Origin Materials, Inc. reported its first-quarter 2025 financial results, with revenue of $5.4 million, a decrease from $6.8 million in the prior-year period, attributed to a planned reduction in its supply chain activation program. The company's net loss for the quarter was $26.4 million, compared to $13.9 million in Q1 2024, primarily due to a $16.6 million non-cash impairment charge related to a biomass conversion technology agreement.
The company announced a signed strategic customer agreement with a major packaging company for the development of large format PET closures for the ready-to-drink, wine, and spirits market. Over twenty companies, including six Fortune 500 entities, are now qualifying or preparing to qualify Origin PET caps, indicating robust customer interest.
However, Origin Materials revised its 2026 revenue guidance downward to $50 million to $70 million, a significant reduction from the previously projected $110 million to $140 million. This revision is due to customer product qualification taking longer than anticipated, deferring the expected start of commercial-scale PET cap revenue generation by one to three quarters.
The company reiterated its expectation to become run-rate Adjusted EBITDA positive by the back end of 2026. The revised plan also accounts for a 10% tariff on equipment imported from Europe, which has adjusted CapFormer deployment timelines, with CapFormers five through eight now estimated to begin PET cap production in the first half of 2026.
Despite these challenges, Origin Materials reported over sixty-five new customer inquiries in the last six weeks, with prospective customers actively collaborating to advance the qualification process. The company also provided new 2027 revenue guidance of $150 million to $210 million.
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