TPI Composites has reported financial results for the first quarter ended March 31, 2023. Net sales for the three months ended March 31, 2023 increased 17.6% to $404.1 million as compared to $343.5 million in the same period in 2022.
Net sales of wind blades, tooling and other wind related sales (“Wind”) increased by $65.8 million, or 20.5%, to $387.6 million for the three months ended March 31, 2023, as compared to $321.8 million in the same period in 2022. The increase in net sales of Wind during the three months ended March 31, 2023, as compared to the same period in 2022 was primarily due to a 20% increase in the number of wind blades produced, utilization of 84%, and higher average sales prices due to the mix of wind blade models produced and the impact of inflation on wind blade prices, partially offset by foreign currency fluctuations.
Automotive sales decreased by $2.6 million, or 20.2%, to $10.3 million for the three months ended March 31, 2023, as compared to $12.9 million in the same period in 2022. Automotive sales decreased primarily due to a decrease in the number of composite bus bodies produced and a decrease in sales of other automotive products, partially offset by an increase in fees associated with minimum volume commitments.
Field service, inspection and repair service (“Field Services") sales decreased by $2.7 million to $6.2 million for the three months ended March 31, 2023, as compared to $8.9 million in the same period in 2022. Field Services sales declined due to a reduction in technicians deployed to revenue generating projects due to a combination of inclement weather, the completion of a large customer campaign in 2022, and an increase in time spent on non-revenue generating inspection and rework.
Net loss attributable to common stockholders was $37.3 million for the three months ended March 31, 2023, compared to a loss of $29.9 million in the same period in 2022.
Adjusted EBITDA for the three months ended March 31, 2023, totaled $8.4 million as compared to $6.1 million during the same period in 2022 due to earnings on higher sales, lower startup and transition costs, cost reduction initiatives and net favorable foreign currency fluctuations, largely offset by inflation and increased production costs due to a change in a customer’s inspection criteria requirements.
Capital expenditures were $3.3 million for the three months ended March 31, 2023, as compared to $5.5 million during the same period in 2022. Our capital expenditures primarily relate to machinery and equipment and improvements to our existing facilities. TPI is revising its 2023 capital expenditures guidance from $25 million to a range of $40 million to $45 million. The increase in expected capital expenditures is driven by a project to acquire wind turbines that will provide renewable energy for its manufacturing facilities in Türkiye and incremental capital needed to startup its two open manufacturing lines in India.
