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

TPI Composites, Inc. (NASDAQ:TPIC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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$58m market-cap company posted a loss in its most recent financial year of US$210m and a latest trailing-twelve-month loss of US$198m shrinking the gap between loss and breakeven. 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?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 8 of the American Electrical analysts is that TPI Composites is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$33m in 2027. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 82%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of TPI Composites' upcoming projects, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for TPI Composites

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 too many aspects of TPI Composites to cover in one brief article, but the key fundamentals for the company can all be found in one place – TPI Composites' company page on Simply Wall St. We've also put together a list of key aspects you should look at:

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.