4.9 million of deferred revenue recognized in Q2 will be recognized quarterly through the end of 2027, noting that on a cash basis, this amount should be backed out of revenue figures. Q: How does the current energy infrastructure investment cycle compare to past cycles, and what is the pipeline looking like out to 2030?A: Don Young described the current investment cycle as more intense than any time he can remember, citing geographic diversity in LNG activity across the US, Middle East, and Africa. He attributed this to supply diversification needs and electrification demands from data centers, positioning Aspen well with its experience and capacity through 2030. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Crawford & Company B (CRD.B) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +40.74%. A quarter ago, it was expected that this company would post earnings of $0.2 per share when it actually produced earnings of $0.16, delivering a surprise of -20%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Crawford & Company B, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $321.44 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.36%. This compares to year-ago revenues of $323 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Crawford & Company B shares have lost about 6.1% since the beginning of the year versus the S&P 500's gain of 9.4%. While Crawford & Company B has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Crawford & Company B was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $339.55 million in revenues for the coming quarter and $0.92 on $1.32 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Aspen Aerogels (ASPN), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This maker of insulation products is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of -450%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Aspen Aerogels' revenues are expected to be $42.3 million, down 45.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crawford & Company (CRD.B) : Free Stock Analysis Report Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Aspen Aerogels, Inc.? Here are five stocks we like better. Aspen Aerogels expects revenue to improve sequentially through 2026 despite a weak first quarter, citing continued demand volatility, especially in EV-related markets. Management reaffirmed its long-term growth outlook for the Energy Industrial segment and sees second-quarter revenue rising to $40 million-$48 million. A fire-related operational disruption hit the East Providence plant on April 8, forcing a temporary shutdown, though no employees were seriously injured. Aspen said it plans a staged restart in May and has used external manufacturing capacity and inventory to limit near-term customer impact. Energy Industrial and Thermal Barrier demand trends are diverging: Energy Industrial was pressured by logistics issues tied to the Iran conflict, while Thermal Barrier remains mixed with softer U.S. EV production but stronger European momentum. Aspen also highlighted GM claim proceeds and said its European Thermal Barrier revenue could reach $10 million-$15 million in 2026. Aspen Aerogels (NYSE:ASPN) said it expects revenue to improve sequentially through 2026 despite a first-quarter sales decline, a temporary shutdown at its East Providence, Rhode Island, manufacturing facility and continued volatility in electric vehicle-related demand. On the company’s first-quarter earnings call, President and Chief Executive Officer Donald R. Young said Aspen experienced an “operational disruption” on April 8 involving an explosion in a high-temperature oven at its East Providence aerogel manufacturing facility. Young said the damage was confined to a specific area of the plant and that no employees were seriously injured. → Light Speed Returns: Corning Cashes In on NVIDIA Growth “We currently expect a staged restart of operations to begin in May, subject to continued progress in our mechanical, operational and safety reviews, as well as ongoing coordination with local and state agencies,” Young said. Young said the company has mitigated significant commercial impact so far by using inventory and capacity from its external manufacturing facility. He added that Aspen is working with that outside facility to strengthen supply flexibility for both its Energy Industrial and Thermal Barrier segments. → Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking Chief Financial Officer and Treasurer Grant Thoele said first-quarter revenue totaled $37.9 million, including $21.6 million from Energy Industrial and $16.3 million from Thermal Barrier. Total revenue declined 8% from the prior quarter. Energy Industrial revenue fell 15% sequentially and came in below the company’s expectations. Thoele attributed the shortfall to customer demand constraints caused by “ancillary impacts from the conflict in Iran,” which created logistics and inventory challenges. He said the company’s supply chain and commercial teams have taken steps to reduce further disruption. → Wells Fargo’s Comeback Is Real—But Not Risk-Free Thermal Barrier revenue was flat sequentially and in line with expectations, Thoele said. The company saw softer production volumes from General Motors as GM continued to reduce inventory, but Thoele noted that GM’s EV market share grew during the quarter. Aspen also received $37.6 million in claim proceeds from GM during the quarter. Thoele said the payment is being recognized as revenue ratably through the end of 2027, with $3.5 million booked in the first quarter and about $4.9 million expected per quarter thereafter. Gross profit was $4.3 million, representing an 11% gross margin. Thoele said the margin reflected lower production volumes that were insufficient to fully cover fixed manufacturing costs. Segment gross margin was 15% for Energy Industrial and 6% for Thermal Barrier. The company reported a GAAP net loss of $23.7 million, compared with a net loss of $72.9 million in the prior quarter. Adjusted EBITDA was negative $12.7 million, compared with negative $18 million in the fourth quarter of 2025. Despite what Young called a “messy start to the year” because of the East Providence disruption and delivery delays in the Middle East, Aspen maintained its expectation for approximately 20% revenue growth in the Energy Industrial segment in 2026. Young pointed to three growth drivers: subsea projects, LNG and natural gas infrastructure, and maintenance and turnaround work at refineries and petrochemical plants. In subsea, Young said Aspen was recently awarded a second project deliverable in the third quarter. Along with an earlier win, he said the awards position the company in 2026 to be within its historical annual subsea revenue range of $10 million to $20 million. For LNG and natural gas infrastructure, Young described LNG as “one of the clearest and most dynamic growth lanes” for Aspen. He said the company is seeing activity in the U.S. and Middle East move from market interest to executable commercial opportunities and is working with customers, EPC contractors and construction teams. “We believe this supports our expectation that LNG related activity can approximately double in 2026 versus 2025 and provide continued momentum into 2027,” Young said. Young also said deferred maintenance and turnaround activity remains an opportunity, as refiners have been prioritizing uptime and operating at high utilization. He said Aspen remains positioned to support customers as turnaround activity normalizes. Young said the U.S. EV market “remains in reset mode,” with EV market share appearing to settle around 5% to 6%. He said GM’s monthly EV market share this year has averaged 14.1%, suggesting a 2026 sales rate of more than 100,000 EVs. GM produced EVs in the first quarter and April at levels below current sales volume, reducing finished vehicle inventory, he said. Young said Aspen expects GM to begin aligning production rates more closely with sales volumes, consistent with GM’s stated demand-driven approach. He also noted that GM has maintained its full line of EV nameplates and remains committed to long-term EV success, including in Cadillac, where EVs represented 28% of total sales in 2025 and more than 30% in the first quarter of 2026. In Europe, Young said the backdrop is different. Battery electric vehicles now account for more than 20% of new vehicle registrations, and Aspen is seeing early production ramp-up among OEMs tied to its design awards. The company’s European Thermal Barrier revenue in the first quarter increased more than threefold from the prior-year period, and Young said that momentum could translate into 2026 revenue of $10 million to $15 million. During the question-and-answer session, Young said it was too early to link stronger European activity directly to higher energy prices and a shift from internal combustion vehicles to EVs. However, he said EV market share gains in Europe have been building for some time, and OEMs tied to Aspen’s awards are beginning to benefit. For the second quarter, Aspen expects revenue of $40 million to $48 million, representing 5% to 28% sequential growth. The company expects adjusted EBITDA of negative $10 million to negative $4 million. Thoele said the guidance assumes GM production at an annualized rate of approximately 55,000 to 65,000 vehicles during the quarter, up from the equivalent of 43,000 vehicles annualized in the first quarter. He also cited an IHS Markit forecast calling for GM to produce nearly 100,000 vehicles in 2026, with more production weighted to the second half of the year. Thoele cautioned that the East Providence incident is creating near-term cost pressure from expedited freight, repair costs and inventory builds across both the company’s East Providence facility and external manufacturing facility. He said those costs will be elevated in the second quarter and potentially the third quarter. Aspen ended the first quarter with $175.6 million in cash and cash equivalents, up from $158.6 million at the end of 2025. Thoele said the increase was driven by GM claim proceeds and an $8 million working capital benefit, partially offset by operating losses, capital spending and debt payments. Thoele said the company expects less than $10 million of capital expenditures for the full year and approximately $26 million of scheduled debt payments. He said Aspen anticipates ending the year with a “strong net cash position.” Young said Aspen initiated a strategic review in the fourth quarter of last year after market changes and internal restructuring. He said the process examined strategic options, capital allocation and long-term shareholder value. Young said the company concluded that its current approach remains the best path forward: scaling Energy Industrial, diversifying PyroThin thermal barriers, expanding into adjacent markets and continuing targeted research and development. Aspen is also pursuing opportunities in battery energy storage systems. Young said the company is engaged in qualifications and commercial discussions with developers serving grid infrastructure, data centers and other high-reliability applications, and believes it can generate initial revenue in 2026. Aspen Aerogels, Inc, headquartered in Northborough, Massachusetts, develops and manufactures high-performance aerogel insulation materials and custom engineered solutions. Founded in 2001 as a spin-out from Department of Energy research, the company pursued an initial public offering on the NYSE in 2014 under the ticker ASPN. Aspen Aerogels combines proprietary aerogel formulations with advanced manufacturing processes to deliver products known for their low thermal conductivity, lightweight construction and robust mechanical properties. The company's product portfolio spans blanket insulation, boards, and custom shapes built around several proprietary brands, including Pyrogel, Cryogel and Spaceloft. The article "Aspen Aerogels Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Management is executing a staged restart of the East Providence facility following an April oven explosion, with commercial impacts currently mitigated through inventory and external manufacturing capacity. The Energy & Industrial segment is projected to grow 20% in 2026, driven by a multiyear investment cycle in global energy infrastructure and a robust pipeline in Subsea and LNG projects. LNG activity is expected to approximately double in 2026 compared to 2025 as large-scale infrastructure projects move from market interest into executable commercial opportunities. Thermal barrier growth is shifting toward Europe, where battery electric vehicle registrations exceed 20%, contrasting with a 'reset mode' in the U.S. market where EV share has settled at 5% to 6%. The company is diversifying into the Battery Energy Storage Systems (BESS) market, leveraging existing thermal performance solutions to address high-density grid and data center applications. A strategic review concluded that the best path for shareholder value is scaling the core energy business while driving diversification in PyroThin and adjacent high-growth markets. Q2 2026 revenue is projected between $40 million and $48 million, assuming GM production aligns with an annualized rate of 55,000 to 65,000 vehicles. Management expects to reach EBITDA breakeven in the second half of 2026, supported by a reduced fixed-cost structure and sequential revenue growth. The long-term financial framework aims to reduce the annual revenue required for EBITDA breakeven from $330 million in 2024 to $175 million by the end of 2027. European OEM programs are anticipated to contribute $10 million to $15 million in revenue for 2026 as production ramps continue. The company plans to scale the Energy & Industrial segment into a $200 million high-margin business without requiring incremental capital investment. The East Providence plant disruption is creating near-term cost pressures in Q2 and potentially Q3 due to expedited freight, repair costs, and inventory builds. A $37.6 million claim payment from GM is being recognized as revenue ratably through 2027, contributing approximately $4.9 million per quarter starting in Q2. Q1 results were impacted by a $2.2 million property tax charge related to Plant 2 and $1 million in nonrecurring professional service fees. Proceeds from the potential sale of Plant 2 assets are now expected in Q4 2026 and will be used to reduce term debt on a dollar-for-dollar basis. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the threefold year-over-year growth in Europe to established EV market share gains rather than immediate energy price volatility. Supply for the European ramp will be managed through a combination of the East Providence facility and the Chinese external manufacturing facility (EMF) to ensure flexibility. Growth is underpinned by three pillars: a recovery in Subsea projects to historical levels, a doubling of LNG-related activity, and a return of deferred maintenance/turnaround work. Management noted that while 2025 was a quiet year for Subsea (under $5 million), the current roster of opportunities is among the strongest in company history. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Thursday, May 7, 2026 at 8:30 a.m. ET President and Chief Executive Officer — Donald R. Young Chief Financial Officer — Grant Thoele Donald Young: Thanks, Neal. Good morning, everyone. Thank you for joining us for our Q1 2026 earnings call. My comments will cover an April event in our manufacturing facility in East Providence, our growth outlook for the Energy industrial segment, the evolving demand environment for electric vehicles and our progress in developing a battery energy storage systems segment. I will also provide an update on our strategic review process. Grant will amplify these points with his comments. On April 8, we experienced an operational disruption in our aerogel manufacturing facility in East Providence. The incident involved an explosion in a high temperature oven and resulted in plant damage confined to that specific area of the facility and the temporary cessation of operations. We are immensely grateful that no employees were seriously injured in the incident and want to recognize the Aspen team for their tireless work towards a safe and disciplined restart of the facility. We currently expect a staged restart of operations to begin in May, subject to continued progress in our mechanical, operational and safety reviews as well as ongoing coordination with local and state agencies. To date, we have mitigated any significant commercial impact of the disruption by working through inventory and by leveraging the capacity of our external manufacturing facility. It will take time to restore full capability to the EP plant a task that will receive our full attention once we complete the restart phase. We are also closely -- we are also working closely with our external manufacturing facility to enhance its capabilities to support our Energy, Industrial and Thermal Barrier segments and to enhance short- and long-term supply flexibility, all of which is intended to strengthen our operational resilience and commitment to customers. Turning to our Energy & Industrial segment. Even with a messy start to the year due to the EP disruption and delivery delays in the Middle East, we still have our sights set on 20% revenue growth for the year. We believe we will gain considerable momentum in the second half of the year, leading to further growth in 2027 and 2028. With energy security and supply diversification paramount and structurally higher energy prices projected, our customer base is gearing with urgency for a multiyear investment cycle in global energy infrastructure from which we expect to benefit. These dynamics are translating into 3 clear growth drivers for our business. First, Subsea. We continue to build a strong pipeline of opportunities that extend through the decade. We were recently awarded a second subsea project deliverable in Q3 and with the win announced earlier this year, positions us in 2026 to be within our historical annual revenue range of $10 million to $20 million. Second, LNG and natural gas infrastructure. LNG has become one of the clearest and most dynamic growth lanes for us. We are seeing positive developments in the United States and in the Middle East with large-scale LNG infrastructure activity moving from market interest into executable commercial opportunities. Our confidence is not based only on the LNG macro cycle but also based on our concrete engagement with project level execution. We are actively working with customers, EPC contractors and construction teams and believe we have the potential to increase our scope on several projects, which would increase our 2026 opportunity and extend visibility into 2027. We believe this supports our expectation that LNG-related activity can approximately double in 2026 versus 2025 and provide continued momentum into 2027. Third, maintenance and turnaround work remains an important deferred demand opportunity. Refiners have continued to prioritize uptime and operate at high utilization, which has compressed some maintenance windows. Over time, reliability requirements should bring that work back into scope, and we remain well positioned to support customers as turnaround activity normalizes. Taken together, we believe these drivers support our expectation of approximately 20% growth in energy industrial in 2026. We anticipate building momentum through the second half of the year and remain focused on scaling this segment into a $200 million high-margin business without the need for incremental capital investment. Turning to our PyroThin thermal barrier business. The EV market in the United States remains in reset mode. Market share for EVs in the U.S. appears to be settling at approximately 5% to 6%, roughly half the level of when incentives and regulation favored EV adoption. GM's monthly market share for EVs this year has averaged 14.1%, which would suggest a sales rate over 100,000 EVs in 2026. GM produced EVs in Q1 and in April at levels below current sales volume, resulting in lower finished vehicle inventory levels. We anticipate GM will begin aligning production rates more closely with sales volumes, consistent with its stated objective of operating in a demand-driven manner and adapting to current market conditions. GM has maintained its full line of EV nameplates and has stated that it remains dedicated to its long-term EV success, including in its Cadillac division, where EV sales represented 28% of total sales in 2025 and over 30% in Q1 2026. We see a different dynamic in Europe where battery electric vehicles now account for more than 20% of new vehicle registrations and where stronger structural drivers are supporting the early stages of production ramp-up among the OEMs with whom we have design awards. Our EU thermal barrier revenue in Q1 increased more than threefold versus the prior quarter -- prior year quarter and we believe this momentum could translate into 2026 revenue in the range of $10 million to $15 million. Across these European awards, we are supporting programs that incorporate battery cells from a diversified global supply base, including European, Korean, Japanese and leading Chinese manufacturers. We are encouraged by our momentum in Europe and again, believe the region will be an important contributor to our revenue in 2027 and beyond. Looking beyond our current segments, we are also advancing new growth opportunities. In battery energy storage systems, we are actively engaged in multiple qualifications and commercial discussions with developers serving grid infrastructure, data centers and other high reliability applications as system architectures evolve toward higher energy density, the thermal challenges increasingly resemble those we have already solved in EV platforms. With proven performance and domestic manufacturing capability, we believe we are well positioned to enter this market and generate initial revenue in 2026 following a period of market change and internal restructuring, we initiated a strategic review in Q4 last year. Our goal was to execute a disciplined evaluation of our strategic options to ensure our growth strategy and capital allocation priorities were aligned with maximizing long-term shareholder value. The process allowed us to open the aperture to compare our existing opportunities to a wider array of strategic alignments and capital structures. While optimizing strategy is an ongoing endeavor for all good companies, we are confident that our current approach, scaling energy industrial, driving new growth and diversification for PyroThin thermal barriers, expanding into adjacent markets and continuing targeted R&D to create breakthrough opportunities represents the best path to deploy our financial strength and deliver long-term value for our shareholders. Grant, over to you. Grant Thoele: Thanks, Don, and good morning, everyone. I'll cover our first quarter 2026 results and Q2 outlook, along with drivers for the remainder of the year. As we signaled on our last earnings call, Q1 2026 was projected to be the lowest revenue quarter of the year, and we remain confident that it will be. We also anticipated sequential revenue growth each quarter through 2026, which we continue to track towards as expected. First quarter revenue was $37.9 million, including $21.6 million from Energy Industrial and $16.3 million from thermal barrier. Total revenues declined 8% quarter-over-quarter. Energy Industrial revenues came in below expectations, declining 15% quarter-over-quarter. Customer demand was constrained by ancillary impacts from the conflict in Iran, creating logistics and inventory challenges. Our supply chain and commercial teams have taken targeted steps to mitigate further disruption. On the positive side, we have secured 2 project awards in Q1, both expected to contribute revenue this year. Thermal barrier revenues were in line with expectations and flat quarter-over-quarter, although we did see softer GM production volumes as they continue to destock inventory, encouragingly, GM's market share grew during the quarter, a positive commercial signal. In Q1, we received $37.6 million in claim proceeds from GM. The GAAP treatment of the claim is informed by ASC 606. This payment is recognized as revenue ratably through the end of 2027, with $3.5 million booked as revenue for Q1 and approximately $4.9 million revenue per quarter thereafter. Gross profit of $4.3 million or 11% gross margin reflected the impact of lower production volumes being unable to fully cover fixed manufacturing costs. Gross margin at the segment level was 15% for energy, industrial and 6% for thermal barrier. Adjusted operating expenses, excluding impairments, restructuring charges and other onetime items remained relatively flat from $21 million in Q4 '25 to $21.2 million in Q1 '26. Q1 results included a few onetime items, a $2.2 million property tax charge related to Plant 2 and approximately $1 million of charges related to nonrecurring professional services. GAAP net loss was negative $23.7 million in Q1 versus negative $72.9 million last quarter. And adjusted EBITDA was negative $12.7 million in Q1 versus negative $18 million last quarter, representing a 29% improvement despite slightly lower revenues. Moving to liquidity. We generated $17 million of cash in Q1 and ended the quarter with $175.6 million in cash and cash equivalents versus $158.6 million at the end of 2025. The increase in cash was driven by the receipt of $37.6 million GM claim proceeds, along with a working capital benefit of $8 million, while CapEx of $1 million and debt payments of $15.6 million represented the primary uses of cash aside from Q1's operating loss. Debt payments in Q1 were driven by $6.5 million in principal amortization connected to the term loan and a $7.6 million reduction in the revolving credit facility. Our term loan balance at the end of Q1 was $86 million. Our sole financial covenant under the MidCap facility requires us to maintain cash equal to at least 100% of the term loan balance with $175.6 million of cash against an $86 million term loan, we have substantial covenant headroom. Turning to Slide 6. For the second quarter of 2026, we expect increased revenue and profitability relative to Q1, with total revenue expected to be between $40 million and $48 million. This range represents between 5% to 28% growth quarter-over-quarter. Our Q2 guidance assumes GM production at an annualized rate of approximately 55,000 to 65,000 vehicles in the quarter, an increase versus Q1 where GM sourced the equivalent of 43,000 vehicles annualized. The current IHS forecast has GM producing nearly 100,000 vehicles for 2026, which points to more production weighted to the second half of the year. Given the product mix included in our range, we expect adjusted EBITDA to be between negative $10 million and negative $4 million for the second quarter. This profitability range is dependent on supply mitigation efforts. So all the variability resides above the gross profit line. A few items worth noting here, mainly around production and supply. The incident at EP is creating near-term cost pressure. Our teams are doing an exceptional job managing supply continuity, but expedited freight, expedited repair costs and inventory build across both EP and EMF will all result in elevated costs in Q2 and potentially Q3. Elevated costs in this circumstance are difficult to estimate as production evolves by product, location and customer, particularly as we balance safely restarting EP. Protecting supply and meeting customer expectations is our clear focus during this time. As a reminder, our restructuring actions were designed to achieve EBITDA breakeven at $50 million of quarterly revenue. Our Q2 guide reflects progress toward that target, and we expect to reach it in the second half of the year, assuming success of our ongoing production and supply mitigation efforts. All estimates reflected in our guidance assumes that the staged restart of our East Providence plant proceeds as we currently expect. Turning to our liquidity outlook. Let's start with what we can control. CapEx and scheduled debt payments should total less than $12 million in Q2. And Alternatively, working capital will be more variable depending on where we produce inventory and ultimately sell finished goods. Additionally, we will build to higher inventory targets for safety stock at quarter end, depending on the pace at which EP comes back online. We will continue to be prudent with cash during this period, but want to strive for the high end of our Q2 revenue range. As a result, we could see total cash outflows of $20 million to $30 million for Q2, which includes $12 million of CapEx and scheduled debt payments, again, highly dependent on our ongoing production and supply mitigation efforts. With Q1 as our base, we anticipate sequential revenue growth through 2026, supported by 3 primary drivers. First, GM production continues to recover as inventory levels normalize and destocking subsides. Second, the continued ramp of our European OEM programs which we expect to contribute approximately $10 million to $15 million of revenue in 2026. We see activity picking up here. Third, we expect approximately 20% growth in energy industrial with a greater concentration of project activity in the second half. As volumes increase, while we continue to lower our cost structure we expect improved operating leverage and margin expansion throughout the year. Full year capital assumptions remain unchanged from the last earnings call. We continue to expect less than $10 million of capital expenditures and approximately $26 million of scheduled debt payments. Proceeds from the potential sale of Plant 2 assets are most likely a Q4 event rather than Q3. We and would be applied directly to reduce our term debt on a dollar-for-dollar basis. Combining these assumptions with our profitability expectations for the rest of the year, we anticipate ending the year with a strong net cash position. As a result of restructuring by reducing our fixed costs, we've built a financial framework that supports both resilience and growth as evidenced by our progress reducing EBITDA breakeven levels from $330 million revenue in 2024 to our $200 million revenue target in 2026 and even further to our $175 million revenue target by the end of 2027. With ample levels of liquidity, we still see flexibility to further delever the business, and we're evaluating a host of options while staying nimble to opportunistically invest in strategic growth initiatives. As we continue to navigate 2026, driving incremental profitability with new commercial activity and maintaining balance sheet strength remain top priorities. Don, back to you. Donald Young: Thanks, Grant. To close, while the first half of 2026 has been shaped by temporary disruptions and evolving market conditions, we believe the fundamentals of our business are solid. We see market signals -- positive market signals across our energy and industrial platform alongside growing diversification and new growth in thermal barriers. As we move through the year, we expect to build momentum and further strengthen our positioning for sustained growth into 2027 and beyond. With that, we'll open the call to your questions. Operator: [Operator Instructions] Your first question comes from the line of Eric Stein of Craig-Hallum Capital. Unknown Analyst: This is Luke on for Eric. So I guess, first, just on the European demand for thermal barrier, just following the record quarter on that front. I mean do you think OEMs are looking to accelerate production in part just because of the volatility in energy markets? Could you just talk about what you're hearing from customers in the pipeline? And also, would you expect to be leaning on the EMF to meet that ramp just with everything going on in Rhode Island right now? Donald Young: In terms of the ramp, I think it's a little too early to associate their active first quarter and the levels of activity that we're seeing here in 2026 with higher energy prices and switching from ICE vehicles to EV vehicles. I think more broadly, though, this has been building for some period of time. We've seen significant EV market share gains in Europe and the OEMs with whom we have won awards are beginning to benefit from that. In terms of supply, look, we want to be sure that we have as much flexibility as we can and make sure we're capable of meeting expectations of our customers. And everything that we can do to assure that we're going to do. And that does include having capability in our East Providence facility and in our Chinese EMF supplier. Unknown Analyst: Got it. So I guess just for my follow-up, switching gears here to EI. I mean you've talked about ultimately scaling that business to, let's say, a $200 million annual business. Do you have line of sight into just some of the subsea and LNG opportunities that could really make that a real possibility before the end of the decade? And just what are some of the factors that ultimately would get you there? Donald Young: Yes. I really think it's the 3 things that I touched on in my earlier statements. And certainly, Subsea is one of them. If you think back, as I cited, our historic range for a long time going back, I want to say, to 2008 or so, has been in the range of between $10 million and $20 million in '23 and '24, we had numbers that were closer to $30 million. And in '25, we had a very quiet year, a number less than $5 million. So we see a lot of activity going on, and it's not just the 2 awards that we've won to date, but the roster of opportunities. I can't remember when it's been stronger. And again, our value proposition and our record serving that market is outstanding. So that is definitely one component. And then LNG, as I said again in my statements, we're not just looking at the LNG kind of macro cycle. Our teams are engaged with the owners, with the EPC contractors in the field accelerating projects and expanding some of the opportunities that we have there. So that has a good opportunity. I have said that we have the opportunity to double the size of that business compared to 2025, both in number of projects and in dollars, and we are aiming to do that. And then the third area has been kind of a quiet area for us. It's our day in and day out maintenance work, turnaround work that we do in refineries and petrochemical plants around the world. These refiners have been running their plants pretty hard, and they've had relatively narrow maintenance windows. And we know that reliability is critical to them, and that cycle will move and create opportunity for us in that nice baseload day in and day out revenue that we're accustomed to in that area. So if you add those 3 things together, we believe that, that $200 million mark is a very realistic opportunity for us. Operator: With no further questions, we have reached the end of the Q&A session. I will now pass the call back over to Don Young for closing remarks. Donald Young: Thank you, [indiscernible]. We appreciate your interest in Aspen Aerogels and look forward to reporting to you our second quarter results in August. Be well. Have a good day. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Aspen Aerogels, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Aspen Aerogels wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $476,034!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,274,109!* Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Aspen Aerogels (ASPN) Q1 2026 Earnings Transcript was originally published by The Motley Fool

East Providence manufacturing facility expected to have a staged restart beginning in May $175.6 million quarter-end cash balance; up from $158.6 million at year-end 2025 Secured an additional subsea pipeline award to be delivered in Q3 2026 NORTHBOROUGH, Mass., May 07, 2026 (GLOBE NEWSWIRE) -- Aspen Aerogels, Inc. (NYSE: ASPN) (“Aspen” or the “Company”), a technology leader in sustainability and electrification solutions, today announced financial results for the first quarter of 2026, and discussed recent business developments. First Quarter 2026 Results Total revenue for the first quarter of 2026 was $37.9 million, compared to $78.7 million in the prior year period. During the first quarter of 2026, the Company received $37.6 million in cash from General Motors related to a commercial settlement, of which $3.5 million was recognized as revenue in the first quarter. The remainder has been recorded as deferred revenue, with approximately $4.9 million to be recognized as revenue quarterly through the end of 2027. Thermal barrier segment revenue was $16.3 million, compared to $48.9 million in the prior year period, reflecting a significant reduction in customer demand following changes in regulatory frameworks and incentive programs. Energy Industrial segment revenue was $21.6 million, compared to $29.8 million in the prior year period. Net loss was $23.7 million, compared to net loss of $301.2 million in the prior year period. Results for the first quarter of 2026 included $0.4 million of restructuring and demobilization costs. Results for the first quarter of 2025 included a $286.6 million impairment charge related to the Company's previously planned second manufacturing facility in Statesboro, Georgia, and $9.8 million in restructuring and demobilization costs. Excluding these items, adjusted net loss was $23.3 million, compared to adjusted net loss of $4.8 million in the prior year period. Net loss per share was $0.29, compared to net loss per share of $3.67 in the prior year period. Excluding the items described above, adjusted net loss per share was $0.28, compared to adjusted net loss per share of $0.06 in the prior year period. Adjusted EBITDA was $(12.7) million, compared to $4.9 million in the prior year period. A reconciliation of non-GAAP financial results to GAAP financial results is provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading “Non-GAAP Financial Measures.” East Providence Manufacturing Facility & Supply Strategy Update On April 8, 2026, there was an explosion at Aspen’s manufacturing facility in East Providence, Rhode Island. The investigation confirmed that the event occurred in a specific high-temperature oven, resulting in damage to a portion of the facility’s production space, requiring the temporary cessation of operations. Aspen is working closely with local, state, and federal agencies to bring the facility back online safely and believes a staged restart of operations will begin in May. The final timeline will depend on the progress of our ongoing mechanical, operational, and safety reviews, as well as obtaining clearance from relevant authorities. "We are immensely grateful that no employees were seriously injured in the incident. We are also appreciative of the professional work of first responders that night. In the time since, our team has made significant progress. Their work has been instrumental in creating a clear path forward for our East Providence facility," said Don Young, President and CEO. "We also deeply value the close cooperation of East Providence and Rhode Island public officials." To date, the Company has utilized existing inventory and leveraged the capacity of its external manufacturing facility to help support customer demand. Mr. Young added, “While it will take time to restore East Providence to its full capabilities, we are working closely with our external manufacturing facility to enhance its production capabilities to support both our Energy Industrial and Thermal Barrier segments. These efforts are intended to develop both near- and long-term supply flexibility, strengthening our operational resilience and reinforcing our commitment to customers.” Recent Business Highlights & Financial Performance Ended the quarter with cash, cash equivalents, and restricted cash of $175.6 million, compared to $158.6 million at the end of the fourth quarter 2025, highlighted by the receipt of the $37.6 million commercial settlement from General Motors and $15.6 million of debt principal payments Awarded a second subsea pipeline project with expected delivery in the third quarter of 2026 Record quarterly Thermal Barrier revenue from European OEMs “While the first half of 2026 has been shaped by temporary disruptions and evolving market conditions, we believe the fundamentals of our business are solid,” commented Mr. Young. “We are seeing positive market signals across our Energy Industrial platform, alongside growing diversification in our Thermal Barrier segment. As we move through the year, we expect to build momentum and further strengthen our positioning for sustained growth into 2027 and beyond.” Financial Outlook Aspen issues its financial outlook as follows: Q2 2026 revenue is expected to range between $40 million and $48 million Q2 2026 Net loss is expected to range between $14 million and $20 million Q2 2026 Net loss per share is expected to range between $0.17 and $0.24 Q2 2026 Adjusted EBITDA is expected to range between $(4) million and $(10) million FY 2026 Capital Expenditures are expected to be less than $10 million Grant Thoele, Chief Financial Officer and Treasurer, noted, “Our $175.6 million cash balance and disciplined cost management provide a strong foundation as we navigate our current supply and demand environment. Looking ahead to Q2, we expect increased quarterly revenue and improved profitability. With a healthy balance sheet and a financial framework that supports both resilience and growth, we believe that we remain well-positioned to operate and execute our flexible supply strategy, pursue growth opportunities, and deliver long-term shareholder value.” The Company's Q2 2026 outlook assumes depreciation and amortization of $5.0 million, stock-based compensation expense of $2.5 million, net interest expense of $2.5 million, and diluted weighted average shares outstanding of 82.7 million for the quarter. A reconciliation of net loss to non-GAAP Adjusted EBITDA for the Q2 2026 financial outlook is provided in the financial schedules that are part of this press release. An explanation of this non-GAAP financial measure is also included below under the heading “Non-GAAP Financial Measures.” Aspen may incur, among other items, additional charges, realize gains or losses, incur financing costs or interest expense, or experience other events in 2026, including those related to the staged restart of the East Providence manufacturing facility, operational disruptions, supply chain disruptions, or further cost inflation, that could cause actual results to vary materially from this outlook. See Special Note Regarding Forward-Looking and Cautionary Statements below. Conference Call and Webcast Notification A conference call with Aspen management to discuss first quarter 2026 results and recent business developments will be held Thursday, May 7, 2026, at 8:30 a.m. EST. During the call, management will respond to questions concerning, but not limited to, Aspen's financial performance, business conditions, and financial outlook. Management's discussion and responses could contain information that has not been previously disclosed. Shareholders and other interested parties may call +1 (833) 461-5787 (domestic) or +1 (585) 542-9983 (international) and reference Meeting ID “717749648” to participate in the conference call. In addition, the conference call and an accompanying slide presentation will be available live as a listen-only webcast hosted at the Investors section of Aspen's website, www.aerogel.com. Following the live event, an archived version of the webcast will be available on Aspen's website for convenient on-demand replay for at least a year. A copy of this press release is posted in the Investors section on Aspen's website. Non-GAAP Financial Measures In addition to providing financial measurements based on generally accepted accounting principles in the United States of America ("GAAP"), Aspen provides additional financial metrics that are not prepared in accordance with GAAP ("non-GAAP"). The non-GAAP financial measures included in this press release are Adjusted EBITDA, adjusted net loss and adjusted net loss per share. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial measures do not include the impact of items that management does not consider indicative of Aspen's core operating performance. In addition, management uses Adjusted EBITDA (i) for planning purposes, including the preparation of Aspen's annual operating budget, (ii) to allocate resources to enhance the financial performance of its business, and (iii) as a performance measure under its bonus plan. Management believes that these non-GAAP financial measures reflect Aspen's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in its business, as it excludes expenses and gains not reflective of Aspen's ongoing operating results or that may be infrequent and/or unusual in nature. Management also believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating Aspen's operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. These non-GAAP measures may not be comparable to similarly titled measures presented by other companies. The non-GAAP financial measures do not replace the presentation of Aspen's GAAP financial results and should only be used as a supplement to, not as a substitute for, Aspen's financial results presented in accordance with GAAP. In this press release, Aspen has provided a reconciliation of Adjusted EBITDA to net income (loss), adjusted net loss to net loss and adjusted net loss per share to net loss per share, in each case to the most directly comparable GAAP financial measure. Management strongly encourages investors to review Aspen's financial statements and publicly filed reports in their entirety and not rely on any single financial measure. About Aspen Aerogels, Inc. Aspen is a technology leader in sustainability and electrification solutions. The Company's aerogel technology enables its customers and partners to achieve their own objectives around the global megatrends of resource efficiency, e-mobility and clean energy. Aspen's PyroThin® products enable solutions to thermal runaway challenges within the electric vehicle ("EV") market. The Company's Cryogel® and Pyrogel® products are valued by the world's largest energy infrastructure companies. Aspen's strategy is to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets. Aspen is headquartered in Northborough, Mass. For more information, please visit www.aerogel.com. Special Note Regarding Forward-Looking and Cautionary Statements This press release and any related discussion contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements, including statements relating to Aspen’s financial outlook for the second quarter of 2026. These statements are not historical facts but rather are based on Aspen’s current expectations, estimates and projections regarding Aspen's business, operations and other factors relating thereto, including with respect to Aspen’s financial outlook for the second quarter of 2026. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expects," "intends," "plans," "projects," "believes," "estimates," "outlook," “assumes,” “targets,” “opportunity,” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements include statements regarding, among other things, Aspen’s beliefs and expectations about capacity, revenue, revenue capacity, backlog, costs, expenses, profitability, cash flow, gross profit, gross margin, operating margin, net income (loss), Adjusted EBITDA, adjusted net loss, adjusted net loss per share and related increases, decreases, trends or timing, including with respect to Aspen’s beliefs and expectations about the energy industrial and EV markets; Aspen’s target revenue capacity and gross margins; Aspen’s efforts to use its external manufacturing facility to meet customer demand; current or future trends in the energy, energy infrastructure, chemical and refinery, LNG, sustainable building materials, EV thermal barrier, EV battery materials or other markets and the impact of these trends on Aspen’s business; the strength, effectiveness, productivity, costs, profitability or other fundamentals of Aspen’s business; beliefs about the role of Aspen’s technology and opportunities in the energy industrial and EV markets; beliefs about Aspen’s ability to provide and deliver products and services to energy industrial and EV customers; beliefs about content per vehicle, revenue, costs, expenses, profitability, investments or cash flow associated with Aspen’s energy industrial and EV opportunities; and the performance and market acceptance of Aspen’s products. All such forward-looking statements are based on management’s present expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, the following: Aspen’s ability to resume operations at the East Providence manufacturing facility; the Company’s ability to manufacture the full array of its products at the facility and to meet expected customer demand; the Company’s ability to mitigate the potential impacts from the operational disruption on the Company’s business, operations and financial performance; Aspen’s ability to execute its growth plan; the right of EV thermal barrier customers to cancel contracts with Aspen at any time and without penalty; any costs, expenses, or investments incurred by Aspen in excess of projections used to develop pricing under the contracts with EV thermal barrier customers; Aspen’s ability to create customer or market opportunities for its products; any disruption or inability to achieve expected capacity levels in any of its manufacturing or assembly facilities, including at its external manufacturing facility; any failure to enforce any of Aspen’s patents; the general economic conditions and cyclical demands in the markets that Aspen serves; and the other risk factors discussed under the heading “Risk Factors” in Aspen’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on March 13, 2026, as well as any updates to those risk factors filed from time to time in Aspen’s subsequent periodic and current reports filed with the SEC. All statements contained in this press release are made only as of the date of this press release. Aspen does not intend to update this information unless required by law. Investor Relations Contacts Neal Baranosky Phone: (508) 691-1111 x 8 [email protected] Georg Venturatos / Patrick Hall Gateway Group Phone: (949) 574-3860 [email protected] Analysis of Cash Flow The following table summarizes our cash flows for the periods indicated. Reconciliation of Non-GAAP Financial Measures The following table presents a reconciliation of the non-GAAP financial measure included in this press release to the most directly comparable GAAP measure: Reconciliation of Adjusted EBITDA to Net loss We define Adjusted EBITDA as net income (loss) before interest expense, taxes, depreciation, amortization, stock-based compensation expense and other items, which occur from time to time and which we do not believe are indicative of our core operating performance. For the three months ended March 31, 2026 and 2025: Other Information The following table reconciles net loss and net loss per share to adjusted net loss and adjusted net loss per share for the three months ended March 31, 2026 and 2025: For the 2026 second quarter financial outlook: