TPI Composites, Inc. agrees with GE to expand capacity in Mexico and renews focus on quality
“I’m pleased to report that TPI and GE have reached an agreement in principle to amend their existing supply agreement in Mexico to add four new lines of capacity to produce blades for GE’s “workhorse” turbine in Juarez, with an initial term through 2025. TPI and GE expect to finalize this agreement in the third quarter,” said Bill Siwek, President, and CEO of TPI Composites.
“As reported in our preliminary estimated earnings results last week, our financial results for the quarter were impacted by a warranty issue primarily related to one blade type in one factory,” added Siwek. “In light of the warranty charge as well as the quality issues impacting the broader wind industry, we have taken this opportunity to revisit our quality system and implement improvement initiatives to ensure we have more robust processes in place. This includes the recent appointment of Neil Jones as Chief Quality Officer, to help us better address the unprecedented challenges in the wind market, bringing to TPI over 25 years’ quality and engineering experience, most recently as Vestas’ Senior Vice President – Quality, Health, Safety and Environment.”
“We remain diligent managing cash and we generated positive free cash flow for the second quarter, ending the quarter with $170 million of cash. While we recognize the near-term headwinds for both TPI and the broader wind industry, we continue to believe in the outlook for TPI and the key role we play in the broader wind energy ecosystem. We are confident that our current liquidity position will enable us to navigate the near-term headwinds and put us on a path to achieve our sales and adjusted EBITDA targets.”
Second quarter 2023 continuing operations results
- Net Sales totaled $381 million for the three months ended June 30, 2023, a decrease of 2.9% over the same period last year
- Net loss from continuing operations attributable to common stockholders was $80.8 million for the three months ended June 30, 2023, compared to a loss of $25.3 million in the same period last year
- Adjusted EBITDA was a loss of $38.9 million for the three months ended June 30, 2023, a decrease of $44.5 million over the same period last year
