TPI Composites Reports 14% Sales Increase but Net Loss of $48.3 Million in Q1 2025

TPI Composites, Inc. reported a net sales increase of 14% for the first quarter of 2025, reaching $336.2 million compared to $294.0 million in the same period of 2024. The company attributed this growth primarily to higher average sales prices and a 4% increase in the number of wind blades produced, driven by the restart of production at its Juarez, Mexico facility. Despite the revenue growth, TPI Composites experienced a net loss of $48.3 million, a slight improvement from the $61.5 million loss reported in the prior year. The loss per share from continuing operations was $1.01, compared to $1.30 in the same quarter of 2024.

The company's financial performance was impacted by several factors, including increased costs associated with startup and transition activities, which totaled $8.4 million, down from $22.2 million in the previous year. General and administrative expenses also decreased by 29.6% to $5.9 million, reflecting cost-saving initiatives. However, the company faced challenges from rising warranty charges and foreign currency losses, which contributed to a total other expense of $25.1 million, up from $19.5 million in the prior year.

Operationally, TPI Composites has been focusing on its core wind energy business following the divestiture of its automotive subsidiary in June 2024. The company is also exploring strategic alternatives to optimize its capital structure, particularly in light of upcoming debt maturities in Türkiye. As of March 31, 2025, TPI Composites had total debt of $616.2 million, with cash and cash equivalents amounting to $171.9 million. The company is currently assessing its liquidity needs and has a remaining capacity of $44 million for cash and non-cash financing.

Geographically, the company reported varied performance across its segments. The U.S. segment saw a 27.5% increase in sales, while the Mexico segment experienced a 36.1% rise, attributed to increased production and higher average sales prices. Conversely, the EMEA segment faced a 7.7% decline in sales due to reduced market demand and unfavorable currency fluctuations. The India segment also reported a 16.1% decrease in sales, primarily due to a reduction in production volume.

Looking ahead, TPI Composites anticipates moderate sales growth for the full year 2025, driven by the stabilization of its manufacturing lines and projected customer demand. However, the company remains cautious about market conditions, particularly in Europe, and is closely monitoring the impact of tariffs and other regulatory changes on its operations. The board of directors has formed a Transaction Committee to evaluate potential strategic alternatives, including options to enhance liquidity and address upcoming debt obligations.