TPI Composites' Q1 2025: Unpacking Contradictions on Tariffs, Demand, and European Challenges

Tariff impact on Mexico operations, demand expectations for 2026, impact of IRA on permitting and operations, demand for TPI Composites' products, and permitting and transmission challenges in Europe are the key contradictions discussed in TPI Composites' latest 2025Q1 earnings call.



Revenue and Production Growth:
- TPI Composites reported revenue of $336.2 million for Q1 2025, up 14% year-over-year.
- This growth was primarily driven by strong demand in the U.S. and the successful restart of production at a previously idled facility in Juarez, Mexico.

Adjusted EBITDA Performance:
- TPI Composites reported an adjusted EBITDA loss of $10.3 million for Q1 2025, improving from an adjusted EBITDA loss of $23 million in the same period last year.
- The improvement was due to increased volume in Mexico, lower start-up and transition costs, and cost savings initiatives, partially offset by higher warranty charges and labor costs in Türkiye and Mexico.

Strategic Review and Financial Challenges:
- The company announced a strategic review of its business and potential strategic alternatives to optimize its capital structure amid challenges including intense Chinese competition and hyperinflation in Türkiye.
- TPI's stock was notified for not meeting NASDAQ's minimum bid price requirement, giving the company 180 days to regain compliance or face delisting.

Wind Market Dynamics and Uncertainties:
- The global wind market is experiencing unprecedented energy demand driven by factors like reshoring and electrification, with the U.S. expecting demand to surpass 450 gigawatts by 2030.
- Uncertainties in tariffs and permitting processes are impacting the industry's near-term outlook, particularly in the U.S.

Operational Excellence and Sustainability Initiatives:
- TPI is focusing on operational excellence to deliver repeatable world-class quality and delivery performance, while achieving cost savings organization-wide.
- The company remains committed to its sustainability goals, achieving a 17% reduction in overall market-based Scope 1 and 2 CO2 emissions and progressing towards carbon neutrality by 2030.