Non-destructive testing is an important technique for detecting defects in multi-layer materials, enabling the evaluation of structural integrity without causing damage on test materials. Terahertz time-domain spectroscopy (THz-TDS) offers unique capabilities for this purpose due to its sensitivity and resolution. Inspired by room geometry estimation methods in acoustic signal processing, this work proposes a novel approach for defect detection in multi-layer composite materials using THz-TDS, enhanced by high-power sources. The proposed method utilizes Euclidean distance matrices to reduce problem complexity compared to state-of-the-art approaches, and effectively distinguishes and maps higher-order reflections from sublayers, enabling precise defect localization in composite materials without artifacts.