Company Performance - TPI Composites reported a quarterly loss of $1.41 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.54, marking an earnings surprise of -161.11% [1] - The company posted revenues of $276.25 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 25.41%, and down from $309.82 million a year ago [2] - TPI Composites has not surpassed consensus EPS estimates over the last four quarters and has only topped consensus revenue estimates twice in that period [2] Stock Performance - TPI Composites shares have declined approximately 83.1% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.27 on revenues of $380.91 million, and for the current fiscal year, it is -$2.49 on revenues of $1.44 billion [7] Industry Outlook - The Industrial Services industry, to which TPI Composites belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of TPI Composites may be influenced by the overall industry outlook, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

Wind turbine blade manufacturer TPI Composites has filed for Chapter 11 to restructure its debt with support from lender Oaktree https://t.co/FU13iyHWBc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-37839 TPI Composites, Inc. (Exact name of registrant as specified in its charter) Delaware 20-1590775 (State or other jurisdiction of incorporation or organization) (I.R.S. E ...

Core Points - TPI Composites, Inc. has initiated voluntary chapter 11 proceedings to pursue a comprehensive restructuring aimed at emerging as a stronger enterprise [2][3] - The company has secured a debtor-in-possession financing facility of up to $82.5 million from senior secured lenders, including Oaktree Capital Management, to support operations during the restructuring process [2][3] - TPI will continue normal operations throughout the chapter 11 process, ensuring no material operational impact [3][4] Financial Support and Restructuring - The DIP financing includes up to $27.5 million in new money for day-to-day operations and up to $55 million rolled up from the existing senior secured credit facility [2] - The anticipated cash collateral to be used is approximately $50 million, reflecting the lenders' confidence in the company's future [2] - The company aims to reach an agreement with stakeholders on a reorganization plan to right-size its balance sheet and enhance competitiveness [3] Operational Continuity - TPI will continue to honor obligations to key stakeholders, including employee wages and supplier payments, during the chapter 11 proceedings [4] - The company emphasizes its commitment to serving customers and collaborating with suppliers while maintaining manufacturing operations [3][4] Company Overview - TPI Composites is focused on innovative and sustainable solutions in the wind energy sector, operating globally with manufacturing facilities in the U.S., Mexico, Türkiye, and India [7] - The company has established long-term relationships with leading OEMs in the wind markets, positioning itself for future growth [7]

Core Insights - TPI Composites, Inc. is sponsoring the wind tunnel competition at the World KidWind Challenge during the CLEANPOWER Conference in Phoenix, Arizona from May 18-21, 2025 [1][2] - The World KidWind Challenge is designed to engage students in wind energy through hands-on design, building, and testing of small-scale wind turbines [2] - TPI Composites aims to support the next generation of renewable energy leaders through this sponsorship, emphasizing the importance of innovative solutions for a sustainable future [3] Company Overview - TPI Composites, Inc. focuses on innovative and sustainable solutions to decarbonize and electrify the world, delivering high-quality composite solutions through long-term relationships with leading OEMs in the wind market [4] - The company is headquartered in Scottsdale, Arizona, and operates factories in the U.S., Mexico, Türkiye, and India, along with engineering development centers in Denmark and Germany [4] Industry Context - The KidWind Project provides clean energy education for students and educators, aiming to inspire a new generation to address climate change through renewable energy technologies [5]

Q1 2025 Earnings Call May 12th, 2025 Q1 2025 Legal Disclaimer 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of managem ...

Company Performance - TPI Composites reported a quarterly loss of $1.01 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.50, representing an earnings surprise of -102% [1] - The company posted revenues of $336.16 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 7.39%, compared to revenues of $299.06 million a year ago [2] - Over the last four quarters, TPI Composites has not surpassed consensus EPS estimates and has topped consensus revenue estimates two times [2] Stock Outlook - TPI Composites shares have declined approximately 54% since the beginning of the year, while the S&P 500 has decreased by -3.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.34 on revenues of $367.33 million, and for the current fiscal year, it is -$1.92 on revenues of $1.42 billion [7] Industry Context - The Industrial Services industry, to which TPI Composites belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact TPI Composites' stock performance [5][6]

TPI Composites (TPIC) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Company Participants Jason Wegmann - Vice President of IR & ESGWilliam Siwek - President, CEO & DirectorRyan Miller - Chief Financial OfficerMark Strouse - Executive Director Conference Call Participants Luke Persons - Research AnalystJustin Clare - MD & Research Analyst Operator Greetings, and welcome to the TPI Composites First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question ...

Financial Data and Key Metrics Changes - Q1 revenue increased by 14% year over year, reaching $336.2 million, with positive cash flows of $4.6 million from operating activities and $172 million in cash at the end of the quarter [4][6][24] - Adjusted EBITDA was a loss of $10.3 million, an improvement from a loss of $23 million in the same period in 2024, with an adjusted EBITDA margin loss of 3.1% compared to 7.8% in the prior year [7][22][23] - Free cash flow was negative $1.9 million, an improvement from negative $47.3 million in Q1 2024 [24] Business Line Data and Key Metrics Changes - Net sales of wind blades, tooling, and other wind-related sales increased by 13.9% to $329 million, primarily due to higher average sales prices and a 4% increase in the number of wind blades produced [21][22] - Field service inspection and repair services sales increased by 38.4% to $7.1 million, driven by an increase in technicians deployed to revenue-generating projects [22] Market Data and Key Metrics Changes - Strong demand for manufacturing capacity in Mexico for 2025, with no change in demand profile for plants providing blades for the U.S. market [6][51] - The U.S. market demand is expected to remain flat in 2026 compared to 2025 [51] Company Strategy and Development Direction - The company is focused on leveraging investments made over the last year to achieve operational excellence and cost savings [5] - A strategic review of the business is underway to optimize the capital structure, with the appointment of two new independent directors to assist in this process [18][19] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the complexities and uncertainties within the global wind market, including policy considerations and macroeconomic factors [30] - The company remains committed to its sustainability goals, aiming for carbon neutrality by 2030 and achieving a 17% reduction in CO2 emissions [28][29] Other Important Information - The company received a notification from NASDAQ regarding non-compliance with the minimum bid price requirement, with a 180-day period to regain compliance [19][20] - The reopening of the Newton, Iowa facility is expected to create approximately 400 jobs, with plans for two production lines operational this year [16] Q&A Session Summary Question: Clarification on the strategic review process - The strategic review has become a more formal process focused on restructuring the balance sheet for near-term and long-term health [35][36] Question: Initial views on the House reconciliation language - The management expressed concerns about the phase-out of certain incentives and the treatment of wind energy compared to other technologies [38][39] Question: Demand for additional lines in Iowa - Discussions are ongoing regarding the potential to add more lines based on market demand and tariff situations [42] Question: Supply chain cost reductions - The company remains on track for supply chain cost reductions, with a focus on the bill of materials [43][44] Question: Impact of 45X on manufacturing decisions - The potential phase-down of 45X could influence decisions on adding lines or opening new sites, depending on demand dynamics [47][49] Question: Demand profile for 2025 and 2026 - There is no change in the demand profile for 2025, with expectations for flat demand in 2026 [50][51] Question: EBITDA margin trends - The management expects Q2 to have higher volume but impacted by a safety stand down, with a peak in margins anticipated in Q3 [52][53]

Financial Performance - Net sales of wind blades for Q1 2025 increased by approximately 14% to $336,157,000 compared to $294,046,000 in Q1 2024[110] - The net loss from continuing operations for Q1 2025 was $48,291,000, an improvement from a loss of $60,879,000 in Q1 2024[118] - Net sales for the three months ended March 31, 2025, increased by 14.3% to $336,157,000 compared to $294,046,000 in the same period in 2024[124] - Wind blade, tooling, and other wind-related sales rose by 13.9% to $329,041,000, driven by higher average sales prices and a 4% increase in the number of wind blades produced[124] - Total income from continuing operations showed a loss of $22,792,000, a 40.2% improvement from a loss of $38,098,000 in the same period last year[135] - The EMEA segment reported a significant increase in income from operations, rising to $1,564,000, compared to a loss of $4,311,000 in 2024, marking a 136.3% change[138] Operational Metrics - Estimated megawatts of energy capacity generated by wind blade sets produced decreased to 1,933 in Q1 2025 from 2,050 in Q1 2024[122] - Utilization rate improved to 70% in Q1 2025, up from 67% in Q1 2024[122] - The U.S. segment reported a 27.5% increase in net sales to $5,356,000, driven by tooling refurbishment sales related to the restart of production[126] - The Mexico segment experienced a 36.1% increase in net sales to $207,471,000, attributed to a 23% increase in the number of wind blades produced[127] - EMEA segment net sales decreased by 7.7% to $89,153,000, primarily due to a 12% decrease in the number of wind blades produced[128] - India segment net sales declined by 16.1% to $34,177,000, mainly due to a 20% decrease in the number of wind blades produced[129] Cost and Expenses - Total cost of goods sold for the three months ended March 31, 2025, was $350,109,000, an increase of 8.8% from $321,724,000 in the prior year[130] - General and administrative expenses decreased by 29.6% to $5,919,000, down from $8,403,000, primarily due to lower employee compensation costs[132] - Interest expense increased to $24,204,000, up 13.2% from $21,383,000 in the same period last year[141] - The Mexico segment's loss from operations decreased by 29.4%, improving from a loss of $26,861,000 in 2024 to $18,956,000 in 2025[137] Strategic Initiatives - The company completed the divestiture of its automotive business in June 2024 and is exploring alternatives for the divestiture of its tooling business, expected to complete in 2025[107] - The company is assessing strategic alternatives to optimize its capital structure and maintain liquidity amid economic challenges[115] Market and Economic Conditions - Ongoing inflationary pressures have led to minimum wage increases in Mexico (12% and 20%) and Türkiye (30% and 49%) in 2024 and 2025, impacting production costs[114] - The company received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, with a deadline to regain compliance by October 29, 2025[116] - The restructuring plan in Türkiye impacted approximately 20% of the Turkish workforce, with further rationalization expected in the second half of 2025[113] Cash Flow and Liquidity - Net cash provided by operating activities was $4,625,000, a substantial increase of $43,629,000 compared to a cash outflow of $39,004,000 in the prior year[151] - The total principal amount of debt outstanding decreased to $696.4 million as of March 31, 2025, down from $705.2 million at the end of 2024[150] - The company had unrestricted cash and cash equivalents totaling $171.9 million as of March 31, 2025, down from $196.5 million at the end of 2024[148] Risk Management - The company is exposed to market risks primarily related to foreign currency exchange rates and commodity prices[159] - The company has not hedged its commodity price exposure but locks in pricing for key raw materials for 12 months to protect against price increases[161] - Approximately 37% of the resin and resin systems used are purchased under contracts controlled by customers, limiting the company's exposure to price fluctuations[162] - All remaining secured and unsecured financing and finance lease obligations are fixed rate instruments as of March 31, 2025, mitigating interest rate risk[164] - The current annual interest rates for accounts receivable assignment agreements range from SOFR plus 0.26% to EURIBOR plus 1.95% depending on the segment and year of agreement[156] Accounting and Compliance - There have been no significant changes to critical accounting policies as disclosed in the Annual Report for the year ended December 31, 2024[158] - A hypothetical 10% change in foreign currency exchange rates would have resulted in a change to income from operations of approximately $11.6 million for the three months ended March 31, 2025[160] - A 10% change in the forecasted price of resin and resin systems would impact income from operations by approximately $4.4 million for the three months ended March 31, 2025[163] - As of March 31, 2025, $169.4 million of receivables were sold under accounts receivable assignment agreements, compared to $95.0 million in the prior year period, representing an increase of approximately 78.4%[157]