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Aspen Aerogels Records 21% Revenue Jump, Issues Strong Outlook

Koch Strategic Platforms to invest $150 million in the business

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Feb 18, 2022
  • Statesboro, Georgia picked for 2nd manufacturing plant
  • CEO Don Young: ‘Our business continues to accelerate’
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Aspen Aerogels Inc. (

ASPN, Financial), a sustainability-focused aerogels engineering and manufacturing company, recently reported earnings results for its fourth quarter and full-year 2021. For the year, revenue came in at $121.6 million compared to $100.3 million in 2020, a 21% gain. The net loss for the year was steeper at $37.1 million compared to $21.8 million in 2020, translating to a net loss per share of $1.22 compared to $0.83 in 2020.

Total revenue for the fourth quarter was $31.5 million compared to $23.0 million in the fourth quarter of 2020. The fourth quarter net loss was $16.4 million compared to a net loss of $6.2 million in the fourth quarter of 2020, resulting in a net loss per share of $0.50 compared to $0.23 in the fourth quarter last year. Adjusted Ebitda was in the negatives as well.

Shares closed at $25.92 on Thursday, down 5.61%, or $1.54, following the disappointing earnings per share numbers. However, after hours, the share price rebounded to $28.00 on a strong outlook.

Top-line growth was driven by enhanced adoption of Aspen Aerogels' products. For example, the company generated $6.7 million of PyroThin thermal barrier revenue in 2021 from 10 customers, and commenced shipment of PyroThin production parts to its major U.S. and Asian automotive customers.

"Our business continues to accelerate and we are pleased with the increasing market adoption of our high-performance thermal solutions,” Don Young, Aspen's President and CEO, said in a statement. “Aspen's 2021 revenue growth of 21% reflects our initial revenues in the electric vehicle market and a continuation of the beginning stages of a post-Covid recovery in the energy infrastructure market."

Young said that Aspen was not immune to Covid-related staffing and raw material shortages during the year, particularly in the fourth quarter. The company carried a backlog of between $6 million and $8 million of fourth quarter orders into the first quarter of 2022 due to Covid-related production constraints, the statement noted.

To support its PyroThin thermal barrier and carbon aerogel battery materials businesses, executives also significantly increased the level of investment during the year in personnel, infrastructure and related activities. “The combination of these planned investments and the Covid-related production constraints during the year contributed to a decrease in adjusted Ebitda and an increase in net loss versus 2020," Young added.

Management also selected Statesboro, Georgia as the site for its second manufacturing plant, estimating $1.35 billion in annual revenue capacity. The increases in business growth investments are positive signs for the company's growth potential.

In addition, Aspen announced that Koch Strategic Platforms, a subsidiary of Koch Investments Group, has agreed to make a $150 million investment in Aspen through the purchase of convertible notes and common stock to support the company's aerogel thermal barrier growth opportunities.

For 2022, Aspen’s management estimates total revenue will range between $145.0 million and $155.0 million. The net loss is expected to range between $66.7 million and $70.7 million, while adjusted Ebitda should fall between a loss of $42.0 million and a loss of $46.0 million. The net loss per share is expected to range between $1.95 and $2.07. The outlook assumes depreciation and amortization of $9.7 million, stock-based compensation expenses of $8.2 million, interest expenses of $6.8 million and weighted average shares outstanding of 34.2 million for the full year.


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