Aspen Aerogels (ASPN) investor relations material

Business overview and technology

• Core technology is a silica-based aerogel, offering 3–10x better thermal insulation than alternatives, with fireproof and hydrophobic properties.

• Initial applications focused on energy industrial infrastructure, including oil refineries, LNG facilities, and subsea pipelines.

• Expanded into EV battery thermal barriers, driving a significant revenue shift.

• Aerogel platform is protected by over 400 patents and complex trade secrets, making replication difficult.

• Installed base exceeds $1.5 billion in product, supporting recurring maintenance-driven revenue.

Financial performance and targets

• EV thermal barrier revenue grew from $7M in 2021 to over $300M last year, surpassing traditional energy segment.

• Total revenue expected just over $300M this year, with improved cost structure and meaningful EBITDA.

• Targeting 35%+ gross margins and at least 25% EBITDA margins, with recent quarters showing progress toward these goals.

• Achieved 36% gross margin in the past quarter; expects to sustain 35% margins as volumes increase, especially by 2027.

Competitive differentiation and IP

• Aerogel product is more pliable and delivers superior thermal isolation compared to competitors.

• Western OEMs have tested alternatives but awarded business due to performance and process advantages.

• External manufacturing in China required significant process oversight to meet quality standards.