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Mar 31, 2024

Origin Materials Q1 2024 Earnings Report

Origin Materials' financial performance in Q1 2024 was marked by revenue growth and strategic advancements in its caps and closures business.

Key Takeaways

Origin Materials reported a revenue increase driven by its supply chain activation program and joint development agreements, alongside significant progress in commercializing its PET caps and closures business. The company reaffirmed its 2024 revenue and net cash burn guidance, highlighting a pathway to profitability led by the caps and closures sector.

Revenue increased to $6.8 million, driven by supply chain activation and joint development agreements.

Accelerated procurement of multiple additional high-throughput caps and closures production lines.

Completed a successful capping trial on a commercial bottle line using Origin recycled PET caps.

Maintained 2024 revenue guidance of $25 million to $35 million and net cash burn guidance of $55 million to $65 million.

Total Revenue
$6.83M
Previous year: $1.7M
+300.5%
EPS
-$0.1
Previous year: $0.07
-242.9%
Gross Profit
-$2.17M
Previous year: $744K
-392.1%
Cash and Equivalents
$75.8M
Previous year: $87M
-12.9%
Free Cash Flow
-$18.7M
Previous year: -$60M
-68.9%
Total Assets
$449M
Previous year: $483M
-7.2%

Origin Materials

Origin Materials

Forward Guidance

Origin Materials is maintaining its revenue guidance of $25 million to $35 million and net cash burn guidance of $55 million to $65 million for the full year 2024.

Positive Outlook

  • Strong progress on pathway to profitability, led by PET caps and closures business
  • Accelerating the procurement of multiple additional high-throughput caps and closures production lines
  • Completed successful capping trial on commercial bottle line applying Origin Recycled PET caps
  • Converting sustainable wood residues at Origin 1 into versatile intermediates
  • Customer demand remains strong

Challenges Ahead

  • Unforeseen events, including changes in global economic conditions, could impact the guidance
  • Relies on assumptions that may not materialize
  • Macroeconomic challenges
  • Net loss of $13.9 million for the first quarter
  • Adjusted EBITDA loss was $12.9 million for the first quarter