TPI Composites, a leading manufacturer of wind blades, released its financial results for the third quarter (Q3) ending on September 30, 2023. The company’s stock, TPIC, closed at $2.03 on Friday and experienced a $0.07 increase in pre-market trading on Monday. However, it is currently trading 15% lower.
At the time of this publication, TPI Composites Inc stock (TPIC) has witnessed a decline.
TPI Composites Inc
Current Price: $2.03
Change : -0.38
Change (%): (-15.63%)
Volume: 15.2K
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Despite a challenging market and economic environment, TPI Composites maintained a robust liquidity position, concluding the quarter with $161 million in unrestricted cash.
TPI Composites Q3 Results:
Comparing year-over-year figures, net sales for the third quarter of 2023 experienced a 3.0% decrease, amounting to $372.9 million, as opposed to the $384.4 million reported in the corresponding period of 2022. The net loss from continuing operations attributable to common stockholders for Q3 2023 was $72.8 million, marking a significant increase from the $21.8 million loss recorded in Q3 2022. Furthermore, the adjusted EBITDA for Q3 2023 exhibited a loss of $27.4 million, reflecting a decrease of $32.5 million from the same period the previous year.
Wind sales, however, saw an uptick, rising by $6.4 million or 1.8% to reach $362.2 million for Q3 2023. This increase was primarily attributed to a surge in wind blade production, favorable foreign currency fluctuations, and heightened tooling sales in preparation for the commencement and transition of manufacturing lines.
On the other hand, automotive sales took a downturn, plummeting by $7.9 million to $2.6 million for Q3 2023, in stark contrast to the $10.5 million reported in Q3 2022. This decline was largely influenced by a reduction in the production of composite bus bodies, a consequence of Proterra’s bankruptcy during the same quarter.
Meanwhile, Field Services sales experienced a notable decrease, sliding by $10.1 million to $8.0 million for Q3 2023, compared to the $18.1 million generated in Q3 2022. The decline was primarily attributed to a decrease in the deployment of technicians to revenue-generating projects, owing to an increased focus on non-revenue inspection and repair activities.
As part of its disclosure, the company has revised its guidance for the full fiscal year concluding on December 31, 2023. It now anticipates net sales from continuing operations to total approximately $1.5 billion, with an adjusted EBITDA margin percentage from continuing operations projecting a loss of approximately 5%.
