Home Economy Economic Activity Aspen Aerogels affirms plan to restart E.P. plant; Q1 loss narrows to...

Aspen Aerogels affirms plan to restart E.P. plant; Q1 loss narrows to $23.7M

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PBN Staff

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05/07/2026

e0022ab6ee8857d — ASPEN AEROGELS operators Dave Lemire, forefront, and Justin Escobar work near the production line at the East Providence facility in 2017. The company said Thursday it expects to reopen the plant in May after it was shut down on April 8 due to an explosion. /COURTESY ASPEN AEROGELS

NORTHBOROUGH, Mass. – Aspen Aerogels Inc. on Thursday posted a $23.7 million loss in the first quarter of 2026 and said it expects to restart the East Providence plant this month that was shut down after an explosion. The company’s remarks came during its first quarter earnings presentation, days after East Providence Mayor Bob DaSilva

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NORTHBOROUGH, Mass. – Aspen Aerogels Inc. on Thursday posted a $23.7 million loss in the first quarter of 2026 and said it expects to restart the East Providence plant this month that was shut down after an explosion. The company’s remarks came during its first quarter earnings presentation, days after East Providence Mayor Bob DaSilva told Providence Business News the company told him it expects the plant, which was shut down following an explosion on April 8, to resume operations on May 12. "We are immensely grateful that no employees were seriously injured in the incident. We are also appreciative of the professional work of first responders that night. In the time since, our team has made significant progress. Their work has been instrumental in creating a clear path forward for our East Providence facility," said Don Young, Aspen Aerogels CEO and president. "We also deeply value the close cooperation of East Providence and Rhode Island public officials." Eleven employees were injured when an accidental buildup of ethanol vapors inside a drying oven caused the blast, according to the R.I. State Fire Marshal’s Office. The blast damaged portions of the building and manufacturing equipment and sent debris across the facility, officials said. All 11 injured workers were transported to local hospitals and later released. City officials also said the oven involved in the explosion had open permits that had not been finalized and had not received a final inspection, an issue that remains under review. Aspen Aerogels has been working with state environmental regulators to ensure all requirements are met before restarting operations, DaSilva said May 5. “While it will take time to restore East Providence to its full capabilities, we are working closely with our external manufacturing facility to enhance its production capabilities to support both our energy industrial and thermal barrier segments,” Young said. "These efforts are intended to develop both near- and long-term supply flexibility, strengthening our operational resilience and reinforcing our commitment to customers.” For the quarter, the loss narrows the $301.2 million loss in the company reported a year ago. The 2025 first-quarter loss included a $286.6 million impairment charge in connection with the demobilization of the company’s previously planned second aerogel manufacturing plant in Statesboro, Ga., and $9.8 million in associated restructuring costs. The company said it had a loss of 29 cents per diluted share for the quarter which ended March 31, compared to a loss of $3.67 per diluted share a year ago. The results fell short of Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 27 cents per share. Revenue totaled $37.9 million in the period, down from $78.7 million a year ago and missing Wall Street forecasts. Four analysts surveyed by Zacks expected $82.9 million. During the first quarter of 2026, Aspen said it received $37.6 million in cash from General Motors related to a commercial settlement, of which $3.5 million was recognized as revenue. The remainder was recorded as deferred revenue, with approximately $4.9 million to be recognized as revenue quarterly through the end of 2027. Thermal barrier segment revenue was $16.3 million, compared to $48.9 million a year ago, reflecting a significant reduction in customer demand following changes in regulatory frameworks and incentive programs. Energy industrial segment revenue was $21.6 million, compared to $29.8 million in the prior year period. “While the first half of 2026 has been shaped by temporary disruptions and evolving market conditions, we believe the fundamentals of our business are solid,” said Young. “We are seeing positive market signals across our energy industrial platform, alongside growing diversification in our thermal barrier segment. As we move through the year, we expect to build momentum and further strengthen our positioning for sustained growth into 2027 and beyond.” For the quarter ending in June, Aspen Aerogels expects revenue in the range of $40 million to $48 million. (Material from The Associated Press was used in this report.)