Aspen Aerogels reports Q4 2025 losses but secures key EV contracts with European automakers
Aspen Aerogels has released its financial results for fiscal Q4 2025, showing mixed performance across key areas. The company reported a quarterly revenue of $41.3 million, though it faced a net loss of $72.9 million for the same period. Despite challenges, new contracts with major European carmakers signal potential growth in its Thermal Barrier division.
Total revenue for fiscal Q4 2025 reached $41.3 million, split between $25.3 million from the Energy Industrial segment and $16.1 million from Thermal Barrier. For the full year, revenue stood at $271.1 million, with Energy Industrial contributing $102.2 million and Thermal Barrier $168.9 million. The company's gross margin for 2025 was 17%, though Q4 costs rose to 48% of revenue due to lower production and one-off expenses.
Operating expenses in Q4 fell to $21.0 million, down from $22.6 million in the previous quarter. However, the GAAP net loss for the quarter was $72.9 million, bringing the full-year loss to $389.6 million. Adjusted EBITDA was negative $18 million in Q4, though it remained positive at $2.9 million for the entire year. Cash reserves at year-end totalled $158.6 million, with $6.1 million generated in Q4 alone.
Looking ahead, Q1 2026 revenue is forecasted between $35 million and $40 million, with adjusted EBITDA expected between negative $13 million and negative $10 million. The Energy Industrial segment is projected to grow by 20% in fiscal 2026, driven by demand in subsea, LNG, and deferred maintenance projects.
Recent wins include contracts with Volkswagen Group and Renault for Thermal Barrier technology, expanding Aspen's European EV pipeline. Public sources suggest global automakers like Toyota, Hyundai, and General Motors are also in qualification stages. The company's European EV projects now target $220 million in revenue for 2027 launches and over $450 million for 2028, covering both passenger and commercial vehicles.
Aspen Aerogels faces ongoing financial pressures, with Q4 losses and negative adjusted EBITDA offset by strong cash reserves and new automotive contracts. The company's Thermal Barrier division is securing deals with major carmakers, while Energy Industrial anticipates growth in 2026. These developments could shape its performance in the coming quarters.
