TPI Composites (TPICQ) investor relations material

Executive summary

• Q1 2025 net sales increased 14.3% year-over-year to $336.2 million, with improved adjusted EBITDA loss of $10.3 million and net loss from continuing operations narrowing to $48.3 million from $60.9 million.

• Operating cash flow was $4.6 million, and cash at quarter end was $171.9 million.

• Board initiated a strategic review to optimize capital structure, forming a transaction committee and appointing two new independent directors.

• Received NASDAQ notification for non-compliance with minimum bid price; 180 days to regain compliance.

• Focus remains on operational excellence, productivity, and liquidity amid industry uncertainty.

Financial highlights

• Net sales rose to $336.2 million from $294 million in Q1 2024, driven by higher average sales prices and a 4% increase in wind blade production.

• Adjusted EBITDA margin improved to -3.1% from -7.8% year-over-year; free cash flow was negative $1.9 million, a significant improvement from negative $47.3 million.

• Utilization rate increased to 70% from 67% year-over-year; wind blade ASP rose to $209,000 from $183,000.

• Ended quarter with $171.9 million in cash and $616 million in total debt; net debt was $442.8 million.

• Gross margin improved to (4.2)% from (9.4)% in Q1 2024.

Outlook and guidance

• 2025 sales expected between $1.4 billion and $1.5 billion, with high single-digit year-over-year growth at midpoint.

• Adjusted EBITDA margin guidance revised to 0%-2% from 2%-4% due to warranty charge and production suspension.

• Utilization expected at 80%-85% on 34 lines; capital expenditures projected at $25 million-$30 million.

• Ongoing review of strategic alternatives to optimize capital structure and maintain liquidity.

• Full-year 2025 wind blade sales expected to moderately increase as more lines reach serial production, offset by lower demand in Europe.