TPI Composites, Inc. (TPIC) Tops Q4 EPS by 2c, Revenues Beat; Offers FY21 Revenue Mid-Point Outlook Above Consensus

TPI Composites, Inc. (NASDAQ: TPIC) reported Q4 EPS of $0.14, $0.02 better than the analyst estimate of $0.12. Revenue for the quarter came in at $465.6 million versus the consensus estimate of $449.69 million.

For the quarter ended December 31, 2020:

• Net sales of $465.6 million
• Net income of $5.2 million or $0.14 per diluted share
• EBITDA of $30.5 million
• Adjusted EBITDA of $40.8 million

“We finished 2020 strong with 27% growth in adjusted EBITDA in the fourth quarter of 2020 while expanding this margin by 120 basis points year-over-year to 8.8%,” said Bill Siwek, President and CEO of TPI Composites. “For the full year 2020, with the backdrop of a difficult operating environment due to COVID-19, we delivered double digit revenue and adjusted EBITDA growth. These results speak to our business model and our team’s ability to adapt and stay nimble in a dynamic macro landscape.”

“Strong long-term demand prospects for wind in the U.S. and globally, driven by economics as well as the acceleration of decarbonization initiatives, give us confidence in our global wind strategy as we continue to serve our customers in an efficient and cost-effective manner across our global manufacturing footprint. As it relates to our transportation business, we expect there will be an increased demand for composite components and structures for electric vehicles as composite material systems can be the key material building blocks for purpose built electric vehicles. Our composite solutions are ideally suited for transportation applications because of the benefits resulting from weight reduction and therefore extended range for EVs, corrosion resistance, strength, durability, a lower upfront production investment and lower total cost of ownership for end users. The level of interest in our capabilities continues to grow and we are collaborating with our customers to develop innovative composite solutions for vehicles across passenger automotive, bus, truck, and delivery vehicles. Today, we are building composite bodies for buses and delivery vehicles, components for multiple passenger automotive platforms under technology development and pilot production agreements, and while continuing to make the investments needed to build out our team, technology and infrastructure required to drive new innovations and capitalize on the accelerating EV and light weighting trends.”

“While it’s still a bit early to speculate on the ultimate impact the new U.S. administration will have on renewables, based on early actions and stated intentions, we view the long-term outlook under a Biden administration as very supportive and beneficial to renewables and therefore our business. On a global basis, Europe plans to cut emissions faster, 55% by 2030 compared to 1990 levels, and more countries are establishing net-zero emissions targets, such as China (2060), Japan, South Korea and Canada (all 2050). We expect policy tailwinds and economics to promote significant opportunities in both wind and transportation.

“Our success in 2020 was a result of the ability of our nearly 15,000 associates to navigate the COVID-19 pandemic with courage, purpose and efficiency. We are still closely monitoring the COVID-19 pandemic but have successfully dealt with resurgences across all regions in which we operate and will remain vigilant until we are through the pandemic. As of today, we continue to operate all of our plants at normal capacities.”

GUIDANCE:

TPI Composites, Inc. sees FY2021 revenue of $1.75-1.85 billion, versus the consensus of $1.79 billion.

For earnings history and earnings-related data on TPI Composites, Inc. (TPIC) click here.

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