SCOTTSDALE, Ariz., April 17, 2025 (GLOBE NEWSWIRE) -- TPI Composites, Inc. (“TPI”) (Nasdaq: TPIC) today announced that the company will release its first quarter 2025 results after the market close on Thursday, May 8, 2025, to be followed by a conference call at 5:00 p.m. (Eastern Time) on the same day. The conference call can be accessed live over the phone by dialing 1-877-407-8291, or for international callers, 1-201-689-8345. A replay will be available two hours after the call and can be accessed by dia ...

SCOTTSDALE, Ariz., March 27, 2025 (GLOBE NEWSWIRE) -- TPI Composites, Inc. (Nasdaq: TPIC), today published its 2024 sustainability report highlighting its progress on organizational and global impacts related to sustainability. Bill Siwek, President, and CEO noted, “We remain committed to helping the world increase renewable energy production. As we advance our goals and strategy to prepare for the expected growth of wind energy, we will continue to be a steadfast industry leader, focused on creating a more ...

SCOTTSDALE, Ariz., Feb. 24, 2025 (GLOBE NEWSWIRE) -- TPI Composites, Inc. (TPI) (Nasdaq: TPIC), a leading manufacturer of composite blades for the wind energy market, today announced it has reached a significant milestone: the production of its 100,000th wind blade since 2001. This achievement underscores TPI’s commitment to driving the growth of wind energy through the manufacturing of high-quality, reliable blades. Over the past two decades, TPI has been at the forefront of wind blade technology, continuo ...

Q4 2024 Earnings Call February 20, 2024 Q4 2024 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 mana ...

TPI Composites, Inc. (NASDAQ:TPIC) Q4 2024 Earnings Conference Call February 20, 2025 5:00 PM ET Company Participants Jason Wegmann - VP, IR & ESG Bill Siwek - President, CEO & Director Ryan Miller - CFO Conference Call Participants Mark Strouse - JPMorgan Andrew Percoco - Morgan Stanley Eric Stine - Craig-Hallum Jeff Osborne - TD Cowen Justin Clare - ROTH Capital Partners Operator Good afternoon, and welcome to the TPI Composites' Fourth Quarter and Full Year 2024 Earnings Conference Call. At this time, I' ...

Core Insights - TPI Composites reported revenue of $346.51 million for the quarter ended December 2024, reflecting a year-over-year increase of 16.7% [1] - The company's EPS was -$0.81, a decline from $0.27 in the same quarter last year, indicating a significant drop in profitability [1] - Revenue fell short of the Zacks Consensus Estimate of $368.13 million, resulting in a surprise of -5.88% [1] - The EPS also missed the consensus estimate of -$0.39, with a surprise of -107.69% [1] Financial Performance Metrics - Estimated megawatts produced were 2,516, slightly below the average estimate of 2,588 from two analysts [4] - The number of sets produced was 613, compared to the average estimate of 636 [4] - Utilization rate was reported at 91%, close to the average estimate of 91.8% [4] - The number of manufacturing lines installed was 34, matching the average estimate [4] - Net sales from field service, inspection, and repair services were $10.50 million, below the average estimate of $10.73 million, representing a year-over-year decline of 16.6% [4] - Net sales from wind blade, tooling, and other wind-related services were $336.01 million, compared to the average estimate of $352.59 million, showing a year-over-year increase of 19.3% [4] Stock Performance - TPI Composites' shares have returned -9.6% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Performance - TPI Composites reported a quarterly loss of $0.81 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.39, and compared to earnings of $0.27 per share a year ago, indicating an earnings surprise of -107.69% [1] - The company posted revenues of $346.51 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 5.88%, and this represents an increase from year-ago revenues of $296.99 million [2] - Over the last four quarters, TPI Composites has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - TPI Composites shares have declined approximately 24.9% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.30 on revenues of $365.97 million, and for the current fiscal year, it is -$0.90 on revenues of $1.53 billion [7] Industry Outlook - The Industrial Services industry, to which TPI Composites belongs, is currently ranked in the bottom 49% 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]

Sales and Revenue - TPI Composites, Inc. generated approximately 97% of total net sales from wind blade manufacturing for the years ended December 31, 2024, 2023, and 2022[23]. - Net sales for the year ended December 31, 2024, were $1,331,131, a decrease from $1,432,408 in 2023 and $1,478,739 in 2022[185]. - Total net sales decreased by 7.1% in 2024 to $1,331,131 thousand, down from $1,432,408 thousand in 2023, primarily due to a 16% decrease in the number of wind blades produced[204]. - The U.S. segment experienced a significant decline in net sales by 28.7% to $20,204 thousand in 2024, compared to $28,325 thousand in 2023[206]. - The Mexico segment saw an 18.2% increase in net sales to $696,762 thousand in 2024, driven by higher average sales prices and a shift to larger wind blade models[208]. - EMEA segment total net sales decreased by 21.9% to $447,881,000 in 2024 from $573,483,000 in 2023, primarily due to a 24% decrease in wind blade production[210]. - India segment total net sales also decreased by 31.0% to $166,284,000 in 2024 from $241,061,000 in 2023, attributed to a 24% decrease in wind blade production and lower average sales prices[211]. Manufacturing and Production - TPI's restructuring plan included ceasing production at its Yangzhou, China facility as of December 31, 2022, significantly impacting its global manufacturing footprint and financial results[19]. - The company operates wind blade manufacturing facilities in four locations: Mexico, Türkiye, India, and plans to restart operations in Iowa in the second half of 2025[78]. - The company has produced over 98,000 wind blades since 2001, showcasing a strong long-term field performance record[27]. - TPI's manufacturing capabilities allow for the production of wind blades ranging from 30 meters to over 80 meters in length, with flexibility to adapt to customer specifications[27]. - The company experienced significant production delays at the Matamoros, Mexico facility, which adversely impacted profitability and financial condition over the three-year supply agreement term[78]. - Estimated megawatts produced decreased to 9,116 in 2024 from 11,382 in 2023, reflecting a decline in production capacity[195]. - Utilization rate dropped to 77% in 2024 from 82% in 2023, indicating reduced operational efficiency[195]. Financial Performance - The net loss from continuing operations for 2024 was $(210,120), compared to $(151,966) in 2023 and $(17,119) in 2022[185]. - EBITDA for 2024 was $(75,267), an improvement from $(84,812) in 2023, while adjusted EBITDA was $(38,691) compared to $(44,889) in 2023[185]. - Free cash flow for 2024 was $(13,703), an improvement from $(117,109) in 2023[185]. - Total debt, net of debt issuance costs and debt discount, increased to $616,602 in 2024 from $485,193 in 2023[185]. - Net cash (debt) as of December 31, 2024, was $(418,582) thousand, compared to $(323,218) thousand in 2023, indicating increased leverage[193]. - The company recorded approximately $9.6 million in restructuring charges in Q4 2024 due to a workforce rationalization plan in Türkiye[86]. - The company reported higher startup and transition costs during the ramp-up of new wind blade models, impacting cost of goods sold[174]. Strategic Initiatives - The company completed the divestiture of its automotive subsidiary on June 30, 2024, marking a strategic shift to focus entirely on the wind industry[18]. - TPI plans to expand its field service inspection and repair business, expecting operating margins in this segment to surpass those of wind blade manufacturing in future periods[25]. - The company is exploring the divestiture of its tooling business to prioritize capital for growth in the wind blade sector, expected to be completed in 2025[33]. - The company has entered into supply agreements with GE Vernova, extending contracts through 2025 for three manufacturing facilities in Juarez, Mexico, and reopening the Iowa facility in the second half of 2025[26]. - The company extended supply agreements with Vestas through 2025, transitioning two manufacturing lines in Matamoros to a larger wind blade model[41]. - GE Vernova agreements were extended through December 2025, adding a third manufacturing facility in Juárez, Mexico for four new lines[42]. Market and Competition - Customers represented approximately 77% of the global onshore wind energy market (excluding China) and 88% of the U.S. onshore wind turbine market over the three years ended December 31, 2023[39]. - The competitive landscape includes significant pressure from Chinese manufacturers expanding into Europe and other regions, impacting market dynamics[51]. - The U.S. wind energy industry relies on governmental support through incentives, which may not be extended, posing risks to demand for wind blades[95][97]. - The company faces intense competition from other wind blade manufacturers and in-house production by wind turbine OEMs, limiting customer base[94]. Regulatory and Environmental Factors - The Inflation Reduction Act of 2022 extended the Production Tax Credit for Renewable Energy until at least 2032, which is expected to boost demand for wind energy[56]. - The company is subject to various environmental regulations, and non-compliance could result in fines and negatively impact its reputation[68]. - Regulatory changes and tariffs on goods imported from Mexico, effective March 2025, could adversely affect wind blade sales[81]. - The company has adopted environmental, health, and safety policies to promote accountability and eliminate unsafe behaviors in the workplace[68]. Workforce and Employment - As of December 31, 2024, the company employed over 11,700 full-time associates across various countries, with the majority located in Mexico[61]. - The overall turnover rate for the company declined in 2024, reflecting high retention levels across all geographies[67]. - Approximately 29% of the company's workforce is covered by collective bargaining agreements, which could lead to increased operating costs and potential work disruptions[113]. - The company has high levels of associate engagement and retention, supported by a strong culture of inclusion and diversity[65]. Research and Development - The company is collaborating on research and development projects focused on advanced manufacturing, sustainability, and innovative inspection technologies[46]. - The company is expanding its intellectual property portfolio and leveraging in-house expertise in machine learning and AI to enhance manufacturing processes[47]. - The company is developing BladeAssure™, a process integrating advanced technologies to ensure high-quality wind blade production, expected to be implemented across all factories by the end of 2025[36]. Corporate Governance and Risk Management - The company maintains a system of internal controls to ensure reliable financial reporting, but any failure could harm its business and lead to regulatory scrutiny[107]. - The company’s board of directors oversees strategic risk exposure, including cybersecurity risks, through the Audit Committee, which receives quarterly updates[138]. - The company is subject to counterparty risk related to capped call transactions, which could affect its financial stability if a counterparty defaults[126].

Financial Performance - Net sales for Q4 2024 totaled $346.5 million, an increase of 17.7% compared to $294.3 million in Q4 2023[6] - Net loss from continuing operations for Q4 2024 was ($49.1) million, compared to net income of $14.6 million in Q4 2023[8] - Adjusted EBITDA for Q4 2024 was $1.2 million, a significant improvement from an adjusted EBITDA loss of ($24.5) million in Q4 2023[10] - Full year 2024 net sales decreased by 7.1% to $1,331.1 million compared to $1,432.4 million in 2023[13] - The net loss from continuing operations attributable to common stockholders for the year ended December 31, 2024, was $210.1 million, compared to a loss of $127.8 million in 2023[28] - Adjusted EBITDA for the year ended December 31, 2024, was $(38,691) thousand, a decrease from $(44,889) thousand in 2023[34] Cash Flow and Liquidity - Free cash flow recovery in 2024 resulted in $197 million in unrestricted cash at year-end[2] - Free cash flow for Q4 2024 was $83.2 million, a significant improvement from a negative free cash flow of $15.4 million in Q4 2023[32] - Free cash flow improved to $83,219 thousand in 2024, compared to a negative $15,355 thousand in 2023[34] - Cash and cash equivalents at the end of Q4 2024 were $196.5 million, up from $161.1 million at the end of Q4 2023[29] - Cash and cash equivalents rose to $196,518 thousand in 2024, up from $161,059 thousand in 2023[34] - The company reported a net cash provided by operating activities of $87,341 thousand in 2024, a substantial increase from $4,936 thousand in 2023[34] Operational Changes - The company divested its Automotive business and shut down one of its Mexico facilities to optimize operations[2] - The company incurred restructuring charges of $10.0 million in Q4 2024, compared to $1.2 million in Q4 2023[27] Market Outlook - The company expects full year 2025 net sales from continuing operations to be between $1.4 billion and $1.5 billion[20] - Adjusted EBITDA margin for 2025 is projected to be between 2% and 4%[21] - Utilization rate for 2025 is expected to be approximately 85% based on 34 lines installed[21] - The company anticipates continued growth in the wind energy and electric vehicle markets, which are key areas for future expansion[26] Cost and Expenses - The total cost of goods sold for Q4 2024 was $350.2 million, resulting in a gross loss of $3.7 million, compared to a gross loss of $28.2 million in Q4 2023[27] - Interest expense, net, significantly increased to $24,415 thousand in 2024 from $6,075 thousand in the previous year[34] - Depreciation and amortization expenses were $6,940 thousand for the year ended December 31, 2024, compared to $8,151 thousand in 2023[34] - Capital expenditures decreased to $(4,122) thousand in 2024 from $(20,291) thousand in 2023, reflecting a reduction in investment[34] Assets and Liabilities - Total current assets decreased to $445.1 million in 2024 from $503.1 million in 2023, primarily due to a reduction in contract assets[29] - Total liabilities increased to $1.07 billion in 2024 from $926.4 million in 2023, with long-term debt rising to $485.2 million[31] - Net debt increased to $(418,582) thousand in 2024 from $(323,218) thousand in 2023, indicating a rise in total debt[34] Foreign Currency Impact - The company experienced a foreign currency loss of $(1,190) thousand in 2024, contrasting with a gain of $1,865 thousand in the previous year[34] Sales Price - The average sales price (ASP) of wind blades increased to $177, up from $148 in Q4 2023[4]

Core Insights - TPI Composites reported solid financial results for 2024 despite challenges in the global wind industry, with strategic decisions made to transition to next-generation blades and restructure operations [2][3] - The company ended 2024 with a recovery in free cash flow, achieving $197 million in unrestricted cash, which strengthened its liquidity position [2][3] - TPI Composites extended supply agreements with Vestas and GE Vernova through 2025, indicating strong demand for its products [2] Financial Performance - Fourth quarter net sales increased by 17.7% to $346.5 million compared to $294.3 million in Q4 2023, driven by a 19.2% increase in wind-related sales [5][6] - The net loss from continuing operations for Q4 2024 was ($49.1) million, a decline from a net income of $14.6 million in Q4 2023 [6][9] - Adjusted EBITDA improved to $1.2 million in Q4 2024 from a loss of ($24.5) million in the same period last year, reflecting operational improvements [10] Yearly Overview - For the full year 2024, net sales decreased by 7.1% to $1,331.1 million from $1,432.4 million in 2023, primarily due to a 16% decrease in wind blade production [13][15] - The net loss from continuing operations for the year was ($210.1) million, compared to a loss of ($127.8) million in 2023, influenced by restructuring charges and increased labor costs [15][16] - Adjusted EBITDA loss for 2024 was ($38.7) million, an improvement from a loss of ($44.9) million in 2023, driven by lower warranty charges and cost-saving initiatives [17] Operational Metrics - In Q4 2024, the company produced 613 sets of wind blades, a slight increase from 602 sets in Q4 2023, with utilization rising to 91% from 71% [4] - The average sales price (ASP) of wind blades increased to $177, up from $148 in Q4 2023, reflecting a shift in product mix [4] - The company operated 34 dedicated manufacturing lines, consistent with the previous year, indicating stable production capacity [4] Cash Flow and Investments - Net cash provided by operating activities improved by $82.4 million in Q4 2024 compared to the same period in 2023, attributed to better cash earnings and working capital management [11] - Net cash used in investing activities decreased by $16.1 million in Q4 2024, primarily due to reduced capital expenditures [12] - For the full year, net cash provided by operating activities increased by $93.5 million, reflecting improved working capital management [18] 2025 Guidance - The company provided guidance for 2025, projecting net sales from continuing operations between $1.4 billion and $1.5 billion, with an adjusted EBITDA margin of 2%-4% [20]