TPIC - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to TPI Composites First Quarter 2022 Earnings Conference Call. Today's call is being recorded. [Operator Instructions]. At this time, I'd like to turn the conference over to Christian Edin, Investor Relations for TPI Composites. Thank you, sir.

begin. may You

Christian Edin

I Composites operator. to everyone welcome Thank Quarter would XXXX TPI First Earnings to you, like Call.

will actual tpicomposites.com. uncertainties, We Commission, found will are could A and that latest of in Exchange applicable and this during financial non-GAAP Today's differ risk our include cause detailed on which is discussion be making and references subject filings be forward-looking to with which statements Securities results presentation can materially. to to website, our included call reports risks the measures.

presentation Siwek, in let You that, definitional should TPI Composites' information historical comparable the reconciliations refer the CEO. non-GAAP Bill With measures. me and President to and turn the GAAP contained slides measures financial to the accompanying today's call information of to for over

William Siwek

afternoon, call. Thanks, for Thank everyone. Christian, you and joining good our

In then our Christian, supply and $XXX.X will results, more the quarter adjusted Q&A. our Slide market Gossar, EBITDA our operations, We today Interim to Officer. chain wind $X.X by review including Please CFO cover our addition Adan I I'm will cover our Accounting quarter sales businesses, call and then review first open the Adan global briefly broadly. Chief to detail, turn financial results for net delivered million. X. million then we'll during energy and of joined our in transportation the and service of and

which published and $X.X ESG deliver from a our execution, the reducing agreements Transportation during a of segment, new XXXX towards our of quarter. excellent incident to neutrality our and was Although during goal by report. Slide part transparency rate a multiple reductions in best-in-class the intensity highlights X% signed our XX%, we score number survey of made TPI's waste-reduction We result Scope progress for already waste targets X%, controls basis reduced overall chain turn safety process to cost additional the driven million, Please development throughout X% rate was renewable significant XX% carbon on diversity, XXXX I adjusted X time We tight report cost our pledge inclusion COX We better and lost and increased by on-site including of us volume recordable EBITDA a on planned and quarter. transitions, of year. and loss reporting. it blade than by as of to billings commitment enabled globally, program. our by value behavior-based emissions our CEO TPI's expanded D&I. achieved TPI's initiating meeting improved action signed by We incident goal as We X by our by We for the equity during the generation. energy overall by reduction also

inclusion, inclusion as as topics. our is create and without and X Diversity not will well IDEA, diversity, goal, from awareness an forward, our initiative And GRI SASB refer and culture. is Going we for Scope assurance select to DNV obtained and goal. to finally, inclusive third-party foremost, The X as we emissions equity first

to XXXX XXXX goals unsafe renewable on of energy Board on from female procured ESG zero-harm by promote our neutral global racial long-term our persons our XX% eliminating female to culture leadership by diverse XXXX, U.S. ethnically carbon representation with to our and Directors reiterated on leadership of become XXX% by We've X. achieve Slide achieve XXXX by XX% and focused team persons our achieve sources. team being racial to XX% on behaviors diverse ethnically Turning a and and XX%

as well market. as Turning our to supply now X. Slide of wind you give global operations a I'll quick update the chain

experience not any issues COVID, production stoppages. material first we significant from quarter, production did the During any including

March. will phased we risks. entered to that have senseless global take on thanks the production cases result, the timely impacts been minimize been late chain increased our to war no potential but by we deliver local and have on source the our measures supply and continue export China, logistics proactive have of of to Domestic impact in to invasion and monitor basis. us a still in raw as the so efforts teams, and from there far Shanghai as In of a met as Yangzhou targets COVID continue to impacted, production supply on lockdowns from time Russia, Although China the QX blades chain materials Ukraine well our significantly, we

impact We and will local the contingency material to our continue to pipeline. plans minimize the execute supply production and raw our closely on situation monitor

Other We X%, supply which our for are have suppliers, China, sources in qualifying we by the continuing our to than which primarily products. our exposure just down manufacture Chinese in derisk we China on chain to relies TPI-controlled diversify production in over reduced in XXXX. in XX% spend regions and from

speed X Turkey, that our in and of have During transitions during and excellent the the on XXXX, locations made start-ups we India. we quarter, China, Mexico progress

had have a We completed XXXX. enable X they X a each deliver additional to customers us ahead result, solid Turkey, all growth. to India will and of and From in schedule, our China of volume and X lines, perspective, completed another during were service in and quarter we as

the opening is the in U.K. in Spain, entity of as establishment significant a the a planned, of Europe the in new expansion new agreements. Our new several training of and center going including signing

the in service We XXXX. XX% approximately by grow to business XX% to expect

quarter. the good On had another front, transportation we

are on for EV passenger the We extended with our production and quarter. program the execution operational pilot customer pleased parts our another initial

call. the same successfully of we the XXX,XXX through discussed goes plan with quarter exceed We a we original launched it during our units fourth to and estimate customer quarter program new Now X.

off We development and X Class also OEMs for last kicked multiple with programs vehicles. structures leading mile delivery cap

XXXX. over we unique QX in commercial on billings is our grow XX% for We in passenger the on the a strengthen to continues XX% expect our segment This vehicle pipeline EVs. to call. from revenue discussed now XX% up Our and on transportation growth to basis components by

The supply to on be as prices challenging Moving in COVID with continues energy to higher chain. China. lockdowns as well the situation

to and fiber as increases constraints price epoxy increases significant with inbound carbon respect both were in logistics supply and there XXXX, well as resin costs. During

and We expect product to of seeing and constrained Production demand supply up like capacity infrastructure carbon is prices automotive, also of certain cost be with to costs, from to already increases constrained very feedstocks and energy carbon see during supported adversely additions. higher as Europe related continues is for by America resin construction. continue and industries intensive, high products after XXXX. continued to Epoxy to of carbon in and outpace cost feedstocks demand continue resin price impacting remain North for the rising bullish fiber prices carbon pressure energy materials energy XX% and

current Asia, in costs offset competitive and suppliers any While available unreliable often logistics potential savings on resin associated are environment price. the

all As of customers. raw XXXX, by materials today, raw is including production our that we material believe for the planned we in secured have adequate controlled

in we these price. a price use either at Although of which less to resin we customers customers, able contracts customers XXXX, chain compared remain elevated resin to bear systems resin in XX% or or our material expect is Notwithstanding that expect hold X% controlled borne the carbon to and the the the be environment, XXXX of and and purchased approximately levels cost therefore, average carbon approximately to fiber control we fiber and supply increase by we under any or of will for the than of receive now XXX% decrease challenging increase cost levels. bill of for XX%

partners the across impact on call, installations. last reduce throughout forefront on independence, long-term to has our in wind the to program As focused To the in energy war strategic to reliance our It the Europe's plan, I pricing supply need availability earnings of XX chain the to security EU's in imported build provide up regionalizing is in been globe. transition term. process the short, noted EU but should and brought medium long suppliers earlier, growth energy energy, of accelerate supply key Europe for the speed with localizing the the we and security Fit help logistics ensure costs, intended and best Repower only for remain Europe permitting the has high Since and proposed. and cut the not accelerate and Ukraine

its We is with this into for our Europe increasing blades over to commitments are TPI XX% going an as important market of see the pleased region.

target current We the term. relationships In and strategic starting installed for We XX than a change. damper demand along climate collaborative to positioned wind legislation, addition, energy the energy discussions necessity believe of aggressive meet Germany decarbonize This faced energy In in uncertainty magnitude industry, demand globally term, the near part U.S. focus clean that to means security wind XXXX. and of will to the during said, in electrify regarding set the costs, demand independence given or long strategy by along what over strengthen the weeks. more the the energy gained has and year notwithstanding to was goal that by industry-leading again. that wind OEMs would share market transition increased Germany with PTC uniquely Xx its the with increase for extending with our to our combat With to around footprint XX% on and XXXX in the global wind announced begins with plans any every in XXXX install more XX%. to putting suppliers to traction our that as grow turbine some accelerate geographies, key still gigawatts believe have with is we as challenges the timing are U.S., recent comprehensive on have of

initiatives global TPI the to recycling. including focus, offerings to primary expanding strategic me the around expanding market, our let With remains results. to call our over growth leveraging execution are review While Adan our enable blade logistics and our long-term moving with our capitalize while in expertise to wind financial forward multiple on service capabilities we that, in expected design turn the and

Adan Gossar

turn today on comparisons the to Thanks, Please be will period to compared a XXXX. All basis same in Slide made year-over-year XX. Bill.

blade. $X.X was million, primarily quarter wind produced to common loss wind dividend sales a $XX.X blades sales decline has XXXX. million. first the by number stock decrease quarter where the stopped. challenges in certain a Nordex due nonrestructuring-related facilities cost same manufacturing with approximately in as facility, Matamoros of operating in associated blades costs This to and net while in were ended by loss of due the sales period to primarily million production costs was in stockholders $XXX.X The number foreign lines were net to the the increase for $X.X price of million in XXXX, $XXX.X that For driven and of wind XX, restructuring currency accretion, attributable produced, net wind net compared per and the in in in fluctuations, offset our million preferred in March loss reduction were decrease Net was manufacturing year-over-year average increase the sales blades an

period $X.X $XX.X Our adjusted compared X.X% for million or in X.X% XXXX. same QX EBITDA or to million the of in sales was sales of

may potential geopolitical of which in to COVID-XX to of quarter of $XX production cash million, was to for result with assets, customer-specific uncertainties, We cash in $XX contract decrease unrestricted no given and Moving due primarily the materials Slide our to that with change ongoing China a an net million, minimize used payable XX. cash increase receivable line net the debt. in in accounts of million procurement majority the of approximately in increase quarter was million accounts $XXX of impacts disruptions cash an in $XX The was one and Net equivalent and million operating in war ended the which increased activities of and recent the approximately the including our of the $XXX forecast. of occur was risk customer, Ukraine.

begin cash small Back a expect We we QX before in generating and to Bill. QX you, cash in flow ban QX. free

William Siwek

Thanks, Don.

Turning XX. to Slide

we billings rest compared and XXXX. XXXX flat the QX year, expect on QX basis to sales and to forward of adjusted be expect EBITDA higher QX EBITDA basis look we than on to a As the billings be a of to much adjusted of

compared adjusted EBITDA year We reiterating be full for flat our and to to XXXX. are targets billings sales also

commitment, XXX And want position will as in solution we GAAP future forecast time. turn extensions challenges to their the back close, at remain again, Our decarbonize related to has in in for or to preferred adjusted global formal turn customers not for to provide given guidance the associates it changed. I'll to current ASC profitable revenue volatility, modifications EBITDA market and all questions. once our under once contract potential thank and guidance to changes we XXXX TPI or certainty not Slide corresponding business future. To be execution to electrify. operator volume, industry managing call our the I our of our to for our through and and on dedication cannot focused which this long-term provider Please XX. near-term impacts efforts to mission TPI the their loyalty again open the to our and to growth enable now TPI customers and with

Operator

Instructions]. [Operator

comes question the Sanchez of Morgan from first Our Stanley. Laura with line

Laura Sanchez

you rest you about the on for talked bit think of bit in just quarters? should kind Can on How trends about little EBITDA. talk side? three China, revenue Bill, cetera. more a the year, et start-ups transitions, the little the I'm the seasonality you're about seeing, that cadence for the the lockdowns a of the wondering we next

William Siwek

you. to talk to good Laura, Yes.

in the a bit QX, revenue normally quarter the end then way think QX the got think, I down we've see a we comes probably bit QX. as than we at will the or clearly be cadence a is a QX, talked above of and about quarter bit little QX is year. little better the towards fourth now, I little

Laura Sanchez

you the would lockdowns Any first say, -- Or in you're mitigated. quarter? the China Are impacts is quarter. that fully, seeing from you in that in trends seeing I no mentioned second the

William Siwek

still I lockdowns it's would to there's fully like say Obviously, mitigated. happening.

of So various that -- we lockdowns through into the will second that tell through though I already. you a March, happen in challenge, in until experiencing I quarter will remain didn't think, late the were Shanghai quarter. still them the parts even China the

the of with been shape pretty whole that think good we've But quarter. I again, through dealing in kind we're so today. And

pretty effectively. Our team situation worked the has

So don't anticipate I issues. still any

stop We minor the in now, we shape. But on in inventory don't production. have we're have delays taken do right some pretty additional event that that good some so we

Laura Sanchez

for first you're Q guide it. year? the the on like the last that use particularly year. And timing ahead strong? issue seems should of Or some Got ASPs. gave Is for the on my level this Good to making the there end It of one hear. we well you remainder that's

William Siwek

timing because price at Yes. had production. ramp issue a of up blades -- we we transitions, a Laura? It's a little had higher of bit as the start-ups some we with early

Laura Sanchez

there rest that it. for for reminds me was on of the Got revenue account should it. into And the side the on transitions Got first we the question, that take anything start-ups year? and

William Siwek

transitions this the point. through largely are we So at

Mexico, in still in But have We lines anything we yet. material of don't any and think couple quarter. X being from no, in transitioned we have difference China a I what saw the first

Operator

Our Partners. next Osha Guggenheim the line comes from Joseph question with of

Hilary Cauley

I might couple should updated was highlighted thoughts we that this see that if meaningful I could amount when wondering wanted This a kind provide of of is business. year. the A lot for we about of how on the generating on Joe. there. be over moving next you the revenue. actually years XX% thinking And more and Hilary know of for the parts to on growth of side I you exciting touch But first transportation

William Siwek

nice Hilary, the Yes, speak over first some we've you again. is quarter. quarters, good really several made last the including traction with to Yes. this

of year next year this into should for the of some quality next development We have result end we've going to agreements the year. sure. think over as significantly development a that the I the years we passenger with next EV plan actual in year think the Clearly, movement those our I should meaningful of program see in drive well. than couple is volume or partners of towards production vehicle we conversion the entered the early that of working more have to number the for this start contracts. But projects in

impact see in that to start should beyond. and XXXX we So

Hilary Cauley

one And me. for Great. last

the if cost you or against that's kind us could ongoing. give year update an this on for on how of initiative, Just progressing targets

William Siwek

On I'm say? cost sorry, Hilary. did I couldn't understand asked. what you you out,

Hilary Cauley

Yes.

the cost-out us been just on, update Just working if you've various could there. that initiatives you progress on give

William Siwek

amount about year talked really Yes, out a significant taking well. We year, the last going before.

pretty out our plan the year. this We some for first were goals have ahead quarter. We of cost ambitious for

So they're well. going very

taking of diligent every process as out spend dollar as very the as on well cost we Just well.

schedule. -- it's stay of we schedule, we're and So plan of ahead to ahead

Operator

Partners. Our next from Clare line of Capital Justin the comes question with ROTH

Justin Clare

cost So you've maintaining you're any impact your on that seen just like inflation wondering seen sounds or volume the since if off, considering we've It first customer March, revenue expectations. order demand.

So maybe demand been just hasn't impact here, see there a wanted but point. meaningful impact any customer to this at to

William Siwek

to certain very been got At in that some We've transitions. point, provide the in additional this successful volume no, in this ability year. some we've geographies. There's our interest

pickup -- a at decline haven't from bit and other say would haven't a transitions this a regions. just of demands a see we decrease. little We demand Justin, our our speed I certain seen in because we standpoint. So point, of seen cost any of in the could But

Justin Clare

Got it.

you produced know a performing you part is there? And enabled exceed then of you transitions. of anything QX, expectations some Okay. QX? plants that anything in had I than there ahead of Were else more kind the sets in is expectations or But that planned, to else and

William Siwek

bit. all Mexico. from what an did year. nicely more than our or out was are hiccups standpoint, expected Actually, produce accelerated of That Yes. needs, based our planned where No plants operating major issues. standpoint operational they on our customers' from really operational of this a We little

other very in ahead bit that, with than So execution just a Mexico. good build little of

Justin Clare

more, Great. Okay. if I just one may. And

taken, for that? ahead in you in most XXXX. is the given were what all materials you typical? is the here increase for to the said production you able had action Like recent secured when this inflation? planned And Was potentially that do of costs? raw Can You share your you expectations proactive this

William Siwek

this of been the as COVID, about in Lead levels inventory remember us well. really the times we environment, talking frame we by you'd vary. through were commodity. as It time whole proactive probably But in COVID varies Yes. building have

reliant here well material So contract time. the to to more than allocation proactively, customer for sure that make the that proper at with as was and our past the the making we our right key where I we are year the supplier say, customer proactively volumes this we in -- would that on worked sure had

the as think control it as chains. with our collaboration proactivity our that customers better was their supply chain on supply I well So of part

So it's a of things. combination

Operator

line next Our Craig-Hallum. the from with Stine of question comes Eric

Aaron Spychalla

business. Maybe targets Eric. business service for on laid growth couple you over of kind Good you see and Spychalla the margin the Can Aaron think that you kind of profile, about out. just color that a years? the the more expansion first of of growth on little give the next It's and EU kind the how to profile there on

William Siwek

Yes.

talent So it that Margins all on some pricing to We'll better year. it's grow customers. at of this this That's we've our around the are we'll assuming better with year. grow personnel, globe allocation our better cut the last XX% of of it. some as well XX% grew better organic. We as another XX% year, utilization deals

So on margin for of those. which technicians, in very should globe. to market combination higher focusing and have able we and them higher of them It's service high-quality work. just volume bunch very higher a build robust dollar all and them blade just be of we Obviously, combination We a the a repair business, it's a and service need them. around the

Aaron Spychalla

impact reprioritization about offshore kind just And the folks there. maybe a how are term? then that how talking just in opportunity about talk you you right. here of of offshore, near on just and you the might about thinking All kind Can seeing

William Siwek

Yes.

offshore It's lot opportunities There's work involved. of a continuing space. space. risk we're So complicated a different a of to the in number

earnings talked You it little about week. Vestas earlier saw during a seen their -- this release bit you might have

Ts. to see and and sure it we're very opportunity So dot And do with Is and pursue carefully making continuing cautiously as we vigor. it But proceeding nice going forward. a we cross we're

Operator

Julien And Dumoulin-Smith our America. next question of comes of from line Bank the with

Unidentified Analyst

a But the are a mentioned 'XX more whether carbon rather as balsa earlier I little kind inflationary I'm wondering the Alex material outlook, whatnot. for guys well wanted call. as go seeing bit and here, guess, ask of there? bit can you what's some expand wood, It's know little side other particularly to you in And more the epoxy XXXX? you if into inputs oil raw I mean, throughout What fiber on on specifically on into this of we I Webber I backdrop your PET, things. as of Julien. resin on

William Siwek

Yes, you bet.

So epoxy we've our resins -- and carbon talked obviously, about.

and is PET, Our other inputs trend fiberglass Glass and core, as -- are which you mentioned. a big balsa glass bit. up would market include

that's is actual pretty cetera. relationships, et Our Again, flat volumes, XXXX. trend just from

relatively up down. is been come keep So But a flat. from demand would or core hasn't market From bit we've as been most PET. to Capacity trend a online a balsa flat lot trending the perspective, able in that actually 'XX as has quickly 'XX. like. more for There's

which are well. than use we standpoint. at do on a price a TPI other or that that, see last you've bit market a we bit, in the increase from flat Again, got we're But down. flat coatings, been secure prices able then that year the but up market PET from of blade. to or are is price the So of on a again we've down the as volumes year-over-year a standpoint, paint to that kind And

challenging remainder trend to but tending XXXX of market, better the market, the we do bit see least in at standpoint. than a commodity a little we're So a from prices spot --

Unidentified Analyst

sort if where I of in QX just year throughout expect that. the you're guide, Got to a then utilization versus appreciate which maintaining. you And cadence I'm your guys year characterize obviously it. on follow-up. you can wondering full you 'XX quick the are

William Siwek

You bet.

low in and to to the So we in QX. level. XXs QX that right both. in for QX QX, are around XX% mid-XXs Expect be Mid-

we up through as transitions. So nicely picks pretty get utilization

Operator

with line Scheibelhoffer next comes question from Stifel.. our the And of Alec

Alec Scheibelhoffer

and should thinking that you the be you about average that? blade. strong per an if and selling could moving increase how had So was what's outlook price wondering driving some on give we maybe just I in forward looking at some color

William Siwek

Yes.

produced and is, we part little early mentioned kind a as as think transition, earlier, price. once to number a generally then higher are we it get priced bit go until we certain through that I production we ASP a levels blades of off at start normal of a to a

of that level of to we just back mix, of the So and kind Part range further that's is We blades our it in part was out kind produced blade of into QX. year. down get come expect it. of do where guide as mix the to

of Some blades. that doing, especially we in blades the are transition smaller China, are

little So ASP lower. is on those bit a

So as those come on, full steam, we'll range start the to see into that ASP come that kind guided of back to. down originally we

Operator

Sandler. question line from the next Piper Our of Kashy comes with Harrison

Luke Tilkens

timing This if capital for can over cash the right with color the to little year like give a the some and is of cash there wondering I'm of Luke on where now. working you guys headwind accounts at out just level you bit. course payments. little flow talk statement filling of I'd is in a that and of But was cadence your comfort bit Kashy. called receivable about with the Obviously, of a

William Siwek

Yes.

we think QX some of I some of you. a have and the mentioned, at cost number buildup reasons we for we AP challenges of Mexico, through getting yes, CapEx expected were So the the in burn as end in of carryover as year, a some pretty what big

the we end would year. it's the on So target the -- be we for of the right where thought balance at of quarter with we're

ending -- got under year is turn we in think pretty availability of As we mentioned, cash and outstanding positive today. in free borrowings million $XXX QX, we what QX in good flow a of to are very not we'll before shape. have the QX We've burn that bit a

So sure. of for we feel a standpoint balance good XXXX the very from through liquidity

Luke Tilkens

answered. questions All right. our rest of the And were

Operator

next Curran Research Partners. our from comes line Seaport Tom question And of the with

Thomas Curran

two. Just

your comes that transitions. promising the prove the emphasized when India XXXX the or sounds primary repeatedly between Were in apply you lessons some molds? start with elaborate might to priority for customers and be? that that transitions focus that if able you Could on to are wherever tactics transitions as occurred to And it China be that And execution. transitions future is successful of it You've XQ? to learned in off or is should what these transitions, company between intra-customer a they

William Siwek

great No, question.

India, that sorry. same customer, larger -- in in going India, In new in China, a So same was blade customer, India X blades. to and just

So in the customer. Mexico China both a transition plus India multiple in same blade blade to a transitions in and larger blade, for

Just anybody example, blazing one we speed cycle a now we is a X got bit But as production hours is That weeks. because is of the desired in little built this from XX our blade another unique time until this -- an start of blade in factory in to was it's China. to industry.

for customer of about being molds So the of the on -- installed whether experience known collaborate transitions that is and the participate up approvals the for customer they our things. part and were is, prior long-enough these we the it's cut able better our need accountable and transition various of portion was reason reason had blades, why hold we we've it of But with -- to in, a blade. or main period to time that plan

time do that to learned And for biggest equipment the for truly with accountable. all hold then planning do us. really learned of enough lesson our just participation plan was the the detailed and And think planning what our it lessons execute and that's are and So suppliers have -- I that parties you. customer and

have we thing The I other the we a for responsible will that did -- now team mention is transitions. dedicated is

been our and and them, as on involved with sites early people unbelievable help that well. have we the transitions that's the of big talented a a we the assist often globe need dedicated travel having them So local team ground when

Thomas Curran

that And you team? how Bill, long have had

William Siwek

really when we're put able and well, And just transitions that we to cohesive out from teams other -- projects, team. don't our team as haven't pull just from one around -- had fully and we We've start-ups. formed and they last to is the globe it, carve for resources since this are we year dedicated

cohesive to and dedicated They teams in the we a go They're their we've like go where extent the the are but And done -- right. so have having have now, transitions bags kind to camp they dedicated them I their just in team. I not plant that unit. the that, packed team out that and transition to they a the when pick of up a to focus. And XXX% had startups. and until they're it do is have a we transition -- call we past,

that's we really been over last -- year So utilizing dedicated team. is the fully but just started about when a

Thomas Curran

production better for a expected that Interesting. And you're up want you respectively? and Matamoros, it to how in you Nordex then Juarez getting to the than XQ. then like with came -- Could you Matamoros be? bit highlighted facility Mexico, for where where in performed, clarify at And it sounds

William Siwek

Yes.

performed Juarez of kind had build the So well. ahead. where That's we the very

So that there for went for well. operationally customer our we're very both building blades

to need today. As Nordex you out, that In there track continues to the volumes good kinks year we recall, challenges we our the last operationally, we're very had with plant to very but worked collaboratively our operated very might well. And this started -- with we've on Matamoros, ironed blade customer, out. those with we We've some year. operate multi-piece and Matamoros, when for shape are Vestas deliver they respect in

production produce we produce our we needed hitting well. as in in -- that QX the have after We QX volumes to

transition We a are there. in the of middle

So -- planned. going and that as is

that The operate. world-class is to the now like to say, corner -- what we would operational a become place I from standpoint, a is there. to itself which we've blade pure plant So getting plant, turned a

cost to challenges that So We very close that. we're have there working we're on. some still

to new avoid Some material, cost. is versus from sourced of that locally China logistics qualifying the

very we're those operationally, from standpoint, year. good the through shape. production working we're for a balance of the in So But

Operator

next James. line Molchanov Pavel our from the comes with of And question Raymond

Pavel Molchanov

start words, this a Russian so positioned I'm blade you've covered you to? on from like Turkey. from point specifically European dialed that in that, natural I in supply. anything In Obviously, if specifically already. from can have market, in incoming gas, appetite Is $XX MCF, developers. disentangling with there your well tremendous focus you're any other your late, increase you the encountered curious sorry little customers war, in or Since the onshore if, of encountered the facility

William Siwek

I seen for no. 'XX of Pavel, certainly lot demand balance foreseeable say an related increase think over a Have I increasing about that? talk, the specifically future. the we to in of there's would installs

today. are blades it's been you somewhere blades else. to diverted might XX% went know Europe that had are to that XX% to compared now year. that Don't will Now I about being last producing earmarked Europe that of possible QX our tell have we that in

was think European that strong to But for planned do early really to or too there's the yet, we just whether it's for we're it be term probably obviously, bit it's already still tell. But in early that. today market. there the some correlation, whether seeing that's -- demand longer I expect, So for a

Pavel Molchanov

solid versus Okay. that on this category. year number pretty a still And think the ago. million And second-highest quarterly quarter, from $XX Is ever that in growth sales, Proterra? your I nonblade all

William Siwek

that our well. as big No. customer building No, Clearly, mix we're got then Proterra. a of we've still and for. it's part clearly in that the EV parts That's

Pavel Molchanov

be who able that might you on Any is? sense to when detail disclose some of additional

William Siwek

won't that's policy is -- to to is there but point, not able be love to, disclose We'd guess it. their not disclose to My at suppliers. their we be this able

Pavel Molchanov

the Well, Understood. see to good growth anyway.

William Siwek

it. excited Appreciate it. about pretty we're Yes,

Operator

Dumoulin-Smith follow-up of question with next a Bank is Julien America. from Our

Julien Dumoulin-Smith

pivots wind. Appreciate seeing follow it. some NextEra little back and of picture AD/CVD, the Bill. and of the on What up bigger how here terms fomenting in this step to and hear a potential might comments other days materialize? early to dynamics considering you And here that there? would there about I follow be out of wanted might of how when that and a I little same nay, get fungibility demand, and but there's talk here, the effective out any back sort a out the between be much or BBB, Again, just time? bit, lot from I up there customers certainly at are the love wanted of holding back to might yay solar talk

William Siwek

Yes.

or probably is of policy some talked I this more a from impact anti-circumvention stuff know I think around solar any wind to year. about -- the a maybe and overwriting uncertainty long-term pivot shift the NextEra

just We that to There's solar see shift. on bit But turn meaningful little it's result challenges the again, and uptick haven't still off seen market a to turn -- the early easy demand as deals. a not it's of in yet. a these

that itself that end start point, back see I we it some So seen that certainly haven't of would to at possible But is tell manifest of in anything we I will this year. you the the say material.

Julien Dumoulin-Smith

by in is origination Got the seeing -- least Hopefully, get it. time mean, some of of think we I end year, of I at like it what there extenders have the the down. see you way? either "certainty" for you that that say, And about something uptick then an that or with U.S. as point you just just when mean, line tax you, at pencils uptick,

William Siwek

still think tick demand, rather certainty if the later are if here I still yes, We and think at up this before get half think than until that's that from major When it's impact XXXX back I tell. in we There sooner some a to of a little case probably market. real point. then, we saying, bit happens don't something see a swing. most that we are get hard that clearly, the best and helps something don't which see Julien, manifest midterms, likely any

some I the But chain hard well it impacting it's think challenges supply a and pin of the I uncertainty I and well. see again, a as as down. in cost a I there the could. wait just So little as wish the think that's continued with standpoint, decision-making to from

a of case, So guess half into 'XX, back it's would my best but more be best 'XX. likely

Operator

for the management would the call end any and time, of you, questions. this closing like to for now back question-and-answer turn reached we your Thank session, remarks. I over the everyone, have to At

William Siwek

to attention of you. your today, thank Thank in just I'd interest again discussion. TPI And your next like forward and you for you. Thank our to all look and

Operator

today's This conference. concludes

your day. time. You for and you have this participation, Thank disconnect great a lines may your at

TPI Composites (TPIC) 6 May 222022 Q1 Earnings call transcript