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Jun 30, 2025
Origin Materials Q2 2025 Earnings Report
Origin Materials reported its operating and financial results for the second quarter of 2025, highlighting the first Origin PET bottlecaps on store shelves, a new customer Berlin Packaging, and a review of strategic opportunities and new market segmentation.
Key Takeaways
Origin Materials reported a revenue of $5.8 million for Q2 2025, primarily from its supply chain activation program. The company achieved a significant milestone with its first Origin PET bottlecaps on store shelves and announced Berlin Packaging as a new customer. Despite progress in manufacturing capacity, the company faced OEM manufacturing delays, leading to revised revenue guidance for 2026 and 2027 and a push back of Adjusted EBITDA run-rate breakeven to 2027. A strategic review is underway to address capacity gaps and accelerate value capture.
First Origin PET bottlecaps are now on store shelves, marking a significant commercialization milestone in the flat water market.
Berlin Packaging was announced as a strategic customer, agreeing to purchase PET 1881 caps for distribution.
The company experienced CapFormer manufacturing delays due to slower subcomponent deliveries and procurement issues, pushing FAT completion for lines 2-8 by 30-90 days.
Revenue guidance for 2026 and 2027 was revised downwards to $20-$30 million and $100-$200 million, respectively, and Adjusted EBITDA run-rate breakeven is now expected in 2027.
Forward Guidance
Origin Materials has revised its revenue guidance downwards for 2026 and 2027 and now expects to achieve Adjusted EBITDA run-rate breakeven in 2027, primarily due to CapFormer manufacturing delays. The company is undertaking a strategic review to accelerate value capture and address production capacity gaps.
Positive Outlook
- First Origin PET bottlecaps are on store shelves, indicating successful commercialization in the flat water market.
- Strategic customer Berlin Packaging announced, expanding distribution channels for PET caps.
- New European mass production partner, Royal Hordijk, diversifies manufacturing footprint and mitigates U.S. tariff impacts.
- Strong sales pipeline and high interest for larger format caps, which are expected to offer higher margins.
- Strategic review process aims to identify accretive strategies to enhance manufacturing capacity, marketing, distribution, and access to capital.
Challenges Ahead
- CapFormer manufacturing delays (30-90 days beyond prior expectations) for lines two through eight.
- Revised revenue guidance for 2026 to $20-$30 million (down from $50-$70 million).
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