Origin Materials Q4 revenue drops 67% on program wind-down, pushes back profit goal

Origin Materials

27/03/2026 20:56

Overview

Sustainable materials technology firm's Q4 revenue fell sharply due to planned supply chain program reduction

Company's net loss widened significantly, mainly from a $165.9 mln non-cash asset impairment

Origin now expects breakeven run-rate adjusted EBITDA no earlier than 2028, citing slower commercialization

Outlook

Company no longer projects breakeven run-rate adjusted EBITDA prior to 2028, revised from 2027

Origin expects a more gradual commercialization process with multiple smaller product launches in series

Company estimates existing cash will fund planned operations into Q3 2026 absent near-term financing and reductions in operating expenses

Result Drivers

SUPPLY CHAIN PROGRAM WIND-DOWN - Q4 revenue decline was due to the planned reduction in the company's supply chain activation program

ASSET IMPAIRMENT - Large non-cash impairment charge after ceasing investment in furanics platform drove operating expenses and net loss higher

SLOWER COMMERCIALIZATION - Commercialization of PET caps is taking longer than anticipated, leading to a more gradual revenue ramp

Company press release: ID:nBw3dD6n5a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
$3.02 mln
Q4 EPS
-$38.54
Q4 Net Income
-$194.13 mln
Q4 Adjusted EBITDA
-$10.81 mln
Q4 Operating Expenses
$194.66 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the commodity chemicals peer group is "buy"

Wall Street's median 12-month price target for Origin Materials Inc is $30.00, about 731% above its March 26 closing price of $3.61

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)