Shares of Origin Materials, a sustainable materials company based in West Sacramento, California, experienced a significant drop on Thursday following the announcement of a delay in its Origin 2 project and an increase in its budget.
Falling Stock Prices
The stock plummeted to its lowest point ever, with a recent decline of 67% to $1.45, reaching as low as $1.24. Throughout the year, shares have seen a staggering 70% decline.
Revised Timeline and Budget
Origin Materials revealed that the Origin 2 project, which focuses on the production of specific liquid biofuels, would be completed in two phases. The first phase is now expected to be finalized in late 2026 or 2027, while the second phase is projected to be completed in 2028. Previously, the company had set mid-2025 as the target for project completion.
To accommodate these adjustments, Origin Materials allocated a capital budget of $400 million for the first phase and $1.2 billion for the second phase. These figures exceed the company’s initial total capital budget of $1.07 billion.
Financial Performance
In conjunction with this project update, Origin Materials disclosed its second-quarter results. The company reported a loss of $6.46 million, equal to 5 cents per share, compared to a profit of $46.9 million or 33 cents per share in the same period last year. Analysts had predicted a per-share loss of 12 cents.
Additionally, Origin Materials announced $6.9 million in revenue for the quarter, in stark contrast to no revenue reported during the same quarter of the previous year.