Origin Materials cuts costs 25% while targeting 2027 profitability

Origin Materials Inc. (NASDAQ: ORGN) announced organizational changes and cost reduction measures aimed at achieving adjusted EBITDA breakeven by 2027, according to a company statement.

The West Sacramento-based technology company reduced annual operating expenses from approximately $40 million to a projected $29 million through workforce reductions and operational adjustments. The company suspended development of its furanics platform and limited its CapFormer production line expansion to six lines already procured for installation by year-end.

"We are closer now than ever before to successful delivery of our PET caps to multiple world-class beverage brands," said CEO John Bissell. The company plans to deliver 1,881 PET pressurized water caps to global beverage brands in Q1 2026 for continued acceptance testing.

Origin expects to incur approximately $0.9 million in restructuring charges, primarily for severance and benefits costs related to the workforce reduction. The company narrowed its PET cap format development initiatives in 2026, deferring non-beverage cap format development to 2027.

The company reported that its first products featuring Origin PET caps reached California store shelves in August 2025. Berlin Packaging placed its first order for PET caps in October 2025, which Origin is fulfilling.

Origin anticipates accessing additional tranches of a previously announced $100 million debt facility to meet working capital requirements. The company continues exploring financing options through a strategic review process with RBC Capital.

The company develops PET caps and closures for what it describes as a $65 billion market, focusing on mono-material packaging designed to be fully recyclable. Origin's CapForming technology aims to address industry demand for packaging that avoids material stream separation and reduces contamination of recycled PET.

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