TPI Composites (TPI) has reported financial results for the full year ended December 31, 2022. Net sales from continuing operations and net sales from discontinued operations for the year ended December 31, 2022 totaled $1,758.3 million as compared to $1,732.6 million in the same period in 2021, an increase of 1.5%, primarily due to a $50.3 million increase in net sales from continuing operations, offset by a $24.6 million decrease in net sales from discontinued operations.
Net sales from continuing operations for the year ended December 31, 2022 increased 3.4% to $1,522.7 million as compared to $1,472.4 million in the same period in 2021, primarily driven by higher average sales price due to the mix of wind blade models produced and the impact of inflation on blade prices, an increase in volume at its two Türkiye manufacturing facilities, and an increase in volume at its Nordex facility in Matamoros, Mexico.
In addition, in 2021 TPI recorded an adverse cumulative catch-up adjustment. These increases were partially offset by a decrease in volume at its facilities that shut down at the end of the fourth quarter of 2021, and foreign currency fluctuations.
Net sales from discontinued operations for the year ended December 31, 2022 decreased 9.5% to $235.6 million from $260.2 million in the same period in 2021, primarily due to a decrease in volume due to the timing of transitioned lines in early 2022 at its Yangzhou facility, prior to ceasing production at the end of 2022.
Net loss attributable to common stockholders was $124.2 million for the year ended December 31, 2022, compared to a net loss of $165.6 million in the same period in 2021.
Adjusted EBITDA from continuing and discontinued operations for the year ended December 31, 2022, totaled $73.6 million as compared to $2.4 million during the same period in 2021. Adjusted EBITDA margin from continuing and discontinued operations increased to a total of 4.2% as compared to 0.1% during the same period in 2021, primarily due to an adverse cumulative catch-up adjustment recorded in 2021, a favorable cumulative catch-up adjustment recorded in 2022, favorable foreign currency fluctuations, reduced startup and transition costs, and improved operating cost efficiencies as compared to the prior period. These increases were partially offset by non-restructuring related operating costs that were associated with the manufacturing locations where production has stopped and cost challenges at its Nordex facility in Matamoros.
Guidance for the full year ending December 31, 2023:
|
Guidance |
Full Year 2023 |
|
Net Sales from Continuing Operations |
$1.6 billion - $1.7 billion |
|
Adjusted EBITDA Margin % from Continuing Operations |
Low single-digit |
|
Utilization % |
85% to 90% (based on 37 lines installed) |
|
Capital Expenditures |
Approximately $25 million |
