TPI Composites Inc · Q1 2023 earnings

Briefing

Reported solid sales and earnings performance, aligned with internal plans, and bolstered the balance sheet for future growth.

TPI Composites reported a 17.6% increase in net sales to $404.1 million for Q1 2023 compared to $343.5 million in the same period in 2022. The company issued $132.5 million of 5.25% green convertible senior notes to strengthen the balance sheet. Despite a challenging global wind market, the company's performance met internal plans.

• Net sales increased by 17.6% to $404.1 million compared to Q1 2022.
• Net loss attributable to common stockholders was $37.3 million, compared to a loss of $29.9 million in the same period in 2022.
• Adjusted EBITDA totaled $8.4 million, compared to $6.1 million during the same period in 2022.
• Capital expenditures were $3.3 million, compared to $5.5 million during the same period in 2022.

Headline financials

Revenue & EPS history

The near-term outlook for the wind industry remains somewhat uncertain as we wait for specific guidance on the IRA and the EU moves down the path of implementation of REPowerEU and the Green Deal Industrial Plan. Nevertheless, we remain optimistic for the future of wind. We still see a clear path to $2 billion of sales and high single-digit EBITDA margins over the mid to long term within our existing manufacturing footprint. However, we do anticipate there will be a need to expand our operations and footprint to meet the needs of our customers once demand begins to outpace capacity as wind installations accelerate and we are in active discussions with our customers regarding their future needs