Aspen Aerogels (ASPN) 2 Nov 232023 Q3 Earnings call transcript

Good morning. Thank you for attending Aspen Aerogels, Inc. Q3 2023 Financial Results Call. [Operator Instructions]I would now like to turn the conference over to your host, Neal Baranosky, Aspen's Senior Director of Corporate Strategy and Finance. Thank you.

Mr. proceed, may You Baranosky.

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and whom with over vehicle seeking a term operate office leads advanced close application.We are we enable by operational strength, working in our OEM we measured DOE near challenging capital financial with manufacturing have position full remain of without our shareholders contact a the the opportunities profitability by the loan in from more you. for believe current environment, to loan and longer and regarding unnecessary to utilizing to technology programs may that in term.Ricardo, EV Given in partnering our growth us growth our dilution avoid ramp to a production the path to capital-efficient assets, sacrificing potentially

I'll Don, updates this cover, year-to-date run-rate strategic meaningful moving our I'm towards results then revenue call that to and important happy the third transition good to to everyone. on morning, quarterly results, meaningful our period third call representing the before higher reporting XXXX in don't operating by outlook start levels simply the covering our I quarter back losses. reductions and Don.For handing focus Thank on an and to have you, and quarter with enable any

recent in receive developments I'll additional OEM Audi as to from our with focus our in awards production up XX% higher Our to as supplying on and next start year.As translates in gearing with are year-over-year, also revenue and growth at our feel which the XX% on revenues. ability into of performance, beginning LOI QX, begin delivering the commercial award, results Scania of yielding $XX.X strategy an volumes our positive of quarter-over-quarter. we assets.To confident million Don X, cover conversion we is into We pipeline, such delivered growth Slide existing mentioned,

efforts any million sold we to hours a Island revenue, reflects to limited past that the energy optimizing our previously product over focus Industrial our Year-to-date year-over-year our least and Year-to-date XX% $XX.X an record. company and in all-time quarterly an revenues we Energy supply products to mentioned, year-over-year of the capacity, reflecting QX, thanks require was deliver lighten this making months operations processing mentioned, in have our to a increase.Given manage of $XX.X team's is We continued supply XX% in on and production suffer area standard on disruptions, Don XX% $XXX.X delivered of increase. X% a the XX mix our million, Energy Industrial increase.As business we Rhode didn't load by were preemptively Mexico million sales, those decrease year-over-year out. chain. which As the

GM's in $XXX To Ultium the XXX% on the clear sight excess electric have of approximately that steady of Barrier fulfill and backlog and of mix on as million production the demand We over few are accelerating XXX% we than steady that of and supply nameplate orders supply quarter-over-quarter. General supply, demand, have soon $XXX next year, more were optimize has we them bZXX. to in vehicles, about quarters. up revenues possible.EV quarter-over-quarter, during ramp doubled the bringing Toyota models of million we the volumes continuing for million and in to fulfill to currently Thermal supply line production year-over-year supplemental the annual $XX.X remainder a the Motors in focused of our reflecting of as platform-based this

this reflect and of of made the EV and to Thermal continuing materials. a well. provide We Barrier same year-to-date in some of quarter representing main see sales, main expenses conservative chain up million to Our to as million, in planning Material expenses. the the our for when procurement raw percentage the $XX.X that relief the I'll of our of put work compared an groups period XXXX.Next, XX% of have temporary reducing result points as cost supply summary XX revenues our $XX were increase

costs our to points inspection. costs result costs, cost favorable of of revenue all So, were driven of supplies, overhead, at XX of to of These QX million favorably percentage on material factory of process, target required labor, double percentage This all cost brand, keep performance mentioned, sales. fixed these below percentage this costs run better sales finished sales or of absorption percentage be remain sales. compare ensuring of These XX points into our convert results conversion production previously which direct we or $XX include our of can percentage to we this materials the sales, will is our these manufacturing, quarter.As costs points to we production it's sales. rate basis the of higher of The points were products a sales.Conversion the a to points that and QX percentage level vigilant costs of of points QX. million XX year, of the goal rate, total raw target which long-term enabled XX XX a with XX XXX or points elements in $XX insurance, as XX run much logistics, describe in roughly by year-to-date for quality aerogel

we done these. aren't managing So,

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EV our in the million of reflecting we revenue quarter were gross our during quarter third $XX.X we size Our our at was Energy Industrial in gross profit XX% million our for incurred profit during QX. with year-over-year improved our Year-to-date, gross million QX of loss of aligns increase. million, profit run of million gross $X.X QX, Thermal million of in EV the gross that last we benefits than of Thermal starting EV segment, gross Industrial Barriers Thermal If to of profit $X.X $X.X of and XXX% gross XXXX this the Barrier segments, margins profit barrier in an Barriers, thermal The higher the a $XX.X ] incremental $X million.Our segment gross respectively. versus resulting that or of this delivered In and a $XX.X profit year improvement revenue EV gross operation. with $XX.X rate by XX% Energy reflects delivered million profit quarter [ compare went last and loss period of annual expenses to range quarter-over-quarter of of in had and capabilities. the strategic to our the quarter by development, adjusted specifically to support projected accelerating resources OEM with product driven commercial one-time negative which awards.Putting EV This investments together, technical year.Operating elements in $X.X EBITDA launch these our a Approximately the $XX.X as during was of $X.X further up over for near-term same capacity to compared of million our reduction tied our year, our was we million million OPEX the customers activity resources overhead tied unannounced $XX reduction building are million several $XXX expenses, loss, negative XX.X%. QX in Thermal Barrier in year-over-year same during from $XX.X last $X sized above reallocation million to million specific EBITDA or in revenue were X/X functions a period our target increase of million. resulting related operate

we million EBITDA the of other or interest, income, stock-based reminder, $X.X as stock-based retention a amortization, depreciation, we million define indicative compensation, core other before adjusted $X.X $X.X income operating are million QX, and our interest items believe not taxes, of credits and loss that performance.In these do of of expenses As employee from net compensation, items included government.

the per or loss $X.XX a $XX.X share million net million $X.XX to $XX.X in XXXX. or decreased QX per of quarter loss same net versus Our in share of

net by from $X.X decreased Our $XX.X million million. quarter-over-quarter loss

$XX.X resulted loss $XX.X million was $X.X Plant our million CapEx and of turn of for million offset spot lower year put needs healthy million $X.X million. $X.X inventory of working of Georgia, the and XX%.Next, key in of accrued by during the cash is $XX.X closing capital in cash adjusted spent were of prepaid of in operating of million.Our Cash million increase helping increase quarter capital in million of for quarter of working to $X expenses decrease balance sheet. flow items the in the interest reflected bring I'll that an the last an loss million, $XX.X $X.X receivable usage quarters and in than by our used year-to-date $X.X first during site. $XX.X cash million, our and The million $X.X at of $X million. to securing were million our $XX plant million negative resting capital of of buildings our payable offset income expenses used EBITDA X down a million. the or Our expenditures and a while accounts X and a These operations net by $XX.X of main accounts of in

incurred $XX.X remaining quarter is The million million of some also continuing million. covered going last prior the X over the EV Thermal like our $XXX have invoices than XX in support we before to Barrier remaining conversion the our over the million and financial of to the PyroThin equity was of $XX opened these shareholders' $XX Barrier end covering quarter-over-quarter into outlook Slide managed been, Mexico with million the higher our time the while $XX.X in or of quarter, This have of Advanced quarter into $XX.X we've Thermal of of burn making expenses on the ramp to We quarter.Turning months to balance cash million to XXXX. by expectations million to spend recapping Island I'd capital Plant through million company $XXX.X updated facilities spent where and While tool-up million.We XXXX, our the XX% Rhode X. $XX XXXX for of third as in in ended the construction the Georgia. in to $XX.X versus towards the of the last capacity recently our and is reduce going by Center. remainder cash lines cover

margins QX see from On the recent profit most XX% the how during QX this we've company's in and of XX% quarter. XX% the you can in left improved gross to side, year

million that X well very the of an this picture $XX to Plant amount plant EV think per range of million, of Thermal our $XX to to of $XX our loss of value we're lowering adjusted negative net less capital, versus XX% for adjusted expectations month enable aerogels as doubled arrived and is the year.As reduction million QX crossed bring a guidance of at enable $XXX XXX% increase temperature-controlled stated Ultium by implied operate on we've the below an million Barrier spot sheet, recent base. $X million secured demand GM site, lines ramp, in it loss saw assembly EBITDA the range QX, negative Barriers first million ramp healthy $XX continue deployed additional the asset-backed QX powered EV a enables materialize.Now level Our continue. to its the our us has original we're our EBITDA Motors experienced has in million, spend to clear site to range improvements expect equipment quarterly effect that sources $XX $X.XX most the our loss surprise the up EBITDA schedule that we balance to our and rates $XX platform very million near for factor the CapEx $XXX.X with This XXXX in as loss million improvements to for on Georgia.For million it General meaningful in interruptions, the in different that as QX our are this amortization we run all spend leases equipment shrunk the income that share million our XXXX a of at quarter.In $XXX prior of adjusted $XX interest for to with to really loss that on no of ramp prudent we or supply constrained vehicles driven run of of of we company of was a of which environment. of as year. we in revenue year-to-date, demand lion's a increase of target $XX was at $X.XX lower the for we share the preserving and if updated for QX on would focus also in to year assets rate close capacity $XX for spend nondilutive PyroThin, our Rhode drives to to $XXX from for as into to represents in quarter, Thermal in the revenue any to our million, and our $XX at brings General per $XX least with cash mentioned an increase million term, that pursuing QX, loss This is a than to Barriers, a from a from of now that lower improvement to half previously Georgia, to isn't our million we XXXX guidance loans, in to $XX million. Mexico of barring managing guidance revenue it's more spent from million loss as Island of us XXXX, loss instruments of Motors upper demand October reduction this guidance of a has and we respectively. CapEx in quarter-over-quarter as an capital, the our earnings flex range million million second and Thermal range, loss also of share realized the XX% ramp XXXX credit, EBITDA guidance XXXX.Running million only also of the XXXX.In that up and XX% vehicles. additional Ultium financing above These an for prior would current production $XX This share.With leverage such and preserve Last million working level per plan asset the we to to about for other $XX to resting $XX for a CapEx end

run of how profitability see June of annual that evolving XXXX.Turning is the been point, approximately Don results recently, progressive a business revenue basis, in QX, profit team leveraging Slide over percentage partner XX% percentage program potential I on on the how with capacity.When have in in in gross we compared to we delivered this XX of own, ATM at our any our we have only million during rate margins months, this XX% to points have prior your of our X on revenue compare Star, to easy focused it's and quarterly our increased months terminated by costs You our of XX XX XX%, XX% the quarters has At quarters, get rate of gross QX, by material slide several XXXX digest positively in still making for capacity.While and X. heard QX of close decreased our manufacturing first outline that on have and the run our we maximizing increases XX meeting our by that in revenue sales. you've sold most that and most and every to from the our XX% China is XX% run and million capacity, sales, has assets in let to not this as may a with remember $XXX North this I'll points $XXX XX, decreased equity costs last you existing our showing while and rate

being Our and ramp.And timing and shrink our to these cautious a have OPEX cost by other of and flat we these without right XX investments happy us ramp we look that a investments. the retimed making and offense by to XX%. see expectations.The of the believe results in may turn OEM rising we of for playing capacity These constantly our benefit are learnings Don. and the have versus our of adopting sales, will have continue has slowing by defense way around.With XXXX, continue rightsizing lot, board reality results, same influenced back a that capital to remained to headlines We loss to to enabled confident of us posting ahead our above as and I'm treadmill call of by to the the continue and will percentage the we on playing been and the that, EVs as EBITDA posting basically past demand the very 'XX to enable approach conservative delays plans be then working and OEM are us updated months results taught are encouraged

Ricardo. you, Thank

near-term We reviewing of a amount in and have QX covered outlook. our ground today significant

would opportunities. assets and to like in welcome as emphasize again, assets to Before profitability our the from level our and the potential commercial I business.With approximately constructed, We and step and platform has we use we our believe have full towards driving of The is business to longer-term move current of shareholders At battery Industrial $XXX believe profile approximately produce Q&A, point to seeking on session. the consistent profitable business it we significant believe with work existing Energy we gross leverage by of to avoid existing we significant to potential we expand maintain time, optimizing be awards key materials. high-value including $XXX the ongoing focus create and technology our our aerogel as dynamic EBITDA.We our same $XXX on basis opportunities, of that, and revenue resources are an million unnecessary QX to approximately next a our dilution we the upside that cash-generating of annual to and will markets, revenue, profit, of continue million performance. million opportunities into for the this win our design from Q&A additional baseload OEMs, that our EV near-term

Instructions] Our question Rusch Colin from today comes first Oppenheimer. with [Operator

sell-through supplied a the you selling the guys you actual incremental vehicles to you're these production, point? production, fill cadence can -- start the little wins get of to much and up of about bit this With dynamics start just ] how if and the around the talk seeing channel at on [ and

maybe Colin, on is the this Sorry, so specifically? more to Or related additional General Motors to OEMs? clarify, of sell-through end just

is after terms dynamic in from coming into these be concern growth growth after. selling point? incremental lot how get you So a there's of going But as the OEMs? of there's selling, that's the to much trying new to really production. And program are to is growth get around we're an dynamic support of The trying to stagnation of the wins, how potential have we're vehicles some that cadence at and

point, thinking vehicles tough Yes. specifically, assess to sort little limit, we of there's these it's produce factored also Motors quoting to factor in this close of in North we plans, doesn't for that volume have they into over I lots to X and right? these some And plans, a these at our that is demand close dealers for when to the around we're a mean opportunities.And we when when think right? in one, about EVs there's hitting our comes X,XXX to sitting mean this we own we've to roughly been not but limits conservatism making how up the parts I demand XX,XXX General known QX. And only getting I to vehicles. -- are year of that America only the come when Chevy Ultium estimate X,XXX it in consumer the as even

the same way from how of mean these through the to we in the ways additional any second -- for being processes these GM, do very to GM's of ramping terms part have learned the they before think look apply execute to consumer capital a made. question, already OEM XXXX the and near on limit a years in start ramp it's opportunities, been lot going demand.Now work has planned to the we lot design a a with been that see opportunities, on opportunities noting already So, to go of puts And investment away, to GM we term.And production as together in X of an and of discounting awarded we that some at to up once has of that I in vehicle is a lot deploy XXXX we're them. truly done level to similar we the and we worth delays as in package here ramp that has sourcing X how a

is about we to continue time-frame.Now XXXX, adjust took being expectations. news we -- time-frame, we were still pretty it of ability programs, for think, based very of some given we're those plans the feel expect cost and even on just that that do investment And BV downward seeing. good actually had back back to to more so, if get our go And to XXXX long in XXXX, kind the opportunities recent feel what and about XXXX have we for not XXXX ratchet in XXXX retime investments the this capital. of our retimed, But see we that was this wins horizon everyone's have frankly, of and inevitable And we for that these we surprised something some do good XXXX. that additional to I

Colin, just that I would QX here we QX momentum into see continue from new us we've moving the the and into momentum I for add, you'll think that I to QX, move think year. had as

on preservation performance? leverage I [ And mechanical then these price even about the as these mechanical that you performance any were higher part, given your customers you some with as both get potential customers, for of material or price and really new ] at product value, thermal curious with volumes becoming least of understood. on wins I'm is into well the contracting the new guess

Yes, deployed to and of here deploy will I and in the align problems mean, an for not way this of from it the cautiously we profit continue it that really right? just critical getting will the manage sales the material and that a So, high us, solves, manage example, away but to not underlying programs we've we'll also capital amount that gross we paying pricing path kind and we on presented emphasis that here do merits and of back, that. about to Slide the mean, it's water, really XX% we want all that all we pull of margins, execute pricing us I X, that for come on hell gearing here right? or with we've

Stine We Craig-Hallum. now with turn to Eric

slide, So appreciate talked the you that XX% EBITDA gave that maybe me, rate, that, I in for you this margin, very good know million had run morning. about past, and $XXX

I you'd quarters. up that. thought the been know the and that your of managing and you're guess, to in had on something by, was all basis And 'XX? EI I contract a you're that as manufacturer see said X think Is possible X previously, run that you possible still ramping next constrained -- and I rate in of things expectation XQ

right? ramp actually back path rate slide see the look ramp, on you even you But quarter I on revenue headlines, that the if just them benefit there's X potential you ramp business -- a unlikely. GM's So, mean, for higher by put we right? a just to that this production be included IHS intended Energy alone in GM continue doubling to every on our the of of the at if not everyone's kind run in in, there. China if for least quarters, able to supply for and it's from more and at at It's And Industrial the if us in get for our implications -- just look the this. they're supplemented spite of than

just or as QX, possible. managing do that see is Now still cautiously we whether QX, it happens we're QX in it it, something but

invited of sure making DOE just for you're an in that's hearing possible that about just the maybe next mix eventual then Yes, if my award. year-end, for expectation. by still previously, maybe know talked you potentially loan I expectation award the follow-up, the towards kind further steps or kind the that for. great a that, on update and the you're that's And diligence sign of

that's still if view? curious, the Just

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a doing Our job. great team is

that best hope line you unpredictable it's an outlined be we that through and here able posted we But on our that our keep work to we And we're believe think process. always of that foot putting forward. on way QX. course, to time do earlier, we're we I as

to Potter Piper Sandler. with We now Alex turn

with gives What So, obviously, confidence and can you that you're progressing? the time? just how your that's manufacturing maybe you contract track in on update on I wondering working give partner -- China. Any on avenue was on everything is

working just It's Well, we very customers. course up Industrial that we have impressed them. we're should the supply -- be And setting with the going products, here -- we're where our XXXX. a we're at our We're will up contributing right -- qualifying logistics, doing that's Energy that path. very system early on -- well. by now that's the it's said we and And And over test it that the and part matter of that And working of XXXX. of chain, the again, closely.

together work that supplier. And again, impressed we're doing track. we're supplemental So, confident, our with the we're by on right

the that was GM selling then And question Ultium you're products. on second had into volume I the PyroThin for the

pushing you to a their or they sell putting if I putting for GM of know in Or are into it themselves don't from curious, potential own they any to are GM? there's inventory buildup and trying them, and vehicle you're understand producing, point guess, -- trying shortages you, of just, downstream but then to gauge just I'm out? at whether you, PyroThin I the Just kind it taking vehicle inventory? directly -- the obviously, between

its say right is about the part probably think best won't fair Mexico I a mean, into vehicle about -- I Yes. finished in a that it's month. that now X for we're to think making find way that it to way

QX, significant end vehicles our looking than a divided enough way totally You'd the by our -- what's the you right? CPV at to XX,XXX we're up ramp that's that -- XX,XXX, Ultium-based with you revenues, vehicles is as revenue we actually when explain so, right, higher if And GM there. as take believe seeing, isn't what built in

then kind to to And what I question is see up of, of to that the month translate amount of so, to for to back spend mouth GM building revenues see from end do they've QX. here been going inventory see on lot hand chance Colin's how the vehicles the which understand, we'll revenues X we ramp.And gives a have quarter, to about the recognize ultimate during we'll And of we kind decent GM. build a mean, delay, right? on, enable here sales these really of -- X-month into But the long ahead of us and

comes question Jeff next Cowen. with from TD Our Osborne

'XX? it's vehicle with win, Audi helpful on pack see. ] Just that [ broader a curious part to the multiple that just I starting X was quick program as one-off. vehicles as more on I the family, great side. of thought of ones that's across targeting you in Any would designs be were part my there help because to Is one maybe opposed VW a

I'm about few share would could to also understand. side that's battery progressing? how that the any but that the a And business? haven't you of that understanding just helpful. So, be on updates talked in then, be curious You quarters, helpful other Would materials

Yes.

on that So happy Yes, one different Audi platform. an is nameplates the which first the could this electric to on there, jump vehicle so, be program Jeff. Audi in means platform, based multiple

materials it advance we've technology. then continued quiet to and are continue we to side, the think, endeavoring that. And a We've making, the And hard that. solve I as we on to purpose we advancing and to on a on interesting problem, degree kept steady battery progress are work on on great

helping advance coming about We've continue and for technology But got that excellent opportunity -- I or us. adequately it's that for program it's we're call point, it to and talk relationships would it, will us talk advance team people it to status the next but well-resourced our to taking third-parties very the working an technology. perhaps in step. working it's about exciting X that but to earnings of on expenditures, at that an and the or And us a X. not of careful technology, we for think only be of like status I the the X have in also really with

Gianarikas George to Canaccord. turn now with We

a when to from just volumes on just look Curious, of can business year. to Maybe when we OEM the by you diversified that shed EV the be end could of understand? potential how start focus the will haven't some so yet, expect to just announced you on And awards get announced away you light GM? there potential little your can XXXX, PyroThin we that

Yes.

XXXX. mean, happen I and would awards those So, the in XXXX. volumes kick The really ramp meaningful in would in,

the be is next still be in fairly will to second Scania year. out we that it's And will bad So, fair of to not then Toyota up on XXXX, GM, thing the concentrated proving now. half say ramp for also which and a

on and any sort with And details could their mean, see going public maybe account? to what you their with that forth mean least of be seem I you to to back pronouncements EVs. Toyota? they the share I -- do commitment at momentum extent in

similar in broad in anything a Yes. they approach. that more other mean, we I for announced mean platform scope a still don't put battery a nameplate-by-nameplate them bucket the can And would think term near here see strategy, OEMs. as I haven't but 'XX. increase, we it's I the instead of

Chris Souther now to with turn Riley. B. We

Gross pieces on $X you the revenue third and are the and through you in expected have fourth loss said for Could the talk to You a grow. to moving EBITDA margins million guidance expected the quarter. revenue quarter? EBITDA is increase,

to from be Can So, that perspective of the the positive some you through a of output or in you'd what the of EBITDA China out talk play end other factors $X would are the moving the specific pieces kind quarter? low around need it Or there? loss? EBITDA yes, million guidance, fourth hit revenue is what in

Yes. of are go a And knew question. for there. kind here. We good really protecting you'd that's the doomsday we scenario No,

additional materializes potential of I we an $XX the being we If turn will that to certification when yes, of swing, forthcoming with have and us, -- streams EBITDA, you probabilities, right given negative end up the contract that's negative But that as those really, things of all cost negative agreement the certification $XX you EBITDA, million manufacturers could potential albeit combine we full how looked here. you that an range. in ratified, up look not opportunity potentially November UAW think those work of at the And Really, a mean, low happen, at at tighten be if think on I QX, tightening the we'll million EBITDA. for I with that still of for of that some big do expect ramp of the products.

additional year-end DOE some I those have a on that that and more you say colleagues would OEM chance about, Chris, things. LPO, asked before awards, one update and of we'll of sorts reasonable there's on Yes, that commentary the your provide revenue topics EBITDA, these

could I us time -- appropriate to be update very think year-end. all to again, well one before more you for it

you that. that just are just been just wanted awards of that we leading you the and -- that are up, sales kind clarity bit here. are as And of if stuff, related provide your a of getting of the kind to out, in revenue haven't not otherwise a obviously, very have are how kind high Scania of SUVs the talked OEM sales exclude your component more for GM from guys through testing you indicator much Where as you far then, yet And because the kind production, shaken awards? received like? kind would matching general of ASPs see of ASPs I implied to cars, around kind as could if

around mean our it the XX% the ] more than that then you tracking? less per prototype around [ revenues. up, well, mean the content And to I comes assuming vehicle, -- is make revenues, our mean I'm -- now of more rest right, right when you of PyroThin how PyroThin revenues in Yes.

Yes. Exactly.

Yes.

programs, much add to and pretty range content produce. requires And less we're I large is simpler in $XXX $XXX mean, is lot vehicle supplying car It with more I a the so, part -- And pouch we're these the that $X,XXX right? seeing per it's vehicle cells, what our nonetheless, when per in of to consistently to I still prismatic but given a there the capital. content mean, range. pretty we that $XXX one And per think bulk vehicles of packs

large do producing the still with CPV here in of But right we're mean, looking range. here if QX produce and those it's we I most $XXX be pouch going so, in awards what at this of And -- we'll happy configuration as 'XX, with the economics well. you're now, we're that QX, to what in what --

Research Tom with Partners. Our next Seaport comes question from Curran

$XX.X manufacturing point up still do you certain you do unfilled your ramped or the letting when the available in million? related revenue capacity partner, million And unfilled you're of once $XXX to fully have that capacity would that's much maximum around to catch And feel in orders, it for you Industrial testing have that remain orders? how quarterly ] Energy with risk supply Chinese those to is then, contract time? backlog comes with past to So [ a liability it time when expectation them supplemental of any comes that that process the your expected to the be

it's good Well, question, a Tom.

distribution team to the we to next their the supply, our and We communicate And firms, to in Energy are supplemental are actively meeting customers we that to engineering them and -- with expectations. Industrial close very be channels but and again, early switch over the year. feel LNG And sure position the a we're Energy the fulfill part that of we side on quite the and those we that frankly, our Industrial will sales obligations, to business business. Cryogel strong.Our Pyrogel customers. of business the on very And responsibilities at our the the is both, active is side, side

is gross our to be revenue business going baseload and company. that so of profit grow important continue an for and And to

time, Yes, good of again, a the backlog backlog we're but remember And were so the capacity. well. you those last we might we're in and short shape. -- The communicating substantial. feel to go -- we customers you position And if good is with in back

we're So good. long as we communicate think I well,

gets pretty million Yes. an to time million $XXX into fulfilling the of if they add, sight frame. the may team line I accept. within order at And I that makes reasonable $XXX it backlog And good that if has into assessing mean, which orders is and a what theme

being $XXX to just available clarify, million, you EI would and think revenue million? to -- And fully the capacity reassuring. annual for around within eventual fully of That's try follow $XXX up

would. $XXX the side the when million being Industrial million, part that and mean I the of think [ we we we PyroThin remaining about ] about Energy $XXX business. Yes, do of being think part our

one landing when result what then you in customer be customer, a at still would turning expect #X? to before these that X new essentially EVTB, you least of to remain awards to would year-end, next those very optimistic And it about comes potential

we mean correct. your Yes. expect of there different I that's we on Yes, board there. logos on Slide and kind bingo put X would

my I know almost Apparently I'm you bingo, playing love XX.

for closing concludes This CEO, hand now I'll Q&A. remarks. our Don Young, to back

interest well, look early appreciate our next results close day. We reporting have much. in We touch in and XXXX forward Be Elliot. Aerogels. you, Thank and a you your to so Aspen you year. good Thanks quarter with staying to fourth

now to today's gentlemen, like thank concluded. We'd has participation. you call and Ladies for your

You may now disconnect your lines.