TPI Composites Inc (TPIC) 2024 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to the TPI Composites Second Quarter 2024 earnings conference call. (Operator Instructions) Also, today's call is being recorded. (Operator Instructions) And now at this time, I would like to turn things over to Jason Wegmann, Investor Relations for TPI Composites. Mr. Wegmann, please go ahead.

大家下午好，歡迎參加 TPI 複合材料 2024 年第二季財報電話會議。（操作員說明）此外，今天的通話正在錄音。（操作員說明）現在，我想將事情移交給 TPI Composites 投資者關係部的 Jason Wegmann。韋格曼先生，請繼續。

Thank you, operator. I would like to welcome everyone to TPI Composites Second Quarter 2024 earnings call. We will be making forward-looking statements during this call that are subject to risks and uncertainties which could cause actual results to differ materially. A detailed discussion of applicable risks is included in our latest reports and filings with the Securities and Exchange Commission, which can be found on our website, tpicomposites.com.

謝謝你，接線生。歡迎大家參加 TPI 複合材料 2024 年第二季財報電話會議。我們將在本次電話會議期間做出前瞻性聲明，這些聲明存在風險和不確定性，可能導致實際結果出現重大差異。有關適用風險的詳細討論包含在我們向美國證券交易委員會提交的最新報告和文件中，您可以在我們的網站 tpicomposites.com 上找到這些內容。

Today's presentation will include references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the comparable GAAP financial measures. In addition, please note that our financial statements and I'll report our former automotive business as discontinued operation.

今天的演示將包括對非公認會計準則財務指標的引用。您應該參考今天簡報隨附的幻燈片中包含的信息，以了解歷史非 GAAP 衡量指標與可比較 GAAP 財務衡量指標的定義資訊和調整。此外，請注意我們的財務報表，我將把我們以前的汽車業務報告為已終止經營。

In June, we divested the automotive business to Clear Creek Investments, LLC. Accordingly, the historical results of our automotive business had been presented as discontinued operations in our condensed consolidated statements of operations and condensed consolidated balance sheets as we discuss the year-over-year comparisons. Please note, we will refer to continuing operations only.

六月，我們將汽車業務剝離給 Clear Creek Investments, LLC。因此，當我們討論同比比較時，我們的汽車業務的歷史業績已在我們的簡明合併營運報表和簡明合併資產負債表中作為非持續經營業務列報。請注意，我們僅提及持續經營業務。

With that, let me turn the call over to Bill Siwek, TPI Composites' President and CEO.

接下來，讓我將電話轉給 TPI Composites 總裁兼執行長 Bill Siwek。

Thanks, Jason.

謝謝，傑森。

Good afternoon, everyone, and thank you for joining our call. In addition to Jason, I'm here with Ryan Miller, our CFO.

大家下午好，感謝您加入我們的通話。除了 Jason 之外，我還有我們的財務長 Ryan Miller。

Please turn to Slide 5. We knew coming into the year that it would be a tale of two halves. As we've been discussing for some time, the first half of the year would be heavily impacted by start-ups and transitions, with the back half benefiting from the exit of the Nordex Matamoros facility, the disposition of our automotive business and increased utilization at our plants as we complete the transitions and start-ups.

請翻到投影片 5。我們知道，進入這一年，這將是一個分為兩部分的故事。正如我們已經討論了一段時間的那樣，今年上半年將受到初創企業和轉型的嚴重影響，下半年將受益於 Nordex Matamoros 工廠的退出、汽車業務的處置和利用率的提高在我們的工廠完成轉型和啟動時。

The year is playing out largely as expected, and we are on track to have a profitable second half of the year after a challenging first half. Sales and adjusted EBITDA were lower than expectations in Q2 due to a couple of factors. First, a heightened emphasis on quality related to new blade models slowed our startup and transition time lines at two of our facilities impacting our sales by about $20 million in the quarter. However, we do anticipate a recovery of most of this volume in the second half of the year and sets us up nicely to enter 2025 at full speed.

今年的情況基本上符合預期，在經歷了充滿挑戰的上半年之後，我們預計在下半年將獲利。由於多種因素，第二季的銷售額和調整後 EBITDA 低於預期。首先，對新刀片型號相關品質的高度重視減緩了我們兩個工廠的啟動和過渡時間，影響了我們本季銷售額約 2000 萬美元。然而，我們確實預計大部分銷量將在今年下半年恢復，並為全速進入 2025 年做好準備。

Second, Nordex unexpectedly canceled purchase orders for the Matamoros facility and requested that we wind down the factory and cease production prior to quarter end. As a result, Q2 revenue and adjusted EBITDA from this plant fell short of our expectations. While Nordex ultimately funded all the severance related to the shutdown early in the third quarter, we were burdened with significantly less volume than expected and the inefficiencies of hastily shutting down a factory while maintaining our contractual commitments to deliver blades to Nordex.

其次，Nordex 意外取消了馬塔莫羅斯工廠的採購訂單，並要求我們在季度末之前關閉工廠並停止生產。因此，該工廠第二季的營收和調整後的 EBITDA 未達到我們的預期。雖然 Nordex 最終支付了與第三季初停工相關的所有遣散費，但我們仍面臨著產量遠低於預期的情況，以及在維持向 Nordex 交付刀片的合約承諾的同時匆忙關閉工廠的低效率問題。

The good news is that we now have the losses from this plant in the rearview mirror. That $24.9 million adjusted EBITDA loss in the second quarter included $20.7 million in start-up and transition costs and $21.9 million in losses from the now closed Nordex Matamoros facility. Excluding these amounts, our adjusted EBITDA was nearly 5%. With the losses from the Nordex Matamoros plant and the automotive business behind us, and as lines in start-up and transition reach serial productions, and we make up most of the lost volume from the first half of the year, we anticipate at least mid-single digit adjusted EBITDA margins in Q3 and Q4, as well as positive free cash flow as factory utilization approaches 90%.

好消息是，我們現在已將這家工廠的損失拋在了腦後。第二季調整後 EBITDA 損失為 2,490 萬美元，其中包括 2,070 萬美元的啟動和過渡成本以及現已關閉的 Nordex Matamoros 工廠的 2,190 萬美元損失。排除這些金額，我們調整後的 EBITDA 接近 5%。隨著 Nordex Matamoros 工廠和汽車業務的虧損，以及啟動和轉型中的生產線達到批量生產，並且我們彌補了今年上半年的大部分銷量損失，我們預計至少中期-第三季度和第四季度調整後的EBITDA 利潤率為個位數，且隨著工廠利用率接近90%，自由現金流為正。

Please turn to Slide 6. Our blade facilities in India and Türkiye continued to be profitable, delivering 257 blade sets, representing 1.2 gigawatts of capacity during the quarter, while our Mexico plants are beginning to show performance improvement, driven by the renewed focus on lean and quality initiatives implemented over the past year. We expect all regions to be profitable in the second half, including Mexico as the lines in transition and start-up as well as lean and quality initiatives mature.

請翻到幻燈片 6。我們在印度和土耳其的刀片工廠繼續盈利，本季度交付了257 個刀片組，相當於1.2 吉瓦的產能，而我們的墨西哥工廠在重新關注本季度實施的精益和質量計劃的推動下，開始顯示出績效改善。我們預計所有地區都將在下半年實現盈利，包括墨西哥，因為生產線正在轉型和啟動，以及精益和品質計劃的成熟。

We believe we are truly at a pivotal point in time for TPI and our second half will serve as a great launching point for 2025, where we plan to achieve at least $100 million of adjusted EBITDA and generate free cash flow for the year. Our supply chain continues to operate efficiently with costs remaining steady. Raw material prices have declined year-over-year and are expected to be stable to slightly down as Chinese manufacturing capacity surpasses demand. While logistics expenses have seen a modest increase recently, our management strategies have mitigated any operational or financial impact.

我們相信，我們確實正處於 TPI 的關鍵時刻，下半年將成為 2025 年的一個重要起點，我們計劃在今年實現至少 1 億美元的調整後 EBITDA 並產生自由現金流。我們的供應鏈持續高效運營，成本保持穩定。原物料價格年減，預計隨著中國產能超過需求，原物料價格將穩定至小幅下降。雖然物流費用最近略有增加，但我們的管理策略減輕了任何營運或財務影響。

With respect to the wind market, we remain optimistic about the long-term recovery of onshore wind energy, though we remain cautious about the exact timing for the overall market. The structural foundation for sustained growth in onshore wind is in place and robust and global demand for clean energy continues to rise, driven by factors such as the growing power needs for data centers, semiconductor chip manufacturers, the adoption of electric vehicles and the electrification of just about everything.

風電市場方面，我們對陸域風電的長期復甦仍持樂觀態度，但對整體市場的具體時機仍持謹慎態度。陸域風電持續成長的結構性基礎已經到位，並且在資料中心、半導體晶片製造商不斷增長的電力需求、電動車的採用以及汽車電氣化等因素的推動下，全球對清潔能源的需求持續增長。一切。

Global onshore wind installations, excluding China, are expected to bottom out in 2024 before beginning to accelerate in 2025. Wood Mackenzie forecasts U.S. onshore wind installations to reach six gigawatts in 2024 and nearly 15 gigawatts annually by the end of the decade. Although there are very promising long-term prospects driven by supportive policies in the U.S. and E.U., we expect significant growth within our key markets to likely be pushed to the back half of '25 or into 2026.

全球陸上風電裝置容量（不包括中國）預計將在 2024 年觸底，然後在 2025 年開始加速。Wood Mackenzie 預測，到 2024 年，美國陸上風電裝置容量將達到 6 吉瓦，到本十年末，每年將達到近 15 吉瓦。儘管在美國和歐盟的支持性政策的推動下，長期前景非常光明，但我們預計主要市場的顯著增長可能會被推遲到 25 年下半年或 2026 年。

Challenges such as high interest rates, inflation, capital constraints, permitting issues, grid access and uncertainties in the U.S. around the upcoming election are hindering certain project timelines. With that said, given the strong position of our primary customers, we do anticipate volume growth for TPI in the U.S. in 2025. This growth will be supported by blade lines that will be in full production throughout the year, including the four new lines for GE that are in start-up today, along with being bolstered by the guidance from the U.S. Treasury and IRS on the Inflation Reduction Act domestic content bonus, supporting the competitiveness of our Mexico plant.

高利率、通貨膨脹、資本限制、許可問題、電網接入以及美國即將舉行的選舉的不確定性等挑戰正在阻礙某些項目的時間表。話雖如此，鑑於我們主要客戶的強勢地位，我們預計 2025 年 TPI 在美國的銷售量將會成長。這一增長將得到全年全面投產的葉片生產線的支持，其中包括今天啟動的 GE 的 4 條新生產線，以及美國財政部和國稅局關於降低通貨膨脹的指導意見。工廠的競爭力。

Our US growth will be partially offset by a modest decline in demand for our blades in the E.U. as we work with our customers on future blade models and optimization of our blade footprint to cost-effectively serve the E.U. as market demand and wider Europe recovers.

我們在美國的成長將被歐盟對我們刀片的需求小幅下降所部分抵消。我們與客戶合作開發未來的葉片模型並優化我們的葉片佔地面積，以經濟高效地為歐盟提供服務。隨著市場需求和整個歐洲的復甦。

Before I turn it over to Ryan, our financial outlook for the full year remains unchanged, with 2024 being a year of transition. With the loss-making operations wrapped-up, lines in transition and start-up maturing and operational improvements implemented, we are looking forward to a strong second half of 2024 and putting us on track for our targeted EBITDA of at least $100 million in 2025.

在我將其交給 Ryan 之前，我們對全年的財務前景保持不變，2024 年是過渡的一年。隨著虧損業務的結束、轉型和新創企業的成熟以及營運改善的實施，我們期待 2024 年下半年的強勁表現，並使我們預計在 2025 年實現至少 1 億美元的 EBITDA 目標。

With that, I'll turn the call over to Ryan to review our financial results.

這樣，我會將電話轉給瑞安，以審查我們的財務表現。

Thanks, Bill.

謝謝，比爾。

Please turn to Slide 8. For the second quarter of 2024, net sales were $309.8 million compared to $374 million for the same period in 2023, a decrease of 17%. Net sales of blade tooling and other wind-related sales decreased $58.4 million or 16.1% to $304.3 million. This decrease was driven by a 20% decrease in the number of wind blades produced due to the number and pace of startups and transitions, expected volume declines based on market activity levels, canceled orders for the Nordex Matamoros facility and unfavorable foreign currency fluctuations. These decreases were partially offset by higher average sales prices of wind blades due to the changes in the mix of wind blade models produced, the startup of production at one of our previously idled facilities in Juarez, Mexico and an increase in tooling sales and preparation for manufacturing line startups and transitions.

請翻到幻燈片 8。2024 年第二季淨銷售額為 3.098 億美元，較 2023 年同期的 3.74 億美元下降 17%。葉片工具和其他風電相關銷售額的淨銷售額下降 5,840 萬美元，或 16.1%，至 3.043 億美元。這一下降的原因是，由於初創和轉型的數量和速度、基於市場活動水平的預期銷量下降、Nordex Matamoros 工廠的訂單取消以及不利的外匯波動，風力葉片生產數量減少了 20%。這些下降被風力葉片平均銷售價格上漲所部分抵消，這是由於生產的風力葉片型號組合發生變化、我們之前位於墨西哥華雷斯的閒置工廠之一開始生產，以及工具銷售和準備工作的增加。的啟動和轉型。

Field Services revenue declined by $5.8 million in the second quarter of 2024 compared to the same period in 2023. This was primarily due to a reduction in technicians deployed to revenue generating projects due to an increase in time spent on non-revenue-generating inspection and repair activities. We expect to transition back to revenue-generating activity in the second half of the year.

與 2023 年同期相比，2024 年第二季現場服務收入下降了 580 萬美元。這主要是由於用於非創收檢查和維修活動的時間增加，導致部署到創收項目的技術人員減少。我們預計將在下半年恢復創收活動。

Adjusted EBITDA for the second quarter of 2024 was a loss of $24.9 million compared to an adjusted EBITDA loss of $33.3 million during the same period in 2023. The decrease was primarily driven by the absence of a $32.7 million warranty charge recorded in the prior year. Favorable foreign currency fluctuations and cost savings initiatives, partially offset by lower sales, higher start-up and transition costs, higher losses from the Nordex Matamoros plant, higher wages and overall inflation.

2024 年第二季調整後 EBITDA 虧損 2,490 萬美元，而 2023 年同期調整後 EBITDA 虧損 3,330 萬美元。這一下降主要是由於去年沒有記錄 3,270 萬美元的保固費用。有利的外匯波動和成本節約舉措，部分被銷售額下降、啟動和轉型成本上升、Nordex Matamoros 工廠損失增加、工資上漲和整體通膨所抵消。

Moving to Slide 9. We ended the quarter with $102 million of unrestricted cash and cash equivalents and $554 million of net debt. Free cash flow was a negative $44 million in the second quarter of 2024 compared to free cash flow of $6.2 million in the same period in 2023. Net use of cash in the second quarter of 2024 was primarily due to our EBITDA losses capital expenditures relate to the transitions and startups, interest and tax payments.

轉到投影片 9。截至本季末，我們的非限制現金和現金等價物為 1.02 億美元，淨債務為 5.54 億美元。2024 年第二季的自由現金流為負 4,400 萬美元，而 2023 年同期的自由現金流為 620 萬美元。2024 年第二季的現金淨使用量主要是由於我們的 EBITDA 損失、與轉型和新創公司、利息和稅款相關的資本支出。

While the shutdown of the Nordex Matamoros plant has put some unplanned pressure on our cash resources, we have had much success improving the efficiency of our balance sheet over the past couple of quarters, and we will remain focused on preserving cash and optimizing working capital to ensure we have resources to execute key initiatives moving forward.

雖然No​​rdex Matamoros 工廠的關閉給我們的現金資源帶來了一些計劃外的壓力，但我們在過去幾個季度中在提高資產負債表效率方面取得了很大成功，我們將繼續專注於保留現金和優化營運資本，以確保我們有資源執行未來的關鍵措施。

A summary of our financial guidance for 2024 can be found on Slide 10. We are reaffirming our full year 2024 guidance but narrowing our adjusted EBITDA guidance to the lower end of the range. This adjustment reflects the higher than expected losses from the Nordex Matamoros plant, which was shut down in June 30 of this year, as well as some foreign currency headwinds in the Turkish lira compared to expectations of its rate of devaluation at the time we set our plan for the year.

我們的 2024 年財務指導摘要可在投影片 10 中找到。我們重申 2024 年全年指引，但將調整後 EBITDA 指引收窄至範圍下限。這項調整反映了今年 6 月 30 日關閉的 Nordex Matamoros 工廠的損失高於預期，以及土耳其里拉與我們設定匯率時對其貶值率的預期相比面臨的一些外匯阻力。

We anticipate sales from continuing operations in the range of $1.3 billion to $1.4 billion. We believe we are well-positioned to return to profitability in the second half of the year and drive positive free cash flow, particularly in the fourth quarter. As Bill stated earlier, we expect our adjusted EBITDA margin to improve to at least mid-single digits in the second half as we have now shed the losses for both the Nordex Matamoros plant and the automotive business. In addition, as the lines that we have been in start-up and transition achieve serial production rates, we expect to drive utilization to near 90% over the second half of the year. It is for these reasons, we are confident we are on a path to recovery. And finally, for the full year, we anticipate capital expenditures of $25 million to $30 million. These investments are driven by our continued focus on achieving our long-term growth targets and restarting our idled lines.

我們預計持續經營業務的銷售額將在 13 億美元至 14 億美元之間。我們相信，我們有能力在下半年恢復獲利，並推動積極的自由現金流，特別是在第四季度。正如比爾早些時候所說，我們預計下半年調整後的 EBITDA 利潤率將至少提高到中個位數，因為我們現在已經擺脫了 Nordex Matamoros 工廠和汽車業務的虧損。此外，隨著我們處於啟動和轉型階段的生產線實現批量生產，我們預計下半年利用率將提高到接近 90%。正是由於這些原因，我們有信心走上復甦之路。最後，我們預計全年資本支出為 2,500 萬至 3,000 萬美元。這些投資是由我們持續專注於實現長期成長目標和重啟閒置生產線所推動的。

With that, I'll turn the call back over to Bill.

這樣，我會將電話轉回給比爾。

Thanks, Ryan. Please turn to Slide 12. The long-term market prospects remain promising with a solid structural foundation in place for sustained onshore growth. We will continue to work with our customers to efficiently and profitably provide the market with high quality cost effective blades. We are confident that we are on the path to profitability. Given the operational progress we have made over the last several quarters, process of start-ups and transitions is progressing well and we are confident in our expected full year financial guidance as we are planning a return to at least mid single digit adjusted EBITDA margins and positive cash flow in the second half of 2024. We believe our long-term prospects remain strong and are well positioned to achieve adjusted EBITDA of at least $100 million in 2025.

謝謝，瑞安。請翻到投影片 12。長期市場前景仍樂觀，為陸上持續成長奠定了堅實的結構基礎。我們將繼續與客戶合作，高效、有利潤地為市場提供高品質、高性價比的刀片。我們有信心走上獲利之路。鑑於我們在過去幾個季度取得的營運進展，新創公司和轉型過程進展順利，我們對預期的全年財務指引充滿信心，因為我們計劃將調整後的 EBITDA 利潤率至少恢復到中個位數，並且2024年下半年現金流為正。我們相信，我們的長期前景依然強勁，並有能力在 2025 年實現至少 1 億美元的調整後 EBITDA。

Finally, I want to extend my gratitude to all our TPI associates for their continued commitment and dedication to TPI and our mission to decarbonize and electrify the world.

最後，我要向所有 TPI 員工表示感謝，感謝他們對 TPI 以及我們使世界脫碳和電氣化使命的持續承諾和奉獻。

I'll now turn it back to the operator to open the call for questions.

現在我將把它轉回接線員以開始提問。

Thank you, Mr. Siwek. (Operator Instructions) We'll go first this afternoon to Eric Stine of Craig-Hallum.

謝謝您，斯維克先生。（操作員指示）今天下午我們先去拜訪 Craig-Hallum 的 Eric Stine。

Hey, Bill. Hey, Ryan.

嘿，比爾。嘿，瑞安。

Hey, Eric. How are you doing?

嘿，艾瑞克。你好嗎？

Hey, doing all right. Thanks. So maybe just on fiscal '25. So clearly, you're pretty confident about that $100 million EBITDA level. But I also know your commentary was about uncertainty on timing of a meaningful recovery in wind market. So I'm just trying to kind of we square the two things up. I mean, do you think $100 million is a realistic goal without a meaningful recovery or is a meaningful recovery needed and this could be more back half loaded?

嘿嘿，幹得好。謝謝。所以也許就在 25 財年。顯然，您對 1 億美元的 EBITDA 水準非常有信心。但我也知道您的評論是關於風電市場有意義復甦的時間的不確定性。所以我只是想把這兩件事連結起來。我的意思是，您認為 1 億美元是一個現實的目標，但沒有有意義的復甦，還是需要有意義的復甦，而這可能會更多？

Yes, we wouldn't put out the $100 million if we weren't confident we would get there. But with that said, there's really two components here. Number one is -- when I talk about the market, I'm talking about kind of in general, the US market and then I was pretty specific about TPI's volumes in 2025. So notwithstanding the fact that we may not see as robust a recovery of the US market in 2025, from a TPI perspective, we are -- our volumes will be up year-over-year from '24 to '25 and our customers are looking for everything we can deliver. So overall market, probably not recovering as fast, we're pushing to the right a little bit from the TPI perspective, we're full out.

是的，如果我們沒有信心能夠實現這一目標，我們就不會投入 1 億美元。但話雖如此，這裡實際上有兩個組成部分。第一是——當我談論市場時，我談論的是一般性的美國市場，然後我非常具體地談到了 TPI 2025 年的銷售。因此，儘管我們可能不會看到 2025 年美國市場的強勁復甦，但從 TPI 的角度來看，我們的銷售將從 24 年到 25 年同比增長，我們的客戶正在尋找我們可以提供的一切。因此，整體市場可能不會那麼快復甦，從 TPI 的角度來看，我們正在向右推一點，我們已經全力以赴了。

Okay. That's great color. Great to hear. And maybe just, can you remind me on that the idled facility in Juarez that you're starting up, is that is that something that has been discussed and I'm just spacing on it, or is that a new development and how does that figure into your your outlook for '24 and '25?

好的。那顏色真棒。很高興聽到。也許只是，你能提醒我一下，你正在啟動的華雷斯的閒置設施，是已經討論過的東西，我只是在它上面留出空間，或者是一個新的開發項目，它是如何實現的？了解您對「24」和「25」的展望嗎？

Yes.

是的。

No, we announced it, I think last year. We started up for GE. So it's a four-line facility, and we started that early in the year. So we've been really in start-up for the first two quarters of the year. So it does have a meaningful impact this year and will certainly have a meaningful impact next year.

不，我們去年就宣布了這個消息。我們開始為通用電氣公司工作。這是一個四線設施，我們在今年年初就開始了。因此，今年前兩個季度我們確實處於啟動階段。所以它今年確實產生了有意義的影響，明年也肯定會產生有意義的影響。

Okay. Now you jog my memory at. Sorry about that.

好的。現在你喚起了我的記憶。對此感到抱歉。

All right. I'll turn it over. Thanks.

好的。我會把它翻過來。謝謝。

Great. Thanks, Eric.

偉大的。謝謝，埃里克。

Thank you.

謝謝。

We go next now to Mark Strouse of JPMorgan.

接下來我們請摩根大通的馬克·斯特勞斯發言。

Yes, good afternoon. It's Drew on for Mark and thank you for taking our questions. I guess just Just firstly, I'll start with the Iowa facility and what's the latest there from GE and what potential timing could be there? And also just on that, once they give you the go-ahead, how long until you can really start ramping volumes there?

是的，下午好。馬克請德魯發言，感謝您回答我們的問題。我想首先，我將從愛荷華州工廠開始，以了解通用電氣的最新情況以及那裡的潛在時間表是什麼？就這一點而言，一旦他們批准你，你需要多長時間才能真正開始增加產量？

Yes.

是的。

So I really nothing has changed from last quarter. At this point. We're still probably best case looking at early 2025 would be my best estimate at this point, still working through some scenarios. And if that were to happen, we'd have to start ramping it relatively soon. I mean, with the tight employment market in the Midwest, especially in Iowa. I think that will be the biggest challenge is hiring down the the associates that we need to run that facility. So it's probably a six month process to hire and get rolling again.

所以我真的和上個季度相比沒有任何變化。在此刻。我們仍然可能是最好的情況，2025 年初是我目前最好的估計，仍在研究一些場景。如果這種情況發生，我們就必須相對快速地開始加大力度。我的意思是，中西部地區就業市場緊張，尤其是愛荷華州。我認為最大的挑戰是僱用我們運作該設施所需的員工。因此，招募和重新開始工作可能需要六個月的過程。

Okay, that's helpful. Thank you. And then I guess just transitioning looking at the cash generation comments, it sounds like you'd see a positive for the for the second half. But any more detailed commentary on what you think of how the how the timing looks like that for 3Q versus 4Q? And do we I'm sorry if I missed this in the prepared remarks, but do you still think 2Q is going to be the low watermark for for cash for the year? Is there any risk to it cash coming in lower in the third quarter?

好的，這很有幫助。謝謝。然後我想只要看看現金產生評論，聽起來你會看到下半年的正面情況。但是，您對第三季與第四季的時間安排有何看法有更詳細的評論嗎？如果我在準備好的發言中錯過了這一點，我們是否會感到抱歉，但您是否仍然認為第二季將是今年現金的低水位？第三季現金減少是否有風險？

Yes.

是的。

As we look at cash over the balance of the year, I think our fourth quarter is going to be is we're going to generate more cash in the fourth quarter. We'll we will the third. I think we're kind of right now bouncing along the bottom edge of where cash is going to be. I think you'll continue to see that in Q three, probably at a similar level. And the reason is we're continuing to have some CapEx investments. So we'll liquidate some advance payments. And then with interest and taxes on probably be kind of a flattish type of quarter in the third quarter with most of our cash that we that we bring in will happen in the fourth quarter.

當我們審視今年剩餘時間的現金時，我認為第四季我們將在第四季產生更多現金。我們會的，我們會第三個。我認為我們現在正沿著現金所在的底部邊緣反彈。我想你會在第三個問題中繼續看到這一點，可能處於類似的水平。原因是我們繼續進行一些資本支出投資。因此我們將清算一些預付款。然後，考慮到利息和稅收，第三季的季度可能會比較平穩，我們帶來的大部分現金將在第四季度發生。

Okay, great. Thanks, Ryan. I'll pass it on.

好的，太好了。謝謝，瑞安。我會把它傳遞下去。

Thanks.

謝謝。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

We'll go next now to Pavel Molchanov at Raymond James.

接下來我們將邀請 Raymond James 的 Pavel Molchanov。

Thanks for for taking the question. You referenced in the press release that the fact that our unit pricing on the blades was and we're kind of on the high side and that indeed shows up in the in the line.

感謝您提出問題。您在新聞稿中提到，我們對刀片的單位定價有點偏高，這確實顯示在隊列中。

And is that a sustainable run rate or was there something very kind of specific in Q2 to explain that?

這是一個可持續的運行率，還是第二季度有一些非常具體的東西可以解釋這一點？

Yes, Pavel, we had a on a pretty big mix impact in the quarter since you saw the rate of $200,000 of blade on it will come down by the biggest impact is a lot of these new blades are ramping up on. They come with a lot higher price. They're longer heavier blades that are more expensive, but a couple of dynamics occurred in the quarter. For example, in one of our warehouse facilities where we make the shorter TE. blade, we diverted a good share of that workforce to help with the start-up on the longer blade on GE's workhorse plate. And so the volumes on those lower price blades were down in the second quarter, we will start ramping those back up and they'll be a higher percentage of the mix as we move forward in a couple of their factories to just the timing of some of the shorter versus longer blades impacted mix as well. So this will probably be the peak of ASP.s, and you'll see that work its way down as some of the shorter blades ramp up in production over the second half of the year.

是的，帕維爾，我們在本季度受到了相當大的混合影響，因為您看到 200,000 美元的刀片價格將會下降，最大的影響是許多新刀片正在增加。它們的價格要高得多。它們是更長、更重的刀片，價格也更高，但本季發生了一些動態。例如，在我們的倉庫設施之一中，我們生產較短的 TE。刀片，我們轉移了很大一部分勞動力來幫助啟動通用電氣主力板上的較長刀片。因此，這些價格較低的刀片的銷量在第二季度有所下降，我們將開始增加這些刀片的數量，隨著我們在他們的幾家工廠中推​​進一些工作，它們將佔混合產品的比例更高。因此，這可能是 ASP.s 的峰值，隨著一些較短葉片在下半年產量的增加，您會看到這一峰值逐漸下降。

Okay. You don't talk a whole lot about the field services business by obviously with the lack of EV sales in the future. That will be, I suppose, a little bit more meaningful in the revenue mix up. How is that our portion of the revenue mix contributing to EBITDA. I guess you don't really break it out in the in the financials.

好的。顯然，由於未來電動車銷售的缺乏，您不會過多談論現場服務業務。我認為，這對於收入組合來說更有意義。我們的營收組合部分對 EBITDA 有何貢獻？我猜你並沒有真正在財務方面進行詳細說明。

Yes. Well, right now, Pavel. We're still we're still working through the inspection and repair campaign that we started last year. So we've had a fairly significant number of our of field service techs on that as opposed to revenue generating generating work and therefore has been very minimal contribution to EBITDA as we get through those campaigns, which you'll start to see the impact of that in the second half of this year.

是的。好吧，現在，帕維爾。我們仍在繼續去年開始的檢查和維修活動。因此，我們有相當多的現場服務技術人員從事這方面的工作，而不是創收工作，因此，當我們完成這些活動時，對 EBITDA 的貢獻非常小，您將開始看到這些活動的影響那是在今年下半年。

Then you'll start to see a much more significant impact on the margins are clearly better on the field service business. And once we get our tax back on the revenue-generating work, you'll start to see that it's not it doesn't move the needle significantly yet just because from a size perspective, it's still relatively small, but that's a that's an area we anticipate investing more in and growing both in the US and in the EU.

然後您將開始看到對現場服務業務的利潤率明顯產生更顯著的影響。一旦我們收回創收工作的稅收，你就會開始發現，這並不是沒有顯著的改變，只是因為從規模的角度來看，它仍然相對較小，但這就是一個領域我們預計將在美國和歐盟進行更多投資並實現成長。

One last question on your offshore wind has been in the headlines of late. I suppose you guys have never really played in that slice of the pie. Any interest in getting into the offshore segment in on other side of the Atlantic?

關於離岸風電的最後一個問題最近成為了頭條新聞。我想你們從來沒有真正參與過這塊派。有興趣進入大西洋彼岸的離岸市場嗎？

Yes.

是的。

I mean, there's is clearly interesting development that the growth especially in Europe is fairly significant. It's much it's a much more mature supply chain there. And so I think it's quite a ways beyond where the US market is today with that said, is there interest?

我的意思是，顯然有一個有趣的發展，尤其是在歐洲的成長相當顯著。那裡的供應鏈更加成熟。所以我認為這遠遠超出了美國市場今天的水平，有人感興趣嗎？

Yes, today, not really and but over time potentially.

是的，今天確實沒有，但隨著時間的推移，可能會發生這種情況。

Got it. Thanks very much.

知道了。非常感謝。

Yes.

是的。

Thank you.

謝謝。

Thank you. Next now to Jeff Osborne, TD Cowen.

謝謝。接下來是傑夫·奧斯本，TD·考恩。

Thank you. Bill, just to two questions. One is you made a comment in the prepared remarks about a $20 million hit with a greater focus on quality. Was that in post production or preproduction? And did that tie up the service staff?

謝謝。比爾，我想問兩個問題。一是你在準備好的評論中評論了一部 2000 萬美元的熱門影片，並且更加重視品質。這是後製還是前期製作？這是否束縛了服務人員？

No, that has nothing to do with the service staff. Jeff. This was just as we're as we're working with our customers, building the initial blades, working through the design, you unique characteristics of the design and just making sure that we get the process right so that when we do get to serial production. We don't have any issues with blades escaping the plant. So it was really just slowing things down a little bit from what we would normally do, but nothing to do with the field service stuff. This blades won't that won't have any issues as it relates to field service. It was just slowing down the process, making sure we've got it right before we get to serial production.

不，這與服務人員無關。傑夫.這就像我們正在與客戶合作，建立初始葉片，完成設計，設計的獨特特徵，並確保我們的流程正確，以便當我們真正進行大量生產時生產。我們對葉片從工廠逃逸沒有任何問題。所以這實際上只是比我們通常做的事情慢了一點，但與現場服務無關。該刀片不會出現任何與現場服務相關的問題。它只是減慢了進程，確保我們在批量生產之前得到正確的結果。

And just a follow-up on that. Have you remediated those problems at those two sites so that you're entering 3Q with hitting the ground running or is there like an overhang in the third quarter?

這只是後續行動。您是否已經修復了這兩個地點的這些問題，以便進入第三季度並取得良好進展，或者第三季度是否存在懸而未決的情況？

There was nothing to remediate and we were we slowed the process down to make sure with our customers that we were comfortable with the serial production quality of the blades. So I mean, yes, we feel like we've got great processes. We've got great collaboration with our customers. And third, we'll see in the third and fourth quarter, our utilization rates get up close to 90%. So and we'll be in good shape in that in the back half.

沒有什麼可以補救的，我們放慢了流程，以確保我們的客戶對葉片的大量生產品質感到滿意。所以我的意思是，是的，我們覺得我們有一個很棒的流程。我們與客戶有著良好的合作。第三，我們將看到在第三和第四季度，我們的利用率將接近 90%。所以我們在後半場會保持良好的狀態。

Perfect.

完美的。

And the last one is just that you also made reference in the prepared remarks about Europe and working with your customers on new designs and potentially a new news.

最後一點是，您在準備好的有關歐洲的評論中也提到了這一點，並與您的客戶就新設計和可能的新訊息進行了合作。

It sounded like new sites would that be an expansion of Turkey?

聽起來像是新站點，這會是土耳其的擴張嗎？

Or would you evaluate building a facility in another low-cost country in region there?

或者您會評估在該地區的另一個低成本國家建立設施嗎？

Yes.

是的。

I think we're the EU is an important market for us. Serving it cost effectively is important. And Turkey has been very cost effective for a long, a long period of time. But we will continue to look at options, whether they be in Turkey or somewhere else, either in the EU or in wider Europe to continue to support our customers where they need us to be from a from a total delivered cost.

我認為歐盟對我們來說是一個重要的市場。經濟有效地提供服務非常重要。土耳其在很長一段時間內一直非常具有成本效益。但我們將繼續尋找選擇，無論是在土耳其還是其他地方，無論是在歐盟還是在更廣泛的歐洲，以繼續為我們的客戶提供他們所需的支持，從總交付成本中獲得支持。

And just a follow-up on that sense on what the CapEx obligation for such a facility would be just given the debt that's due next year?

考慮到明年到期的債務，這種設施的資本支出義務是什麼？

Yes, we don't have any debt due next year. But other than that, the Turkey stuff, which is just evergreen revolver stuff, but I know it would depend really, Jeff. It varies by country and whether a land costs are very different. Sometimes land is free, sometimes it's not.

是的，我們明年沒有任何到期債務。但除此之外，土耳其的東西，這只是常青的左輪手槍的東西，但我知道這真的取決於，傑夫。不同國家的情況不同，土地成本也有很大差異。有時土地是免費的，有時則不是。

So it would it would vary pretty significantly. But from our perspective, our rule of thumb has always been 6 to 7 million per line for that from a CapEx perspective, that's what it would be. So you can kind of take that times the number of lines and that's the CapEx requirement it would be for us.

所以它會變化很大。但從我們的角度來看，我們的經驗法則始終是每條線 6 到 700 萬，從資本支出的角度來看，事實就是如此。因此，您可以將其乘以線路數，這就是我們的資本支出要求。

Perfect.

完美的。

Yes.

是的。

Thank you.

謝謝。

We'll go next now to Greg Wasikowski at Webber Research.

接下來我們將請來韋伯研究中心的格雷格‧華斯科夫斯基 (Greg Wasikowski)。

Hey, good afternoon, guys. Just wanted to ask this diplomatically as possible but could you speak to your ongoing relationship with Nordex following the Matamoros exit?

嘿，下午好，夥計們。只是想盡可能以外交方式問這個問題，但您能談談在馬塔莫羅斯退出後您與 Nordex 的持續關係嗎？

Yes, yes.

是的，是的。

Obviously, that was a that that was a difficult period for both of us for both Nordex and TPI., but I've had a number of conversations with their CEO. since and during I mean, I think the relationship is fine. I'll see him again in the next month or two in Europe. I do believe we'll have a good opportunity to participate in their US blade, the new design for the U.S. market. So I would say the relationship, notwithstanding the strains of a tough situation like we had in Matamoros is actually in a pretty good place.

顯然，對於 Nordex 和 TPI 來說，這對我們雙方來說都是一個困難時期，但我與他們的執行長進行了多次對話。我的意思是，從那時起，我認為我們的關係很好。未來一兩個月我會在歐洲再次見到他。我相信我們將有一個很好的機會參與他們的美國刀片，這是針對美國市場的新設計。所以我想說，儘管像我們在馬塔莫羅斯那樣的艱難局勢帶來壓力，但我們的關係實際上處於非常好的狀態。

Got it. Okay. Appreciate the color. And then for the next one or two quick ones. I apologize if I missed it just got a couple of balls in the air right now. Can you give us a sense of timing on field service and kind of getting that back into maybe normalizing it back to normal revenue production and less Q3?

知道了。好的。欣賞顏色。然後是接下來的一兩個快速的。如果我錯過了，我很抱歉，現在只有幾個球在空中。您能否讓我們了解現場服務的時機，以及將其恢復到正常收入生產並減少第三季的情況？

I think as we get into what's kind of the busy season right now and the summer, we've already started to see some some of the tests and migrate over to more revenue producing. So I think you'll see a more robust third quarter from us notwithstanding, we're having utilized so many technicians on our own internal campaigns that will take a little bit to build up a backlog of external campaigns to be revenue producing So while I think you'll see improved numbers in Q three, still got a little work to do to build that back up to where it was before and grow it beyond that.

我認為，當我們進入現在的繁忙季節和夏季時，我們已經開始進行一些測試並轉向創造更多收入。因此，我認為儘管如此，您仍會看到我們第三季度的表現更加強勁，但我們在自己的內部活動中使用瞭如此多的技術人員，這需要一點時間來積壓外部活動以產生收入，所以雖然我認為你會看到第三季的數字有所改善，但仍然需要做一些工作才能將其恢復到之前的水平並超越之前的水平。

Okay, great. That's good to hear. And then lastly, just from a modeling perspective, it's always helpful to have a recap of dedicated manufacturing lines and manufacturing lines installed in the cadence to close out this year and into 2025, if you have that handy, that'd be great.

好的，太好了。很高興聽到這個消息。最後，僅從建模的角度來看，回顧今年結束和 2025 年之前安裝的專用生產線和生產線總是有幫助的，如果你有這樣的手頭，那就太好了。

Did you want to did you want to just go through kind of inventory of all our lines there anyway. So we're going to have 34 lines that will be operating at the end of this year through throughout the balance of this year.

無論如何，您是否想瀏覽一下我們所有生產線的庫存？因此，我們將有 34 條線路從今年年底一直運作到今年剩餘的時間。

There are all the lines in Iowa right now are obviously idle. And then we currently have two lines in India that have molten that have been idled and then two more lines of capacity in India. But outside of that right now, all of our lines are filled up. So it's really I would India where we have capacity that we'll look to fill in and 25.

現在愛荷華州的所有線路顯然都處於閒置狀態。目前，我們在印度有兩條已熔化的生產線已閒置，然後在印度還有兩條生產線。但現在除此之外，我們所有的隊伍都已滿了。所以我真的希望印度有能力填補我們的25個產能。

Got it. Okay. That's helpful. What would be what's your updated kind of plan for operating lines in 2025, maybe second half of 2025?

知道了。好的。這很有幫助。您在 2025 年（也許是 2025 年下半年）營運線路的最新計畫是什麼？

The second half of 2025, we certainly have plans, but we haven't provided that and we're not prepared to provide that just yet.

2025 年下半年，我們當然有計劃，但我們還沒有提供，而且現在還不準備提供。

Got it.

知道了。

Okay. That's fair. I guess that's it for me.

好的。這很公平。我想這對我來說就是這樣。

Great. Thanks.

偉大的。謝謝。

Thank you.

謝謝。

We go next now to Justin Clare with Roth Capital.

接下來我們請教羅斯資本的賈斯汀·克萊爾。

Hi, good afternoon. Thanks for taking my questions. So I just wanted to follow up on a comment you made you were saying that really your customers are looking for all the capacity that you can provide into 2025 here was wondering if that's in reference to really U.S. customers and that market or is that also include Europe? I'm trying to get a sense for basically. Are you are you fully booked across the facilities. I know you mentioned you do have the open lines in India, but just wanted to get a sense for kind of the demand, you know, U.S. versus Europe and whether you have open capacity?

嗨，下午好。感謝您回答我的問題。因此，我只是想跟進您發表的評論，您說您的客戶確實正在尋找您可以提供到 2025 年的所有產能，我想知道這是否是針對真正的美國客戶和該市場，還是也包括歐洲？我試著從根本上了解一下。您的設施已全部預訂完畢嗎？我知道您提到您在印度確實有開放的線路，但只是想了解一下需求，您知道，美國與歐洲以及您是否有開放的產能？

Yes, my thanks, Justin, for the question. My comment was being kind of full sold out is U.S. related. So it's for the U.S. market to your point, we do have some capacity available in India, and that is where we're still we're still working with our customers on what the ultimate volumes required will be next year from our from our turkey plants as well as from our India plants. A lot of what we build in India, it comes to the U.S. as well. So but then that's we're much more certain right now in volumes for the US than we are for a year.

是的，謝謝賈斯汀提出這個問題。我的評論是完全售空與美國有關。因此，就您而言，這是針對美國市場的，我們在印度確實有一些產能，這就是我們仍在與客戶合作的地方，以確定明年我們從土耳其獲得的最終產量工廠以及我們的印度工廠。我們在印度生產的許多產品也銷往美國。所以，我們現在對美國的銷售量比一年前的銷量更確定。

Got it. Got it. Okay. And then just given the strength of the US market. Is it fair to assume that it's unlikely to see transitions at the facilities that are that are serving the US next year, given that customers are looking for all the capacity you can get so a transition would reduce the amount of volume that you can supply that. Is that a reasonable expectation?

知道了。知道了。好的。然後考慮到美國市場的實力。考慮到客戶正在尋找可以獲得的所有容量，因此可以公平地假設明年為美國提供服務的設施不太可能進行過渡，因此過渡會減少您可以提供的數量。這是一個合理的期望嗎？

Yes, I'd say that's reasonable. We will have a couple of lines transitioning late this year that will leak into next year. But again, it's to get to the right blade model for a customer. But yes, I think in the US.

是的，我想說這是合理的。我們將在今年稍後進行幾條生產線的過渡，這些生產線將滲透到明年。但同樣，這是為了為客戶找到合適的刀片型號。但是，是的，我認為在美國。

We'll have very few transitions, if any, next year, other than those two, we're going to cut it.

明年我們將很少有過渡，如果有的話，除了這兩個之外，我們將削減它。

That's it for me. Thank you for that.

對我來說就是這樣。謝謝你。

Yes, thank you.

是的，謝謝。

And gentlemen, it appears we have no further questions this afternoon. Mr. Siwek, I'd like to turn things back to you, sir, for any closing comment.

先生們，看來今天下午我們沒有其他問題了。Siwek 先生，先生，我想請您發表最後的評論。

And again, thank you, everybody, for your time. And for the questions, of course, and your continued interest and look forward to our next discussion.

再次感謝大家抽出時間。當然，對於這些問題，以及您的持續興趣，期待我們的下一次討論。

Thank you, Mr. Sileck. Again, ladies and gentlemen, this will conclude the TPI Composites. Second Quarter Earnings Call. Again, thanks so much for joining us, everyone, and we wish you all a great remainder of your day.

謝謝您，西萊克先生。女士們先生們，TPI 複合材料到此結束。第二季財報電話會議。再次非常感謝大家加入我們，祝大家有個愉快的一天。