Origin Materials, Inc. Q2 FY2025 earnings call

• First Origin PET bottle caps are on store shelves, with the 1881 cap for noncarbonated water now in market. • Announced first publicly named customer, Berlin Packaging. • Made progress on CapFormer build-out, but faced OEM manufacturing delays due to tariffs, pushing FAT completion for lines 2-8 30-90 days later. • Launched strategic review with RBC Capital Markets to identify accretive strategies. • Expanded manufacturing footprint with European partner Royal Hordijk, expecting to install first CapFormer in Hordijk facility by end of Q1 2026. • Sales pipeline strong for larger cap formats with attractive unit economics.

• Revised revenue guidance: 2026 revenue expected to be $20 million to $30 million (down from prior range of $50 million to $70 million), 2027 revenue expected to be $100 million to $200 million (down from prior range of $150 million to $210 million). • Adjusted EBITDA run rate breakeven pushed from 2026 to 2027 due to CapFormer FAT delays.

• Tariffs on EU and Switzerland imports increase cash outlay for equipment financing, making debt financing more expensive. • OEM manufacturing delays due to subcomponent deliveries and procurement issues, leading to gap between demand and production capacity, resulting in lost revenue.

Q: As soon as a customer becomes public, we'd like to know where to buy the product so we can support it and get the cap into our hands to show and tell the tangibility. How do we do that?

A: The product is on shelves with brand Power Hydration in California; they're excited to have the caps in market and more customers will be announced in the near future.

Q: Have you been monitoring the competition? And could you provide some insight on who your closest competitors are? And how much further ahead you think Origin is in mastering this particular type of PET cap production?

A: Our technology platform using thermoforming is differentiated from others; we believe we have the first commercially viable PET cap in market, our cap performs better than other attempts, and it can change the packaging industry's innovation.

Q: How should we view the Hordijk partnership in the context of prior partnerships and operating partners?

A: Hordijk is an excellent addition to operating and manufacturing partners, especially in the EU with protectionist trade environment; they have PET extrusion expertise and will help with capital cost efficiency for CapFormer lines.

Q: Where do we stand with respect to our NASDAQ listing. We have been trading for under $1 for some time now?

A: NASDAQ has minimum listing requirements; we're 129 days into first 180-day price period, have 51 days left, and can apply for second grace period if needed, with options like reverse stock split if necessary.

Q: What do we have to get excited about as we look to the future?

A: Origin PET bottle caps on shelves, growth in water market, more customer announcements, CapFormers 3-6 completing FAT, strategic review with RBC to accelerate and derisk business plan, and inbound interest from established cap companies seeking innovation.