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TPI Composites (TPIC)
NASDAQ:TPIC

TPI Composites (TPIC) AI Stock Analysis

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TPI Composites

(NASDAQ:TPIC)

Rating:40Underperform
Price Target:
$1.00
▲(12.36%Upside)
The most significant factors in TPI Composites' overall stock score are its poor financial performance and challenging valuation, which indicate high financial risk and limited investor appeal. While there are some technical and strategic improvements, these are overshadowed by the company's broader financial difficulties and market pressures.
Positive Factors
Demand for Renewables
Demand for renewable energy remains strong, driven by increased electricity needs from sectors like data centers and domestic manufacturing.
Production Expansion
The Newton, Iowa facility began production, supporting the domestic GE repowering opportunity.
Negative Factors
Debt Concerns
Accumulating PIK debt and potential future equity dilution are major concerns for TPIC, leading to a downgrade.
Regulatory and Permitting Challenges
Emerging risks from regulatory changes and potential delays in wind development due to permit issues contribute to the negative sentiment.

TPI Composites (TPIC) vs. SPDR S&P 500 ETF (SPY)

TPI Composites Business Overview & Revenue Model

Company DescriptionTPI 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.
How the Company Makes MoneyTPI Composites makes money primarily through the manufacturing and sale of composite wind blades, which are supplied to major wind turbine manufacturers under long-term supply agreements. The company's revenue model is built on these multi-year contracts, providing a stable and predictable income stream. TPI also engages in the production of other composite products for transportation and other sectors, which contributes to its revenue. Key partnerships with leading wind turbine manufacturers, like General Electric and Vestas, play a significant role in its financial performance, ensuring consistent demand for its products.

TPI Composites Key Performance Indicators (KPIs)

Any
Any
Estimated Megawatts
Estimated Megawatts
Chart InsightsTPI Composites has experienced a notable decline in estimated megawatts since 2020, reflecting operational challenges and market uncertainties. Despite recent revenue growth and cash flow improvements, the company faces headwinds from tariffs, workforce restructuring in Türkiye, and compliance issues with NASDAQ. The strategic focus on leveraging past investments and optimizing capital structure aims to stabilize operations. However, ongoing uncertainties in U.S. and EU markets could impact future performance, making the company's strategic review and new leadership crucial for navigating these challenges.
Data provided by:Main Street Data

TPI Composites Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: -10.10%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable revenue growth and cash flow improvements. However, challenges such as adjusted EBITDA losses, workforce restructuring in Türkiye, and compliance issues with NASDAQ contributed to a balanced sentiment. Uncertainty in key markets further complicates the outlook.
Q1-2025 Updates
Positive Updates
Revenue Growth
Q1 revenue increased by 14% year-over-year, totaling $336.2 million, primarily due to strong demand in the U.S. and successful transition of production lines.
Positive Cash Flow
Operating activities provided a positive cash flow of $4.6 million, ending the quarter with $172 million in cash.
Production Resumption and Expansion
Production restarted at a previously idled facility in Juarez, Mexico, with several facilities in Mexico moving to 24/7 operations.
Sustainability Achievements
Achieved a 17% reduction in Scope 1 and 2 CO2 emissions and committed to powering all Mexico sites with 100% renewable energy by the end of 2025.
Field Service Growth
Fuel service inspection and repair services sales increased by 38.4% to $7.1 million, driven by more technicians deployed to revenue-generating projects.
Negative Updates
Adjusted EBITDA Loss
Adjusted EBITDA was a loss of $10.3 million, including a $12.7 million warranty charge and $8.4 million of start-up and transition costs.
Challenges in Türkiye
Restructuring due to hyperinflation and Chinese competition led to a reduction of approximately 20% of the Turkish workforce.
NASDAQ Compliance Issue
Received a notification from NASDAQ for non-compliance with the minimum bid price requirement, with a deadline of October 29, 2025, to regain compliance.
Uncertainty in U.S. and EU Markets
Potential impacts from tariffs, permitting issues, and changes to the IRA create uncertainty, particularly affecting operations in Türkiye and the EU.
Company Guidance
During the TPI Composites first-quarter 2025 earnings call, several key financial metrics and strategic guidance points were discussed. Revenue for Q1 2025 was $336.2 million, up 14% year-over-year, with positive cash flows of $4.6 million from operating activities and ending the quarter with $172 million in cash. Despite this, there was an adjusted EBITDA loss of $10.3 million, influenced by a $12.7 million warranty charge and other costs related to start-ups and transitions. Sales growth was primarily driven by increased demand in the U.S. and successful line transitions from 2024 now in serial production. The company is focusing on leveraging previous investments to achieve operational excellence and cost savings. TPI is grappling with challenges such as tariffs, workforce restructuring in Türkiye due to Chinese competition, and uncertainties around U.S. energy policies and tariffs. The strategic review initiated aims to optimize the capital structure, with new independent directors appointed to assist in this process. For 2025, TPI projects sales between $1.4 billion to $1.5 billion and adjusted EBITDA margins between 0% to 2%, with capital expenditures expected at $25 million to $30 million.

TPI Composites Financial Statement Overview

Summary
TPI Composites faces significant financial challenges with consistent losses and declining revenue, indicating operational struggles. The balance sheet shows financial instability with negative equity and high leverage. Despite recent improvements in cash flows, the overall financial health remains precarious.
Income Statement
30
Negative
The income statement reveals significant challenges in profitability and revenue growth. The TTM (Trailing-Twelve-Months) data shows a negative gross profit margin and net profit margin, indicating struggles in covering production costs and achieving profitability. Revenue has been declining over the years with a decreasing trend from 2021 to 2025, highlighting issues in sustaining top-line growth. The EBIT and EBITDA margins are also negative, further emphasizing the company's operational difficulties.
Balance Sheet
25
Negative
The balance sheet reflects a precarious financial position with a negative stockholders' equity, suggesting more liabilities than assets. The high debt-to-equity ratio, driven by substantial total debt, raises concerns about financial leverage and the company's ability to meet its obligations. The negative return on equity (ROE) underscores the company's inability to generate profits for shareholders from its equity base. Furthermore, the equity ratio is negative due to negative stockholders' equity, indicating financial instability.
Cash Flow
40
Negative
The cash flow statement shows some positive aspects with a recent increase in operating cash flow and free cash flow turning positive in the TTM period. However, historical data reveals fluctuations and previous negative free cash flow, which could indicate challenges in maintaining consistent cash generation. The operating cash flow to net income ratio is relatively high, suggesting the company is generating cash despite net losses, but the free cash flow to net income ratio is less favorable due to past periods of negative free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.37B1.33B1.46B1.52B1.73B1.67B
Gross Profit-39.27M-53.00M-87.55M14.64M-31.58M64.10M
EBITDA-70.11M-74.67M-127.91M24.57M-59.83M-55.00K
Net Income-227.55M-240.71M-201.78M-55.55M-159.55M-19.03M
Balance Sheet
Total Assets666.46M692.46M804.08M962.18M1.01B956.26M
Cash, Cash Equivalents and Short-Term Investments171.86M196.52M161.66M133.55M242.16M129.86M
Total Debt230.38M742.25M624.34M216.76M243.81M398.89M
Total Liabilities1.09B1.07B926.38M911.69M756.73M755.22M
Stockholders Equity-420.69M-373.24M-122.30M50.49M250.97M201.03M
Cash Flow
Free Cash Flow31.70M-13.70M-117.11M-81.10M-62.64M-28.10M
Operating Cash Flow56.13M12.50M-80.97M-62.27M-25.52M37.57M
Investing Cash Flow-24.43M-26.20M-23.30M-18.83M-37.12M-65.67M
Financing Cash Flow25.35M50.96M121.99M-14.60M198.92M88.61M

TPI Composites Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.89
Price Trends
50DMA
1.08
Negative
100DMA
1.05
Negative
200DMA
1.88
Negative
Market Momentum
MACD
-0.06
Positive
RSI
37.06
Neutral
STOCH
3.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPIC, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.08, and below the 200-day MA of 1.88, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 3.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPIC.

TPI Composites Risk Analysis

TPI Composites disclosed 31 risk factors in its most recent earnings report. TPI Composites reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TPI Composites Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
€8.25B18.566.19%2.66%2.39%-39.55%
CVCVV
60
Neutral
$20.23M-0.26%48.84%98.75%
57
Neutral
$40.84M30.96-1.24%-25.94%-108.22%
BWBW
49
Neutral
$95.27M29.28%-29.45%39.40%
44
Neutral
$15.85M-90.36%-87.59%51.14%
40
Underperform
$43.60M77.71%1.71%-3.55%
40
Underperform
$34.26M-20.87%-13.31%-114.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TPIC
TPI Composites
0.89
-2.70
-75.21%
BW
Babcock & Wilcox Company
0.95
-0.83
-46.63%
BWEN
Broadwind Energy
1.80
-1.47
-44.95%
CVV
CVD Equipment
2.94
-0.89
-23.24%
CETY
Clean Energy Technologies
0.24
-1.00
-80.65%
LASE
Laser Photonics Corp.
2.59
0.72
38.50%

TPI Composites Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
TPI Composites Approves Retention Bonuses for Executives
Neutral
Jun 20, 2025

On June 13, 2025, TPI Composites‘ Compensation Committee approved retention bonuses for certain executive and non-executive employees. These bonuses, aimed at retaining key personnel, will be paid in lump sums and replace other compensatory payments. The move underscores the company’s commitment to maintaining stability within its leadership team amid potential restructuring events.

The most recent analyst rating on (TPIC) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on TPI Composites stock, see the TPIC Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
TPI Composites Regains Nasdaq Compliance After Stock Price Recovery
Positive
Jun 3, 2025

On May 31, 2025, TPI Composites, Inc. announced it had regained compliance with the Nasdaq Minimum Bid Price Requirement, ensuring its continued inclusion on The Nasdaq Global Select Market. This follows a previous notification on May 2, 2025, that the company was not in compliance due to its stock price falling below the $1.00 per share threshold, which it successfully rectified by maintaining the required bid price for 10 consecutive business days.

The most recent analyst rating on (TPIC) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on TPI Composites stock, see the TPIC Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
TPI Composites Faces Board Changes Amid Nasdaq Non-Compliance
Neutral
May 12, 2025

On May 8, 2025, Edward C. Hall and Jennifer Lowry resigned from the board of directors of TPI Composites, Inc., with no disagreements related to company operations. Their resignations led to non-compliance with Nasdaq’s audit committee requirements, which TPI plans to address within 180 days. Subsequently, Neal Goldman and Timothy Pohl were appointed as new board members, both bringing extensive experience in strategic advisory and investment. Their appointments are expected to strengthen TPI’s governance and strategic direction.

The most recent analyst rating on (TPIC) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on TPI Composites stock, see the TPIC Stock Forecast page.

Delistings and Listing ChangesStock Split
TPI Composites Faces Nasdaq Delisting Risk
Negative
May 8, 2025

On May 2, 2025, TPI Composites received a deficiency letter from Nasdaq due to its common stock price falling below the $1.00 minimum bid price requirement for 30 consecutive business days. The company has until October 29, 2025, to regain compliance, during which its stock will continue trading under the symbol ‘TPIC’. Failure to meet the requirement could lead to delisting, but TPI Composites is considering options such as a reverse stock split to address the issue.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025