Origin Materials, Inc.

Thank you for standing by. This is the conference operator. Welcome to the Origin Materials second quarter 2025 earnings call. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. At this time, for opening remarks and introductions, I will turn the call over to Ryan Smith, co-founder and chief product officer. Please go ahead.

Thank you. Good afternoon and thank you for joining us, everyone. Speaking first today is Origin CEO and co-founder John Bissell, followed by CFO and COO Matt Plavin. Then we'll open the call to questions from analysts and discuss questions submitted as part of this quarter's Ask Origin campaign. Ahead of this call, Origin has issued its 2025 second quarter press release and presentation. These can be found on the investor relations section of our website at originmaterials.com. Please note that during our discussion today, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views as of today, should not be relied upon as representative about views of any subsequent date, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion on the material risk and other important factors that could affect our financial results, please refer to our filings of the SEC, including our quarterly report on Form 10-Q filed today. During today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of origin materials performance. These non-GAAP measures should be considered in addition to and not as substitutes for or in isolation from GAAP results. You'll find additional disclosures regarding the non-GAAP financial measures discussed on today's call and our press release issued this afternoon and our filings with the SEC, which will be posted to our website. The webcast of this call will also be available on the investor relations section of our company website. With that, I will turn the call over to John.

Thank you, Ryan. Good afternoon. In a separate press release issued today, we announced the first Origin PET bottle caps are now on store shelves. a world's first and a significant inflection point for the company and the packaging industry. We are now officially in market with our 1881 cap for non-carbonated water, a $7 billion segment of the cap's market. Coupled with our recent customer announcements, including our first publicly named customer, Berlin Packaging, and recent progress reports on our manufacturing capacity build-out, we are closer than ever to bringing our transformative PET bottle cap technology to the entire $65 billion closures packaging market. Our technology platform produces what we believe to be the world's first and only commercially viable PET caps. The platform excels in seven areas, recyclability, oxygen barrier, which enables longer shelf life, closure diameter, enabling more economic large formats, thickness, which enables lighter weight, rigidity, which gives a premium feel, use of recycled content, and optical clarity. Successful commercialization will be a step change for recycling and improved packaging performance while creating significant value for our shareholders in the process. During the quarter, we maintained laser focus on the priority build-out of our first eight CapFarmer lines. making solid progress advancing through the various stages of order placement, manufacture, testing, and shipping of lines two through eight. Despite our progress, we experienced a number of OEM manufacturing delays, including slower subcomponent deliveries and procurement delays, often due to tariff considerations. As a result, we expect FAT completion for each of our lines to be 30 to 90 days beyond our prior expectations. These delays accentuate the gap between the indicated demand for Origins PET caps and our production capacity, leaving money on the table. Separately, we have fielded a number of strategic collaboration inquiries reflecting the natural synergy between the robust manufacturing and distribution capabilities of legacy packaging companies and the high value products and innovative technology development capabilities at Origin. The packaging industry is well-defined, highly commoditized, and very competitive. Its core competencies are operational efficiency, consistently high productivity, and reliable delivery. What we hear regularly from customers, however, is that innovation in the packaging industry is lacking. To pursue these emerging opportunities and help address the gap between the indicated demand and production capacity for Origins PET caps, we've launched a strategic review with our financial advisor, RBC Capital Markets, to identify accretive strategies that can enhance the company's access to manufacturing capacity, marketing and distribution capabilities, and strategic capital. We believe this will enable value capture beyond what we can achieve organically, potentially enabling Origin to more effectively fulfill pent-up demand and accelerate our efforts to unlock shareholder value in the near term. One early result of our strategic review is an important refinement of our go-to-market strategy to more effectively prioritize and capture high-value opportunities within the over $65 billion caps and closures market, which is comprised of a number of different differentiated segments. Our current strategic prioritization targets five large functional segments, including water at $7 billion, carbonated soft drinks or CFD at $6 billion, other beverage applications such as hot fill, ready to drink, beer, wine, milk, and sports drinks at $18 billion, food and pharmaceutical at $20 billion, and other non-beverage at $17 billion. Each segment utilizes different cap formats to achieve unique performance characteristics required by the product. Previously, our approach had been to design a single 1881 cap to serve all of these markets. However, following the recent successful qualification of our 1881 cap for flat water, we can now begin immediately selling into the 1881 flat water market rather than waiting until completion of the final designs for the 1881 cap that will serve the broader CSD market later in 2026. Our PET cap works past qualification for a customer's water requirements succeeded on a commercial bottling system, and went on store shelves. We continue to work side by side with CSD customers and anticipate success with CSD qualification with a focus on impact resistance and multi-day heated horizontal stress testing. Given the design freedom and material properties afforded by our proprietary method for producing PET caps, we believe CSD qualification is a matter of when, not if. Next, I will highlight a few of our recently announced strategic partnerships and customer relationships, and then share the status of our manufacturing capacity build-out. Earlier this month, we announced a new customer, Berlin Packaging. Berlin Packaging is a respected market leader and has agreed to purchase PET 1881 caps from Origin Materials for sale and distribution. Berlin's broad and deep distribution footprint not only immediately extends our market reach for 1881, but also opens the door for all our forthcoming formats across all Clojure applications globally. As a strategic customer, Berlin was exceptionally attractive because of their expertise in connecting Clojure products with brands to unlock the highest value opportunities. We look forward to working with Berlin and to revealing more about our other customers as well. On the supply side, we continue to grow our manufacturing capacity and execute our adaptive supply chain strategy, actively responding to macroeconomic uncertainty and changing conditions. The status of our cap former build-out is as follows. Our first cap former system is producing PET caps in Reed City, Michigan. Two additional cap formers, including thermoformers and for one of the cap formers, all of its subsystems, arrived in the United States from Europe in July and August of 2025. The equipment arrived at Reed City prior to, or received an exemption from, the EU and Switzerland tariff increases to 15 and 39% respectively, saving over a million dollars. We continue to expect CAP plumbers three through six to complete factory acceptance testing on a rolling basis through Q4 of 2025. Primarily due to capital constraints accentuated by tariff exposure, we now plan to complete factory acceptance testing for CapFarmer 7 and 8 in the second half of 2026, updated from Q1 2026. In July, we announced a new European mass production partner, Royal Hordike, further diversifying Origin's manufacturing footprint in response to continued pressure from U.S. tariffs on European imports. European manufacturing capacity expands Origin's global footprint, enabling the production and sale of PET caps without equipment or caps crossing US borders. Hordyke is a leading Dutch producer of sustainable plastic packaging solutions in operation for over 100 years. Hordyke will use its PET extruders to produce extruded sheet for use in cap former production lines owned by Origin and operated by Hordyke and Hordyke facilities in the EU. We expect Hordak PET extruders and extrusion expertise can drive capital cost efficiency for cap former lines. We anticipate installing the first cap former in a Hordak facility before the end of Q1, 2026. Finally, our sales pipeline remains strong and interest remains high for larger cap formats with attractive unit economics. We believe our thermal forming PET technology advantages us disproportionately as format size increases. which we believe will translate to higher margins than HTPE caps the larger the format. A key objective of our strategic review process is to identify opportunities to accelerate our development and deployment of these new formats. And now I'll hand it over to Matt for a review of our expected near-term financial performance.