TPI Composites reports Q4 EPS 31c, consensus (88c)

Reports Q4 revenue $297M, consensus $342.96M.Adjusted EBITDA was a loss of $28.1 million for the three months ended December 31, 2023, a decrease of $49.2 million over the same period last year. “Once again, we demonstrated our ability to navigate a challenging macro environment and finished 2023 with $161 million of unrestricted cash, resulting from a significant improvement in working capital. Throughout the year, we took advantage of the opportunity to strengthen our strategic position ahead of the wind market’s anticipated recovery and improve our liquidity,” said Bill Siwek, President and CEO of TPI Composites. “Our recently announced refinancing of Oaktree’s Series A Preferred Stock holdings provides TPI with approximately $190 million of improved liquidity through the life of the loan, permanently reduced future obligations by up to $90 million and gives us greater financial flexibility to execute on our strategic initiatives in 2024 and beyond.” “In the fourth quarter, we deepened our relationships with our customers as evidenced by the recent contract expansions and extensions with GE Vernova in Mexico and Nordex in Turkiye. We are encouraged by the improved financial results and business outlooks from our customers. While we anticipate 2024 to be a transitional year for us, we do expect to have improved financial performance during 2024 compared to 2023 with profitability improving significantly in the second half of 2024 compared to the first half of 2024. We believe volume will begin to accelerate at the end of 2024 and into 2025 and position us for Adjusted EBITDA levels north of $100 million on an annualized basis beginning in 2025.”