Shares of Aspen Aerogels (ASPN) plummeted 5.11% on Thursday after the sustainability and electrification solutions provider significantly reduced its full-year outlook, citing lower demand for electric vehicles in the United States. The stock's sharp decline reflects investors' concerns about the company's near-term prospects in a challenging EV market environment.

Aspen Aerogels now expects annual revenue between $270 million and $280 million, down from its previous forecast of $297 million to $317 million. The company also projected a steeper full-year loss per share of $4.15 to $4.05, compared to its earlier estimate of $3.86 to $3.73. The revised guidance comes as a result of the recent phase-out of a $7,500 tax credit that had been boosting EV sales in the U.S.

For the third quarter, Aspen Aerogels reported a narrowed loss of $6.33 million, or 8 cents per share, compared to a loss of $13 million, or 17 cents per share, in the same period last year. However, the adjusted loss per share of 6 cents fell short of analysts' expectations. Revenue for the quarter decreased by 6% to $73 million, slightly below the $73.4 million anticipated by analysts. Despite the current headwinds, the company highlighted 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.