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

Aspen Aerogels (NYSE:ASPN) issued its quarterly earnings data on Thursday. The construction company reported $0.11 EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.20, FiscalAI reports. Aspen Aerogels had a negative return on equity of 31.12% and a negative net margin of 62.45%. The firm had revenue of $85.18 million for the quarter, compared to analyst estimates of $72.07 million.

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 Stock Performance

Shares of ASPN stock traded down $0.25 on Friday, reaching $4.91. The company had a trading volume of 1,854,782 shares, compared to its average volume of 849,016. The company has a quick ratio of 2.24, a current ratio of 2.52 and a debt-to-equity ratio of 0.36. Aspen Aerogels has a one year low of $2.30 and a one year high of $8.10. The business’s 50-day moving average is $5.23 and its 200 day moving average is $4.70.

Analyst Upgrades and Downgrades

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

Insider Activity

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

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.