TPI Composites Reports Mixed Q3 Results, Focuses on Wind Energy Sector

TPI Composites, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability. For the three months ended September 30, 2024, net sales increased to $380.8 million, up from $370.2 million in the same period of 2023, reflecting a 2.8% growth. However, for the nine months, net sales decreased by 13.5% to $984.6 million compared to $1.1 billion in the prior year.

The company experienced a gross profit of $2.8 million for the third quarter, a significant improvement from a gross loss of $2.5 million in the same quarter of 2023. Despite this, the gross loss for the nine months increased to $49.3 million from $35.5 million year-over-year. The net loss from continuing operations for the third quarter was $(38.6) million, compared to $(26.9) million in the prior year, marking a 43.2% increase in losses. For the nine months, the net loss from continuing operations rose to $(161.0) million from $(95.6) million in 2023.

The company’s total current assets decreased to $467.5 million as of September 30, 2024, down from $503.1 million at the end of 2023. Total liabilities increased significantly to $1.1 billion, up from $926.4 million, with total current liabilities rising to $493.1 million from $386.4 million. The accumulated deficit also widened to $(729.0) million from $(536.3) million.

Strategically, TPI Composites completed the divestiture of its automotive subsidiary, TPI, Inc., in June 2024, resulting in a $19.7 million non-cash impairment charge and a $6.3 million loss on the sale. The company is now focusing exclusively on the wind energy sector, which is expected to benefit from favorable long-term market trends driven by government policies promoting renewable energy.

Operationally, the company faced challenges, particularly at its Matamoros, Mexico facility, which reported a loss of $33.6 million for the nine months ended September 30, 2024, compared to $25.6 million in the previous year. The facility experienced a 50% decrease in wind blade production volume due to environmental conditions and canceled orders.

In terms of cash flow, TPI Composites reported net cash used in operating activities of $(74.8) million for the nine months, an improvement from $(85.9) million in the same period of 2023. The company’s total debt increased to $605.8 million from $485.2 million at the end of 2023, with $139.8 million maturing within the next twelve months.