Aspen Wins PyroThin Design Award From Valmet Automotive

Aspen Aerogels, Inc. ASPN secured a PyroThin design award from Porsche's manufacturing partner, Valmet Automotive, to supply the next-generation electric-only Porsche 718 series. This marks the company's sixth OEM award. Aspen Aerogels also reiterated its 2024 financial goals.
The company is optimistic about adding Valmet Automotive and Porsche to its growing list of customers. Aspen Aerogels believes that this award validates PyroThin as a leading EV thermal barrier solution. It expects to secure more awards in 2024, driving further diversification in its PyroThin customer base for 2025 and beyond.

2024 Outlook Unchanged

For 2024, the company expects revenues to be more than $380 million, suggesting an increase of 59% year over year. Revenues from the Thermal Barrier segment are expected to be more than $230 million, up 109% year over year. Meanwhile, the Energy Industrial segment's revenues are expected to be greater than $150 million, reflecting an increase of 17% from the year-ago reported figures.
Adjusted EBITDA is expected to be more than $55 million, up 340% year over year. It expects net income to be more than $2 million, up 104% year over year. The company expects its earnings per share to be more than 3 cents, which indicates an increase of 105% on a year-over-year basis.
The company developed a pragmatic performance baseline for 2024. This was part of the recently communicated outlook increase in the first-quarter 2024 results. Its profitable Energy Industrial segment, along with a broad set of blue-chip PyroThin customers, positions it to support the long-term EV demand ramp.

Focus on PyroThin Thermal Barrier Business

PyroThin improves EV battery safety by combining thermal propagation protection with lifecycle mechanical performance. The company's strategy focuses on three key elements. First, ASPN is fully converting Plant 1 in East Providence, Rhode Island, to support PyroThin thermal barrier growth. Second, the company is transitioning to an External Manufacturing Facility to support the Energy Industrial business. Lastly, ASPN is improving operating performance to reinforce financial flexibility and strength, which will help it achieve interim and long-term targets.
During the first quarter of 2024, EV thermal barrier revenues of $65.4 million increased 459% on a year-over-year basis and 24% sequentially, respectively. The upside was backed by consistent volumes for Toyota and accelerating volume in GM's production of Ultium platform based electric vehicles. Also, the launch of production parts for Scania drove the performance.

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ASPN, which currently carries a Zacks Rank #3 (Hold), has gained 270.9% in the past year compared with the Zacks Building Products - Miscellaneous industry's 36.2% growth. Earnings estimates for 2024 indicate a year-over-year rise of 112.1%.

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