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Mar 31
Origin Materials Q1 2025 Earnings Report
Origin Materials reported lower revenue and a deeper net loss in Q1 2025 due to delayed PET cap qualification and an impairment charge.
Key Takeaways
Origin Materials posted $5.4M in revenue for Q1 2025, driven by its supply chain activation program. The company reported a net loss of $26.4M, impacted by a $16.6M non-cash impairment charge. Operating income declined significantly as commercial PET cap revenues were deferred. Cash reserves stood at $83M.
Revenue was $5.4M, primarily from the supply chain activation program.
Net loss widened to $26.4M due to increased operating expenses and a large impairment charge.
Company reaffirmed positive Adjusted EBITDA run-rate guidance by end of 2026, despite revenue delays.
Customer interest in PET caps remains strong with over 20 companies in qualification phase.
Origin Materials
Origin Materials
Origin Materials Revenue by Segment
Revenue by Segment
Supply Chain Activation Program Revenue
CapyFin.com Forward Guidance
Origin updated its guidance to reflect delays in PET cap commercialization and tariff impacts, while maintaining long-term profitability targets.
Positive Outlook
- Signed strategic customer agreement for large format PET closures.
- First customer pilot launch expected in Q3 2025.
- Strong customer pipeline with over 65 new inquiries in the last six weeks.
- Throughput of new CapFormer lines expected to double or triple Line 1's output.
- Investments in PET extruders and CapFormer add-ons to improve margins.
Challenges Ahead
- Commercial-scale PET cap revenue delayed by one to three quarters.
- Macroeconomic uncertainty from global supply chain disruptions and tariffs.
- 10% assumed tariff on imported European equipment impacting deployment plans.
- Significant Q1 non-cash impairment charge due to contract reevaluation.
- Increased operating expenses impacting near-term profitability.