TPI Composites' net sales for the three months ended 30 September 2024 increased by 2.8% to $380.8 million, compared to $370.2 million in the same period in 2023.
Net sales of wind blades, tooling, and other wind-related sales increased by $6.9 million, or 1.9%, to $369.1 million for the three months ended 30 September 2024, compared to $362.2 million in the same period in 2023. This increase was primarily due to higher average sales prices of wind blades resulting from a change in the mix of wind blade models produced, particularly the startup of production at one of our previously idled facilities in Juarez, Mexico, favourable foreign currency fluctuations, and an increase in wind blade inventory included in contract assets driven by the startups and transitions. The increase in wind blade inventory directly correlates to higher sales under the cost-to-cost revenue recognition method for our wind blade contracts. However, this increase was partially offset by a 10% decrease in the number of wind blades produced, mainly due to the number and pace of startups and transitions and expected volume declines based on market activity levels.
Field service, inspection, and repair services sales increased by $3.7 million, or 45.8%, to $11.7 million for the three months ended 30 September 2024, compared to $8.0 million in the same period in 2023. This increase was primarily due to the return of technicians deployed to revenue-generating projects instead of time spent on non-revenue-generating inspection and repair activities.
The net loss from continuing operations attributable to common stockholders was $38.6 million for the three months ended 30 September 2024, compared to a net loss of $43.0 million in the same period in 2023. The decrease in net loss was primarily driven by the absence of losses from our Nordex Matamoros facility, which was shut down at the end of the second quarter of 2024, lower charges for changes in estimate for pre-existing warranties, a reduction in general and administrative costs due to lower employee compensation costs, an increase in revenue, benefits from foreign currency fluctuations, and a lower income tax provision. These improvements were partially offset by increased labour costs in Türkiye and Mexico, higher startup and transition costs, and higher asset impairments from our tooling business. Additionally, the net loss from continuing operations attributable to common stockholders for the three months ended 30 September 2024 includes $24.2 million of interest expense compared to $1.6 million of interest expense and $16.0 million of preferred stock dividends and accretion in the same period in 2023 as a result of the Oaktree refinancing of their preferred stock into a senior term loan in December 2023.
The net loss from continuing operations per common share was $0.81 for the three months ended 30 September 2024, compared to a net loss per common share of $1.01 for the same period in 2023.
Adjusted EBITDA was $8.0 million for the three months ended 30 September 2024, compared to adjusted EBITDA of $0.2 million during the same period in 2023. Adjusted EBITDA margin was 2.1% compared to an adjusted EBITDA margin of 0.1% during the same period in 2023. The increase was primarily driven by the absence of losses from our Nordex Matamoros facility, benefits from foreign currency fluctuations, lower charges for changes in estimate for pre-existing warranties, a reduction in general and administrative costs due to lower employee compensation costs, and an increase in revenue. These improvements were partially offset by increased labour costs in Türkiye and Mexico and higher startup and transition costs.
Net cash provided by operating activities improved by $12.7 million for the three months ended 30 September 2024, compared to the same period in 2023, primarily due to higher adjusted EBITDA in the current period and other working capital changes, partially offset by an increase in cash paid for taxes and interest.
Net cash used in investing activities increased by $10.4 million for the three months ended 30 September 2024, compared to the same period in 2023, primarily due to capital expenditures for the startup and transition of our manufacturing lines at our facilities in Mexico and Türkiye and the sale of our Taicang, China facility in the prior year.
Guidance for the full year ending 31 December 2024
Net sales from continuing operations are expected to be approximately $1.35 billion. This is a refinement from the previously guided range of $1.3 to $1.4 billion.
The adjusted EBITDA margin from continuing operations is anticipated to be a loss of approximately 2%, a revision from the earlier guidance of approximately 1%.
Utilisation is forecasted to be between 75% and 80%, based on 34 lines installed.
Capital expenditures are projected to be approximately $30 million, adjusted from the previous guidance range of $25 to $30 million.
