Q2 2024 TPI Composites Inc Earnings Call Transcript
Key Points
- TPI Composites Inc (TPIC) anticipates a profitable second half of 2024 after a challenging first half, with improved factory utilization and positive free cash flow.
- The company's blade facilities in India and Türkiye remained profitable, delivering 257 blade sets, representing 1.2 gigawatts of capacity during the quarter.
- TPIC expects to achieve at least $100 million of adjusted EBITDA in 2025, driven by operational improvements and increased production capacity.
- Raw material prices have declined year-over-year and are expected to remain stable, contributing to cost efficiency.
- The company is optimistic about the long-term recovery of the onshore wind energy market, with supportive policies in the U.S. and E.U. expected to drive growth.
- Sales and adjusted EBITDA were lower than expectations in Q2 2024 due to startup and transition delays and the unexpected cancellation of purchase orders by Nordex.
- The shutdown of the Nordex Matamoros facility resulted in significant losses, impacting Q2 revenue and adjusted EBITDA.
- Net sales decreased by 17% compared to the same period in 2023, driven by a decrease in wind blade production and unfavorable foreign currency fluctuations.
- Free cash flow was negative $44 million in Q2 2024, primarily due to EBITDA losses and capital expenditures related to transitions and startups.
- Challenges such as high interest rates, inflation, and permitting issues are hindering certain project timelines, affecting market recovery.
Good afternoon, everyone, and welcome to the TPI Composites Second Quarter 2024 earnings conference call. (Operator Instructions) Also, today's call is being recorded. (Operator Instructions) And now at this time, I would like to turn things over to Jason Wegmann, Investor Relations for TPI Composites. Mr. Wegmann, please go ahead.
Thank you, operator. I would like to welcome everyone to TPI Composites Second 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. 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
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