Origin Materials Inc (NASDAQ:ORGN) shares are tanking Thursday after the company reported mixed second-quarter results and highlighted headwinds impacting construction progress at one of its facilities.
What Happened: Origin reported second-quarter revenue of $6.9 million, which missed estimates of $7.03 million, according to Benzinga Pro.
The carbon-negative materials company reported a quarterly losss of 5 cents per share, which beat estimates for a loss of 12 cents per share.
Origin said it ended the quarter with total signed offtake agreements and capacity reservations in excess of $10 billion.
The company announced that it began startup of its Origin 1 plant in late June. Late Wednesday, Origin said significant market shifts have presented opportunity and challenges with Origin 2 financing and construction.
“We are facing a higher-cost capital project environment than in early 2021, when we announced the initial plan for Origin 2. As such, we are revising the plant’s outlook and introducing a phased approach to construction,” said Rich Riley, co-CEO of Origin.
The company said it’s seeing significant demand for higher margin products, but it’s also dealing with increased cost of labor and materials, the impacts of inflation and higher interest rates and supply chain constraints.
“The Company now expects Origin 2 to be completed in two phases, with Phase 1 estimated to be completed in late 2026 to 2027, and Phase 2 estimated to be completed in 2028,” the company said.
Origin 2 was originally set for completion in mid-2025.
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ORGN Price Action: Origin Materials shares were down 56.4% at $1.89 at the time of publication, according to Benzinga Pro.
Photo: Joe from Pixabay.
