Aspen Aerogels reported third‑quarter 2025 revenue of $73.0 million, a 37.8% decline from $117.3 million in the same period last year, and a net loss of $6.33 million. Adjusted EBITDA for the quarter was $6.3 million, down from $25.4 million in Q3 2024. The company’s gross margin contracted to 28.5% from 32.4% in Q2 2025, reflecting lower electric‑vehicle production volumes and higher scrap rates as the firm prepares for a ramp‑up of its ACC battery‑thermal‑barrier line.
The Energy Industrial segment generated $24.3 million in revenue, up 7% quarter‑over‑quarter, and maintained a 36% margin. In contrast, the Thermal Barrier business produced $48.7 million, down 12% quarter‑over‑quarter, and carried a 31% margin. The decline in Thermal Barrier revenue was driven by a slowdown in LNG and subsea projects, while the Energy Industrial segment benefited from new contracts and a modest increase in demand for its high‑temperature insulation products.
Aspen recorded $1.6 million in restructuring and impairment charges related to the demobilization of its Statesboro plant. These one‑time costs contributed to the net loss but were excluded from adjusted EBITDA, which focuses on recurring operating performance.
Gross‑margin compression was largely due to a 4‑percentage‑point drop from Q2, driven by lower EV volumes and increased scrap rates as the company readies its ACC production line. Management has emphasized ongoing cost‑control initiatives, noting a reduction in operating‑expense rate from $24.6 million in Q2 to $22.6 million in Q3.
The company revised its full‑year 2025 outlook, lowering revenue guidance to $270 million–$280 million from the previous $297 million–$317 million range, and cutting adjusted EBITDA guidance to $7 million–$15 million from $35 million–$45 million. The guidance cut signals management’s concern about the U.S. electric‑vehicle market’s re‑timing and the continued slowdown in LNG and subsea projects, while the company remains optimistic about European programs and 2026 Energy Industrial projects.
CEO Donald Young said the U.S. EV environment remains challenging, citing GM’s significant production ramp‑down, but highlighted opportunities in the PyroThin thermal‑barrier segment, including a new award from a European OEM for production starting in 2027. CFO Grant Thoele noted that the company’s cost‑reduction program has lowered operating‑expense rates and that the firm expects to reach adjusted EBITDA breakeven at approximately $200 million of annual revenue, targeting improved profitability in 2026.
Investors reacted negatively to the earnings release, largely because the company cut its full‑year guidance and missed both revenue and earnings estimates. Analysts pointed to margin compression, the decline in the Thermal Barrier business, and the headwinds in the U.S. EV market as key factors driving the market’s response.
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