Sales growth and strategic challenges

• Revenue: USD 336.2 million, by 14% compared to the previous year.

• Netto turnover from Windklingen: 329 million US dollars, an increase of 13.9% compared to the previous year.

• Adapted EBITDA: Loss of $ 10.3 million, including a guarantee fee of $ 12.7 million.

• Fitted EBITDA margins: Loss of 3.1%, improved compared to a loss of 7.8% in the previous year.

• Cashflow from operating activities: Positive 4.6 million US dollars.

• Free Cashflow: Negative 1.9 million US dollars, improves from negative $ 47.3 million in the previous year.

• Cash and cash equivalent: 172 million US dollars at the end of the quarter.

• Total debt: 616 million US dollars.

• Sales, inspection and repair services Sales: $ 7.1 million, 38.4% compared to the previous year.

• 2025 financial guidelines: Sales expects between 1.4 and 1.5 billion US dollars; Adjusted EBITDA margin revised to 0% to 2%.

• Investment expenses for 2025: Probably 25 to 30 million US dollars.

Appearance date: May 12, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• TPI Composites Inc (Nasdaq: TPIC) recorded an increase in sales in the first quarter of 14% compared to the previous year and reached USD 336.2 million.

• The company achieved a positive cash flow of 4.6 million US dollars from operating activities and ended the quarter with $ 172 million in cash.

• The strong demand for the operational capacity of TPICO continues, with the focus on ensuring the customer.

• The adjusted EBITDA loss from TPIC improved from USD 23 million in the first quarter of 2024 in the amount of $ 10.3 million in the first quarter of 2025, which affected surgical improvements.

• The reopening of the facility in Newton, Iowa, is expected to create around 400 jobs, whereby the expansion expires to 1,000 jobs.

• TPIC recorded a guarantee fee of $ 12.7 million and had a negative impact on adjusted EBITDA.

• The company faces challenges from intensive Chinese competition and hyperinflation in Turkiye, which leads to a restructuring of the workforce.

• TPIC received a NASDAQ notification for non-compliance with the minimum bid price with a deadline in order to regain compliance until October 29, 2025.

• The strategic review of the business shows continuing challenges in optimizing the capital structure and maintaining liquidity.

• The uncertainty about tariffs, permission and possible changes to the IRA in the United States could have an impact on business activities and the market demand of the TPIC.

Q: Can you clarify the difference between the current strategic review and earlier reviews of the capital structure? A: The strategic review is a formal process of assessing our capital structure and considering alternatives. The focus is on the restructuring of the balance sheet for both short -term and long -term health. – – William Siwek, President, CEO, director

Q: What are your initial views of the realiliation language that was published shortly before your press release? A: The exit of 45y was expected, but the completion in the operation and start of the construction was able to make challenges. The 45 -fold date of 2027 for the wind is disappointing and the aspect of transferability is still unclear. We will continue to analyze this. – – William Siwek, President, CEO, director

Q: Is there the potential to achieve further lines in the near future in the near future? A: We have capacity for up to five lines and have had discussions with our customer. Future decisions depend on demand, reconciliation results and tariff situations. – – William Siwek, President, CEO, director

Q: Despite market uncertainties, are you still on the right track for the 8% supply chain cost reductions of 8%? A: Yes, we are at the goal for these cost reductions in connection with the material calculation. The latest tariff changes may have a small influence, but overall we are on the right track or a little better. – – William Siwek, President, CEO, director

Q: How can the potential phase-down phase of 45x until 2027 affect your decisions about the expansion of the production lines or locations? A: It could affect decisions, depending on the dynamics of demand in the next few years. If 45x remains as suggested, this can affect the feasibility of opening another location. – – William Siwek, President, CEO, director

Q: Did tariffs or the permission of problems influence the demand for your US market production in 2025? A: There was no change in the demand for our US market production in 2025. For 2026 we expect demand to be flat compared to 2025. – – – – – – – – – – – – – – – – – – – – – – – – – – William Siwek, President, CEO, director

Q: How do you see how the EBITDA margins tend to be in the course of the Q2 incident in the course of the year? A: Q1 was influenced by a guarantee fee and the second quarter is affected by a security stock. We expect higher volumes and healthier margins in the second half, although the third quarter is probably the highlight of the year. – – Ryan Miller, CFO

You can find the complete copy of the earnings call in the complete earnings call.

This article first appeared on Gurufocus.