SCOTTSDALE, Ariz., May 19, 2025 (GLOBE NEWSWIRE) -- TPI Composites, Inc. (NASDAQ: TPIC), today announced its sponsorship of the wind tunnel competition at the World KidWind Challenge, to be held at the American Clean Power Association’s (ACP) CLEANPOWER Conference in Phoenix, Arizona, May 18-21, 2025. The World KidWind Challenge is a hands-on design challenge that engages students in learning about wind energy through the process of designing, building, and testing small-scale wind turbines. As the wind tun ...

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]

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]

Financial Performance - TPI Composites reported net sales of $336.2 million for Q1 2025, a 14.3% increase from $294.0 million in Q1 2024[6]. - The net loss from continuing operations was $48.3 million in Q1 2025, improved from a net loss of $60.9 million in Q1 2024[8]. - Adjusted EBITDA loss decreased to $10.3 million in Q1 2025, compared to a loss of $23.0 million in Q1 2024, reflecting an adjusted EBITDA margin improvement from (7.8%) to (3.1%)[10]. - The company reported a net loss attributable to common stockholders of $48.313 million for the three months ended March 31, 2025, compared to a net loss of $61.468 million for the same period in 2024, representing a 21.5% improvement year-over-year[26]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(10.298) million, an improvement from $(23.022) million in the same period of 2024, indicating a 55.3% reduction in losses[26]. Production and Sales - The number of wind blade sets produced increased to 509 in Q1 2025, up from 488 in Q1 2024, with estimated megawatts generated decreasing to 1,933 from 2,050[5]. - Wind blade average sales price (ASP) rose to $209, compared to $183 in the same period last year[5]. - TPI Composites expects full-year 2025 net sales from continuing operations to be between $1.4 billion and $1.5 billion[12]. - The company anticipates an adjusted EBITDA margin of 0% to 2% for 2025, revised from a previous guidance of 2% to 4%[12]. - Utilization is projected to be between 80% and 85% based on 34 lines installed[12]. Cash Flow and Assets - 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]. - The company reported net cash provided by operating activities of $4.625 million for the three months ended March 31, 2025, compared to net cash used of $(39.004) million in the same period of 2024, marking a significant turnaround[25]. - Free cash flow for the three months ended March 31, 2025, was $(1.887) million, an improvement from $(47.289) million in the same period of 2024, showing a significant reduction in cash outflow[25]. - Total current assets decreased to $423.718 million as of March 31, 2025, down from $445.090 million as of December 31, 2024, reflecting a 4.8% decline[23]. - Cash and cash equivalents at the end of the period were $171.859 million, down from $196.518 million at the end of the previous quarter, a decrease of 12.5%[23]. Liabilities and Debt - Total liabilities increased to $1.087 billion as of March 31, 2025, compared to $1.065 billion as of December 31, 2024, representing a 2.1% increase[24]. - Current liabilities increased to $480.683 million as of March 31, 2025, from $473.968 million as of December 31, 2024, reflecting a 1.5% rise[24]. - The company’s net debt as of March 31, 2025, was $(442.846) million, compared to $(418.582) million at the end of 2024, indicating an increase in net debt[27]. Inventory and Strategic Review - The company’s inventories decreased to $2.991 million as of March 31, 2025, down from $3.968 million as of December 31, 2024, a decline of 24.6%[23]. - TPI Composites is conducting a strategic review to evaluate potential strategic alternatives for optimizing its capital structure[3].

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]

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]

Company Announcement - TPI Composites, Inc. will release its first quarter 2025 results after market close on May 8, 2025, followed by a conference call at 5:00 p.m. Eastern Time on the same day [1] - The conference call can be accessed via phone or through a webcast on the company's Investor Relations website [2][3] Company Overview - TPI Composites, Inc. is a global company focused 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 relationships 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]