Aspen Aerogels (ASPN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $37.9 million, the lowest quarter of the year, down from $78.7 million year-over-year, impacted by lower Thermal Barrier demand, regulatory changes, and operational disruption at East Providence; a staged restart is expected in May, with no serious injuries reported.

• Strategic review reaffirmed focus on scaling Energy Industrial, diversifying PyroThin Thermal Barriers, and expanding into adjacent markets.

• Expanded external manufacturing to support both business segments and secured a second subsea pipeline award for Q3 2026.

• North American EV production is stabilizing as inventory clears, while European thermal barrier revenue reached record levels.

Financial highlights

• Q1 2026 revenue was $37.9 million, down 8% quarter-over-quarter and sharply year-over-year; Energy Industrial contributed $21.6 million, Thermal Barrier $16.3 million.

• Gross profit was $4.3 million (11% margin); segment gross margin: 15% for Energy Industrial, 6% for Thermal Barrier.

• GAAP net loss was $23.7 million, improved from $72.9 million last quarter and $301.2 million in Q1 2025.

• Adjusted EBITDA was negative $12.7 million, a 29% sequential improvement but down from $4.9 million year-over-year.

• Generated $17 million cash in Q1, including a $37.6 million GM commercial settlement; cash balance at $175.6 million.

Outlook and guidance

• Q2 2026 revenue expected between $40 million and $48 million, with net loss projected between $14 million and $20 million; adjusted EBITDA guidance is $(4) million to $(10) million.

• Sequential revenue growth anticipated through 2026, with full-year Energy Industrial growth targeted at 20%.

• EBITDA break-even targeted at $200 million annual revenue run-rate in H2 2026, $175 million in 2027.

• CapEx for 2026 expected to be less than $10 million; scheduled debt payments about $26 million.

• Anticipates ending 2026 with a strong net cash position.