Shares of carbon-negative materials company Origin Materials (NASDAQ:ORGN) are nosediving today after it pushed back the timeline of its second commercial plant, Origin 2. Noting a higher-cost capital project climate, the company also introduced a phased construction approach and raised the capital budget for the plant.
Origin initiated the start-up of its first commercial-scale plant, Origin 1, in June. For Origin 2, Phase 1 start-up is now expected between late 2026 to 2027 and Phase 2 start-up is expected in 2028. This is a significant pushback from the initial timeline of a mid-2025 completion.
Additionally, Origin now expects the total budget for Origin 2 at $1.6 billion versus the original $1.07 billion estimate. The company had a cash balance of $217.7 million at the end of the quarter.
Further, its second-quarter revenue of $6.9 million from joint development agreements and a supply chain activation program exceeded expectations by $1.6 million. Additionally, its net loss per share of $0.05 came in narrower than estimates by $0.07.
For full-year 2023, Origin expects revenue to hover between $40 million and $60 million, while its adjusted EBITDA loss is estimated between $50 million and $60 million.
Overall, the Street has a $7.50 consensus price target on Origin alongside a Strong Buy consensus rating. This implies a nearly 73.2% potential upside in the stock.
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