Q1 2024 TPI Composites Inc Earnings Call Transcript
Key Points
- TPI Composites Inc (TPIC) is advancing towards its 2030 goal of carbon neutrality, achieving an 18% reduction in Scope one and two CO2 emissions.
- The company has made significant investments in renewable energy, including wind turbines and solar panels in Turkey, and power purchase agreements in India and Mexico.
- TPI Composites Inc (TPIC) reported that its blade facilities in India and Turkey continued to be profitable, delivering 241 blade sets during the quarter.
- The company is actively negotiating additional power purchase agreements to ensure 100% renewable energy for its facilities, which also contribute to financial performance improvement.
- TPI Composites Inc (TPIC) is on track to return to positive EBITDA margins and positive free cash flow in the second half of the year, with expected mid single digit adjusted EBITDA margins.
- Sales and adjusted EBITDA in the first quarter of 2024 were lower than the previous year due to the timing of production line startups and transitions.
- The company recorded a $23 million adjusted EBITDA loss in the first quarter, including significant costs related to start-up and transition, unanticipated losses from the Matamoros plant, and charges for inflationary impact on warranty claims.
- TPI Composites Inc (TPIC) experienced a decrease in global service revenue year over year, reflecting a temporary reduction in technicians assigned to revenue-generating projects.
- The automotive segment's revenue fell year over year due to the Proterra bankruptcy, despite launching a new product line for the largest passenger EV customer.
- The company faces challenges such as elevated interest rates, inflation, the cost and availability of capital, permitting hurdles, and transmission bottlenecks which contribute to near-term delays in the wind industry.
Good afternoon, and welcome to the TPI Composites first quarter 2024 earnings conference call.
At this time, I'd like to turn the conference over to Jason Wegmann, Investor Relations for TPI Composites. Thank you. You may begin.
Thank you, operator. I would like to welcome everyone to TPI Composites' first quarter 2024 earnings call. We will be making forward-looking statements during this call that are subject to risks and uncertainties which could cause actual results to differ materially for a detailed discussion of applicable risks is included in our latest reports and filings with the Securities and Exchange Commission, which can be found on our website tpicomposites.com.
Today's presentation will include references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the comparable GAAP financial measures.
With that, let me turn the
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