On November 2, 2023, TPI Composites Inc (TPIC, Financial) announced its financial results for the third quarter ended September 30, 2023. Despite a challenging market and economic climate, the company maintained a strong liquidity position, ending the quarter with $161 million of unrestricted cash.
Financial Performance
Net sales for the third quarter of 2023 decreased by 3.0% to $372.9 million compared to $384.4 million in the same period in 2022. The net loss from continuing operations attributable to common stockholders was $72.8 million for Q3 2023, compared to a loss of $21.8 million in Q3 2022. Adjusted EBITDA for Q3 2023 was a loss of $27.4 million, a decrease of $32.5 million over the same period last year.
Key Financial Details
Wind sales increased by $6.4 million, or 1.8%, to $362.2 million for Q3 2023, compared to $355.8 million in Q3 2022. This increase was primarily due to an increase in the number of wind blades produced, favorable foreign currency fluctuations, and an increase in tooling sales in preparation for manufacturing line startups and transitions.
Automotive sales decreased by $7.9 million to $2.6 million for Q3 2023, compared to $10.5 million in Q3 2022. This reduction is mainly due to a decrease in the number of composite bus bodies produced due to Proterra’s bankruptcy during Q3 2023.
Field Services sales decreased by $10.1 million to $8.0 million for Q3 2023, compared to $18.1 million in Q3 2022. The decline was primarily due to a reduction in technicians deployed to revenue-generating projects due to an increase in time spent on non-revenue inspection and repair activities.
Company's Outlook
Despite the challenging near-term macro environment in the wind industry, TPI Composites Inc (TPIC, Financial) remains focused on quality and preserving its balance sheet. The company is confident that with its liquidity position, it has ample runway to navigate this rough patch in the industry while being positioned to meet the projected growth anticipated by its customers.
2023 Guidance
The company has updated its guidance for the full year ending December 31, 2023. It now expects net sales from continuing operations to be approximately $1.5 billion, and the adjusted EBITDA margin % from continuing operations to be a loss of approximately 5%.
Explore the complete 8-K earnings release (here) from TPI Composites Inc for further details.