Aspen Aerogels Announces Thermal Barrier Award from Valmet Automotive for Electric Porsche 718 Series and Reiterates 2024 Financial Outlook
Aspen Aerogels has received a PyroThin® design award from Valmet Automotive to supply thermal barriers for the next generation electric Porsche 718 series. This marks Aspen's sixth OEM award and includes models like the Cayman and Boxster, set for production in 2025. Aspen's 2024 financial outlook remains unchanged, projecting revenues of over $380 million, with the Thermal Barrier segment contributing over $230 million. The net income is expected to exceed $2 million with an earnings per share of over $0.03. Adjusted EBITDA is projected to be over $55 million, reflecting a 340% year-over-year improvement. The company is optimistic about adding more awards to its portfolio in 2024.
- Aspen received a PyroThin® design award for Porsche's electric 718 series, marking its sixth OEM award.
- Projected revenues for 2024 exceed $380 million, a 59% year-over-year improvement.
- Thermal Barrier segment revenue is expected to surpass $230 million, showing a 109% YoY increase.
- Adjusted EBITDA for 2024 is projected to be over $55 million, reflecting a 340% improvement.
- Net income for 2024 is expected to exceed $2 million, with an earnings per share of more than $0.03.
- The unchanged 2024 financial outlook might indicate concerns about meeting or exceeding market expectations.
- Assumption of $30 million in depreciation and amortization could impact net income negatively.
- Stock-based compensation expense of $14 million might dilute earnings per share.
Aspen Aerogels' recent announcement reflects a significant milestone for the company. The thermal barrier award from Valmet Automotive for Porsche's electric 718 series is a noteworthy addition to Aspen's portfolio. This collaboration indicates confidence in Aspen’s PyroThin® technology, which should enhance investor sentiment regarding the company’s growth prospects in the EV market.
The reiteration of the 2024 financial outlook without changes suggests stability and confidence in Aspen's operational and financial planning. The expected
Adjusted EBITDA is projected to grow by
Overall, these developments illustrate Aspen's strengthening position in the electric vehicle supply chain, especially given the involvement of a prestigious brand like Porsche.
The technical selection of Aspen Aerogels' PyroThin® thermal barrier for Porsche's new electric 718 series emphasizes the advanced nature of Aspen's technology. PyroThin® is designed to provide superior thermal insulation for electric vehicle (EV) batteries, which is important for maintaining battery performance and safety.
Given that Porsche is a high-performance automaker, the selection of PyroThin® highlights its reliability and efficiency in extreme conditions typical of high-speed and performance vehicles. This choice could potentially open doors for Aspen to partner with other high-end automakers who prioritize performance and safety in their EV designs.
Furthermore, by securing this award from Valmet Automotive—the manufacturing partner for Porsche—it validates the robustness of Aspen’s solution in the broader automotive manufacturing landscape. Investors should recognize the long-term potential for expanding Aspen's customer base within the competitive EV market.
Aspen Aerogels' reinforced financial outlook and new contract highlight the company's robust market positioning. The PyroThin® technology’s adoption by major automotive brands like Porsche, Audi and Scania signifies industry trust and a growing reputation.
The expected
Additionally, the consistent financial outlook suggests that Aspen has a well-defined strategy and resilient business model. Investors should consider the implications of a stable financial projection in an unpredictable market, which offers a form of assurance about the company’s management effectiveness and market strategy.
Valmet Automotive design award for the Porsche 718 series is
2024 Financial Outlook remains unchanged
Valmet Automotive / Porsche EV Thermal Barrier Commercial Award
- Valmet Automotive is Porsche's manufacturing partner for the next generation electric 718 lineup
- The Porsche 718 platform covers the Cayman and Boxster models with an expected start of production in 2025
- Porsche, through Valmet, joins Audi and Scania as announced PyroThin® awards linked to the Volkswagen Group
Commenting on today's announcement,
2024 Financial Outlook Unchanged
($ in millions, except per share amounts)
Metric | 2024 Outlook | Implied YoY % |
Revenue Thermal Barrier Energy Industrial | >380 >230 >150 | |
Adjusted EBITDA | >55 | 340 % |
Net Income (Loss) | >2 | 104 % |
Earnings Per Share | >0.03 | 105 % |
Ricardo C. Rodriguez, Chief Financial Officer and Treasurer, commented, "We developed a pragmatic performance baseline when planning for 2024 and while preparing the most recently communicated outlook increase as part of our Q1 results." Mr. Rodriguez added, "Thinking more broadly and long-term, our profitable Energy Industrial segment, in combination with a broad set of blue-chip PyroThin® customers, positions us to continue supporting the long-term EV demand ramp with conviction. We look forward to discussing our Q2 results in detail at our next earnings call on August 1st, 2024."
The Company's 2024 outlook assumes depreciation and amortization of
A reconciliation of net loss to non-GAAP Adjusted EBITDA for the 2024 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."
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in
Management believes that this non-GAAP financial measure reflects
The non-GAAP financial measure does not replace the presentation of
About Aspen Aerogels, Inc.
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 the thermal barrier award from Valmet Automotive and
Reconciliation of Non-GAAP Financial Measures
The following tables present 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 2024 full year financial outlook:
Year Ending | ||||
December 31, 2024 | ||||
(In thousands) | ||||
Net income | $ | 2,000 | ||
Depreciation and amortization | 30,000 | |||
Stock-based compensation | 14,000 | |||
Other expense, net and income tax expense | 9,000 | |||
Adjusted EBITDA | $ | 55,000 |
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SOURCE Aspen Aerogels, Inc.
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