NORTHBOROUGH, Mass. - Aspen Aerogels, Inc. (NYSE: NYSE:ASPN), a leader in sustainability and electrification solutions, announced today that it has been awarded a contract by Valmet Automotive to supply its PyroThin® thermal barrier for the upcoming electric-only Porsche (ETR:P911_p) 718 series. Valmet Automotive, Porsche's manufacturing partner, is set to begin production of the new electric vehicles, which include the Cayman and Boxster models, in 2025.
Aspen's President and CEO, Donald R. Young, expressed enthusiasm about the partnership with Valmet Automotive and Porsche, indicating that the contract affirms PyroThin® as a preferred solution for electric vehicle (EV) thermal barriers. According to Young, Aspen anticipates adding more customer awards to its portfolio throughout 2024, which will diversify and strengthen its customer base into 2025 and beyond.
In conjunction with the announcement, Aspen also confirmed that its 2024 financial outlook remains unchanged. The company projects significant year-over-year improvements in revenue, with over $380 million expected, and a substantial increase in Adjusted EBITDA, estimated to exceed $55 million. These figures suggest a robust growth trajectory for Aspen, particularly in the context of its thermal barrier and energy industrial segments.
Ricardo C. Rodriguez, Aspen's Chief Financial Officer and Treasurer, emphasized the company's pragmatic approach to financial planning and expressed confidence in the long-term prospects of the Energy Industrial segment and its PyroThin® customer base.
Aspen Aerogels specializes in aerogel technology that supports resource efficiency, e-mobility, and clean energy. The company's products, including PyroThin®, are designed to address thermal runaway challenges in the EV market, while its carbon aerogel initiative aims to enhance lithium-ion battery performance for EV manufacturers.
The information in this article is based on a press release statement from Aspen Aerogels, Inc.
In other recent news, Aspen Aerogels has seen several adjustments to its stock price target from financial firms. Roth/MKM, TD (TSX:TD) Cowen, and Piper Sandler all raised their price targets to $36.00, maintaining their positive ratings on the company's stock. The revised targets reflect confidence in Aspen Aerogels' growth trajectory, particularly due to increased production from General Motors (NYSE:GM).
H.C. Wainwright also increased its price target for Aspen Aerogels following strong Q1 performance and upward revision of its 2024 projections. The company now expects revenues of at least $380 million, up from the previous forecast of $350 million. The revised projections also include an increase in EBITDA to at least $55 million and EPS to at least $0.03.
Aspen Aerogels' Thermal Barrier capacity is anticipated to be fully allocated by late 2026, indicating strong market demand. The company is also considered a potential candidate for a Department of Energy loan, which could help restart operations at its Georgia manufacturing plant. These recent developments suggest a positive outlook for Aspen Aerogels as it continues to navigate the expanding electric vehicle market.
InvestingPro Insights
As Aspen Aerogels, Inc. (NYSE: ASPN) gears up for its collaboration with Valmet Automotive and Porsche, the financial outlook for the company is a focal point for investors. With a significant contract in hand and a positive outlook for 2024, it's crucial to delve into the company's financial health and stock performance using real-time data and insights from InvestingPro.
InvestingPro Data shows that Aspen Aerogels has a market capitalization of $2.32 billion, reflecting its standing in the market. The company's revenue growth is particularly impressive, with a 53.37% increase over the last twelve months as of Q1 2024, and a staggering quarterly growth rate of 107.3% in Q1 2024. This aligns with the company's projection of significant year-over-year improvements in revenue.
Despite a negative P/E ratio of -71.84, indicating that the company has not been profitable over the last twelve months, the strong revenue growth suggests potential for future profitability. This is supported by an InvestingPro Tip indicating that analysts predict the company will be profitable this year. Additionally, the company's stock has experienced a strong return over the last three months, with a 70.06% price total return, and is currently trading near its 52-week high, at 95.9% of that value.
Investors looking for more in-depth analysis and additional InvestingPro Tips can visit https://www.investing.com/pro/ASPN. There are 15 additional tips available, providing a comprehensive understanding of Aspen's financials and stock performance. For those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off, unlocking a wealth of financial insights and tips to inform investment decisions.
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