Aspen Aerogels Q3 Revenue Jumps 71%, Adjusted EBITDA Turns Positive

Aspen Aerogels reported third-quarter 2026 revenue and adjusted EBITDA above the high end of its outlook, as stronger deliveries across both its Energy Industrial and Thermal Barrier segments helped the company return to positive adjusted EBITDA. Revenue reached $85.2 million, up 71% from the second quarter, while adjusted EBITDA was $19.8 million, representing a 23% margin.

The results exceeded Aspen’s revenue outlook of $65 million to $80 million and adjusted EBITDA outlook of $7 million to $15 million. The company still recorded a GAAP net loss of $10.4 million, or $0.13 per share, including $15.1 million of costs related to the East Providence manufacturing incident and a $4.6 million loss on the disposal of property, plant and equipment.

Excluding specified items, adjusted net income was $9.3 million, or $0.11 per share, compared with an adjusted net loss of $17.9 million, or $0.22 per share, in the second quarter. Aspen said the $35 million sequential increase in revenue generated approximately $26 million of additional adjusted EBITDA.

Gross margin was 24%. Excluding $14.7 million of East Providence incident costs included in cost of revenue, adjusted gross margin was 41%. Adjusted operating expenses declined to $22.7 million from $23.1 million in the prior quarter.

Growth across both operating segments

Thermal Barrier revenue rose 54% sequentially to approximately $45 million, supported by demand from General Motors and European automakers. Aspen generated a record $8 million of European Thermal Barrier revenue during the quarter, roughly four times the year-earlier amount, across seven automakers and eight programs.

The company expects European Thermal Barrier revenue of approximately $30 million for full-year 2026, compared with $9 million in 2025. Programs already awarded represent potential 2027 revenue of roughly $50 million to $60 million, although Aspen cautioned that awards and quotations may not convert into orders or revenue.

In North America, the presentation indicated that dealer inventory of GM-built battery electric vehicles had fallen by more than half since the end of 2025 and was stable during the third quarter, while monthly sales increased through the period. Aspen said GM production was becoming more closely aligned with current sales.

Energy Industrial revenue climbed 96% from the second quarter to approximately $40 million, driven by LNG and subsea project deliveries. Aspen also received its first data-center infrastructure order, which it expects to deliver in the fourth quarter, and secured a key Energy Industrial project award for delivery in 2027.

Adjacent markets made an initial contribution, with Aspen recording its first revenue from prototype parts for battery energy storage systems during the quarter.

Fourth-quarter outlook

For the fourth quarter of 2026, Aspen expects revenue of $60 million to $75 million and adjusted EBITDA of $5 million to $13 million. The company projects a GAAP net loss of $8 million to $11 million and a loss per share of $0.10 to $0.13, based on 83.1 million weighted-average shares outstanding.

Management identified continued LNG deliveries, the expected first data-center order shipment and expanded work on key Energy Industrial projects as principal factors in the outlook. Thermal Barrier assumptions include European OEM revenue tracking toward about $30 million for the full year and GM production aligning more closely with sales.

Aspen expects full-year 2026 capital expenditures to remain below $10 million, excluding costs to restore the East Providence facility. Third-quarter capital spending totaled $4.7 million, including $1 million for restoration work.

The company ended September with $146.5 million of cash, cash equivalents and restricted cash. Approximately $20 million of year-to-date incident costs had been submitted for insurance recovery but were not yet reflected in the quarter-end cash balance. Aspen said it had received an initial insurance advance and that the claims process remained ongoing.

Aspen is targeting completion of its staged East Providence production-restoration project in the first half of 2027. Its outlook remains subject to risks including the timing and completion of that work, the facility’s ability to manufacture the full range of products and meet demand, possible disruptions at internal or external manufacturing sites, Energy Industrial project timing, and the right of EV Thermal Barrier customers to cancel contracts without penalty.