On August 8, 2024, TPI Composites Inc (TPIC, Financial) released its 8-K filing for the second quarter ended June 30, 2024. TPI Composites Inc is engaged in manufacturing composite wind blades and operates in the wind energy and transportation industries. The company has a significant presence in the U.S., Asia, Mexico, EMEA, and India, with the majority of its revenue derived from the Mexico segment.
Performance Overview
TPI Composites Inc (TPIC, Financial) reported net sales of $309.8 million for Q2 2024, a 17.2% decrease compared to $374.0 million in Q2 2023. The net loss from continuing operations attributable to common stockholders was $61.5 million, an improvement from the $74.3 million loss in the same period last year. Adjusted EBITDA showed a loss of $24.9 million, compared to a loss of $33.3 million in Q2 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $309.8 million | $374.0 million |
| Net Loss from Continuing Operations | $61.5 million | $74.3 million |
| Adjusted EBITDA | -$24.9 million | -$33.3 million |
| Net Loss per Common Share | -$1.30 | -$1.75 |
Challenges and Strategic Moves
The company faced several challenges, including a decrease in net sales of wind blades, tooling, and other wind-related sales by $58.4 million, primarily due to the number and pace of startups and transitions, expected volume declines, and unfavorable foreign currency fluctuations. Additionally, the closure of the Nordex Matamoros plant and the divestiture of the Automotive business were significant steps to mitigate losses.
“In the second quarter we were able to complete the divestiture of our Automotive business and we closed the Nordex Matamoros plant for Nordex, two loss-making businesses that have negatively impacted TPI’s performance,” said Bill Siwek, President and CEO of TPI Composites.
Financial Achievements
Despite the challenges, TPI Composites Inc (TPIC, Financial) managed to narrow its net loss from continuing operations and improve its adjusted EBITDA. The company also reported higher average sales prices of wind blades due to changes in the mix of wind blade models produced. These achievements are crucial for the company's efforts to return to profitability and positive free cash flow in the second half of the year.
Income Statement Highlights
Net sales for Q2 2024 decreased by 17.2% to $309.8 million compared to $374.0 million in Q2 2023. The gross loss was $24.4 million, an improvement from the $40.8 million loss in the same period last year. General and administrative expenses increased to $9.2 million from $6.8 million in Q2 2023. The net loss from continuing operations per common share was $1.30, compared to $1.75 in Q2 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, TPI Composites Inc (TPIC, Financial) reported total assets of $715.4 million, down from $804.1 million as of December 31, 2023. The company's total liabilities increased to $989.7 million from $926.4 million, resulting in a stockholders' deficit of $274.3 million. Net cash used in operating activities increased by $1.7 million for the six months ended June 30, 2024, compared to the same period in 2023.
2024 Guidance
TPI Composites Inc (TPIC, Financial) reaffirmed its guidance for the full year 2024, with net sales from continuing operations expected to be between $1.3 billion and $1.4 billion. The adjusted EBITDA margin is anticipated to be approximately 1%, and capital expenditures are projected to be between $25 million and $30 million.
For more detailed insights, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from TPI Composites Inc for further details.
