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TPI Composites, Inc. Announces Fourth Quarter and Full Year 2024 Earnings Results – Expects Improved Profitability in 2025
TPICTPI Composites(TPIC) Newsfilter·2025-02-20 21:02

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 197millioninunrestrictedcash,whichstrengtheneditsliquidityposition[2][3]−TPICompositesextendedsupplyagreementswithVestasandGEVernovathrough2025,indicatingstrongdemandforitsproducts[2]FinancialPerformance−Fourthquarternetsalesincreasedby17.7197 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 294.3millioninQ42023,drivenbya19.2294.3 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 14.6millioninQ42023[6][9]−AdjustedEBITDAimprovedto14.6 million in Q4 2023 [6][9] - Adjusted EBITDA improved to 1.2 million in Q4 2024 from a loss of (24.5)millioninthesameperiodlastyear,reflectingoperationalimprovements[10]YearlyOverview−Forthefullyear2024,netsalesdecreasedby7.124.5) 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 1,432.4millionin2023,primarilyduetoa161,432.4 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)millionin2023,influencedbyrestructuringchargesandincreasedlaborcosts[15][16]−AdjustedEBITDAlossfor2024was(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)millionin2023,drivenbylowerwarrantychargesandcost−savinginitiatives[17]OperationalMetrics−InQ42024,thecompanyproduced613setsofwindblades,aslightincreasefrom602setsinQ42023,withutilizationrisingto9144.9) 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 148inQ42023,reflectingashiftinproductmix[4]−Thecompanyoperated34dedicatedmanufacturinglines,consistentwiththepreviousyear,indicatingstableproductioncapacity[4]CashFlowandInvestments−Netcashprovidedbyoperatingactivitiesimprovedby148 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 16.1millioninQ42024,primarilyduetoreducedcapitalexpenditures[12]−Forthefullyear,netcashprovidedbyoperatingactivitiesincreasedby16.1 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 1.4billionand1.4 billion and 1.5 billion, with an adjusted EBITDA margin of 2%-4% [20]