TPIC - Earnings call 4 2023 | TPI Composites, Inc.

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Operator

Good afternoon, and welcome to the TPI Composites' Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jason Wegmann, Investor Relations for TPI Composites. Thank you.

You may begin.

Jason Wegmann

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

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

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

William Siwek

Good joining and Jason. afternoon, for call. you thank our everyone, Thanks,

addition more Ryan operations turn here Jason, our year, we'll and Ryan to highlights CFO. and for and results, our the the Slide and open review I'm wind our results the then Q&A. Please Miller, broadly. full I'll call fourth will market quarter then discuss from our financial global X. to In with energy

EBITDA we started be to our indicated earnings adjusted quarter we down our lowered cash. As optimize fourth our and sales as third expected we plants across line quarter levels transitions call, and on to inventory

the we prioritize facing. with of given preserve our flow initiatives third strategy the how year cash, the our as liquidity headwinds million cash $XXX successful happy we with ended through quarter the to very cash ended of where Our was in executed the was fourth to were quarter. some we quarter team with which I'm flat

our to out the in believe quarters, we Ryan we that's we of have and been harvest opportunities As sheet, what exactly few did. has last cash balance discussing

impacted a for but our a EBITDA the million a fourth EBITDA the adjusted with production while with of received quickly liquidated $XX adjusted customer. This do X damages along by period, negatively and missed production including sales we resolved in our $X one During plants reacted that expect less with in to recover down we have didn't with material shutdown quality volume, how both supplier engaged [indiscernible] XX-week were we significant XXXX. I reduced was customer revenue and to slowdown from and by issue. at our issue, over to supplier approximately team supplier our from spec this the our issue due our resulted to ensure pleased shut a sales the quarter, a quarter weeks, and million, the

through interest us As ability workhorse expect XX We by XXXX ultimately of million Mexico turbine, We conditions GE pay-in-kind to about the preferred we into serve our cash we while agreement we provide GE's permanently customer on December stock. the million $XX converting pick obligations our we provide a to A, January to up XX% by the with exchange XXXX dividends for payments XX, of XXX% relationship. can significantly and liquidity X, $XXX A $XXX.X with million long loan secured provides of senior the to a and productive through the of with sales refinanced term [Audio of This announced the of along liquidity the volumes issuance mid-December, refinancing $XXX in contract to a Series issued million million common Gap]. This [indiscernible] Series need along fill of to with X.X shares accrued we improved of From market and existing capacity, payments to by in now we financial maturity and loan, and and in with the our the Oaktree to convertible our and beyond. current to $XXX our term $XX from XXXX, agreement several finalized facilitate about customers' interest XXXX, capacity. grow supply up provides serve earlier through March reduced significantly of million. building over U.S. perspective, us flexibility competitively extensions signed their visibility manage in expansions new a which bond and million on market our will greater enhanced shares through green

second will quarter the serial over half this the year, of at will full up in new start of blade and X production the to lines We second production ramp be year. the

the total years market. To established With capacity energy through primary X gigawatts. approximately Nordex, turbine secures to the in Türkiye production our for for U.S. XXXX. X in we increasing for reach up the its X addition of European lines in this or now them lines X.X X new support expand to models wind we production expansion This GE's blade, for Türkiye market,

their work with extended footprint also needs. Please to Slide in and with with to We to our our through supply India align agreements X. continue Vestas Mexico turn long-term Vestas and XXXX

large I like and most us Chuck [indiscernible] Aerospace, jump the to of having & aerospace deep as Vice excellence operational for drive recently his Power leveraging into results. President principles and deliver operating within Before results, would With consistently comes formally our XX for a to complex operational passion Chuck multibillion-dollar track spent organizations, Controls welcome Chuck Collins record I business. COO Wind. expertise, leading industry, Stroo, of our in a Operations to of brings years

was spent Neil wind Quality, contributions experience than to TPI the Vice success. Also his us Neil engineering Vestas our with leadership automotive a ultimate and We more as the team years are at X to Chuck in roles Neil Environment. over the have forward and variety this of in and James. quality and of positions industry. Quality past brings Health, years Senior year thrilled look joining to XX last Safety XX and our quality in President, join Chief Officer

quality engineering Before Automotive. leadership joining new roles with equipped excited company success, well including with exciting strength years to Vestas, improved diverse I'm transformative Neil brings quality with in the proven as Eaton senior the our our and next a team and industry, of each spent TRW them a the record over and talent, chapter. leadership making role guide XX and exceptional executive member perspectives of automotive to

Now moving to on the business.

Türkiye in global blade excel rate Our to quarter. India operationally, XXX to driving facilities XX% our continue and gigawatts delivering utilization the during X.X or while

expected, Global the will quarter. the As declined business due in turn fewer year-over-year to projects That revenue around announced due deployed in on from second campaign our revenue-generating we Services technicians warranty XXXX. to

automotive Proterra's operational has made business down XXXX and revenue the pipeline initiatives, order the execution While year-over-year was progress significant primarily to bankruptcy. with due

we investments to Automotive years. the made meaningful expand last the business during know, As have you several

automotive strategic believe we execute is products its growth increasing significant exploring intend for vehicles, and term, have growth the prioritize capital funded we strategies. for business we business we to is demand is While which why there been made ensure with Wind in near Automotive for our the have alternatives progress in on composite the to to business, electric sufficiently

intent complete later XX than this no process this to is June Our of year.

from should and key that significantly XXXX. X continue in Our supply to inputs improved decline anticipate capacity create levels, to material Raw and Chinese years. chain of costs we have demand the reduced past cost costs XXXX further excess savings compared

Sea have we pre-pandemic due costs situation. seen rates returned spike a norms, ongoing have to in to logistics Red While the

and closely remains While we've we'll through alternative mitigated materials. cost to and events our solutions, continue multimodal on of for suppliers delivery impacts monitor potential and critical logistics fluid, the availability raw situation effects

European agreeing amended regulations, the key bolstered fuels made Now green by renewables XXXX adopted early in XX.X%. with raising respect Inflation by renewable optimism COPXX fuel away U.S. to in target global history further exemplified and EU's permitting to parties a faster have all cooperation. Act its the our Globally, support governments' momentum cross-border November, is the wind seen countries trade. fossil recent industry This of Direct we transition The policy energy part the These years, for deal was for energy long-term EU and for wind in where a XXXX and streamlined growth. market. Renewable to a in surge push in by was at stock Energy initiatives from Reduction the

In energy to in by addition, the Package capacity Power competitiveness XXXX wind Europe's wind launched Wind aiming double to manufacturing. was strengthen

like Act the wind industry we the details to until implementing on don't installations fully XXXX components increased Act some Inflation European materialize more optimism, long-term key provide anticipate While as policies. policies the still execution of NetZeroIndustry favorable and of Reduction IRA critical the wind the industry awaits and robust

capital, land of bottlenecks, cost Additionally, availability inflation edge the of market to and permitting recovery. all and hurdles, interest contribute transmission elevated rates, the both

to them of This year for lines, Matamoros with transitioning slightly in achieved sales starting to X with second the XXXX. lines mid-XXXX and up in the significant the transition but as serial including start-up output Currently, new will and and and we expect XXXX impact transition lines a as lines X improvement. We transition with in levels. improve of first XXXX from production utilization to will and half that all markedly back be Nordex a are operating projected as XX year EBITDA the well in declining half the

and utilization slightly as the in we in are behind in experienced notwithstanding EBITDA So expect operational quality compared of lower many margin XXXX and 'XX we to challenges now significant improvement a EBITDA us. 'XX,

$XXX get digits. With to year, expect review in back of the trajectory EBITDA single high X% financial a call to EBITDA north Ryan that, to the the turn our but into the of X% be results. range EBITDA target million I'll in our our margin XXXX full XXXX margin to to for levels to We on in over

Ryan Miller

net XX-week period occur other Sales from X.X%. down $XXX period which compared same at XX.X% million million that a in to to plants lines Slide to Wind a decrease tooling, as period, sales, XXXX, or $XXX.X XXXX, turn X our sales I'll decreased weeks wind-related by were wind in $XX.X received Please of by Net the to Bill. will ran In spec of in production fourth Thanks, were slowdown for for one quarter for a preparations impacted the XXXX. supplier, a quarter of compared a early sales, material the negatively transitions due of the we sales blade in of hereafter XXXX fourth shutdown of and to X. refer X over same our just including million XXXX. we

by our correlates lower revenue driven revenue capital XX, in selling costs assets for prices. in lower impacted by for Sales wind were decreases net of reduction also recognition method cost-to-cost reduction average under impacted included were December Inventory XXXX, a inventory the sales initiatives. as to higher ended the blade late working quarter inventory offset contracts. blade contract These directly partially Wind by

million XXXX. sales in period the fourth Services decreased the in $X.X Fuel same by to compared quarter

sales Services continue able revenue-generating were be we by services our we campaign deploy the of the negatively our of to impacted While to to warranty in many back disclosed technicians second in Field the quarter services XXXX. quarter, field

reduction loss our Automotive fourth into decrease Series fourth A same compared to XXXX in in primarily income extinguishment. $X.X the period This $XX.X of million term million on stockholders recorded we due improvement year-over-year in operations the attributable secured gain The was net compared busbody bankruptcy. delivery preferred a the of the period million stock in continuing the in senior $XX.X due of $XX.X driven XXXX. primarily a by was quarter loan, to Net common million whereby an from a refinancing to sales in Proterra's to decreased to of same XXXX. quarter

million quality to for for XXXX adjusted Adjusted XX, just quarter XXXX. December compared higher driven the the million period same fourth same start-up and as in X during the in and initiatives loss described, was period adjusted decrease costs. increased of primarily was $XX.X sales, EBITDA as of the I to ended profit months by EBITDA EBITDA in of lower to related a compared The XXXX, $XX.X transition XXXX,

the Matamoros losses in transition Nordex loss to level to factory the year. last have this see XXXX In in XXXX of middle addition, of the the back be plan better $XX anywhere quarter fourth note plan. This million near plan price and that to includes Nordex quarter of should we of from that we our as

we and small ended and the leases. million quarter of working secured to issued and last notes equivalents $XXX.X cash finance credit Moving term the Slide which equipment includes Oaktree, we with capital India X. on with of loan convertible million utilized million senior to cash debt, the the and of unrestricted of year, March facilities Türkiye a manage in number the We $XXX green $XXX

of of We of fourth XXXX were levels of capital balance. fourth was million aimed fourth asset free at reduce cash had partially of compared $XX.X use positive inventory Note capital to which flow in our the XX%. contract quarter EBITDA in period in the XXXX. quarter to negative free XXXX balance $XX.X in loss cash primarily almost cash million net to the or expenditures, were that the lower and we primarily $XX million same by flow The in by working our offset in contract asset improvements, our able due quarter

on key forward our We sure continue move cash, initiatives focus capital we execute preserving to to our place deploy restart efficiently significant make comfortably and idle we can we working capacity. as ensuring

demand partially summary is Now ASPs. $X.X due to sales This our XXXX found XX. softness, in operations driven billion billion, slight of line representing rise We Slide by production lower of decline a guidance sales in to $X.X XXXX. from can to transitions temporary on decline financial offset blade anticipate a for be by compared the continuing primarily and range

will the our improve in technicians expected projects. We EBITDA Field increased deployed EBITDA revenue-generating XXXX bankruptcy, Additionally, and adjusted likely to improvement for Proterra a Service sales previously highlighted due with are and while revenue Automotive significant decline to expectation margin.

This Service charge, the the driven charge completion Field revenue-generating to Proterra our returning several of absence organization absence of warranty large Matamoros the work. banking factors: Nordex contract, of is a by and the

of from these and plant in to to higher partially XX% inflation continued XX% and factors and positive due particularly Türkiye contribute an start-ups start-up margin offset a to and transitions, challenges, of factors X%. declined These to range EBITDA will However, expected be utilization by Mexico. costs, transition XX% X% range to

transition. the on XXXX. believe for We to our ramping In be be half, of a up give that directional start-up plans are either some tale XXXX or will halves. perspective we wanted lines first you XX will X I in

quarter. be first lower We first to fair than second as a quarter than second amount the lower the expect be the will half the volume and

expecting our the start-ups in and cash lines adjusted expected in second in year. in these of year, we as As watermark half our sometime hit EBITDA XX and will generating modest the the generate transitions And In and to currently We of half. we the as production, hand are quarter, digits mid-single-digit these mid-single we to work low early ramp a expect cash. we're we ramp, that through half on loss. likely second for the the margin second positive adjusted then year, margin to be expect to first to be EBITDA consume serial flow losses improve the the volumes cash our

achieving of are XXXX, we In to anticipate million our capital expenditures by focus targets driven idle $XX $XX investments on million. our and long-term growth continued our restarting These lines.

We liquidity since which preferred the significantly has Oaktree a loan. be confident term in improved into shares refinanced continue position, to our we

cash mid- Bill. allow year liquidity along invest and call our over navigate sheet, balance improvement to profitability also well I'll achieve targets. With that, Our and operating in back transition another with results the to and will us the to turn long-term our growth, to to

William Siwek

XX. vital Slide We transition in long-term will managing ultimate the on business we energy success role the continue remain a and believe pace remain to to of bullish turn Please and Ryan. play focused We through transition. financial the the challenges and goals. Thanks, on growth in how years remain improved short-term our excited turn, are positioned market liquidity the and our we industry strong significant on and the balance coming expects about attain with sheet growth well in to the and capitalize our significantly

associates again the loyalty it for want I'll operator I thank to all the to TPI commitment, call turn of dedication once to our TPI. now to and back questions. their for open

Operator

today question first from JPMorgan. with The Strouse Mark Instructions] is [Operator

Mark W. Strouse

your just order visibility some kind comment to of on as ramp. activity I the far of IRA as of ADI is question follow-on stone? this that I'm about and that, customer to the set think some the wanted in otherwise? sure lines opportunities waiting for the to the of out. about more kind guidelines guess that And into of well, the half of with the -- the of want Is come pipeline ramp that in I that? make right. back the there the I So is is ramp -- I waiting a Is anything of come largely second kind or might comment Or new IRA to go that thinking just kind

William Siwek

for far right the pretty in got thanks baked much IRA mean the as now, second the I question. dependent I Mark, that's as we've mean nothing there's that. half, right? -- on for

in 'XX and from announced year. Many pretty see of think a beginning number XXXX. 'XX I We've customers of and we of our an for longer-term a inflection last point beyond. end orders good towards those some this are perspective, of the year, seen

some So clarification starting other of I it's of domestic There's repowering think again, interest few I orders a lot see repowering will that think -- And still IRA. 'XX the well. you and there's up as I we're content around open a is 'XX. will, to kind activity some things clarification, into think, whether just if spicket, there and or on further on and

Mark W. Strouse

And -- north XXXX. of EBITDA comment $XXX in annualized the in Okay. in then beginning -- about getting the million

I'm $XXX the rate Just you're about right. annualized that year XXXX, to kind you number sure in at of million? some thinking expecting north run will is of that saying point XXXX making full of $XXX Or Are be the million? over be that kind

William Siwek

over No, that $XXX would be XXXX for million. the year

Operator

The is Hallum. Stine next question Eric with from Craig

Eric Stine

we thoughts some be just had this and out? that to very needed something impact more large, a common mean, then Or an So slowdown something I you behind maybe think bit we about the issue color little you? the happened could it it on shutdown. the had of business about in to you is and the is is outsized maybe this it can in so your materials is just but this -- just talk because also call that

William Siwek

It's a and which us, out. to us. why it not we is behind It's it common, material Yes. called was impact

early We frankly, quality was a and because we So with identified quickly issue. escape. quality quite stopped customer-directed supplier on, didn't production to it this result want a any have a as

time time. which and slowdown least not we industry, -- that normal in it And is called it's it quarter, plant the significant at from in to is did us for one in -- a something fourth happens why us, the So create it separately. is but in we it out behind

Eric Stine

so there mean in -- in amount. see you will the magnitude it. I kind see you to Got 'XX. that confirm, to expect, these is might you that something get to supplier? the 'XX, that just are volume, not And I think is you volumes would of meaningful do And from it's mean that any expect lost assume a it's way makeup about mean, Or I I of this

William Siwek

fourth -- obviously, the I a was material, in EBITDA we've million -- the mean we sales think $X it's $XX impact I Yes. million and it quarter. we've but an impact -- returned

you expect into to XXXX. So that would through flow

Eric Stine

Okay. for And second then me. maybe one a

are revenue-producing it mean, it, have on impact optimistic warranty on And transition of one an still issues, I news you more activity. that some you're about back to good that going but to Just sounds much yet sounding it's the your more hand, to starting forward. something technicians expect like

these do down? close this getting very it got So to being this things done? just the like think you you're a the you've entirety And handle issue? Is of something I case a is on feel that you mean of winding

William Siwek

time. warranty campaigns the we to on have But take through. little handle for bit quite these feel definitely a We Yes. of have frankly, time quite some issues work a we

sitting up some be the continuing is in as work still campaigns. though of will we So have through finish those even those the but cost we campaigns P&L, already technicians we'll balance the to

on are majority already So already. third-party on technicians vast work work or the of billable our

a the should Service XXXX be standpoint. better yes, So year Field from much

Operator

Justin The is Roth Clare with next MKM. from question

Justin Clare

on the was know us So about I you I guess, off, XXXX. earlier it. I at wondering some could commentary you how lines expect of first many if you just have update had operating to end

versus those XX, to maybe are wanted many how end of the I under but like at sounds year many lines it then under of are And negotiations still? contract you be So sure. expect the that how

Ryan Miller

in off. ended We're over We year GE adding Nordex XX for with And Ora. we're lines. now start back Justin, in X this lines down I'll for Matamoros. to X turning lines

year, offset. in we're of lines space then through other kind to start-up just were this going down factory one transitions X X. so there's So X starting that And up lines and to then and because be from due that go there'll lines X away

So the year we'll with lines XX installed. end

Justin Clare

it. Got

to Is possibility the could by the frame? given there strong XXXX right potentially Okay. where XXXX, time at expanding order lines are potential that in now? at the if end and any customers discussions Or that flow more that than look of the in not frame, you you your with time ramp in what's add --

William Siwek

fill XXXX. some of do activity capacity we year XXXX. order Yes. there there's year. rightly We as in that fairly been and in into quickly We -- have this point we lot you certainly -- relatively recently, do And has last significantly available up could out, carried of see volumes picking a end

discussions having our lines. we're capacity imagine additional might you and customers about capacity, additional with all So of

Justin Clare

Got it.

just Okay. other And one then one.

curious into on thinking change in trend about? XXXX And as that 'XX. versus XXXX. saw should meaningful OpEx be in we we further in Any then we what move the Just

Ryan Miller

to million of About half transitions $XX our startups OpEx, expenditure $XX we've to guided say and expense. guidance, that million. you to capital assuming I'm related is

or referring Okay. operating to Justin? expense Are you CapEx,

Justin Clare

operating expense, Operating expense.

William Siwek

do mean and I amount to taken of structure we will several our the Yes. over that. we have costs continue of out operating years, significant last

is COO and we're employing experience mindset -- very throughout new with a is deep our history a that and Our organization. has Lean, that

So focus we and structural continue we'll continue to costs on take move down to we expect that as forward. to

will continue. percentage -- would as operating trend reducing I of our cost So the a

Operator

is America. question of with The from Desai Bank next Dimple

Unknown Analyst

given how of to results, the give you basically customers can questions, XXXX, the of side us about pricing at see dynamics think -- higher in latst what That's projects first you've for play? pricing do is, are And given the pricing realized I One can OP the idea of backlog, that on renegotiating through an please. of of you in any cadence backlog? that we these looking different the the have also margins and some set question. evidence various

William Siwek

have I'll second of as you. have the obviously, renegotiating raw we've -- But first, based as materials based But we not take the far on through formulaic I you Ryan specific it's and quarter essentially price on and that no, every I'll take then have let pricing -- one margins. mean, market repriced seeing. mean arrangements something customers contractual that's what with we we're projects, have pricing. I our

So margins, repricing. we're on projects not seeing the back anybody Ryan? come specific for And on

Ryan Miller

Yes.

blades outweighed I so on side, more bit costs than material pricing of the a that had this towards more coming year, we longer think blades. had mix that our We mix down. was little the actually

you partially that a of so that. cost our lot offset to know, material our flow As customers,

ASPs to will of on expect as pricing we due those. From side, to hitters is blades will $XX a look the million length we large away. of perspective, look the charges go That you almost 'XX big to go the just ramp-up that of to be we our be from As the up. do margin had some and -- that warranty largely 'XX 'XX of

We that to close to a $XX effectively of from go Nordex charge had our losses plant Proterra away. that goes And about Matamoros also bankruptcy $XX.X had then down for we million zero. million

go those of we place. plans we as so And different have that margin a improvement have number away, in

lot obviously a work. be revenue-generating warranty on One time third-party Services activities those will of less and on more that Field being

reductions of baked lot cost today. into the we plan the offsetting $XX a out that we inflation million about then have that headwinds there total have currently are of And

lot have Türkiye As you you of our headwinds XX-K, some inflation Mexico. talk we and the when -- into in go about a we

worked take that to and of out lot make And system of our those a sure out to teams offset our things. cost can have so go we

William Siwek

So As though, year, talking tale second half year, we profit. about it's loss back of the half halves, we're about, right? X mid-single-digit a mid-single-digit the of first half, of talked

cadence. So that's kind of the

Operator

Percoco The Morgan next from Stanley. is question with Andrew

Andrew Percoco

what's want costs. was for up think margin you freight I on but having just sense to mentioned follow Red that answered, impact Can Sea us have the maybe Most quickly just been in the of it dynamic? for them give on I a an cadence. baked

give can those And for what us guidance your just So like looks costs? maybe you costs terms of your freight just sense remind baking in through elevated you're us margin to passing what contract some structure into customers. for

William Siwek

Yes.

you precise few not percentage to a we Again, raw do can't And SKUs, -- I relatively that looked suppliers you frankly. baked in. that route we alternative It's we impacted to avoid we're and quite significantly have extent. some give that material if have So will.

And it's however, impact, it pricing a -- to pretty total extent minimal So cost. impact. does actually the our on is delivered

So increases of extent as we well. blade logistics the to baked get a as result have the into price price would that

Andrew Percoco

in just the half year balance it And a sheet levers to brought transition? a maybe the but that to this us the like to lines? helpful. first That's capital Okay. what through then just managing into sense for of cash, some are to transition focusing give front, might of the warrant maybe And a the back what additional us manage come working give looks on some as just these capital on be sounds liquidity for you for like second. you sense of you're some that Can

Ryan Miller

We're not sheet capital planning the at on bringing time. in incremental onto point this balance

that have and there we in still room little think we're plants our a mature I blades existing to is producing. work

in what will up first quarter. executed here But and fourth because on the you half we of working increase a there's that down, balances is inventory that there which still assets, think of the are capital modest that we in see around some ramping of out working capital have we particularly lines our year. the a lot can room some contract bring I

be have have of the So some of we focused and in talked prepared was production that ramping consumption cash on up. will about remarks, areas we those that that that really I in

and will that as continue working can getting efficient as far consume So But we balance we to of can. capital. we're the as everything on disciplined that sheet after as some going to go

Operator

Sandler. Piper The next question Kashy from is Harrison from

Kashy Harrison

to a follow-up Mark. Maybe

agreement? is revenues, So is get by how of to under the of EBITDA? then much while $XXX your to supply revenue of the your XXXX current discussion we're derisked level of what guidance revenue million And in required

William Siwek

Yes.

our the in derisked revenue 'XX. it's all of So -- is all I under mean contract.

for clearly, straightforward. you in that's at but I point pretty we're not to mean, give as... So time, this think of Revenue, it 'XX guidance going

Ryan Miller

Kashy, to would is I year. digits the Yes. plan at half of mid-single we think, second the where be

up single I to our high exit to as enter And that's there be start accelerating, digits go 'XX and expect on as to get that think we'll start we volumes we 'XX. be that a be we pace. we where to to on walk into get 'XX, on pace as that

through I on working at we type would of business starts least a still some timing being So and EBITDA get think into those as but about 'XX. us on the mid-single-digit transitions,

Kashy Harrison

then my Got And appreciate it. the I color question. there. just follow-up

another move has it forward has clarification IRA development waiting You longer of guys I has expect driver as longer taken and forward post Can that solar you exactly the project have guess do taken then Wind just IRA? highlighted the that moved remind And IRA When why of maybe clarity? is is, to are regardless question delays. on? while -- us customers clarity what get you that to

William Siwek

Yes.

a not favorable. amount there's still obviously, term. long hydrogen guidance The initial a couple there's still still IRA, on come in a piece, needed, could lot of of around lot the drive just There's guidance was clarification even that out has content, Those wind significant that. clarification of which domestic green on though examples. are -- that's of the So a on

it's question. On a good the solar side,

as of I being a solar think perceived might development of part it is easier. bit be

inflation has has little a I bit it than wind. solar differently think impacted

longer to take permit locations. does in wind think I some

whole different but one, Kashy. to factors. whole a it's can't factors, a I It's of point So just different combination a bunch. of it's number

Operator

The question William with next Grippin from is UBS.

William Grippin

My was sounds outcomes possibly if first towards the of range you any outcomes can you it strategic Automotive the question alternatives just by business. around just or for here. as a here like completing speak maybe move to potential June And it,

William Siwek

on venture, we partnership, growth provide I outcomes have the any talking before, be range the mean, or lot combination business we I think could development we've that would it joint to those By of that programs talked you to mean things be expect. of -- -- execute we it a of about capital could about structure and

William Grippin

then... it. And Perfect. Got

William Siwek

answer that question? Does your

William Grippin

you yes, it. got Yes,

$XX out about You there footprint you years the term, the as to have more that Yes. Are demand the hopefully recover how think beyond wind thinking little the if million of market and a got at Or stabilize, you you are in lines thinking you with expand comfortable would and is place? kind it. longer you X-plus And sustainable? point? continues adding just here potentially

William Siwek

greenfield, clearly, at at and if a it's certainly see Yes, will today. our demand if to it -- look there, looking certain we get is regions, opportunities. in and the if sustainable, we customers there. We're demand have long a Yes. it the -- These takes we from commitments that them time

demand So be some looking at quite markets think and -- geographies we we're that demand today. where for will time, evaluating

answer is So yes. the

We consider will certainly that.

Absolutely. today? footprint our with comfortable we Are

we do and have we think a footprint have to great capacity I fill.

by our XXs, mid-XXs modest and at and talked filling think just north our of running $X us that a utilization filling numbers capacity get those fairly to rate, gets about. billion of capacity revenue, we EBITDA I we've today, that So

if existing at today. we're can a position the I additional good look opportunity growth So itself, But opportunities beyond certainly in we footprint. presents think our

Operator

question with TD Cowen. is next The Osborne from Jeffrey

Jeffrey Osborne

ones. quick three Bill,

the year-end think about had on talked some side, clarity EV previously you having that. I On

anticipated? marketplace I a than Is June. just think delaying makes process of the reference is XX-K the there Or that? to sort anti-EV slower

William Siwek

slower a of bit shortly. forward, done we moving and something do say still, have it's interest, a here than we'll But little I process lot believe would more we're anticipated.

Jeffrey Osborne

for do in Got through What the decremental were divided just EBITDA going assume the around X And product is just perspective, XX%, why is on just are or it that? by of the value the a Mexico had full are for to to can looks -- company? a, when to supplier X margins like it. I you the or income it And after to Or loss the around loss XX. then -- you full nothing? the to stand it walk Good people that? damages, issue, labor you us weeks pay hear. then from Is

William Siwek

Yes.

were if -- would they productive do losing be margin, mean, have So it that doing you're people they is -- So basically wouldn't but contribution I right? say they they're the are we building nearly -- as not as I blades. nothing, are

home. you're and them basically just So yes, send stopped can't you

You've got to keep that workforce intact.

it's with our to contract. to we'll that, want -- about for provide it's deal So Damages, to follow publicly, cost deal you that so additional contracts then talk I of and but restart. that, the with up speed our the production do don't once

Jeffrey Osborne

that something I the update be a the And had Newton? there quickly repowering that past? Got any is fairly it. question last what in is Is if maybe started not produced perhaps in versus guidance? newer it's could plan that haven't for is And for -- blade model that's that you And the assume is, I XXXX like GE. on

William Siwek

Yes. Yes.

that just in is point, were with asked could your to workforce. up So would the the XXXX It right, guidance. existing we it's And quickly. a be tooled start start plant you're assembling we be the not to to blade to fairly matter extent of the for,

would yes, be at in this But that 'XX relatively quickly. the it not is guidance So point.

Jeffrey Osborne

the clarity is that you rationale market IRA or don't some on driver on clarity because there other why And facility? they have need on that is there

William Siwek

to more the it's that's this at GE what point. clarity and Yes, they plant want for for use

Operator

concludes to would Siwek back remarks. question-and-answer to I This over closing for our like session. the Bill turn any conference

William Siwek

and continued and talk you quarter. today next support time TPI. again you. for interest Thank your in Thank We'll

Operator

you Thank concluded. today's now has for attending conference The presentation.

disconnect. You may now

TPI Composites (TPIC) 22 Feb 242023 Q4 Earnings call transcript