Latest news with #TPIComposites
Yahoo
13-05-2025
- Business
- Yahoo
TPI Composites Inc (TPIC) Q1 2025 Earnings Call Highlights: Revenue Growth and Strategic Challenges
Revenue: $336.2 million, up 14% year over year. Net Sales of Wind Blades: $329 million, an increase of 13.9% from the previous year. Adjusted EBITDA: Loss of $10.3 million, including a $12.7 million warranty charge. Adjusted EBITDA Margin: Loss of 3.1%, improved from a loss of 7.8% in the prior year. Cash Flow from Operating Activities: Positive $4.6 million. Free Cash Flow: Negative $1.9 million, improved from negative $47.3 million in the previous year. Cash and Cash Equivalents: $172 million at the end of the quarter. Total Debt: $616 million. Field Service, Inspection, and Repair Services Sales: $7.1 million, up 38.4% from the previous year. 2025 Financial Guidance: Sales expected between $1.4 billion to $1.5 billion; Adjusted EBITDA margin revised to 0% to 2%. Capital Expenditures for 2025: Expected to be $25 million to $30 million. Warning! GuruFocus has detected 7 Warning Signs with TPIC. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TPI Composites Inc (NASDAQ:TPIC) reported a 14% year-over-year increase in Q1 revenue, reaching $336.2 million. The company achieved positive cash flows of $4.6 million from operating activities and ended the quarter with $172 million in cash. Strong demand for TPIC's Mexico operations capacity continues, with a focus on delivering commitments to customers. TPIC's adjusted EBITDA loss improved from $23 million in Q1 2024 to $10.3 million in Q1 2025, showing operational improvements. The reopening of the Newton, Iowa facility is expected to create approximately 400 jobs, with potential for expansion to 1,000 jobs. TPIC recorded a $12.7 million warranty charge, impacting adjusted EBITDA negatively. The company faces challenges from intense Chinese competition and hyperinflation in Turkiye, leading to workforce restructuring. TPIC received a Nasdaq notification for non-compliance with the minimum bid price requirement, with a deadline to regain compliance by October 29, 2025. The strategic review of the business indicates ongoing challenges in optimizing the capital structure and maintaining liquidity. Uncertainty around tariffs, permitting, and potential changes to the IRA in the US could impact TPIC's operations and market demand. Q: Can you clarify the difference between the current strategic review and previous evaluations of the capital structure? A: The strategic review is a more formal process of evaluating our capital structure and looking at alternatives. The focus is on restructuring the balance sheet for both near-term and long-term health. - William Siwek, President, CEO, Director Q: What are your initial views on the House reconciliation language that was released shortly before your press release? A: The phase-out of 45Y was somewhat expected, but the completion placed into service versus start of construction could pose challenges. The 45X end date of 2027 for wind is disappointing, and the transferability aspect is still unclear. We will analyze this further. - William Siwek, President, CEO, Director Q: With the Iowa restart on track, is there potential to bring on more lines in the near future for 2026? A: We have capacity for up to five lines and have had discussions with our customer. Future decisions will depend on demand, reconciliation outcomes, and tariff situations. - William Siwek, President, CEO, Director Q: Are you still on track for the 8% year-over-year supply chain cost reductions despite market uncertainties? A: Yes, we are on target for those cost reductions related to the bill of materials. The recent tariff changes may have a small impact, but overall, we are on track or slightly better. - William Siwek, President, CEO, Director Q: How might the potential phase-down of 45X by 2027 affect your decisions on expanding manufacturing lines or sites? A: It could impact decisions depending on demand dynamics over the next few years. If 45X remains as proposed, it might affect the feasibility of opening another site. - William Siwek, President, CEO, Director Q: Have tariffs or permitting issues affected the demand for your US market production in 2025? A: There has been no change in demand for our US market production in 2025. For 2026, we expect demand to be flat compared to 2025. - William Siwek, President, CEO, Director Q: How do you see EBITDA margins trending through the year, especially after the Q2 incident? A: Q1 was impacted by a warranty charge, and Q2 will be affected by a safety standdown. We expect higher volumes and healthier margins in the second half, with Q3 likely being the peak for the year. - Ryan Miller, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
TPI Composites (NASDAQ:TPIC) Surprises With Q1 Sales, Full-Year Sales Guidance is Optimistic
Global wind blade manufacturer TPI Composites (NASDAQ:TPIC) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 12.4% year on year to $336.2 million. The company's full-year revenue guidance of $1.45 billion at the midpoint came in 2% above analysts' estimates. Its GAAP loss of $1.01 per share was 62.2% below analysts' consensus estimates. Is now the time to buy TPI Composites? Find out in our full research report. Revenue: $336.2 million vs analyst estimates of $314.6 million (12.4% year-on-year growth, 6.9% beat) EPS (GAAP): -$1.01 vs analyst expectations of -$0.62 (62.2% miss) Adjusted EBITDA: -$10.3 million vs analyst estimates of $5.28 million (-3.1% margin, significant miss) The company reconfirmed its revenue guidance for the full year of $1.45 billion at the midpoint Operating Margin: -6.8%, up from -13% in the same quarter last year Free Cash Flow was -$1.89 million compared to -$47.29 million in the same quarter last year Market Capitalization: $41.42 million 'In the first quarter, TPI achieved 14% year-over-year growth in sales and drove positive cash flows from operating activities despite a challenging geopolitical and operating environment. The various economic challenges presented in the markets where we operate continue to create uncertainty in the industry's near-term outlook and continue to challenge our operations. We are continuing to focus on maximizing value and ensuring that we have sufficient liquidity. Additionally, we are working with a committee of our Board of Directors and with advisors to conduct a strategic review of our business and evaluate potential strategic alternatives focused on optimizing our capital structure for the current and future environment,' said Bill Siwek, President and CEO of TPI Composites. Founded in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. TPI Composites struggled to consistently generate demand over the last five years as its sales dropped at a 1.7% annual rate. This was below our standards and is a sign of poor business quality. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. TPI Composites's recent performance shows its demand remained suppressed as its revenue has declined by 9% annually over the last two years. TPI Composites isn't alone in its struggles as the Renewable Energy industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. This quarter, TPI Composites reported year-on-year revenue growth of 12.4%, and its $336.2 million of revenue exceeded Wall Street's estimates by 6.9%. Looking ahead, sell-side analysts expect revenue to grow 5.1% over the next 12 months. While this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. TPI Composites's high expenses have contributed to an average operating margin of negative 4.9% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. Looking at the trend in its profitability, TPI Composites's operating margin decreased by 8.6 percentage points over the last five years. TPI Composites's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. This quarter, TPI Composites generated a negative 6.8% operating margin. The company's consistent lack of profits raise a flag. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. TPI Composites's earnings losses deepened over the last five years as its EPS dropped 104% annually. We tend to steer our readers away from companies with falling EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, TPI Composites's low margin of safety could leave its stock price susceptible to large downswings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For TPI Composites, its two-year annual EPS declines of 23.7% show it's still underperforming. These results were bad no matter how you slice the data. In Q1, TPI Composites reported EPS at negative $1.01, up from negative $1.31 in the same quarter last year. Despite growing year on year, this print missed analysts' estimates. Over the next 12 months, Wall Street expects TPI Composites to improve its earnings losses. Analysts forecast its full-year EPS of negative $4.15 will advance to negative $1.70. We were impressed by how significantly TPI Composites blew past analysts' revenue expectations this quarter. We were also glad its full-year revenue guidance exceeded Wall Street's estimates. On the other hand, its EBITDA and EPS missed significantly. Zooming out, we think this was a mixed quarter. Investors were likely hoping for more, and shares traded down 1.9% to $0.96 immediately following the results. So do we think TPI Composites is an attractive buy at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
TPI Composites (TPIC) Reports Q1 Loss, Tops Revenue Estimates
TPI Composites (TPIC) came out with a quarterly loss of $1.01 per share versus the Zacks Consensus Estimate of a loss of $0.50. This compares to loss of $1.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -102%. A quarter ago, it was expected that this maker of composite wind blades would post a loss of $0.39 per share when it actually produced a loss of $0.81, delivering a surprise of -107.69%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. TPI Composites , which belongs to the Zacks Industrial Services industry, posted revenues of $336.16 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.39%. This compares to year-ago revenues of $299.06 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TPI Composites shares have lost about 54% since the beginning of the year versus the S&P 500's decline of -3.8%. While TPI Composites has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TPI Composites: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.34 on $367.33 million in revenues for the coming quarter and -$1.92 on $1.42 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Industrial Products sector, Columbus McKinnon (CMCO), is yet to report results for the quarter ended March 2025. This maker of materials handling products and systems is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -22.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Columbus McKinnon's revenues are expected to be $254.92 million, down 4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TPI Composites, Inc. (TPIC) : Free Stock Analysis Report Columbus McKinnon Corporation (CMCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-04-2025
- Business
- Yahoo
Q4 Rundown: EnerSys (NYSE:ENS) Vs Other Renewable Energy Stocks
As the Q4 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the renewable energy industry, including EnerSys (NYSE:ENS) and its peers. Renewable energy companies are buoyed by the secular trend of green energy that is upending traditional power generation. Those who innovate and evolve with this dynamic market can win share while those who continue to rely on legacy technologies can see diminishing demand, which includes headwinds from increasing regulation against 'dirty' energy. Additionally, these companies are at the whim of economic cycles, as interest rates can impact the willingness to invest in renewable energy projects. The 17 renewable energy stocks we track reported a mixed Q4. As a group, revenues missed analysts' consensus estimates by 4.6% while next quarter's revenue guidance was 0.6% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 23.7% since the latest earnings results. Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE:ENS) manufactures various kinds of batteries for a range of industries. EnerSys reported revenues of $906.2 million, up 5.2% year on year. This print fell short of analysts' expectations by 2.8%. Overall, it was a mixed quarter for the company with EPS guidance for next quarter exceeding analysts' expectations but a significant miss of analysts' sales volume estimates. The stock is down 13.2% since reporting and currently trades at $82.29. Is now the time to buy EnerSys? Access our full analysis of the earnings results here, it's free. Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation. Bloom Energy reported revenues of $572.4 million, up 60.4% year on year, outperforming analysts' expectations by 12.8%. The business had an incredible quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Bloom Energy achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 20.2% since reporting. It currently trades at $18.37. Is now the time to buy Bloom Energy? Access our full analysis of the earnings results here, it's free. Founded in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems. TPI Composites reported revenues of $346.5 million, up 16.7% year on year, falling short of analysts' expectations by 5%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations. As expected, the stock is down 46.2% since the results and currently trades at $0.78. Read our full analysis of TPI Composites's results here. Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels. SolarEdge reported revenues of $196.2 million, down 37.9% year on year. This print beat analysts' expectations by 4%. Zooming out, it was a decent quarter as it also recorded an impressive beat of analysts' adjusted operating income estimates. The stock is down 24.6% since reporting and currently trades at $12.78. Read our full, actionable report on SolarEdge here, it's free. Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements. American Superconductor reported revenues of $61.4 million, up 56% year on year. This result surpassed analysts' expectations by 8.4%. It was an exceptional quarter as it also put up a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. The stock is down 29% since reporting and currently trades at $18.18. Read our full, actionable report on American Superconductor here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
Unpacking Q4 Earnings: Enphase (NASDAQ:ENPH) In The Context Of Other Renewable Energy Stocks
Looking back on renewable energy stocks' Q4 earnings, we examine this quarter's best and worst performers, including Enphase (NASDAQ:ENPH) and its peers. Renewable energy companies are buoyed by the secular trend of green energy that is upending traditional power generation. Those who innovate and evolve with this dynamic market can win share while those who continue to rely on legacy technologies can see diminishing demand, which includes headwinds from increasing regulation against 'dirty' energy. Additionally, these companies are at the whim of economic cycles, as interest rates can impact the willingness to invest in renewable energy projects. The 17 renewable energy stocks we track reported a mixed Q4. As a group, revenues missed analysts' consensus estimates by 4.6% while next quarter's revenue guidance was 0.6% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 23.7% since the latest earnings results. The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ:ENPH) manufactures software-driven home energy products. Enphase reported revenues of $382.7 million, up 26.5% year on year. This print exceeded analysts' expectations by 1.6%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts' adjusted operating income estimates. The stock is down 21.5% since reporting and currently trades at $52.03. Is now the time to buy Enphase? Access our full analysis of the earnings results here, it's free. Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation. Bloom Energy reported revenues of $572.4 million, up 60.4% year on year, outperforming analysts' expectations by 12.8%. The business had an incredible quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Bloom Energy pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 20.2% since reporting. It currently trades at $18.37. Is now the time to buy Bloom Energy? Access our full analysis of the earnings results here, it's free. Founded in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems. TPI Composites reported revenues of $346.5 million, up 16.7% year on year, falling short of analysts' expectations by 5%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations. As expected, the stock is down 46.2% since the results and currently trades at $0.78. Read our full analysis of TPI Composites's results here. Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems. Fluence Energy reported revenues of $186.8 million, down 48.7% year on year. This result lagged analysts' expectations by 50.5%. It was a disappointing quarter as it also logged full-year revenue guidance missing analysts' expectations. Fluence Energy had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The stock is down 71.5% since reporting and currently trades at $3.73. Read our full, actionable report on Fluence Energy here, it's free. Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements. American Superconductor reported revenues of $61.4 million, up 56% year on year. This print surpassed analysts' expectations by 8.4%. It was an exceptional quarter as it also recorded a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. The stock is down 29% since reporting and currently trades at $18.18. Read our full, actionable report on American Superconductor here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
