In the second quarter, the company successfully completed the divestiture of its Automotive business and closed the Nordex Matamoros plant, two loss-making operations that had negatively impacted its performance.
Additionally, the ramp-up of ten lines, either in startup or transition, continued. As these lines enter serial production and utilisation increases, alongside the divestiture of the Automotive business and the shutdown of the Nordex Matamoros plant, TPI Composites is expected to return to profitability and achieve positive free cash flow in the latter half of the year, according to Bill Siwek, President and CEO of TPI Composites.
Net sales for the three months ending 30 June 2024 decreased by 17.2% to $309.8 million, compared to $374.0 million in the same period in 2023. Sales of wind blades, tooling, and other wind-related products fell by $58.4 million, or 16.1%, to $304.3 million. This decline was mainly driven by the number and pace of startups and transitions, expected volume decreases due to market conditions, cancelled orders for the Nordex Matamoros facility, and unfavourable foreign currency fluctuations. However, these decreases were partially offset by higher average sales prices for wind blades, particularly with the restart of production at a previously idled facility in Juarez, Mexico, and an increase in tooling sales in preparation for manufacturing line startups and transitions.
Field service, inspection, and repair services saw a decrease of $5.8 million, or 51.0%, to $5.5 million in the three months ending 30 June 2024, compared to $11.3 million in the same period in 2023. The decrease was primarily due to a reduction in technicians deployed to revenue-generating projects as more time was spent on non-revenue generating inspection and repair activities.
The net loss from continuing operations attributable to common stockholders was $61.5 million for the three months ending 30 June 2024, an improvement from a net loss of $74.3 million in the same period in 2023. This decrease in net loss was mainly driven by the absence of a $32.7 million warranty charge recorded in the previous year, favourable foreign currency fluctuations, and cost-saving initiatives. These factors were partially offset by lower sales, startup and transition costs, increased losses from the Nordex Matamoros facility, and higher wages and inflation. The net loss for the period also included $22.4 million in interest expenses, compared to $1.9 million in interest expenses and $15.6 million in preferred stock dividends and accretion in the same period in 2023, following the Oaktree refinancing of preferred stock into a senior term loan in December 2023.
Adjusted EBITDA for the three months ending 30 June 2024 was a loss of $24.9 million, compared to a loss of $33.3 million in the same period in 2023. The adjusted EBITDA margin was a loss of 8.0%, compared to a loss of 8.9% in the same period in 2023.
For the full year ending 31 December 2024, the company expects net sales from continuing operations to range between $1.3 billion and $1.4 billion. The adjusted EBITDA margin is projected to be approximately 1%, revised from the earlier guidance of 1% to 3%. Utilisation is expected to be between 75% and 80%, based on the operation of 34 installed lines, with capital expenditures anticipated to be between $25 million and $30 million.
