Aspen Aerogels (ASPN) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $117.8 million, up 145% year-over-year and 25% sequentially, with gross margin reaching 44% and net income of $16.8 million, reversing a prior year loss.

• Adjusted EBITDA reached $28.9 million (25% margin), a $39.8 million year-over-year improvement.

• Both Energy Industrial and EV Thermal Barrier (PyroThin) segments delivered record revenue and gross profit, supported by new awards and expanded customer base.

• Continued operational excellence with improved manufacturing yield, cost management, and reduced CAPEX, supporting a robust balance sheet.

• The company is expanding manufacturing capacity and investing in R&D to support growth in the EV and energy industrial markets.

Financial highlights

• Q2 2024 revenue was $117.8 million, with $81 million from EV Thermal Barriers and $37 million from Energy Industrial; gross profit increased 6.1x to $51.6 million.

• Net income improved by $32.2 million year-over-year, reaching $16.8 million; diluted EPS was $0.21.

• Adjusted EBITDA was $28.9 million, up from $(10.8) million year-over-year.

• Cash from operations was $6.8 million; ended Q2 with $91.4 million in cash and equivalents.

• LTM revenue was $357.3 million, up 88% year-over-year; LTM gross profit was $130 million, up 506% year-over-year.

Outlook and guidance

• 2024 revenue outlook raised to at least $390 million (63% YoY growth), with adjusted EBITDA of at least $60 million and net income of over $7 million.

• Gross margin expected at 41% for 2024; diluted EPS outlook above $0.09.

• Energy Industrial segment expected to deliver at least $150 million in revenue; EV thermal barrier business projected to deliver over $240 million in revenue.

• Capital expenditures outlook reduced, with Plant Two construction in Georgia not advancing beyond $15 million until DOE loan approval.

• Management expects continued strong revenue growth, led by accelerating EV demand and market share gains in sustainable insulation.