Loss-Making TPI Composites, Inc. (NASDAQ:TPIC) Expected To Breakeven In The Medium-Term

We feel now is a pretty good time to analyse TPI Composites, Inc.'s (NASDAQ:TPIC) business as it appears the company may be on the cusp of a considerable accomplishment. TPI Composites, Inc. manufactures and sells composite wind blades, and related precision molding and assembly systems to original equipment manufacturers (OEMs) in the United States, Mexico, Europe, the Middle East, Africa, and India. The US$113m market-cap company announced a latest loss of US$172m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which TPI Composites will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for TPI Composites

TPI Composites is bordering on breakeven, according to the 13 American Electrical analysts. They expect the company to post a final loss in 2025, before turning a profit of US$4.0m in 2026. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 113% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving TPI Composites' growth isn’t the focus of this broad overview, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with TPI Composites is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of TPI Composites which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at TPI Composites, take a look at TPI Composites' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

1. Valuation: What is TPI Composites worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether TPI Composites is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on TPI Composites’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.