Aspen Aerogels raises 2022 loss projection and revenue forecast

NORTHBOROUGH, Mass. – Aspen Aerogels Inc., a nanotechnology firm that designs and manufactures energy-efficient insulation products, updated its 2022 outlook Monday, raising both its per-share loss projection and revenue forecast.

The company, which has a manufacturing facility in East Providence, is now expecting a $2.20 to $2.40 loss per share for the year, compared to a prior loss projection of $1.88 and $1.99 per share. The adjustment was driven by increased materials costs and increased manufacturing and operating expenses necessary to support the additional thermal barrier volumes.

But Aspen is also expecting total revenue for the year to increase between $180 million and $200 million, up from the previous estimate of $145 million to $155 million.  

The company added that $34 million to $44 million of the increased revenue outlook is driven by additional thermal barrier volumes, including an increased visibility to an expected order for the year from General Motors and Toyota Motor Corp.

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“The higher-than-expected demand for thermal barriers from General Motors and Toyota is enabling us to accelerate planned transitions in our operating plan and pave our path to profitability,” said Ricardo C. Rodriguez, Aspen Aerogels senior vice president and chief financial officer. Our target gross profit margins are coming into focus as the absorption of fixed costs improves and our conversion costs decrease as a percentage of sales. In many ways our plans for 2022 now look very much like our original plans for 2023 coming into this year.” 

The company also announced that work is finished at its second manufacturing facility in Statesboro, Ga., and said it has leased its high-volume thermal barrier facility in Mexico. 

“Our updated outlook for the year reflects an acceleration in demand and penetration in the EV market, coupled with solid energy industrial growth,” said Aspen Aerogels CEO Donald Young. “We are increasing our investment levels for the year in advance of the significant expected growth within our PyroThin thermal barrier business. These investments are focusing on Phase 1 of Plant II; a high-volume thermal barrier assembly operation in Mexico; and enhancing the technical, commercial and operational teams that support our thermal barrier business.”