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Sep 30, 2023
Origin Materials Q3 2023 Earnings Report
Origin 1 commenced commercial-scale production and Origin 2 project development advanced with increasing interest from strategic partners.
Key Takeaways
Origin Materials reported Q3 2023 revenue of $7.1 million, driven by joint development agreements and the supply chain activation program. The company is focusing on cash conservation and prioritizing revenue-generating projects. They are updating 2023 revenue guidance to $25 million to $30 million and improving Adjusted EBITDA loss guidance to $45 million to $50 million.
Origin Materials commenced commercial-scale production at Origin 1 in early October and is shipping CMF and HTC to customers.
The company has over $10 billion in signed offtake agreements and capacity reservations.
Origin 2 project development is advancing with increasing interest from strategic partners, including potential co-development opportunities.
Origin Materials is implementing a rigorous cash conservation program, balancing EBITDA positive targets with maintaining forward momentum.
Forward Guidance
Origin Materials is updating its full year 2023 guidance based on current business conditions and a focus on cash management.
Positive Outlook
- Improved EBITDA loss guidance from reprioritization to $45 million - $50 million.
- Focus on cash management.
- Origin 1 production has commenced.
- Strategic partners are increasingly interested.
- Focus on revenue-generating projects.
Challenges Ahead
- Intentionally scaled back supply chain activation business due to low short-term margins and high working capital requirements.
- Some joint development programs expected to close in 2023 are now expected to close in 2024.
- Updated 2023 revenue guidance to $25 million - $30 million from $40 million - $60 million.
- Unforeseen events, including changes in global economic conditions could impact guidance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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