TPI Composites (TPICQ) investor relations material

Executive summary

• Q1 2025 net sales increased 14.3% year-over-year to $336.2 million, driven by strong U.S. demand, higher wind blade production, and improved average sales prices, especially in Mexico.

• Net loss from continuing operations narrowed to $48.3 million from $60.9 million year-over-year, reflecting improved operational performance and cost controls.

• Positive operating cash flow of $4.6 million and quarter-end cash balance of $171.9 million.

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

• Ongoing focus on operational excellence, cost savings, and leveraging lean tools to improve quality and delivery.

Financial highlights

• Adjusted EBITDA loss improved to $10.3 million from $23.0 million in Q1 2024; margin improved to -3.1% from -7.8%.

• Free cash flow was negative $1.9 million, a significant improvement from negative $47.3 million in Q1 2024.

• Utilization rate increased to 70% from 67% year-over-year.

• Wind blade ASP rose to $209,000 from $183,000 year-over-year.

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

Outlook and guidance

• 2025 sales guidance maintained at $1.4–$1.5 billion, with high single-digit year-over-year growth expected.

• Adjusted EBITDA margin guidance revised to 0%–2% (previously 2%–4%) due to warranty charges and safety stand-down.

• Utilization expected at 80%–85% across 34 production lines; capital expenditures projected at $25–$30 million.

• Field services revenue expected to grow over 50% year-over-year.

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