Pointing the blame at the challenges to the electric vehicle market, Northborough-based Aspen Aerogels took a $6.3-million net loss in the third quarter, as the company’s former vice president of corporate strategy took over as CFO in October.The manufacturing firm, which produces aerogels used as a fire barrier in electric vehicles and other aerogel products used in energy infrastructure and industrial uses, revealed in a Thursday earnings release its total revenue for the third quarter of 2025 was $73.0 million, compared to $117.3 million in the third quarter of 2024.Citing the downtown in the United States’ electric vehicle market, Aspen Aerogels said it is looking to continue diversifying into other markets.The company’s adjustment to the changing EV market came as Grant Thoele, Aspen Aerogel’s former chief of staff to the CEO and vice president of corporate strategy, was promoted the role of CFO, effective Oct. 1, according to an Aspen Aerogels filing with the Securities and Exchange Commission in September.Thoele replaced Ricardo Rodriguez, who has since joined California-based Amprius Technologies, an EV battery manufacturer, according to his LinkedIn profile. Ricardo had been Aspen Aerogel’s CFO since 2022, originally joining the company as its chief strategy officer in 2021.“As we reset our outlook to reflect lower near-term demand in the U.S. EV market, we remain focused on the elements within our control.” Thoele said in a Thursday press release accompanying the earnings. “Throughout 2025, we’ve taken decisive actions to reduce fixed costs and improve operating efficiency, fortifying the foundation of the business. In addition to strengthening our core markets, we are focused on driving growth through disciplined execution, thoughtful diversification, and developing strategic partnerships.”With the stateside downtown, Aspen Aerogels is looking to foreign EV markets. The company revealed in the earnings release it has secured a contract with a major European manufacturer for its PyroThin Thermal Barrier, used to mitigate thermal runaway in EV battery packs.Donald Young, president and CEO of Aspen Aerogels. PHOTO COURTESY OF ASPEN AEROGELSAspen Aerogels said production related to the contract is expected to begin in 2027. President and CEO Don Young said in an earnings call the company will reveal the manufacturer in its next business update, according to a transcript of the call.“The U.S. EV environment has created a challenging backdrop after a period of significant development. We expect to rebuild growth in our thermal barrier business after the market stabilizes, supported by the ramp-up of our European programs, including our newest award,” Young said in the Thursday press release.In February, Aspen Aerogels announced it was canceling the construction of a manufacturing facility in Georgia, citing changes in the EV marketplace. Aspen Aerogel’s challenging quarter was influenced by a decline in revenue from its EV-related products, as its thermal barrier revenue fell to $48.7 million, a 12% decrease quarter-over-quarter. In contrast, its energy industrial market, containing products used for insulation and other uses in refineries, petrochemical plants, and other energy or industrial facilities, grew to $24.3 million in revenue, a 7% increase quarter-over-quarter.The company’s adjusted EBITDA was $6.3 million, a quarter-over-quarter decrease of $2.7 million. This compares to a $25.4 million EBITDA in the third quarter of last year. Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
