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 ...

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][25] - 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 2024 [7][24] - Free cash flow was negative $1.9 million, an improvement from negative $47.3 million in Q1 2024 [26] 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, driven by higher average sales prices and a 4% increase in the number of wind blades produced [22][23] - Field service inspection and repair services sales increased by 38.4% to $7.1 million, attributed to more technicians deployed to revenue-generating projects [22] Market Data and Key Metrics Changes - Strong demand for the company's Mexico operations is expected to continue in 2025, with no change in demand profile for plants providing blades for the U.S. market [6][50] - The EU market presents long-term growth opportunities, although challenges persist due to competition from Chinese manufacturers and hyperinflation in Turkey [18] 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 capital structure, with the appointment of two new independent directors to assist in this process [19][20] Management Comments on Operating Environment and Future Outlook - Management acknowledged the complexities and uncertainties within the global wind market, including policy considerations in the U.S. and macroeconomic factors in Europe and Turkey [30] - The company remains committed to its sustainability goals, aiming for carbon neutrality by 2030 through renewable energy procurement [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 [20][21] - The reopening of the Newton, Iowa facility is expected to create approximately 400 jobs, with plans for two production lines operational this year [17] Q&A Session Summary Question: Clarification on the strategic review process - Management indicated that the strategic review is a more formal process to evaluate optimal capital structures and right-size the balance sheet for both near-term and long-term health [35][36] Question: Initial views on the House reconciliation language - Management expressed concerns about the potential phase-out of certain provisions and the impact on wind energy compared to other technologies [37] Question: Demand for the Iowa restart and potential for more lines - Management noted ongoing discussions about capacity for up to five lines, dependent on demand dynamics and tariff situations [41] Question: Supply chain cost reductions target - Management confirmed that they are on track with supply chain cost reductions, although tariffs may have a small impact on the bill of materials [42][43] Question: Impact of 45X on manufacturing decisions - Management stated that the potential changes to 45X could influence decisions regarding adding lines or opening new sites, depending on demand dynamics [46][48] Question: Demand profile for 2025 and 2026 - Management reported no change in demand for 2025, with expectations for the U.S. market to remain flat in 2026 [50] Question: EBITDA margin trends for the year - Management expects Q2 to have higher volume but impacted by a safety stand down, with a peak in margins anticipated in Q3 [51][52]

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]

Core Insights - TPI Composites, Inc. reported a 14% year-over-year growth in sales for Q1 2025, achieving net sales of $336.2 million compared to $294.0 million in Q1 2024 [2][6] - The company is undergoing a strategic review to optimize its capital structure amid ongoing economic challenges and uncertainties in the renewable energy sector [2][3] Financial Performance - Net loss from continuing operations was $48.3 million for Q1 2025, an improvement from a net loss of $60.9 million in Q1 2024 [6][8] - Adjusted EBITDA loss decreased to $10.3 million in Q1 2025 from a loss of $23.0 million in the same period last year, indicating improved operational efficiency [10][14] - Net cash provided by operating activities improved by $43.6 million compared to the same period in 2024, primarily due to a decrease in net loss and changes in working capital [11] Operational Metrics - The number of wind blade sets produced increased to 509 in Q1 2025 from 488 in Q1 2024, with an estimated capacity of 1,933 megawatts compared to 2,050 megawatts in the previous year [5] - Utilization rate improved to 70% in Q1 2025 from 67% in Q1 2024, reflecting better operational performance [5] Sales Breakdown - Sales of wind blades and related products increased by $40.1 million, or 13.9%, to $329.0 million in Q1 2025, driven by higher average sales prices and a 4% increase in production volume [14] - Field services sales rose by 38.4% to $7.1 million, attributed to an increase in technicians deployed to revenue-generating projects [14] Guidance for 2025 - The company expects full-year net sales from continuing operations to be between $1.4 billion and $1.5 billion, with an adjusted EBITDA margin projected between 0% and 2% [12]

Core Insights - TPI Composites (TPIC) is expected to report a quarterly loss of $0.50 per share, a 61.8% increase in losses compared to the same period last year, with revenues projected at $328.93 million, reflecting a 10% year-over-year increase [1] Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 1.5% in the last 30 days, indicating a reassessment of initial estimates by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts predict 'Net Sales- Wind blade, tooling and other wind related' to reach $299.54 million, representing a year-over-year increase of 3.7% [5] - 'Net Sales- Field service, inspection and repair services' is forecasted to be $10.67 million, indicating a significant year-over-year increase of 107.6% [5][6] Market Performance - TPI Composites shares have shown a return of 20.3% over the past month, outperforming the Zacks S&P 500 composite, which increased by 11.3% [6] - Despite recent performance, TPI Composites holds a Zacks Rank 4 (Sell), suggesting it may underperform the overall market in the near future [6]

Group 1 - The report titled "India Wind Energy Market Outlook 2022-2026" focuses on the current state, challenges, and future trends of the wind energy market in India, highlighting its significance in the transition to clean energy [1][2][3] - As of March 2022, wind energy accounts for 37.7% of India's renewable energy capacity, with a cumulative installed capacity of 40.1 GW, and the country has a technical potential of 302 GW for onshore wind resources at 100m height [1][54] - The growth of wind energy installations in India has slowed down, with a mere 1.45 GW installed in 2021, significantly below the anticipated 2.3 GW, primarily due to COVID-19 impacts and supply chain disruptions [1][55] Group 2 - The report anticipates that from 2022 to 2026, the installed capacity of wind energy in India will vary under different scenarios, with a basic scenario projecting approximately 19.4 GW of new installations [2][3] - The government has introduced several policies to stimulate the market, including adjustments to bidding conditions and the introduction of hybrid project tenders, which have led to a recovery in market activity [1][2] - Future growth drivers for the wind energy market include offshore wind development, repowering of old projects, and the increasing demand for hybrid projects that combine wind and solar energy [1][2][3]

Company Announcement - TPI Composites, Inc. has rescheduled the release date for its first quarter 2025 earnings results to May 12, 2025, after market close [1] - A conference call will follow at 5:00 p.m. Eastern Time on the same day [1] Conference Call Details - The conference call can be accessed by phone at 1-877-407-8291 for domestic callers and 1-201-689-8345 for international callers [2] - A replay of the call will be available two hours after it concludes, accessible at 1-877-660-6853 for domestic callers and 1-201-612-7415 for international callers, with a passcode of 13752924 [2] - The replay will be available until May 26, 2025 [2] Company Overview - TPI Composites, Inc. focuses on innovative and sustainable solutions aimed at decarbonizing and electrifying the world [4] - The company provides high-quality, cost-effective composite solutions through long-term partnerships with leading OEMs in the wind market [4] - TPI 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 Overview - The demand for renewable energy is increasing globally, with wind power leading the transition towards renewables, crucial for combating climate change [1] - In the U.S., wind energy has been the largest renewable source of electricity generation since 2019, with installed capacity exceeding 153 gigawatts (GW) in 2024 [2][3] - The global wind energy market was valued at $95.55 billion in 2024, projected to grow at a CAGR of 9% from 2025 to 2032, reaching $190.39 billion [4] U.S. Wind Power Growth - Wind power output accounted for 10% of total U.S. utility-scale electricity generation in 2024, marking a 6.4% year-over-year increase [2] - The U.S. grid is expected to add 7.7 GW of wind generation capacity in 2025, up from 5.1 GW added in the previous year [3] Key Companies in Wind Energy - **AES Corporation**: A leading power generation company with a portfolio of 34,596 megawatts (MW). It plans to add 3.2 GW of new renewables by the end of 2025 and has a 51 GW pipeline for growth [7][9] - **Exelon Corporation**: Focused on clean energy transmission and distribution, expected to invest $21.7 billion in electric distribution and $12.6 billion in electric transmission from 2025 to 2028 [10] - **PG&E Corporation**: Operates California's largest regulated electric and gas utility, with a focus on wind energy procurement and development [12] - **Brookfield Renewable Partners**: Owns and operates renewable power facilities, targeting to invest $8-$9 billion over the next five years and has a strong development pipeline of 200 GW worth of projects [15][16][17] Investment Opportunities - The wind energy sector is becoming increasingly attractive for investors, with companies like Exelon, Brookfield Renewable, AES, and PG&E being essential for investment portfolios [5] - Thematic investment tools are available to identify companies that are shaping the future of renewable energy [6]

Core Viewpoint - Richardson Electronics, Ltd. has expanded its customer base through a supply agreement with TransAlta Corporation for its patented pitch energy modules designed for GE wind turbines and SSB platforms, enhancing the efficiency and reliability of wind energy operations [1][2]. Group 1: Agreement and Product Details - The supply agreement will see Richardson Electronics provide its ULTRA3000® and ULTRAPEM™ modules to various wind farms in Canada and the United States, with shipments expected throughout 2025 [2]. - The pitch energy modules are ultracapacitor-based and are intended to replace lead acid batteries in wind turbine platforms that utilize electric pitch systems, thereby improving energy management for blade angle adjustments [3]. Group 2: Customer Feedback and Impact - TransAlta Corporation highlighted the significant operational improvements achieved through the use of Richardson's ultracapacitor technology, noting that pitch faults due to weak batteries were a leading cause of downtime and lost production [4]. - The successful trial of the Ultra-caps over a year led to positive feedback, with expectations that the technology will reduce maintenance needs and increase revenue by minimizing production losses [4]. Group 3: Company Overview - Richardson Electronics is a global manufacturer specializing in engineered solutions, green energy products, and power management applications, with over 50% of its products manufactured in the U.S. and Germany [6][9]. - The company serves a diverse range of markets, including alternative energy, healthcare, and military, and focuses on providing specialized technical expertise and engineered solutions [7][9].

Core Viewpoint - Richardson Electronics, Ltd. has expanded its customer base through a supply agreement with TransAlta Corporation to provide patented pitch energy modules for wind turbines, enhancing operational efficiency and reducing downtime [1][2][4]. Group 1: Agreement and Product Details - The agreement entails Richardson Electronics supplying its ULTRA3000 and ULTRAPEM™ modules to various wind farms in Canada and the United States, with shipments expected throughout 2025 [2]. - The pitch energy modules are ultracapacitor-based and are designed to replace lead acid batteries in wind turbine platforms, managing energy for blade angle adjustments [3]. Group 2: Customer Feedback and Impact - TransAlta Corporation highlighted that pitch faults due to weak batteries are a leading cause of downtime, and the switch to Richardson's ultracapacitors has been an excellent upgrade, reducing the need for hub entries and increasing revenue potential [4]. - The positive feedback from TransAlta reflects the effectiveness of Richardson's innovative solutions in enhancing operational efficiency and reducing maintenance challenges [4]. Group 3: Company Overview - Richardson Electronics is a global manufacturer of engineered solutions, with over 50% of its products manufactured in the U.S. and Germany, serving various markets including alternative energy and healthcare [6][9]. - The company focuses on providing specialized technical expertise and engineered solutions, emphasizing design-in support, systems integration, and aftermarket services [7][10].