TPI Composites(US:TPIC) Newsfilter·2025-02-20 21:02Core 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]