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1. Company Snapshot

1.a. Company Description

TPI Composites, Inc.manufactures and sells composite wind blades, and related precision molding and assembly systems to original equipment manufacturers (OEMs).The company also provides composite solutions for the transportation industry; and field service inspection and repair services to OEM customers and wind farm owners and operators.


It operates in the United States, Asia, Mexico, Europe, the Middle East, Africa, and India.The company was formerly known as LCSI Holding, Inc.and changed its name to TPI Composites, Inc.


in 2008.TPI Composites, Inc.was founded in 1968 and is headquartered in Scottsdale, Arizona.

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1.b. Last Insights on TPIC

TPI Composites' recent performance was negatively impacted by a Q4 loss of $0.81 per share, exceeding the Zacks Consensus Estimate of a loss of $0.39. This compares to earnings of $0.27 per share in the same period last year. The company's revenue also fell short of estimates, indicating a decline in demand for its composite blades. Additionally, TPI Composites' guidance for improved profitability in 2025 may be tempered by ongoing industry headwinds and increased competition.

1.c. Company Highlights

2. TPI Composites Delivers Mixed Q1 Results Amid Strong U.S. Wind Demand

TPI Composites kicked off 2025 with a mixed first-quarter performance, recording net sales of $336.2 million, a 14% year-over-year increase, driven by robust U.S. demand and the completion of 2024 line transitions. However, the company reported an adjusted EBITDA loss of $10.3 million, wider than analyst estimates, and a negative free cash flow of $1.9 million. The actual EPS came in at -$1.01, missing the consensus estimate of -$0.5. Despite the revenue growth, margin pressures and operational challenges weighed on profitability. The company ended the quarter with $172 million in cash, providing a cushion to navigate near-term headwinds.

Publication Date: May -13

📋 Highlights
  • Revenue Growth: Q1 2025 revenue reached $336.2 million, a 14% year-over-year increase.
  • Cash Position: Generated $4.6 million in positive cash flow, ending Q1 with $172 million in cash.
  • Strategic Initiatives: Completed four lines, started production at Newton, Iowa plant, and focused on operational excellence.
  • Financial Guidance: 2025 sales guidance of $1.4-$1.5 billion, with revised EBITDA margin of 0%-2%.
  • Sustainability Progress: Achieved 17% CO2 reduction, signed renewable energy agreements for Mexico sites, and remains committed to carbon neutrality by 2030.

Operational Progress and Market Outlook

TPI made notable operational strides in Q1, completing four production lines and starting production at its Newton, Iowa plant. The U.S. wind market remains a bright spot, with demand expected to surpass 450 gigawatts by 2030. CEO Bill Siwek emphasized the importance of an "all-of-the-above energy strategy," positioning TPI as a key supplier to leading Western turbine OEMs. However, competition from China and hyperinflation in Turkey continue to pose challenges, leading to workforce restructuring. The company remains focused on operational excellence through lean tools to offset these pressures.

Strategic Initiatives and Financial Guidance

TPI formed a strategic review committee to optimize its capital structure and appointed new board members for guidance. The company also addressed its NASDAQ compliance issue, with 180 days to regain compliance. CFO Ryan Miller highlighted the impact of a safety stand-down in Q2, which could reduce sales by $35 million, but reaffirmed full-year sales guidance of $1.45 billion. Margins are expected to improve in the second half, with Q3 projected as the peak quarter. For 2026, U.S. demand is expected to remain flat, with customer orders for 2025 unchanged despite tariff and policy uncertainties.

Valuation and Analyst Sentiment

With a P/S ratio of 0.04 and an EV/EBITDA of -1.56, TPI's valuation reflects ongoing profitability challenges. The company's free cash flow yield of 62.65% highlights its ability to generate cash, though this is offset by a negative ROIC of -29.21%. Analysts expect 7.5% revenue growth in 2026, though this may hinge on policy stability and operational execution. The stock's current valuation appears to price in significant uncertainties, leaving limited upside unless margins improve meaningfully.

3. NewsRoom

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TPI Composites, Inc. Advances Chapter 11 Process with Court Approval of First-Day Motions

Aug -14

Source: globenewswire.com

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TPI Composites (TPIC) Reports Q2 Loss, Lags Revenue Estimates

Aug -12

Source: zacks.com

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TPI Composites, Inc. Initiates Voluntary Chapter 11 Proceedings to Facilitate Restructuring to Position Company for Long-Term Success

Aug -11

Source: globenewswire.com

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TPI Composites to Sponsor World KidWind Challenge Wind Tunnel at ACP CLEANPOWER 2025

May -19

Source: globenewswire.com

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TPI Composites, Inc. (TPIC) Q1 2025 Earnings Call Transcript

May -13

Source: seekingalpha.com

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TPI Composites (TPIC) Reports Q1 Loss, Tops Revenue Estimates

May -12

Source: zacks.com

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TPI Composites, Inc. Announces First Quarter 2025 Earnings Results – Operational Execution and Strategic Initiatives Drive Improved Financial Results; Initiation of Strategic Review

May -12

Source: globenewswire.com

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Ahead of TPI Composites (TPIC) Q1 Earnings: Get Ready With Wall Street Estimates for Key Metrics

May -08

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.47%)

6. Segments

Wind Blade, Tooling and Other Wind Related

Expected Growth: 8.5%

TPI Composites' Wind Blade, Tooling, and Other Wind Related segments' 8.5% growth is driven by increasing demand for renewable energy, technological advancements in wind turbine design, and growing adoption of larger, more efficient blades. Additionally, rising global wind installations, favorable government policies, and strategic partnerships with leading OEMs contribute to the segment's growth.

Field Service, Inspection and Repair Services

Expected Growth: 8.0%

TPI Composites' Field Service, Inspection and Repair Services segment growth of 8.0% is driven by increasing adoption of wind energy, rising demand for maintenance and repair services, expansion into new geographies, and strategic partnerships with original equipment manufacturers (OEMs) and wind farm operators.

Automotive

Expected Growth: 7.5%

TPI Composites' 7.5% growth in Automotive is driven by increasing adoption of electric vehicles, growing demand for lightweight composite materials, and expansion into new markets. Additionally, partnerships with major OEMs, investments in manufacturing capacity, and innovative product offerings contribute to the segment's growth.

7. Detailed Products

Wind Blades

TPI Composites, Inc. designs and manufactures high-performance wind blades for the wind energy industry.

Transportation Composites

TPI Composites, Inc. provides advanced composite solutions for the transportation industry, including bus and rail applications.

Industrial Composites

TPI Composites, Inc. offers a range of industrial composite products, including pipes, tanks, and other industrial equipment.

Aerospace Composites

TPI Composites, Inc. designs and manufactures advanced composite structures for the aerospace industry.

8. TPI Composites, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TPI Composites, Inc. is medium due to the presence of alternative materials and technologies in the wind energy industry.

Bargaining Power Of Customers

The bargaining power of customers for TPI Composites, Inc. is low due to the company's strong relationships with its customers and the lack of buyer concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for TPI Composites, Inc. is medium due to the presence of multiple suppliers in the industry, but the company's dependence on a few critical suppliers.

Threat Of New Entrants

The threat of new entrants for TPI Composites, Inc. is low due to the high barriers to entry in the wind energy industry, including the need for significant capital investment and technological expertise.

Intensity Of Rivalry

The intensity of rivalry for TPI Composites, Inc. is high due to the competitive nature of the wind energy industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 131.84%
Debt Cost 3.95%
Equity Weight -31.84%
Equity Cost 13.68%
WACC 0.85%
Leverage -414.08%

11. Quality Control: TPI Composites, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Broadwind

A-Score: 3.9/10

Value: 8.2

Growth: 5.0

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

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Helios Technologies

A-Score: 3.8/10

Value: 3.0

Growth: 4.0

Quality: 5.8

Yield: 1.0

Momentum: 6.0

Volatility: 3.0

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Babcock & Wilcox Enterprises

A-Score: 3.6/10

Value: 7.8

Growth: 3.2

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 0.0

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CVD Equipment

A-Score: 3.6/10

Value: 6.6

Growth: 3.6

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

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TPI Composites

A-Score: 3.0/10

Value: 10.0

Growth: 3.2

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Laser Photonics

A-Score: 2.2/10

Value: 6.2

Growth: 2.2

Quality: 3.4

Yield: 0.0

Momentum: 1.5

Volatility: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.13$

Current Price

0.13$

Potential

0.00%

Expected Cash-Flows