TPI Composites Inc (TPIC) 2024 Q3 法說會逐字稿

Good afternoon, and welcome to TPI Composites' third-quarter 2024 earnings conference call.

下午好，歡迎參加 TPI Composites 2024 年第三季財報電話會議。

At this time, I'd like to turn the conference over to Jason Wegmann, Investor Relations for TPI Composites. You may begin.

這次，我想將會議交給 TPI Composites 投資者關係部的 Jason Wegmann。你可以開始了。

Thank you, operator. I would like to welcome everyone to TPI Composites' third-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。我謹歡迎大家參加 TPI Composites 的 2024 年第三季財報電話會議。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，可能導致實際結果有重大差異。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.

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。

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. Good afternoon, everyone, and thank you for joining our call. In addition to Jason, I am here with Ryan Miller, our CFO. Please turn to slide 5.

謝謝，傑森。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。請翻到投影片 5。

Our third quarter was a big improvement over the first half of the year as we were able to post positive adjusted EBITDA and operating cash flows, driven by the actions we've taken to restructure our portfolio and transition 10 lines to next-generation workhorse blades. It's also nice to get back to growth mode as our sales grew 23% sequentially over the second quarter of this year and 3% over the third quarter of last year.

與上半年相比，我們的第三季度取得了巨大進步，在我們為重組投資組合和將10 條生產線過渡到下一代主力刀片而採取的行動的推動下，我們能夠實現正調整後的EBITDA 和營運現金流。回到成長模式也很好，因為今年第二季我們的銷售額環比成長了 23%，比去年第三季成長了 3%。

We believe our strategic positioning with our key customers will enable sustained long-term growth. We continue to engage in productive discussions with our customers to understand their priorities and collaborate on mutual success.

我們相信，我們與主要客戶的策略定位將實現持續的長期成長。我們繼續與客戶進行富有成效的討論，以了解他們的優先事項並合作實現共同成功。

As quality remains paramount, we have continued to maintain a measured and controlled approach to increasing production on new lines in Mexico to ensure a smooth transition. We remain confident in our ability to meet customer demand and anticipate finishing the year on a strong trajectory for 2025.

由於品質仍然至關重要，我們繼續採取謹慎和受控的方法來增加墨西哥新生產線的產量，以確保平穩過渡。我們對滿足客戶需求的能力仍然充滿信心，並預計 2025 年將以強勁的勢頭結束這一年。

Discussions with customers on further expansion of our footprint continue. We've agreed with GE Vernova to reopen our Iowa plant in mid-2025 to support their 2-megawatt platform, which has proven to be a popular option for repowering.

與客戶就進一步擴大我們的業務範圍的討論仍在繼續。我們已與 GE Vernova 達成協議，於 2025 年中期重新開放我們的愛荷華工廠，以支援他們的 2 兆瓦平台，該平台已被證明是一種流行的重新供電選擇。

Discussions with other OEMs are progressing based on expected US market expansion, where we have recently secured additional US manufacturing capacity, as well as to serve the burgeoning onshore wind market in India as well as the Türkiye market given the recent announcements by the Türkiye government to increase its wind capacity threefold to 30 gigawatts by 2035.

與其他原始設備製造商的討論正在基於預期的美國市場擴張而取得進展，我們最近在美國獲得了額外的製造能力，並為印度蓬勃發展的陸上風電市場以及土耳其市場提供服務，因為土耳其政府最近宣佈到 2035 年，將風電裝置容量增加三倍，達到 30 吉瓦。

Although the details on local content are still being finalized, it is anticipated that much of what will ultimately get installed in Türkiye will either require blades that are manufactured locally, or will provide additional incentives from locally produced blades. We see this development as a potential positive for our long-term operations in Türkiye.

儘管有關本地內容的細節仍在最終確定中，但預計最終安裝在 Türkiye 的大部分內容要么需要本地製造的刀片，要么將從本地生產的刀片提供額外的激勵。我們認為這一發展對我們在土耳其的長期營運具有潛在的積極作用。

From an operational perspective, sales for the quarter were $380.8 million. And while impacted by slower than originally planned production ramps, we were in line with our expectations and full-year guidance. Adjusted EBITDA of $8 million in the quarter marks our expected return to positive EBITDA; however, it was lower than expected due to several factors.

從營運角度來看，該季度的銷售額為 3.808 億美元。儘管受到產量增速慢於原計劃的影響，但我們的業績符合我們的預期和全年指導。本季調整後 EBITDA 為 800 萬美元，標誌著我們預期將恢復正 EBITDA；然而，由於多種因素，該數字低於預期。

First, our measured approach to transitions and start-ups to ensure adherence to increase quality standards for new blades and complex blade models extended our start-up and transition timelines, leading to about $15 million in lower sales, along with higher start-up and transition costs at two of our facilities, which impacted our adjusted EBITDA by approximately $5 million. This approach, however, ensures we can deliver increased volumes in 2025 and beyond more efficiently and profitably.

首先，我們對過渡和啟動採取審慎的方法，以確保遵守新葉片和複雜葉片模型的更高品質標準，延長了我們的啟動和過渡時間表，導致銷售額減少約1500 萬美元，同時啟動和啟動時間增加。然而，這種方法可確保我們能夠在 2025 年及以後更有效率、更有利地交付更多數量。

Second, inflation in Turkey led to a $4 million negative impact. Third, we recorded a $7 million change in estimate for legacy warranty matters to account for updated information, revised inspection and repair procedures implemented during the quarter, and of course, inflation.

其次，土耳其的通貨膨脹導致了400萬美元的負面影響。第三，我們記錄了 700 萬美元的遺留保固事項估算變化，以考慮到更新資訊、本季實施的修訂檢查和維修程序，當然還有通貨膨脹。

Finally, to support demand needs for the US market in 2025 and beyond, we began investing additional resources to enable a 24/7 schedule at certain of our Mexico facilities. This will enable additional volume off the same number of lines with no or minimal CapEx, which will drive lower per blade costs and improve our long-term competitiveness.

最後，為了支持 2025 年及以後美國市場的需求，我們開始投資額外資源，以在我們的某些墨西哥工廠實現 24/7 計畫。這將使相同數量的生產線在沒有或最小資本支出的情況下增加產量，這將降低每個刀片的成本並提高我們的長期競爭力。

When looking at our ongoing operations without the specific charges I just outlined, our adjusted EBITDA margin in the third quarter would have been north of 6%, showing progress towards our long-term EBITDA targets. Utilization in the third quarter jumped to 89%, as 7 of the 10 lines in start-up or transition achieved full-rate production, with the remaining three lines expected to get there in the first half of the fourth quarter. Globally, we delivered 601 blade sets, representing 2.5 gigawatts of capacity during the quarter.

如果考慮我們正在進行的業務，如果沒有我剛才概述的具體費用，我們第三季調整後的 EBITDA 利潤率將超過 6%，這表明我們在實現長期 EBITDA 目標方面取得了進展。第三季的利用率躍升至 89%，啟動或轉型的 10 條生產線中有 7 條實現了滿載生產，其餘 3 條生產線預計將在第四季度上半年達到滿載生產。在全球範圍內，我們在本季度交付了 601 個刀片組，相當於 2.5 吉瓦的容量。

Please turn to slide 6. As we move into the fourth quarter, all our regions are expected to be EBITDA positive with anticipated utilization rates over 90%. The fourth quarter is also expected to be our strongest free cash flow generation quarter of the year.

請翻到幻燈片 6。隨著進入第四季度，我們所有地區的 EBITDA 預計將為正值，預計利用率將超過 90%。預計第四季也將是我們今年自由現金流產生最強勁的季度。

Our continued focus on lean principles and quality management has enhanced our production quality and improve our cost structure. But we still have significant opportunities, so we'll continue to focus on eliminating waste and streamlining processes to achieve higher efficiency and reduced operating costs.

我們對精益原則和品質管理的持續關注提高了我們的生產品質並改善了我們的成本結構。但我們仍然擁有重要的機會，因此我們將繼續專注於消除浪費和簡化流程，以實現更高的效率並降低營運成本。

Moving forward, we will continue to invest in innovation and technology, ensuring we strengthen our competitive edge and position TPI as the premier blade provider in the onshore market. Our supply chain continues to operate effectively, with overall raw materials estimated to decrease year over year in 2025 by nearly 8%.

展望未來，我們將繼續投資創新和技術，確保增強競爭優勢，並將 TPI 定位為陸上市場首屈一指的刀片供應商。我們的供應鏈持續有效運轉，預計 2025 年整體原料將年減近 8%。

While logistics costs have been somewhat volatile during 2024, given multiple global events, our procurement strategies have minimized any operational and financial impacts. We expect the same during 2025.

儘管考慮到多個全球事件，2024 年物流成本有所波動，但我們的採購策略已將任何營運和財務影響降至最低。我們預計 2025 年也會出現同樣的情況。

With respect to the wind market, geopolitical events around the world have accelerated regional needs for energy independence and security. The global demand for clean energy continues to rise, driven by factors such as the growing need for data centers, semiconductor chip manufacturers, the adoption of electric vehicles, the electrification of buildings, and the desire to provide for this through net-zero sources.

就風電市場而言，世界各地的地緣政治事件加速了地區對能源獨立和安全的需求。全球對清潔能源的需求持續增長，原因包括對資料中心、半導體晶片製造商的需求不斷增長、電動車的採用、建築電氣化以及透過淨零能源來滿足這一需求的願望。

Over the course of the past few years, we have seen numerous government policy initiatives aimed at expanding the use of renewable energy, including the passing of the IRA in the US and several policy initiatives in the EU that are expected to simplify regulations, speed up permitting, and promote cross-border projects to accelerate climate neutrality. We expect these trends in governmental policy will enable long-term revenue growth in the global onshore wind industry.

在過去的幾年裡，我們看到了許多旨在擴大再生能源使用的政府政策舉措，包括美國通過的 IRA 和歐盟的幾項政策舉措，這些舉措預計將簡化法規，並加快再生能源的使用。允許並促進跨境計畫以加速氣候中和。我們預期政府政策的這些趨勢將促進全球陸上風電產業收入的長期成長。

Notwithstanding the recent US election results, we are encouraged by the near-term demand we are seeing from our customers and therefore, anticipate continued revenue growth for TPI in the US in 2025. We expect this growth will be supported by blade lines operating at near-full capacity throughout 2025, along with the planned reopening of our Iowa blade plant by mid-2025. While the past nine months have presented challenges, we believe we are strategically positioned with the right customers and blade types to thrive in the US market for years to come.

儘管最近美國大選結果出爐，但客戶的近期需求令我們感到鼓舞，因此預計 2025 年 TPI 在美國的營收將持續成長。我們預計這一增長將得到 2025 年全年接近滿負荷運營的葉片生產線以及計劃在 2025 年中期重新開業的愛荷華州葉片工廠的支持。儘管過去九個月帶來了挑戰，但我們相信，我們已在策略上定位於合適的客戶和刀片類型，以便在未來幾年在美國市場蓬勃發展。

Although it is too early to assess the impact of the outcome of the US election, many analysts believe that if President-elect Trump tries to roll back the current administration's climate agenda, including the IRA in part or in full, US wind and solar sectors will remain resilient due to a strong state level support, including significant renewable manufacturing investment in red states, increasing private sector demand for power that will dictate an all-of-the-above approach to capacity deployment and a relatively strong Republican support in Congress.

儘管現在評估美國大選結果的影響還為時過早，但許多分析人士認為，如果當選總統川普試圖部分或全部推翻現任政府的氣候議程，包括愛爾蘭共和軍，美國風能和太陽能產業由於州一等級的大力支持，包括對紅色州的可再生能源製造業的大量投資、私營部門對電力的需求不斷增加（這將決定上述所有能力部署方法）以及共和黨在國會中相對較強的支持，該行業將保持彈性。

Turning to Europe, long-term onshore market growth remains in sight. However, these markets are dealing with many of the same issues as in the US, namely inflation, permitting, transmission, supply chain disruptions, and labor availability.

轉向歐洲，在岸市場的長期成長依然存在。然而，這些市場正在處理許多與美國相同的問題，即通貨膨脹、許可、傳輸、供應鏈中斷和勞動力可用性。

Historically, we have serviced the European market from our plants in Türkiye. However, the hyperinflationary environment that we have experienced in recent years in Türkiye is not expected to subside anytime soon. And although we can pass some of the incremental costs to our customers, these incremental costs make us less competitive into the EU as well as less profitable.

從歷史上看，我們透過位於土耳其的工廠為歐洲市場提供服務。然而，土耳其近年來經歷的惡性通貨膨脹環境預計不會很快消退。儘管我們可以將一些增量成本轉嫁給客戶，但這些增量成本使我們在歐盟的競爭力下降，利潤也下降。

Furthermore, while we have competed successfully with Chinese blade manufacturers for years, their recent aggressive push supported by the Chinese government to expand their capacity for Europe has added to the challenging competitive environment for supply into the EU.

此外，雖然我們多年來與中國葉片製造商成功競爭，但他們最近在中國政府的支持下積極推動擴大歐洲產能，這加劇了歐盟供應的競爭環境的挑戰性。

Unlike the US, which has implemented tariffs and generous tax loss to encourage near-shoring and domestic manufacturing, the EU has not yet taken as aggressive an approach to help level the playing field for component suppliers like TPI.

與美國實施關稅和慷慨的稅收減免以鼓勵近岸和國內製造業不同，歐盟尚未採取積極的措施來幫助 TPI 等零件供應商創造公平的競爭環境。

Nordex, our largest customer in Türkiye, has eight production lines scheduled to expire by the end of 2025. Additionally, they have two lines in India that expire at the end of '24. Nordex has informed us that they will not renew the two lines in India. However, we have already replaced those lines with two lines for Vestas.

Nordex 是我們在土耳其最大的客戶，有 8 條生產線計劃於 2025 年底到期。此外，他們在印度有兩條生產線，將於 24 年底到期。Nordex 通知我們，他們不會更新印度的兩條線路。然而，我們已經為維斯塔斯用兩條線路取代了這些線路。

While we are committed to our long-term relationship with Nordex and Türkiye and elsewhere, it is uncertain whether or not they will extend their contracts beyond 2025 at this time. However, I would suggest that should the recently announced plans of the Turkish government play out as we expect, demand for that capacity should be robust. And this would position Türkiye as one of the largest wind markets in the region. Given the market share enjoyed by both Nordex and Enercon, both companies stand to benefit from this development.

雖然我們致力於與 Nordex 和 Türkiye 及其他地方保持長期合作關係，但目前尚不確定他們是否會將合約延長至 2025 年後。然而，我建議，如果土耳其政府最近宣布的計劃如我們預期的那樣實施，對該產能的需求應該會很強勁。這將使土耳其成為該地區最大的風電市場之一。鑑於 Nordex 和 Enercon 所享有的市場份額，兩家公司都將從這一發展中受益。

Given the challenges experienced in the third quarter, along with the extended transitions and start-ups, we are reducing our adjusted EBITDA outlook for the year to a loss of approximately 2%. However, the fourth quarter is still expected to be EBITDA positive and the strongest free cash flow generation quarter of the year, leading us into what we expect to be a much stronger year financially in 2025.

考慮到第三季遇到的挑戰，以及延長的過渡期和新創企業，我們將今年調整後的 EBITDA 預期下調至約 2% 的虧損。然而，預計第四季度 EBITDA 仍將為正值，並且是今年自由現金流產生最強勁的季度，這將引領我們進入 2025 年財務狀況更加強勁的一年。

Our current thinking on 2025 in context of the adjusted EBITDA target we have discussed the last few quarters, has evolved based on updated information and customer decisions made in the last few months. While we are still working through our annual plan for 2025, some of these customer decisions are creating some headwinds that are going to be difficult to offset in the near term.

我們目前對 2025 年的想法是在過去幾個季度討論的調整後 EBITDA 目標的背景下，根據過去幾個月的最新資訊和客戶決策而演變的。雖然我們仍在製定 2025 年年度計劃，但其中一些客戶決策正在帶來一些短期內難以抵銷的阻力。

The two biggest challenges are related to inflation, particularly in Türkiye, and demand in both Türkiye and India from Nordex. While it's still too early to provide you with a lot of specificity and therefore, formal guidance for 2025, we currently expect volumes for lines under contract in Türkiye to be down approximately 40% in 2025 compared to previous expectations.

兩個最大的挑戰與通貨膨脹（尤其是在土耳其）以及土耳其和印度的 Nordex 需求有關。雖然現在向您提供大量具體資訊以及 2025 年的正式指導還為時過早，但我們目前預計 2025 年土耳其合約線路的產量將比之前的預期下降約 40%。

These factors have created a volume shortfall for us compared to what we had previously anticipated in 2025. We are working to replace that volume as well as exploring other strategic alternatives to maximize the value of our Türkiye operations.

與我們先前對 2025 年的預期相比，這些因素導致我們的銷售量出現短缺。我們正在努力取代這一數量，並探索其他戰略替代方案，以最大限度地提高我們土耳其業務的價值。

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. Please turn to slide 8. In the third quarter of 2024, net sales were $380.8 million compared to $370.2 million for the same period in 2023, an increase of 2.8%. Net sales of wind blade tooling and other wind-related sales increased by $6.9 million or 1.9% to $369.1 million for the three months ended September 30, 2024, as compared to $362.2 million in the same period in 2023.

謝謝，比爾。請翻到幻燈片 8。2024年第三季淨銷售額為3.808億美元，較2023年同期的3.702億美元成長2.8%。截至 2024 年 9 月 30 日的三個月，風力葉片工具和其他風電相關銷售額的淨銷售額增加了 690 萬美元，即 1.9%，達到 3.691 億美元，而 2023 年同期為 3.622 億美元。

The increase was primarily due to higher average sales prices of wind blades due to changes in the mix of wind blade models produced, in particular, the start-up of production at one of our previously idled facilities in Juárez, Mexico, favorable foreign currency fluctuations, and an increase in wind blade inventory included in contract assets driven by the start-ups and transitions.

這一增長主要是由於生產的風力葉片型號組合發生變化，導致風力葉片的平均銷售價格上漲，特別是我們之前位於墨西哥華雷斯的閒置工廠之一開始生產，國外有利貨幣波動以及初創企業和轉型推動的合約資產中風電葉片庫存的增加。

The increase in wind blade inventory directly correlates to higher sales under the cost-to-cost revenue recognition method for our wind blade contracts. These increases were partially offset by a 10% decrease in the number of wind blades produced due primarily to the number and pace of start-ups and transitions, and expected volume declines based on market activity levels.

風電葉片庫存的增加與風電葉片合約成本成本收入確認法下銷售額的增加直接相關。這些增長被風力葉片生產數量減少 10% 所部分抵消，這主要是由於啟動和轉型的數量和速度以及基於市場活動水平的預期產量下降。

Field service inspection and repair service sales increased by $3.7 million or 45.8% to $11.7 million for the three months ended September 30, 2024, as compared to $8 million in the same period in 2023. The increase was due primarily by the return of technicians deployed to revenue-generating projects versus time spent on nonrevenue-generating inspection and repair activities.

截至 2024 年 9 月 30 日的三個月，現場服務檢查和維修服務銷售額增加了 370 萬美元，即 45.8%，達到 1,170 萬美元，而 2023 年同期為 800 萬美元。增加的主要原因是部署到創收項目的技術人員返回，而不是花在非創收檢查和維修活動上的時間。

Adjusted EBITDA was $8 million for the three months ended September 30, 2024, as compared to adjusted EBITDA of $0.2 million during the same period in 2023. Adjusted EBITDA margin was 2.1% as compared to an adjusted EBITDA margin of 0.1% during the same period in 2023.

截至 2024 年 9 月 30 日止三個月，調整後 EBITDA 為 800 萬美元，而 2023 年同期調整後 EBITDA 為 20 萬美元。調整後 EBITDA 利潤率為 2.1%，而 2023 年同期調整後 EBITDA 利潤率為 0.1%。

The increase was primarily driven by the absence of losses from our Nordex Matamoros facility, which was shut down at the end of the second quarter of 2024, benefits from foreign currency fluctuations, lower charges for changes in estimate for pre-existing warranty campaigns, a reduction in general and administrative costs due to lower employee compensation costs, and an increase in revenue. These improvements were partially offset by increased labor costs in Türkiye and Mexico, and higher start-up and transition costs.

這一增長主要是由於我們的 Nordex Matamoros 工廠沒有出現損失（該工廠於 2024 年第二季度末關閉）、受益於外匯波動、現有保固活動估算變更費用較低、以及由於員工薪酬成本降低以及收入增加，一般和管理成本減少。這些改進部分被土耳其和墨西哥勞動力成本增加以及啟動和轉型成本上升所抵消。

Moving to slide 9. We ended the quarter with $126 million of unrestricted cash and cash equivalents, and $606 million of net debt. Free cash flow was a negative $5.6 million in the third quarter of 2024 compared to negative free cash flow of $20.8 million in the same period in 2023. The net use of cash in the third quarter of 2024 was primarily due to interest and tax payments, and capital expenditures, partially offset by positive adjusted EBITDA and other working capital changes.

轉到投影片 9。截至本季末，我們擁有 1.26 億美元的非限制性現金和現金等價物，以及 6.06 億美元的淨債務。2024 年第三季自由現金流為負 560 萬美元，而 2023 年同期自​​現金流為負 2,080 萬美元。2024 年第三季的現金淨使用主要是由於利息和稅款支付以及資本支出，部分被調整後的 EBITDA 和其他營運資本變化所抵銷。

Notably, operating cash flow was a positive $1 million in the quarter. We believe our current cash position provides us the flexibility to meet near-term demands of the business and continue to invest in growth for lines under rooftop today. In the fourth quarter, we expect positive free cash flow on lower start-up and transition costs, working capital improvements, and positive EBITDA.

值得注意的是，本季營運現金流為正 100 萬美元。我們相信，我們目前的現金狀況使我們能夠靈活地滿足近期的業務需求，並繼續投資於當今屋頂線的成長。在第四季度，我們預計由於啟動和轉型成本較低、營運資本改善以及 EBITDA 為正，自由現金流為正。

A summary of our financial guidance for 2024 can be found on slide 10. We are narrowing our full-year 2024 revenue guidance to about $1.35 billion, which is in the middle of the previously guided range of $1.3 billion to $1.4 billion. For adjusted EBITDA, we are lowering our guidance to a loss of approximately 2% compared to the previous guidance of a positive adjusted EBITDA margin of approximately 1%.

我們的 2024 年財務指導摘要可在投影片 10 中找到。我們將 2024 年全年營收指引縮小至 13.5 億美元左右，處於先前 13 億至 14 億美元指引範圍的中間位置。對於調整後 EBITDA，我們將指引值下調至約 2% 的虧損，而先前的調整後 EBITDA 利潤率為正值約 1%。

This adjustment reflects the impact of our actual results in the third quarter as well as the quality-focused moderation of our start-ups and transitions. This adjustment also reflects investments we are making to divert some of our plants to 24/7 schedules, so we can produce more blades next year on our existing lines in Mexico to support strong demand in the US.

這項調整反映了我們第三季實際業績的影響，以及我們對新創公司和轉型的注重品質的調整。這項調整也反映了我們正在將一些工廠轉移到 24/7 計畫的投資，這樣我們明年就可以在墨西哥現有的生產線上生產更多葉片，以支持美國的強勁需求。

And finally, similar to the fourth quarter of last year, we are planning to reduce our work-in-process inventory, which will create negative cost absorption impacts in our factories. This reduction is partially driven by four lines that we'll be transitioning over year-end. And we are also planning to drive our work-in-process inventory levels down to free up cash on our balance sheet.

最後，與去年第四季類似，我們計劃減少在製品庫存，這將對我們的工廠產生負面的成本吸收影響。這一減少的部分原因是我們將在年底過渡的四條生產線。我們還計劃降低在製品庫存水平，以釋放資產負債表上的現金。

For the full year, our utilization guidance remains unchanged at 75% to 80%. And we anticipate capital expenditures of around $30 million, which is at the top end of our previously guided range of $25 million to $30 million. These investments, including significant investments in innovation and technology, are driven by our continued focus on achieving our long-term growth targets, which also include investments in new lines in Iowa and India in the fourth quarter.

就全年而言，我們的利用率指引維持在 75% 至 80% 不變。我們預計資本支出約為 3000 萬美元，這是我們之前指導的 2500 萬美元至 3000 萬美元範圍的上限。這些投資，包括對創新和技術的重大投資，是由我們持續關注實現長期成長目標所推動的，其中還包括第四季度在愛荷華州和印度新線路的投資。

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. While we remain optimistic about achieving our long-term targets, the timing has shifted to the right a bit based on overall market conditions, increased competition outside the US, and a more deliberate approach to transitions and start-ups, to ensure initial blade quality for new designs and to ensure stability of the process to enable long-term successful serial production.

謝謝，瑞安。請翻到投影片 12。雖然我們對實現我們的長期目標仍然持樂觀態度，但基於整體市場狀況、美國以外的競爭加劇以及為確保初始葉片質量而採取的更審慎的轉型和啟動方法，時機已經稍微向右傾斜了。於新設計並確保製程的穩定性，以實現長期成功的大量生產。

We are encouraged by the progress we've made over the past year, including shedding the losses from both the Nordex Matamoros plant and the automotive business starting up or transitioning 10 new lines with workhorse blades and making significant improvements in streamlining operations and improving quality, all while doing it as safely as we ever have. We expect to close out 2024 with our best quarter financially in the year while generating positive free cash flow and setting us up for a strong 2025.

我們對過去一年的進展感到鼓舞，包括擺脫 Nordex Matamoros 工廠和汽車業務的損失，啟動或過渡 10 條配備主力葉片的新生產線，並在簡化運營和提高質量方面取得重大改進，同時一如既往地安全地進行這一切。我們預計 2024 年將迎來全年財務狀況最好的季度，同時產生正的自由現金流，為我們強勁的 2025 年做好準備。

Before we open the call for Q&A, I want to once again extend my gratitude to all our TPI associates for their continued commitment and dedication to TPI and our mission to safely decarbonize and electrify the world.

在我們開始問答之前，我想再次向所有 TPI 員工表示感謝，感謝他們對 TPI 以及我們安全脫碳和電氣化世界使命的持續承諾和奉獻。

And I want to welcome Jennifer Lowry, our newest member of the Board of Directors effective as of November 13, 2024. Jen brings over 25 years of experience in the energy sector, including senior positions with Exelon, Constellation Energy, and AES, among others; and currently serves on the Boards of Clearway Energy and MYR Group. Jen is a great addition to our Board, and I look forward to working with her in the future.

我要歡迎 Jennifer Lowry，我們最新的董事會成員，自 2024 年 11 月 13 日起生效。Jen 在能源領域擁有超過 25 年的經驗，包括在 Exelon、Constellation Energy 和 AES 等公司擔任高階職位；目前在 Clearway Energy 和 MYR Group 的董事會任職。Jen 是我們董事會的重要補充，我期待將來與她合作。

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

我現在將把電話轉回給接線員以開始提問。

(Operator Instructions) Mark Strouse, JPMorgan.

（操作員指示）Mark Strouse，摩根大通。

Great. Thank you very much for taking our questions. Bill, I take your point that it's too early to kind of have a whole lot of visibility post-election. But one of the things that has been thrown out there is potential for increased tariffs coming into the US.

偉大的。非常感謝您接受我們的提問。比爾，我同意你的觀點，在選舉後獲得大量關注還為時過早。但其中一件被拋棄的事情有可能增加進入美國的關稅。

Can you just remind us, on your contracts that you have with your facilities in Mexico, how do those contracts work? If there are new tariffs that come on in the middle of a contract, who bears that risk?

您能否提醒我們，在您與墨西哥工廠簽訂的合約中，這些合約如何運作？如果合約期間出現新的關稅，誰承擔該風險？

And then kind of a quick follow-up on that point is, I mean, are there any kind of contingency efforts that you're looking at as far as potentially moving that production into the US?

然後，關於這一點的快速跟進是，我的意思是，您是否正在考慮採取任何應急措施，以將生產轉移到美國？

Yeah. Hey, Mark. Thanks for the question. I mean, we -- if you recall, way back in the day, there was a threat of tariffs before, and we did a bunch of work there. It depends a little bit on the contract and on the terms. Generally, it would be included in the cost of the product, the tariff. But again, it's a little bit -- it gets a little specific by customer, depending. So I can't give you a precise answer on that right now.

是的。嘿，馬克。謝謝你的提問。我的意思是，我們——如果你還記得的話，很久以前，就存在關稅威脅，我們在那裡做了很多工作。這在一定程度上取決於合約和條款。一般來說，它會包含在產品成本（關稅）中。但同樣，這有點——根據客戶的不同，它會變得有點具體。所以我現在無法給你一個準確的答案。

But we'll -- obviously, we'll monitor that. We'll look at that, but I don't anticipate that being a big issue for us. And we are continuing to look at additional -- you might have picked up, we did secure some additional capacity in the US. And so we will continue to look at US capacity as well. But we don't anticipate we'll have any issues with what we've got in Mexico at this point.

但我們會——顯然，我們會監控這一點。我們會考慮這個問題，但我預計這對我們來說不會是一個大問題。我們正在繼續尋找更多的東西——你可能已經注意到，我們確實在美國獲得了一些額外的產能。因此，我們也將繼續關注美國的產能。但我們預計目前在墨西哥的情況不會有任何問題。

Okay. Thanks, Bill. And then, Ryan, just a quick follow-up. So I take your point about kind of the volume in Türkiye down more than you're expecting -- more than you were previously expecting in 2025. The target that you've thrown out there for more than $100 million in EBITDA next year, is that off the table now? Or are you able to provide any more color on what that could potentially look like?

好的。謝謝，比爾。然後，瑞安，請快速跟進。因此，我同意您的觀點，即 Türkiye 的銷量下降幅度超出您的預期 - 超出您之前對 2025 年的預期。您設定的明年 EBITDA 超過 1 億美元的目標現在已經不可能實現了嗎？或者你能提供更多關於它可能會是什麼樣子的顏色嗎？

I guess, what I can do is a couple of things. One, I think volume-wise, we're still expecting growth next year on the top line. The strength that we have in the US market and some of the investments we're making to go to 24/7 shifts in Mexico is a signal from us we got a really strong demand in the US.

我想，我能做的有幾件事。第一，我認為就銷售而言，我們仍然預計明年的收入會成長。我們在美國市場的實力以及我們為墨西哥的 24/7 輪班而進行的一些投資表明，我們在美國的需求非常強勁。

So I expect that volume to outpace that reduction that we quantified for Turkey. I think it's a little too early for us right now. We're currently reacting and planning and figuring out where we can optimize things. And so I kind of put you on hold until we get to -- when we announce the fourth-quarter earnings, we'll give you an update there on the earnings side of things.

因此，我預計這一數量將超過我們為土耳其量化的減少量。我認為現在對我們來說有點太早了。我們目前正在做出反應、計劃並找出可以優化的地方。因此，我有點讓您稍等，直到我們宣布第四季度收益時，我們將為您提供有關收益方面的最新資訊。

Okay. Thank you.

好的。謝謝。

Pavel Molchanov, Raymond James.

帕維爾·莫爾恰諾夫，雷蒙德·詹姆斯。

Thanks for taking the questions. Let me zoom in on Turkey as well. The fact that you're seeing, as you said, 40% lower demand versus prior expectations, is that relating to lower wind newbuilds in Turkey domestically? Or is it something happening in the broader European conversation?

感謝您提出問題。讓我也放大一下土耳其。事實上，正如您所說，需求比先前的預期下降了 40%，這是否與土耳其國內風電新建專案的減少有關？還是更廣泛的歐洲對話中正在發生的事情？

Yeah. Hey, Pavel. Thanks for the question. I think it's more the latter. There's -- some of it is a shift to Chinese suppliers. And part of it is lower demand next year, whether it be in Turkey or in the broader -- the wider European market. It's a combination of both.

是的。嘿，帕維爾。謝謝你的提問。我認為更多的是後者。其中一些是轉向中國供應商。部分原因是明年的需求下降，無論是在土耳其還是在更廣泛的歐洲市場。這是兩者的結合。

Why do you think Europe is struggling? I mean, I asked because it was -- less than two years ago, Europe was running out of gas quite literally, and we saw record new builds.

您認為歐洲為何陷入困境？我的意思是，我問這個問題是因為不到兩年前，歐洲確實耗盡了天然氣，而我們看到了創紀錄的新建築。

Yeah, it's a lot of things. It's not that there's not demand. I mean, they've got -- but they have similar challenges in Europe as we do in the US as it relates to permitting, transmission, the grid. It's different country by country.

是的，有很多事情。並不是說沒有需求。我的意思是，他們已經——但他們在歐洲面臨著與我們在美國類似的挑戰，因為這涉及許可、傳輸和電網。每個國家的情況都不同。

So there are a lot of different factors there. So it's really -- there's a desire for it. There's the demand for it. We've got the capacity to deliver it, but it's really challenges around more of the regulatory side than anything that's creating the problems or the delays, I should say.

所以那裡有很多不同的因素。所以這確實是──人們對此有渴望。有這樣的需求。我們有能力實現這一目標，但我應該說，這實際上是監管方面的挑戰，而不是造成問題或延誤的任何因素。

Okay. Last question. What is the latest on the kind of service operations and maintenance business unit that you guys have been working on?

好的。最後一個問題。你們一直在從事的服務營運和維護業務部門的最新情況是什麼？

Yeah. So you might have heard; we grew fairly substantially the top line this last quarter. And that's partially just a shift of resources from some of the warranty and sparing inspection work we were doing into more revenue-generating work.

是的。所以你可能聽過；上個季度我們的營收大幅成長。這在一定程度上只是將資源從我們正在進行的一些保固和備用檢查工作轉移到更多創收工作。

We're going to continue to grow that business. We see pretty healthy growth next year, both in the US and in Europe. So that is -- that does remain a focus for us, Pavel, to continue to grow that business alongside our manufacturing business.

我們將繼續發展該業務。我們預計明年美國和歐洲都會出現相當健康的成長。所以，這仍然是我們帕維爾的重點，繼續與我們的製造業務一起發展這項業務。

And is that line item EBITDA positive?

該行項目 EBITDA 是否為正值？

Yeah. It was pretty close to breakeven the last couple of quarters because of the amount of work that we were doing on inspection and repair. But moving forward, it's certainly EBITDA positive.

是的。由於我們在檢查和維修方面所做的工作量很大，過去幾季非常接近收支平衡。但展望未來，EBITDA 肯定是正面的。

Okay. Thanks very much.

好的。非常感謝。

Yeah. Thanks, Pavel.

是的。謝謝，帕維爾。

Justin Clare, ROTH Capital Partners.

賈斯汀‧克萊爾，羅仕資本合夥人。

Yeah. Hi, good afternoon. So I wanted to just dig into Iowa a little bit more here. I was wondering if you could just share specifically how many lines are being added in that facility, and then if you could talk about CapEx requirements or the potential start-up costs that could be incurred in ramping that up.

是的。嗨，下午好。所以我想在這裡進一步深入了解愛荷華州。我想知道您是否可以具體分享該設施中增加了多少條生產線，然後您是否可以談論資本支出要求或增加該設施可能產生的潛在啟動成本。

And then just in terms of the timing, how should we think about the revenue impact there? Could you be kind of ramping volumes in Q3 and then at full capacity in Q4? Or how should we think about that?

那麼就時間而言，我們應該如何考慮那裡的收入影響？您能否在第三季增加產量，然後在第四季滿載生產？或者說我們該如何思考這個問題？

Yes. So the current plan is two lines ramping in the back half of the year, as you suggest. So ramping in Q3, getting up to kind of full production speed by the fourth quarter. Pretty minimal CapEx, Justin. I mean, this -- we're going to be building the same blade that we were building before in that factory.

是的。因此，正如您所建議的，目前的計劃是在今年下半年增加兩條生產線。因此，第三季開始加速生產，到第四季就達到了全速生產。賈斯汀，資本支出非常低。我的意思是，我們將製造與先前在該工廠製造的相同的刀片。

So there's not a ton of CapEx. There's a little bit of upgrade that we need to do, but pretty minor. And then start-up costs will be pretty minor as well, a couple of million dollars. But for the year, we'll be about breakeven from an EBITDA standpoint for next year. So we'll have some start-up costs early that will then recapture as we begin delivering blades in the back half of the year.

所以沒有大量的資本支出。我們需要做一些升級，但很小。而且啟動成本也很小，只有幾百萬美元。但就今年而言，從 EBITDA 的角度來看，我們明年將達到損益兩平。因此，我們將儘早獲得一些啟動成本，然後當我們在今年下半年開始交付刀片時，這些成本將被收回。

Got it. Okay. And then I thought you mentioned earlier that you did secure some additional capacity in the US. It sounds like that's beyond this facility. I was wondering if you could just elaborate on that a little bit.

知道了。好的。然後我想你之前提到你確實在美國獲得了一些額外的產能。聽起來這超出了這個設施的範圍。我想知道你是否可以詳細說明一下。

Is that a greenfield facility or another blade facility that you may be taking over? And then any sense for timing and the amount of capacity that could be added would be helpful.

這是您可能要接管的新建設施還是其他刀片設施？然後，任何對時間安排和可以添加的容量的感覺都會有所幫助。

Yes, it's a brownfield. So it's a former blade facility. The capacity, depending on the size of the blade, is upwards of four lines of capacity. And timing is still -- but we're working on a number of options there.

是的，這是一片棕地。所以它以前是一個刀片設施。根據刀片的尺寸，容量最多為四行容量。時機仍然是——但我們正在研究一些選擇。

But we do have the capacity. And it does provide us with some -- it's a very good geographic location to serve some pretty important and large wind projects. So we're pretty excited about it long term. But that's -- more to come on that probably early next year.

但我們確實有這個能力。它確實為我們提供了一些——這是一個非常好的地理位置，可以為一些非常重要的大型風電項目提供服務。因此，從長遠來看，我們對此感到非常興奮。但這可能是明年初可能會發生的更多事情。

Okay, got it. Appreciate it.

好的，明白了。欣賞它。

You bet.

你打賭。

(Operator Instructions) Eric Stine, Craig Hallum.

（操作員說明）Eric Stine、Craig Hallum。

Hey, Bill. Thanks for taking the questions.

嘿，比爾。感謝您提出問題。

You bet.

你打賭。

Hey, I'm jumping around on call. So I can pretty much guarantee I'm asking one that you've already addressed. But I know you tempered -- all right. Well, you tempered '24 EBITDA guidance a little bit.

嘿，我正在隨叫隨到。所以我幾乎可以保證我問的問題你已經解決過。但我知道你脾氣暴躁——好吧。好吧，您對 24 年 EBITDA 指引進行了一些調整。

Just curious -- I'm reading through the deck. I didn't see it stated, but how you feel about -- you previously said $100 million-plus in EBITDA in '25. I mean, given the confidence you are talking about in the US, is it fair to say that that is something that you feel good about?

只是好奇——我正在通讀甲板。我沒有看到它的說明，但你的感受如何——你之前說過 25 年的 EBITDA 超過 1 億美元。我的意思是，考慮到你在美國談論的信心，可以公平地說這是你感覺良好的事情嗎？

Eric, this is Ryan. I'll start with we -- as far as where we think we're going next year, we're still digging into things right now. It's been a pretty dynamic environment with some of the volume in Türkiye. And I would also say the inflation impacts in Türkiye, they're probably a little outsized from what we would have expected a few months back for what we're thinking we're going into the year with.

埃里克，這是瑞安。我將從我們開始——就我們認為明年的發展方向而言，我們現在仍在深入研究。這是一個非常充滿活力的環境，土耳其的一些業務量也很大。我還要說的是，通貨膨脹對土耳其的影響可能比我們幾個月前對今年的預期還要大。

So we're doing some pretty detailed planning right now. And again, I'd just say stay tuned. We will provide guidance and our expectations as part of our Q4 call. But we do want to just make sure we're being as transparent as possible that we do see some volume that's weakened now in Türkiye, particularly with Nordex.

所以我們現在正在做一些非常詳細的計劃。再說一遍，我只想說請繼續關注。作為第四季度電話會議的一部分，我們將提供指導和我們的期望。但我們確實希望確保盡可能透明，因為我們確實看到 Türkiye 現在的交易量有所減弱，尤其是 Nordex。

With that said, though, Eric, I mean, with the volume decline in Türkiye, we're actually going to see pretty significant growth in the US. So top line-wise, we expect to be better in 2025 than we are in '24. So notwithstanding the challenges for the European market, top line, we look pretty good. But as Ryan mentioned, there are some other headwinds that we're working through.

儘管如此，埃里克，我的意思是，隨著土耳其銷量的下降，我們實際上會在美國看到相當顯著的成長。因此，從總體上看，我們預計 2025 年會比 24 年更好。因此，儘管歐洲市場面臨挑戰，但我們看起來相當不錯。但正如瑞安所提到的，我們正在努力克服其他一些阻力。

Yup, totally understand. But it is fair to say that -- I mean, it seems pretty clear to me that even in a quarter -- I mean, you were already positive about the US. But even a quarter later, you are more positive, incrementally more positive on the US. Is that fair?

是的，完全明白。但可以公平地說，我的意思是，對我來說似乎很清楚，即使在一個季度內，我的意思是，你已經對美國持樂觀態度。但即使是一個季度之後，你對美國的看法也會變得更加積極、越來越積極。這樣公平嗎？

Yeah. We feel -- again, just based on what our customers are asking for, we feel we're going to have a very strong 2025.

是的。我們再次認為，僅根據客戶的要求，我們將迎來一個非常強勁的 2025 年。

Okay. Thank you.

好的。謝謝。

Yup, you bet. Thank you.

是的，你打賭。謝謝。

(Operator Instructions) It appears that we have no further questions at this time. I'd like to turn the floor over to Bill Siwek for any additional or closing comments.

（操作員說明）目前看來我們沒有其他問題了。我想請 Bill Siwek 提出任何補充或結束意見。

Thank you, operator, and thank you again, everybody, for your time today and the continued interest and support of TPI. Look forward to the next quarter. Thank you.

謝謝運營商，再次感謝大家今天抽出寶貴的時間以及對 TPI 的持續關注和支持。期待下個季度。謝謝。

Thank you. Once again, ladies and gentlemen, that will conclude today's call. Thank you for your participation. You may disconnect at this time.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝您的參與。此時您可以斷開連線。