TPI Composites plunges after cutting guidance on weak blade demand (NASDAQ:TPIC)

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TPI Composites (NASDAQ:TPIC) -15.5% post-market Wednesday after providing preliminary Q2 results and reducing full-year guidance, citing lower customer demand for wind turbine blades and delays from inspection and repair activity.

For Q2, TPI Composites (TPIC) expects to post a net loss of $78M-$83M, an adjusted EBITDA loss of $36M-$41M, and net sales of ~$380M.

The company said it will record a Q2 charge for a change in estimate for warranties of $30M-$35M.

For the full year, the company now sees net sales of $1.525B-$1.575B and a ~1% loss in adjusted EBITDA margin from continuing operations, after previously guiding for sales of $1.6B-$1.7B and adjusted EBITDA margin in the positive low single digits.

"We expect that we will be back on track in the second half of the year with low single digit adjusted EBITDA margins and while we expect to consume some cash over the balance of this year to fund our warranty commitments, we are confident that with our current liquidity position, we have a clear path to our near and long-term sales and adjusted EBITDA targets within our existing manufacturing footprint," President and CEO Bill Siwek said.

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