Aspen Aerogels reported an 81% sequential increase in Thermal Barrier revenue during the second quarter of 2026 as demand stabilized in North America, European EV programs continued ramping and the company secured a new PyroThin award covering two next-generation Jaguar Land Rover vehicle architectures.
Thermal Barrier revenue reached $29.5 million, up 81% quarter-over-quarter. Aspen said the improvement reflected stabilizing North American program volumes and continued momentum from European automakers.
The company also secured a PyroThin award spanning two of Jaguar Land Rover’s next-generation vehicle architectures and supporting multiple JLR brands. Production under the award is expected to begin in 2027.
PyroThin is Aspen’s aerogel-based thermal barrier technology designed to address thermal runaway risks in electric vehicle batteries. The company’s broader Aerogel Technology Platform also includes Cryogel and Pyrogel products used by energy infrastructure customers.
Aspen raised its 2026 European Thermal Barrier revenue outlook to between $20 million and $30 million as European OEM programs continue to ramp. The business is becoming an increasingly important offset to weakness caused by changes to North American EV regulatory frameworks and incentive programs.
Total Q2 revenue reached $49.8 million, up 32% sequentially, although it remained below $78 million in the prior-year quarter. Energy Industrial revenue was $20.4 million, compared with $22.8 million a year earlier.
Aspen continued operating through the effects of an April incident at its East Providence, Rhode Island manufacturing facility. The company began a staged restart while maintaining customer supply using existing inventory, production from an external manufacturing facility and limited production from East Providence.
The incident resulted in an $8.9 million property-damage loss during Q2, offset by an estimated $8.9 million insurance recovery receivable. Aspen also incurred $5.3 million of additional incident-related expenses and plans to seek reimbursement for those costs under its business interruption insurance.
Adjusted EBITDA was negative $6.6 million in Q2, but Aspen expects a sharp improvement during Q3. The company forecasts revenue of $65 million to $80 million and Adjusted EBITDA between $7 million and $15 million, excluding an estimated $5 million to $10 million of East Providence-related costs.
Aspen ended Q2 with $153.4 million of cash, cash equivalents and restricted cash. Full-year capital expenditures, excluding costs associated with restoring the East Providence facility, are expected to be less than $10 million.
KEY QUOTES:
“The second quarter demonstrated the resilience of our team and the durability of our business. As we managed through the East Providence incident, we kept our customers supplied, advanced the facility’s staged restart, and strengthened the long-term flexibility of our operations.”
“We enter the third quarter with solid momentum, supported by accelerating Energy Industrial project activity, stabilizing North American Thermal Barrier demand, and the continued ramp in European Thermal Barrier revenue.”
Don Young, President and CEO of Aspen Aerogels
“Our third-quarter outlook of $65 million to $80 million in revenue and $7 million to $15 million in Adjusted EBITDA represents a meaningful improvement in financial performance.”
Grant Thoele, Chief Financial Officer and Treasurer of Aspen Aerogels
