Shares of Aspen Aerogels (ASPN) plunged 43.62% in pre-market trading on Thursday following the release of disappointing third-quarter results and a significant reduction in its full-year outlook. The specialty chemicals maker, known for its aerogel-based insulation products, faced headwinds from a challenging U.S. electric vehicle (EV) market.

Aspen Aerogels reported a third-quarter net loss of $6.3 million, or $0.08 per share, missing analyst expectations of a $0.03 per share loss. Revenue fell sharply by 37.8% year-over-year to $73.02 million, although it marginally beat the consensus estimate of $71.84 million. The company cited a "challenging backdrop" in the U.S. EV environment as a key factor impacting its performance.

In a move that further rattled investors, Aspen Aerogels cut its annual revenue forecast to between $270 million and $280 million, down from its previous guidance of $297 million to $317 million. The company also revised its 2025 adjusted EBITDA forecast to $7-15 million from $35-45 million, reflecting the ongoing challenges in its core markets. Despite these setbacks, management noted a recent PyroThin award from a major European OEM and anticipated growth opportunities in Energy Industrial sectors, particularly in LNG and subsea projects for 2026.