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Sep 30, 2022
TPI Composites Q3 2022 Earnings Report
TPI Composites reported a decrease in net sales but an improvement in adjusted EBITDA.
Key Takeaways
TPI Composites announced Q3 2022 financial results, with net sales decreasing by 4.2% to $459.3 million compared to the same period in 2021. The net loss improved to $1.5 million, and adjusted EBITDA increased to $16.4 million.
Net sales decreased by 4.2% compared to the same period in 2021.
Net loss improved to a loss of $1.5 million.
Adjusted EBITDA increased to $16.4 million.
Ended the quarter with a cash position of $129.1 million.
Forward Guidance
TPI Composites is commencing multiple cost saving initiatives to better position the company for 2023 and the long term.
Positive Outlook
- Optimizing global manufacturing footprint.
- Reducing headcount primarily in geographies most impacted by demand.
- Reducing or eliminating loss-making operations.
- Expect these actions to result in structural cost reductions of approximately $20 million to be realized in 2023 and beyond.
- Continuing to focus on operating efficiencies to drive annual productivity savings of over $20 million per year which we have consistently achieved over the past three years.
Challenges Ahead
- Intend to cease production at Yangzhou, China manufacturing facility in December 2022.
- Expect to record material restructuring and impairment charges during the three months ended December 31, 2022 with respect to closing this facility.
- Expect additional headcount reductions in other manufacturing facilities and corporate functions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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