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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.
Origin Materials
Origin Materials
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.
- The company is unable to reconcile forward-looking Adjusted EBITDA information provided in this press release to net income, the most closely comparable U.S. GAAP financial measure, without unreasonable efforts.