Aspen Aerogels, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results and Recent Business Highlights

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The FY2024 results reveal a transformative year for Aspen Aerogels, marked by exceptional execution and strategic pivots. The 90% revenue growth to $452.7 million demonstrates strong market penetration, particularly in the Thermal Barrier segment which grew 179% YoY to $306.8 million.

The shift to external manufacturing has proven remarkably successful, with 91% of Energy Industrial revenues now flowing through external facilities, up from just 10% in Q4 2023. This capital-light approach has enabled the company to achieve 40% gross margins while maintaining operational flexibility. The decision to halt the Statesboro plant project reflects astute capital allocation, preserving $220.9 million in cash for strategic opportunities.

However, the Q1 2025 guidance signals a more measured growth trajectory, with revenue projected between $75-95 million, reflecting normalization after initial inventory buildups for vehicle launches. This reset aligns with broader EV market dynamics, where production is becoming more directly tied to end-market sales.

The company's improved working capital management is evident in the $20.9 million Q4 free cash flow generation. With reduced capital expenditure needs and a strong balance sheet, Aspen is well-positioned to pursue strategic growth initiatives while maintaining operational efficiency. The recent Volvo Truck contract win demonstrates continued market share gains in commercial vehicle applications, diversifying beyond passenger EVs.

02/12/2025 - 04:30 PM

$452.7 million in FY 2024 revenue, a 90% year-over-year increase

FY 2024 gross margins grew to 40%, driving $13.4 million of net income and $89.9 million of Adjusted EBITDA

Record Energy Industrial revenue in Q4 of $53.1 million

Ended the year with $220.9 million of cash and generated $20.9 million of free cash flow in Q4

External manufacturing facility capable of increasing capacity; demobilizing Statesboro plant project

Awarded PyroThin^® Thermal Barrier contract for Volvo Truck commercial vehicle program

NORTHBOROUGH, Mass., Feb. 12, 2025 /PRNewswire/ -- Aspen Aerogels, Inc. (NYSE: ASPN) ("Aspen" or the "Company"), a technology leader in sustainability and electrification solutions, today announced financial results for the fourth quarter and full year 2024 and discussed recent business developments.

Total revenue for the fourth quarter of 2024 was $123.1 million, compared to $84.3 million in the fourth quarter of 2023. Net income was $11.4 million, compared to a net loss of $0.5 million in the fourth quarter of 2023. Net income per share (diluted) was $0.14, compared to a net loss per share (diluted) of $0.01 in the fourth quarter of 2023.

Adjusted EBITDA for the fourth quarter of 2024 was $22.7 million, compared to $9.1 million in the fourth quarter of 2023.

Total revenue for the full year 2024 was $452.7 million, compared to $238.8 million in 2023. Net income for the year was $13.4 million, which included a $27.5 million one-time charge from the redemption of the Company's convertible note, compared to a net loss of $45.8 million in 2023. Net income per share (diluted) for the year was $0.17, compared to a net loss per share (diluted) of $0.66 in 2023.

Adjusted EBITDA for the full year 2024 was $89.9 million, compared to $(22.9) million in 2023.

A reconciliation of net income (loss) to Adjusted EBITDA 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."

Fourth Quarter 2024 Financial Highlights

Record Company revenues of $123.1 million, up 46% year-over-year (YoY)
- Thermal Barrier: $70.0 million of revenue, up 32% YoY
- Energy Industrial: $53.1 million of revenue, up 70% YoY
Supplied ~91% of Energy Industrial revenues through external manufacturing facility, compared to ~10% in Q4 2023
Delivered gross margins of 38%, a three-percentage point improvement YoY
Net income of $11.4 million, an $11.9 million improvement YoY
Adjusted EBITDA of $22.7 million, a $13.6 million or 149% improvement YoY
Operating Income of $14.7 million, a $13.3 million improvement YoY
Cash generated from operations of $35.7 million in the quarter drove $20.9 million of free cash flow

Fiscal Year 2024 Financial Highlights

Total revenue of $452.7 million, up 90% YoY
- Thermal Barrier: $306.8 million of revenue, up 179% YoY
- Energy Industrial: $145.9 million of revenue, up 13% YoY
Delivered gross margins of 40%, a sixteen-percentage point improvement over 2023
Net income of $13.4 million, which included a $27.5 million one-time charge from the redemption of the Company's convertible note, a $59.2 million improvement YoY
Adjusted EBITDA of $89.9 million, a $112.8 million YoY improvement
Capital expenditures of $86.3 million, an $89.2 million reduction versus 2023; CAPEX excluding Statesboro plant project of $42.4 million
Ended the year with cash and equivalents of $220.9 million

New Thermal Barrier Customer Award
Aspen was awarded a contract to supply PyroThin^® Thermal Barriers for a Volvo Truck commercial vehicle program.

"Our financial results for 2024 underscore the scalability of our business model and leading market position," commented Don Young, Aspen's President and CEO. "In addition to exceeding our initial 2024 revenue and profitability expectations, we added multiple OEMs to our growing list of customers, including the recent award from Volvo Truck, and established external manufacturing capabilities to provide supply for our growing Energy Industrial business. We are taking a prudent approach to 2025 and are implementing several actions that increase our agility and capital efficiency."

Thermal Barrier Supply and Statesboro Plant Project Update
To meet long-term aerogel demand, Aspen will invest to maximize capacity at its East Providence manufacturing facility and utilize a flexible supply strategy. The Company's external manufacturing facility, which currently supports its Energy Industrial segment, can increase its aerogel production capacity. Accordingly, Aspen has stopped construction of its planned second aerogel manufacturing facility in Statesboro, Georgia. The Company will be assessing options to derive value from the assets in Statesboro, including relocating some equipment to upgrade and expand its existing plant. This path requires minimal capital.

Ricardo C. Rodriguez, Chief Financial Officer and Treasurer, noted, "In early 2023, pre-empting a reset in EV demand expectations, we decided to right-time the construction of our planned second aerogel manufacturing facility in Statesboro, Georgia and subsequently ramped up our external manufacturing capacity for our Energy Industrial business. In this most recent quarter, the external manufacturing model has fully demonstrated its ability to efficiently increase aerogel supply. We are confident that a capital-light and modular capacity plan provides the most efficient path to creating value. Looking ahead, we believe that we are fully funded by a strong balance sheet that enables us to play offense and evaluate a variety of opportunities, including additional paths for organic and inorganic growth, optimizing the capital structure, and returning capital to shareholders."

Q1 2025 Financial Outlook
Aspen issues its Q1 2025 outlook as follows:

Q1 revenue is expected to range between $75 and $95 million
Q1 Net loss is expected to range between $15.0 and breakeven
Q1 Net loss per share is expected to range between $0.18 and breakeven
Q1 Adjusted EBITDA is expected to range between breakeven and $15 million
Q1 Capital Expenditures, excluding demobilization costs related to the Statesboro plant project, are expected to be less than $7 million

Mr. Rodriguez added, "In 2024 we continuously beat expectations and benefited from a large initial buildup of finished vehicle inventory as we supplied several successful launches in our Thermal Barrier business. We enter 2025 excited about our Company's prospects and mindful that vehicle production will now be more directly driven by sales. To thrive in a broad range of demand outcomes and keep driving profitability, we've taken actions to right-size our fixed cost base and continue reducing our CAPEX."

The Company's Q1 2025 outlook assumes depreciation and amortization of $5.8 million, stock-based compensation expense of $2.7 million, net interest expense of $3.5 million, restructuring costs of $3.0 million, and diluted weighted average shares outstanding of 82.0 million for the full year.

A reconciliation of net loss to non-GAAP Adjusted EBITDA for the 2025 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 2025, including those related to the planned capacity expansion, 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.

Last Twelve-Month Financial Comparison
A comparison of key financial metrics for the trailing twelve-month periods ended December 31, 2023 and 2024:

($ in millions, numbers may not total due to rounding)
Metric	FY 2023	FY 2024	Delta	% Improvement
Revenue	239	453	214	90 %
Gross Profit % Margin	57 24%	183 40%	126	221 %
Net Income (Loss) % Margin	(46) (19%)	13 3%	59	129 %
Adjusted EBITDA % Margin	(23) (10%)	90 20%	113	492 %
Operating Income % Margin	(49) (21%)	55 12%	104	211 %
Total CAPEX	175	86	(89)	51 %

Conference Call and Webcast Notification
A conference call with Aspen management to discuss fourth quarter and fiscal year 2024 results and recent business developments will be held Thursday, February 13, 2025 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 (404) 975-4839 (domestic) or +1 (929) 526-1599 (international) and reference conference ID "890624" 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 an additional financial metric that is not prepared in accordance with GAAP ("non-GAAP"). The non-GAAP financial measure included in this press release is Adjusted EBITDA. Management uses this non-GAAP financial measure, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial measure does 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 this non-GAAP financial measure reflects 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 this non-GAAP financial measures provides 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. This non-GAAP measure may not be comparable to similarly titled measures presented by other companies.

The non-GAAP financial measure does 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), 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 carbon aerogel initiative seeks to increase the performance of lithium-ion battery cells to enable EV manufacturers to reduce charging time and the cost of EVs. 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 first quarter of 2025. 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 first quarter of 2025. 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 and related increases, decreases, trends or timing, including with respect to Aspen's beliefs and expectations about the EV market and how it may enable a path to profitability; Aspen's target revenue capacity and gross margins; Aspen's efforts to demobilize its previously planned second manufacturing plant in Statesboro, Georgia, and the use of 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 EV market; beliefs about Aspen's ability to provide and deliver products and services to EV customers; beliefs about content per vehicle, revenue, costs, expenses, profitability, investments or cash flow associated with Aspen's EV opportunities, including the EV thermal barrier business; 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: inability to execute Aspen's 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 inability 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, 2023 and filed with the Securities and Exchange Commission ("SEC") on March 7, 2024, 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.

ASPEN AEROGELS, INC.
Condensed Consolidated Balance Sheets
(Unaudited and in thousands)

	December 31,		December 31,
	2024		2023
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	220,882	$	139,723
Restricted cash		394		248
Accounts receivable, net		109,104		69,995
Inventories		47,551		39,189
Prepaid expenses and other current assets		31,517		17,176
Total current assets		409,448		266,331
Property, plant and equipment, net		459,276		417,227
Operating lease right-of-use assets		20,854		17,212
Other long-term assets		5,566		2,278
Total assets	$	895,144	$	703,048
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	44,361	$	51,094
Accrued expenses		36,495		22,811
Deferred revenue		2,199		2,316
Finance obligation for sale and leaseback transactions		4,028		—
Operating lease liabilities		3,279		1,874
Long term debt - current portion		19,750		—
Total current liabilities		110,112		78,095
Revolving line of credit		42,131		—
Long term debt		94,961		—
Convertible note - related party		—		114,992
Finance obligation for sale and leaseback transactions long-term		10,087		—
Operating lease liabilities long-term		23,148		21,906
Total liabilities		280,439		214,993
Stockholders' equity:
Total stockholders' equity		614,705		488,055
Total liabilities and stockholders' equity	$	895,144	$	703,048

ASPEN AEROGELS, INC.
Consolidated Statements of Operations
(Unaudited and in thousands, except share and per share data)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(In thousands, except share and per share data)

Revenue	$	123,088	$	84,219	$	452,699	$	238,718
Cost of revenue		75,955		54,601		269,802		181,797
Gross profit		47,133		29,618		182,897		56,921
Operating expenses:
Research and development		4,405		4,075		18,050		16,356
Sales and marketing		8,547		8,782		35,677		33,008
General and administrative		18,660		15,378		71,125		56,760
Impairment of equipment under development		808		—		3,510		—
Total operating expenses		32,420		28,235		128,362		106,124
Income (loss) from operations		14,713		1,383		54,535		(49,203)
Other income (expense)
Interest expense, convertible note - related party		—		(2,904)		(7,550)		(5,328)
Interest income (expense), net		(3,526)		1,002		(4,409)		6,534
Income from Employee Retention Credits		—		—		—		2,186
Loss on extinguishment of debt		—		—		(27,487)		—
Total other income (expense), net		(3,526)		(1,902)		(39,446)		3,392
Income (loss) before income tax expense		11,187		(519)		15,089		(45,811)
Income tax expense		175		—		(1,714)		—
Net income (loss)	$	11,362	$	(519)	$	13,375	$	(45,811)
Net income (loss) per share:
Basic	$	0.14	$	(0.01)	$	0.17	$	(0.66)
Diluted	$	0.14	$	(0.01)	$	0.17	$	(0.66)
Weighted-average common shares outstanding:
Basic		80,909,486		70,018,243		77,535,121		69,439,034
Diluted		82,998,580		70,018,243		80,306,690		69,439,034

Analysis of Cash Flow
The following table summarizes our cash flows for the periods indicated.

	Three Months Ended
	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024
	(In thousands)
Net cash provided by (used in):
Operating activities	$	(17,749)	$	6,843	$	20,771	$	35,684
Investing activities		(25,863)		(24,827)		(20,821)		(14,751)
Financing activities		5,259		8,141		22,158		86,460
Net (decrease) increase in cash		(38,353)		(9,843)		22,108		107,393
Cash, cash equivalents and restricted cash at beginning of period		139,971		101,618		91,775		113,883
Cash, cash equivalents and restricted cash at end of period	$	101,618	$	91,775	$	113,883	$	221,276

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 income (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 twelve months ended December 31, 2024 and 2023:

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
	(In thousands)
Net income (loss)	$	11,362	$	(519)	$	13,375	$	(45,811)
Depreciation and amortization		5,433		4,561		22,526		15,318
Stock-based compensation		2,548		3,188		12,855		10,954
Other (income) expense		3,526		1,902		11,959		(3,392)
Loss on extinguishment of debt		-		-		27,487		-
Income tax expense		(175)		-		1,714		-
Adjusted EBITDA	$	22,694	$	9,132	$	89,916	$	(22,931)

For the three months ending March 31, 2025 financial outlook:

	Three Months Ending
	March 31, 2025
	Low		High
	(In thousands)
Net loss	$	(15,000)	$	—
Depreciation and amortization		5,800		5,800
Stock-based compensation		2,700		2,700
Other expense		6,500		6,500
Adjusted EBITDA	$	—	$	15,000

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SOURCE Aspen Aerogels, Inc.

FAQ

What was Aspen Aerogels (ASPN) revenue growth in FY 2024?

Aspen Aerogels reported revenue of $452.7 million in FY 2024, representing a 90% year-over-year increase from $238.8 million in 2023.

How much cash did ASPN have at the end of 2024?

Aspen Aerogels ended 2024 with $220.9 million in cash and equivalents.

What is ASPN's Q1 2025 revenue guidance?

Aspen Aerogels expects Q1 2025 revenue to range between $75 and $95 million.

Why did ASPN stop the Statesboro plant construction?

Aspen decided to halt the Statesboro plant construction as their external manufacturing facility can increase aerogel production capacity, opting for a more capital-efficient approach.

What was ASPN's gross margin improvement in 2024?

ASPN's gross margins grew to 40% in 2024, a sixteen-percentage point improvement over 2023's 24%.

Aspen Aerogels, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results and Recent Business Highlights

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FAQ

What was Aspen Aerogels (ASPN) revenue growth in FY 2024?

How much cash did ASPN have at the end of 2024?

What is ASPN's Q1 2025 revenue guidance?

Why did ASPN stop the Statesboro plant construction?

What was ASPN's gross margin improvement in 2024?

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Aspen Aerogels, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results and Recent Business Highlights

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What was Aspen Aerogels (ASPN) revenue growth in FY 2024?

How much cash did ASPN have at the end of 2024?

What is ASPN's Q1 2025 revenue guidance?

Why did ASPN stop the Statesboro plant construction?

What was ASPN's gross margin improvement in 2024?

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