TPI Composites announces third quarter 2021 earnings

On Nov. 8 TPI Composites (Scottsdale, Ariz., U.S.), an independent manufacturer of composite wind blades reported financial results for the Q3 2021 ending on Sept. 30. Highlights include net sales of $479.6 million (a 1.2% increase from the same period in 2020), a net loss of $30.7 million or ($0.83) per diluted share, EBITDA loss of $6.5 million and adjusted EBITDA of $0.2 million. 

“We are diligently navigating through a challenging macroeconomic backdrop that is adversely impacting the wind industry on a global scale,” says Bill Siwek, president and CEO of TPI Composites. “While we are pleased to achieve revenue growth in the quarter, near-term challenges have hindered the profitability in the business.”

Siwek notes the company has witnessed volume declines from its OEM customers, as many are in a wait-and-see mode with the impending federal legislation pertaining to the Build Back Better Plan (BBB), the recently passed Infrastructure Investment and Jobs Act, and the tax credit incentives to be included in the BBB plan. TPI has also experienced production delays at the manufacturing facility it recently took over from Nordex (Hamburg, Germany) in Matamoros, Mexico, and at one of its manufacturing facilities in Juarez, Mexico, where the company is in the startup phase of producing an innovative new blade model for a customer. Moreover, the company expects these production delays will be resolved by the end of this year.

However, regardless of the challenges posed by near-term headwinds, and the expectation for the wind market to be relatively flat in 2022, TPI Composites continues to work closely with and deliver to its customer base. “In the quarter, we added new lines in China for Vestas and extended a couple of lines in Turkey with Nordex,” Siwek notes as an example. “We remain excited about the long-term prospects for our industry and are well positioned.”

This attitude lends itself to the company’s announcement that it has entered into a stock purchase agreement to issue and sell $400 million of Series A Preferred Stock to investment funds managed by Oaktree Capital Management, a seasoned investor across the energy value chain. Under the terms of the stock purchase agreement, TPI will issue and sell $350 million of Series A Preferred Stock to Oaktree, subject to customary closing conditions. TPI also may elect at its option to require Oaktree to purchase an additional $50 million of Series A Preferred Stock upon the same terms and conditions as the initial issuance of the Series A Preferred Stock during the two-year period following the closing of the initial issuance. 

Find the complete report on third quarter 2021 financial results here.