TPI Composites Inc. (NASDAQ: TPIC) reported a solid start to 2025 with first-quarter revenue climbing 14% year-over-year to $336.2 million. Wind blade sales contributed $329 million, reflecting a 13.9% rise from the same period last year.

Despite the top-line growth, TPIC posted an adjusted EBITDA loss of $10.3 million, impacted by a $12.7 million warranty-related charge. However, the EBITDA margin improved to -3.1%, compared to -7.8% in Q1 2024, signaling operational progress.

Cash flow from operating activities turned positive at $4.6 million, with free cash flow improving significantly to -$1.9 million, up from -$47.3 million the previous year. The company closed the quarter with $172 million in cash and $616 million in total debt.

TPIC’s field service, inspection, and repair segment saw notable growth, generating $7.1 million in sales—a 38.4% increase year-over-year.

Looking ahead, TPIC has provided 2025 guidance with expected revenue between $1.4 billion to $1.5 billion, and a revised adjusted EBITDA margin projection of 0% to 2%. Planned capital expenditures are estimated at $25 million to $30 million.

The reopening of the Newton, Iowa facility is on schedule and is anticipated to generate approximately 400 new jobs, with the potential to scale up to 1,000 based on future demand.

However, the company faces considerable headwinds, including a $12.7 million warranty impact, intense competition from Chinese manufacturers, and economic instability in Turkiye, prompting organizational restructuring. TPIC also received a Nasdaq compliance notice due to its stock trading below the minimum bid price, with a compliance deadline set for October 29, 2025.

During the earnings call, CEO William Siwek clarified that the current strategic review is a more formalized process, focused on improving the balance sheet for long-term financial health. Additionally, he highlighted concerns over recent legislative developments, such as the phase-out of 45Y and the 2027 sunset of 45X, noting the uncertainties around transferability and timing implications for wind projects.

Siwek also addressed the potential expansion of operations in Iowa, noting that five production lines could be activated, pending market demand and evolving policy conditions.

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Source: Finance.yahoo.com