Aspen Aerogels (NYSE:ASPN) Releases Earnings Results, Beats Expectations By $0.20 EPS

Key Points

• Aspen Aerogels beat quarterly expectations: It reported EPS of $0.11, $0.20 above consensus, and revenue of $85.18 million versus forecasts of $72.07 million.
• Management sees growth opportunities across its businesses: European thermal-barrier sales are scaling, energy-industrial demand remains strong, and the company is targeting about 20% growth in 2026. Battery storage and data-center markets are early-stage opportunities.
• Operational disruption remains a headwind: The East Providence facility restart is expected to finish in the first half of 2027, with incident-related costs continuing and insurance reimbursements pending; Aspen ended Q3 with $146.5 million in cash and restricted cash.

Aspen Aerogels (NYSE:ASPN - Get Free Report) posted its quarterly earnings results on Thursday. The construction company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of ($0.09) by $0.20, FiscalAI reports. The business had revenue of $85.18 million for the quarter, compared to analysts' expectations of $72.07 million. Aspen Aerogels had a negative net margin of 62.45% and a negative return on equity of 31.12%.

Here are the key takeaways from Aspen Aerogels' conference call:

• Q3 results exceeded guidance: Revenue was $85.2 million and adjusted EBITDA was $19.8 million, with higher volumes lifting adjusted gross margin to 41%. Management said the quarter’s roughly 75% incremental EBITDA conversion was unusually high due to product mix and cost absorption, and expects a more typical 50%–60% going forward.
• European thermal-barrier business is scaling: Record Q3 revenue from seven OEMs across eight programs supports a 2026 revenue expectation near $30 million and a 2027 target of $50 million–$60 million. Management also cited recovering GM production, while its Q4 assumptions for GM are below the current industry forecast.
• Energy industrial demand remains strong: Aspen is targeting approximately 20% growth in 2026, citing robust LNG activity, completed subsea deliveries and a subsea project in hand for 2027. Management described LNG and broader energy-infrastructure investment as opportunities for further growth.
• New markets are beginning to contribute: Aspen recorded initial revenue from battery energy storage system evaluations and secured its first data-center infrastructure order for Q4. Both opportunities remain early-stage, though management sees potential for BESS revenue in 2027 and views data centers as a possible high-margin extension of its existing capabilities.
• East Providence disruption continues to weigh on results and cash flow: The staged restart is expected to be completed in the first half of 2027, with incident-related costs continuing in the meantime and insurance reimbursements still pending. Aspen ended Q3 with $146.5 million in cash and restricted cash and net cash just above $60 million.

Aspen Aerogels Price Performance

Shares of ASPN stock traded down $0.25 during midday trading on Friday, hitting $4.91. 1,854,782 shares of the company were exchanged, compared to its average volume of 849,016. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.24 and a current ratio of 2.52. Aspen Aerogels has a 52 week low of $2.30 and a 52 week high of $8.10. The firm's 50 day moving average price is $5.23 and its two-hundred day moving average price is $4.70.

Insider Buying and Selling

In other news, major shareholder Wood River Capital, Llc sold 12,280,426 shares of the company's stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $4.73, for a total value of $58,086,414.98. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 2.96% of the company's stock.

Analyst Upgrades and Downgrades

ASPN has been the topic of a number of recent research reports. Weiss Ratings reissued a "sell (d-)" rating on shares of Aspen Aerogels in a research report on Monday, September 21st. B. Riley Financial reiterated a "buy" rating on shares of Aspen Aerogels in a research note on Friday, August 7th. Barclays increased their price objective on Aspen Aerogels from $4.00 to $5.00 and gave the company an "underweight" rating in a research report on Tuesday, August 11th. Roth Capital reissued a "buy" rating and set a $7.75 price target on shares of Aspen Aerogels in a research report on Friday, August 7th. Finally, Wall Street Zen raised shares of Aspen Aerogels from a "sell" rating to a "hold" rating in a research note on Saturday, October 31st. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Aspen Aerogels currently has an average rating of "Hold" and an average target price of $5.94.

About Aspen Aerogels

Aspen Aerogels, Inc is an advanced materials company that develops, manufactures and sells aerogel-based products. Aerogels are highly porous materials used for thermal management, insulation and protection. The company serves customers in the energy, industrial, transportation and building materials markets.

Its product portfolio includes thermal barriers designed to help protect electric vehicle batteries from thermal runaway, as well as insulation products for industrial, energy infrastructure and building applications.

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