NORTHBOROUGH, Mass. - Aspen Aerogels, Inc. (NYSE: NYSE:ASPN), a leader in sustainability and electrification solutions, has announced its preliminary revenue results for the full year of 2023 and provided a revenue outlook for 2024, as well as an update on its supplemental aerogel supply.
In the fourth quarter of 2023, Aspen reported revenues of $84M, marking a 38% increase from the previous quarter. The company's PyroThin thermal barrier revenues saw a significant rise of 61% quarter-over-quarter, reaching $53M, while Energy Industrial revenues grew by 11% to $31M. For the full year, the company's revenues were $238M, a 32% increase year-over-year, with PyroThin thermal barrier revenues doubling to $110M, and Energy Industrial revenues growing modestly by 3% to $128M. This growth trajectory effectively met Aspen's early 2021 target to double revenues by 2023.
Looking ahead to 2024, Aspen anticipates revenues of $350M, which would represent over a 47% increase in year-over-year revenue growth. This forecast is bolstered by the successful initial shipments from its supplemental supply, which aims to meet the full demand potential of its Energy Industrial business.
Aspen's President and CEO, Don Young, expressed pride in the company's achievements, including the notable revenue growth and improved profitability profile. He emphasized the company's focus on reaching gross margin and adjusted EBITDA margin targets of 35% and 25%, respectively.
Despite the positive outlook, Ricardo C. Rodriguez, Aspen's CFO and Treasurer, noted the potential challenges ahead, such as scaling new electric vehicle (EV) nameplates by customers. He underlined the importance of optimizing cost structures and maximizing business potential to navigate uncertainties.
The preliminary financial results for 2023 remain unaudited and subject to completion of financial closing procedures and internal reviews. Aspen expects to release its actual financial results for the fourth quarter on February 12, 2023.
These forward-looking statements, including the 2024 revenue outlook, are subject to risks and uncertainties, including potential supply chain disruptions, cost inflation, and events related to capacity expansion, which could cause actual results to differ materially.
This announcement is based solely on information currently available to Aspen's management and does not represent a comprehensive financial statement. The company cautions investors to consider the risks associated with forward-looking statements.
Aspen Aerogels specializes in aerogel technology, which contributes to resource efficiency, e-mobility, and clean energy. Its products serve various markets, including electric vehicles, sustainable building materials, and energy infrastructure. The company's headquarters and manufacturing facilities are located in Northborough, Mass., and East Providence, R.I., respectively. This information is based on a press release statement.
InvestingPro Insights
As Aspen Aerogels, Inc. (NYSE: ASPN) strides forward with its optimistic revenue outlook for 2024, insights from InvestingPro can provide investors with additional context on the company's financial health and market performance. According to real-time data, Aspen boasts a market capitalization of $14.59B, indicating a robust presence in the market. The company's P/E ratio stands at 18.47, which suggests a reasonable valuation relative to its earnings. Moreover, Aspen has experienced a commendable revenue growth of 22.15% over the last twelve months as of Q1 2023.
InvestingPro Tips highlight Aspen's high earnings quality, as evidenced by free cash flow that exceeds net income, and a consistent increase in earnings per share. Furthermore, analysts remain optimistic about the company's sales growth in the current year. These factors, combined with Aspen's impressive gross profit margins and the fact that it has maintained dividend payments for 26 consecutive years, paint a picture of a financially sound and reliable investment.
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