Aspen Aerogels, Inc. (NYSE: ASPN), a manufacturer of advanced materials, received orders in one of its key target markets, creating positive momentum for listings. Demand for Aspen Aerogels solutions is expected to increase as the potential of older technologies is exhausted.
Aspen’s core business is silicon-based aerogels. They are extremely light porous materials with unique properties. For example, Aspen has an aerogel called PyroThin that, at 2mm thick, can withstand the high burning temperatures of lithium-ion batteries.
These materials are used in transport to create barriers that, in the event of a fire, will provide time to evacuate passengers or activate a fire extinguishing system.
Aspen also manufactures aerogels for other purposes, such as Spaceloft, for thermal insulation of pipes and other items on ships carrying liquefied natural gas.
Last week, Aspen announced that it had received orders from two major automakers: Toyota and General Motors.
At the same time, the company announced strong growth in demand for its products in general, against which the company expects a significant increase in sales for the year.
In particular, the annual revenue from the sale of heat insulators for electric vehicles is now expected to be between 52 and 62 million US dollars, while previously no more than 20 million US dollars were expected. In the energy solutions segment, revenues are projected between $128 million and $138 million.
Aspen is a company with a capitalization of fewer than 1 billion dollars and which is not yet profitable. But big business orders and improving forecasts are positive signs for Aspen investors. Additionally, Aspen products are supported by future trends such as the maximum weight reduction requirement for electric vehicles.
The stock of Aspen Aerogels Inc. (NYSE: ASPN) has been up 0.73 percent in the last week but is down -42.48 percent in the previous quarter. Going back further, the stock has dropped -67.93 percent in the previous six months but is down -64.07 percent year-to-date.