Eric Stine: Yes. I was just going to say, so it’s not, it’s not $9 million plus a number. It’s more that’s just kind of a good number to use that will not be there when you get into the second half?
Bill Siwek: That’s correct.
Eric Stine: Okay. All right. And then last one for me, just on the EV business, so strategic alternatives and you’re talking about targeting a transaction. I mean, that implies at least to me that that might no longer be part of your business going forward or is that same transaction kind of a catch all could mean an investment, could mean partnering that includes an investment, which is the better way to think about it?
Ryan Miller: Yes, it could be any one of those. Eric.
Eric Stine: Okay. Yes. All right.
Ryan Miller: You’ll know by the end of the quarter.
Eric Stine: All right. Thank you.
Bill Siwek: Yes. Thank you.
Operator: The next question is from Jeffrey Osborne with TD Cowen. Please go ahead.
Jeffrey Osborne: Good afternoon, Bill. Just a couple of questions on my end. On the Iowa facility as part of the CapEx guidance, can you just remind us what you’ll be producing for GE there? Is that a repowering product or one of their newer blades? And then what would be the timing of when that revenue would start?
Ryan Miller: Yes. So not sure yet, Jeff. That’s still, still to be determined and timing is, I would say most likely as first, as early 2025 would be my best guess at this point in time. But don’t have a final, don’t have a final blade type nor a final start date yet. That’s still in discussion.
Jeffrey Osborne: But it’s in the CapEx guidance just to be clear.
Ryan Miller: No. That’s not in the CapEx guidance. It, quite frankly, Jeff, it’ll depend on the blade, right? If it’s the same blade we’ve been building the CapEx is pretty light. If it’s a new blade, depending on the size of the blade, then that’ll be a different CapEx number. So, until we understand what blade type, it’s hard to predict that.
Jeffrey Osborne: So is there a way to box, put bookings on that, like what the upside number to CapEx would be, just given the strain balance sheet with the low water point here, because that’s an extra 10 million?
Bill Siwek: Yes it’s probably no more than 10 million would be my guess. Again, it’ll depend on the blade type ultimately. And how many lines, quite frankly.
Jeffrey Osborne: Got it. The, the building is what suitable for — is it five, six lines?
Bill Siwek: Right now it’s, it’s got, we, the last blade we built was a 62 meter blade and we had six lines in there.
Jeffrey Osborne: Got it. And then you spoke super fast when you had the three items around the EBITDA translation, so nine million was the Nordex that we talked about just before. The 8 million was the inflation on the pre-existing warranty claims. What was the 22 million for?
Bill Siwek: No, that was the startup and transition costs that we incurred in the quarter.
Jeffrey Osborne: Got it. All right. Perfect. That’s all I had.
Bill Siwek: All right. Cool. Thanks, Jeff.
Operator: The next question is from Tom Curran with Seaport Research Partners. Please go ahead.
Tom Curran: Hi guys.
Bill Siwek: Hi, Tom.
Tom Curran: Casting my view out a bit, a bit longer term here and, and allowing us to dream a bit. Are you seeing any, any green shoots of potential interest that could lead you to reactivating the, the two idle lines in, in Turkey? And if you are, when might be the earliest we could see you do that?
Bill Siwek: We really don’t have idle lines in Turkey right now. We have two idle lines in India. And the answer is, yes, I mean, we’re starting to see order books fill or backlog build. A lot of that backlog as you probably know, it’s for ’25 and ’26 and beyond. But I think as things begin to open up a little bit more in Europe as well as the U.S., you could see those lines. So now there is a lot of activity around those lines, Tom. We are actively working or in discussions with multiple parties for those lines. So, it’s not that there’s not activity. So we are optimistic that we fill. Not only those two lines that got idled, but there’s two more lines there as well that we can activate. So we’ve got a total of four potentially to activate in India as we move forward through the year.
Tom Curran: And those are all in tonight, Bill.
Bill Siwek: Yes. It’s correct. Yes.
Tom Curran: And, and sorry, if I misspoke when I said Turkey, I didn’t mean India. Could we — if all went well, would we expect to see the CapEx and production contribution from those most likely in ’25?
Ryan Miller: Given where we’re at in the year, probably it’s most likely that it would be ’25 — you start to see the revenue in ’25 as well as contribution. CapEx again, depending on blade size, number of blades, et cetera, the CapEx will vary there. I mean, that’s already an eight line facility where we built it out pretty nicely. So there shouldn’t be a ton of CapEx as we activate those four lines.
Tom Curran: Maybe like 2 million to 4 million range?
Ryan Miller: Again, it’ll depend on blade size. Quite frankly, I hate to keep saying that but that’s pretty important is the blade size. So, I mean, we sized it for 80 plus meter blades for eight lines depending on who the customer is. Some of them take more room than others, depending on how the blade is constructed. But it should be relatively minor amount of CapEx if we fill all these lines.
Tom Curran: Got it. And then, sticking with blade size and, and how important it is. Gifting back to new in Iowa and how seriously GE seems to be deliberating whether to stick with the 127 versus shifting to the new workforce model, in part, from my understanding, because of its popularity for repowering, especially given the, the share gains GE seems to have made in the U.S. market. As you look to the next upcycle in the U.S., do you expect repowering to play a bigger role in this next upcycle that it did in the prior one?
