TPI Composites | research notes

TPI Composites: A Leader in Wind Energy

Introduction

TPI Composites, Inc. is a leading manufacturer of composite wind turbine blades, nacelles, and other components for the global wind energy industry. Headquartered in Scottsdale, Arizona, TPI has a global presence with manufacturing facilities in the United States, Mexico, China, and Turkey.

History

TPI Composites was founded in 1996 as a small company specializing in the production of lightweight composite parts for the aerospace industry. In 2002, the company entered the wind energy market and quickly established itself as a major player in the industry.

Products and Services

TPI Composites offers a comprehensive range of products and services to the wind energy market, including:

• Wind Turbine Blades: The company is one of the world's largest manufacturers of composite wind turbine blades, producing blades with lengths ranging from 37 meters to 120 meters.
• Nacelles: TPI designs and manufactures nacelles that house the wind turbine's generator, gearbox, and other components.
• Towers and Hubs: The company also produces towers and hubs for wind turbines, providing a complete solution for wind energy project developers.

Global Footprint

TPI Composites has a global manufacturing footprint with major facilities located in:

• United States: Newton, Iowa; Wichita Falls, Texas
• Mexico: Reynosa, Matamoros
• China: Taicang, Yantai
• Turkey: Izmir

The company's global presence allows it to serve customers in all major wind energy markets worldwide.

Innovation and Technology

TPI Composites is committed to innovation and technology, constantly developing new materials and processes to improve the efficiency and reliability of its wind turbine components. The company has invested heavily in research and development, including collaborations with leading universities and research institutions.

Sustainability

TPI Composites is dedicated to sustainability and environmental responsibility. The company's products are designed with a long life span and are recyclable at the end of their useful life. TPI also strives to minimize its environmental impact through energy efficiency and waste reduction initiatives.

Market Position and Outlook

TPI Composites is a major player in the global wind energy industry, with a strong reputation for quality, reliability, and innovation. The company has consistently expanded its market share and is well-positioned to continue to grow as the demand for wind energy continues to increase.

Conclusion

TPI Composites, Inc. is a leading manufacturer of composite wind turbine components, providing critical solutions to the global wind energy industry. With its global footprint, commitment to innovation, and focus on sustainability, TPI is well-positioned to continue to drive the growth and success of the wind energy market.

TPI Composites Business Model

TPI Composites is a leading manufacturer of composite wind blades and other composite products for various industries. Its business model can be summarized as follows:

• Product Development and Innovation: TPI focuses on developing and producing innovative, high-performance composite blades that meet the evolving needs of the wind energy industry. It invests heavily in research and development to advance blade design and material science.
• Manufacturing: TPI operates multiple manufacturing facilities worldwide, including in the United States, Mexico, China, and Turkey. It utilizes advanced production processes and automation to ensure efficient and cost-effective blade production.
• Customer Relationships: TPI maintains close relationships with its customers, including wind turbine manufacturers and wind farm developers. It provides tailored blade solutions to meet specific project requirements.
• Global Presence: TPI has a global footprint, with operations in key wind energy markets. This allows it to access a wide customer base and optimize its supply chain.
• Sustainability: TPI is committed to sustainable practices throughout its operations. It uses environmentally friendly materials and processes to minimize its carbon footprint.

Advantages over Competitors

TPI Composites has several advantages over its competitors, including:

• Scale and Efficiency: TPI is one of the largest blade manufacturers in the world. Its scale allows it to achieve economies of scale and invest in advanced production technologies.
• Product Innovation: TPI's focus on innovation has led to the development of industry-leading blade designs that optimize energy capture and reduce costs.
• Quality and Reliability: TPI blades are renowned for their high quality and reliability, reducing maintenance and downtime for its customers.
• Global Footprint: TPI's global presence gives it access to key markets and enables it to serve customers around the world.
• Customer Focus: TPI's commitment to customer relationships allows it to tailor its solutions to specific project needs and provide exceptional customer service.
• Vertical Integration: TPI integrates various aspects of the production process, including design, manufacturing, and materials sourcing. This control over the entire supply chain enhances efficiency and quality.
• Sustainability Leadership: TPI's emphasis on sustainability differentiates it from competitors and aligns with the growing demand for environmentally friendly solutions in the wind energy industry.

TPI Composites Outlook

TPI Composites, Inc. (TPIC) is a leading independent manufacturer of composite wind blades for the wind energy industry. The company has a strong track record of growth and profitability, and is well-positioned to benefit from the growing demand for renewable energy.

Industry Outlook

The global wind energy market is expected to grow significantly over the next decade, driven by increasing demand for renewable energy and government subsidies. According to the Global Wind Energy Council, global wind power capacity is expected to grow from 651 GW in 2021 to 2,650 GW by 2031.

Company Outlook

TPI Composites is well-positioned to benefit from the growing demand for wind blades. The company has a global manufacturing footprint, with facilities in the United States, Mexico, Turkey, and China. TPI also has a strong customer base, including major wind turbine manufacturers such as Vestas, GE Renewable Energy, and Siemens Gamesa Renewable Energy.

The company's financial performance has been strong in recent years. In 2022, TPI reported revenue of $1.6 billion, up 23% from 2021. Net income was $247 million, up 34% from 2021.

Growth Drivers

TPI Composites is focused on several growth initiatives, including:

• Increasing market share in key wind markets
• Expanding product offerings
• Investing in new technologies
• Growing its global presence

Key Challenges

The company faces several challenges, including:

• Competition from other wind blade manufacturers
• Fluctuations in the price of raw materials
• Supply chain disruptions
• Foreign exchange rate fluctuations

Valuation

TPI Composites is currently trading at a forward P/E ratio of 12.5x, which is below the industry average of 14.5x. The company's PEG ratio is 1.0x, which indicates that it is fairly valued.

Analyst Ratings

The consensus analyst rating for TPI Composites is "Buy". The average price target for the stock is $28.50, which represents a 20% upside from the current price.

Investment Thesis

TPI Composites is a well-managed company with a strong track record of growth and profitability. The company is well-positioned to benefit from the growing demand for wind blades, and is trading at a reasonable valuation. As such, TPI Composites is a good investment for investors looking for exposure to the renewable energy sector.

Similar Companies to TPI Composites

1. Hexcel Corporation

• Home page
• A leading manufacturer of advanced composite materials for aerospace, defense, and industrial applications.
• Customers appreciate Hexcel for its high-quality products, technical expertise, and global presence.

2. Toray Industries

• Home page
• A diversified materials science company with a strong focus on composite materials.
• Known for its innovative products and research capabilities, Toray is a preferred supplier for many industries.

3. Mitsubishi Chemical Carbon Fiber and Composite Materials Company

• Home page
• A subsidiary of Mitsubishi Chemical, specializing in carbon fiber and composite materials.
• Customers value Mitsubishi's advanced technologies and ability to provide integrated solutions.

4. Solvay Composite Materials

• Home page
• A global supplier of high-performance composite materials for aerospace, automotive, and other industries.
• Known for its expertise in thermoplastic composites and continuous fiber-reinforced thermoplastics.

5. Teijin Aramid B.V.

• Home page
• A manufacturer of high-performance aramid fibers, including Twaron® and Technora®.
• Customers choose Teijin Aramid for its strong, lightweight, and heat-resistant materials.

History of TPI Composites, Inc.

1972:

• TPI Composites is founded as Technology Products, Inc. (TPI) in Warren, Rhode Island, USA.
• The company initially focuses on manufacturing fiberglass reinforced plastic (FRP) components for the marine industry.

1980s:

• TPI expands its operations to include manufacturing FRP components for the automotive, electronics, and industrial markets.
• The company acquires several smaller fiberglass companies, increasing its production capacity.

1990s:

• TPI continues to grow and becomes a leading supplier of FRP components to the automotive industry.
• The company begins developing and manufacturing composite materials for aerospace applications.

2000s:

• TPI enters the wind energy market, manufacturing blades and other components for wind turbines.
• The company acquires Blade Dynamics, a leading manufacturer of wind turbine blades.
• TPI becomes a publicly traded company on the NASDAQ stock exchange.

2010s:

• TPI expands its global presence with manufacturing facilities in Mexico, India, and China.
• The company acquires Kaman Composites, a leading manufacturer of composite structures for the aerospace and defense industries.

2020s:

• TPI continues to invest in research and development, expanding its product offerings and enhancing its manufacturing capabilities.
• The company focuses on sustainability and environmental responsibility, reducing its carbon footprint and using sustainable materials.

Present:

TPI Composites is a leading global manufacturer of composite materials, components, and structures for a wide range of industries, including automotive, wind energy, electronics, marine, and aerospace. The company has approximately 8,000 employees and operates manufacturing facilities in 10 countries.

2020

• January 2020: TPI Composites announces a contract with General Motors to supply composite materials for the new Chevrolet Corvette C8.
• March 2020: TPI Composites announces a contract with Ford Motor Company to supply composite materials for the new Ford F-150 pickup truck.
• July 2020: TPI Composites announces a contract with BMW to supply composite materials for the new BMW iX electric SUV.

2021

• January 2021: TPI Composites announces a contract with Stellantis to supply composite materials for the new Jeep Grand Cherokee.
• March 2021: TPI Composites announces a contract with Toyota Motor Corporation to supply composite materials for the new Toyota Tundra pickup truck.
• July 2021: TPI Composites announces a contract with Volkswagen Group to supply composite materials for the new Volkswagen ID.4 electric SUV.

2022

• January 2022: TPI Composites announces a contract with Rivian Automotive to supply composite materials for the new Rivian R1T electric pickup truck.
• March 2022: TPI Composites announces a contract with Lucid Motors to supply composite materials for the new Lucid Air electric sedan.
• July 2022: TPI Composites announces a contract with NIO to supply composite materials for the new NIO ET7 electric sedan.

Recent Timelines:

• October 2022: TPI Composites announces a contract with VinFast to supply composite materials for the new VinFast VF e35 electric SUV.
• November 2022: TPI Composites announces a contract with Fisker Inc. to supply composite materials for the new Fisker Ocean electric SUV.
• December 2022: TPI Composites announces a contract with BYD to supply composite materials for the new BYD Seal electric sedan.

Exceptional Expertise in Composites Manufacturing

As an industry professional, I had the pleasure of collaborating with TPI Composites on a recent project. I was thoroughly impressed by their unparalleled expertise in composites manufacturing.

State-of-the-Art Facilities and Equipment

TPI Composites boasts world-class facilities equipped with cutting-edge technology. Their advanced equipment ensures precision and efficiency in every aspect of the manufacturing process. The team's deep understanding of composite materials and processes allows them to deliver exceptional results.

Exceptional Customer Service

The team at TPI Composites went above and beyond to meet my needs. They were responsive, attentive, and dedicated to ensuring my project was a success. Their commitment to customer satisfaction was evident throughout the entire engagement.

Innovative Solutions

TPI Composites demonstrated a remarkable ability to think outside the box and develop innovative solutions to complex engineering challenges. Their team of experts worked closely with me to customize a solution that met the specific demands of my project.

Outstanding Quality and Reliability

The composites manufactured by TPI Composites were of the highest quality and met all our specifications. Their attention to detail and rigorous quality control processes ensured that the products exceeded our expectations.

Environmental Consciousness

TPI Composites is committed to sustainable manufacturing practices. They use environmentally friendly materials and processes to minimize their impact on the planet. This forward-thinking approach aligns well with our own values.

Overall Impression

I highly recommend TPI Composites for any organization seeking a trusted and capable partner in the composites manufacturing industry. Their expertise, customer-centric approach, and unwavering commitment to quality make them an exceptional choice.

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Composite Materials: The Future of Engineering At TPI Composites, we harness the power of composites – advanced materials that combine the strength of multiple materials into a lightweight, durable, and versatile solution. Our composites are engineered to meet the most demanding requirements, enabling you to create products that outperform, reduce weight, and enhance sustainability.

Extensive Product Portfolio Our website showcases our comprehensive product portfolio, including:

• Composite panels for architectural facades, transportation, and marine applications
• Fabricated components for aerospace, defense, and medical devices
• Prepreg and laminates for wind turbines, sporting goods, and industrial products
• Customized tooling and molding solutions

Unmatched Expertise and Support As a global leader, TPI Composites is renowned for our technical expertise and exceptional customer support. Our team of experienced engineers, designers, and manufacturing experts is dedicated to providing you with guidance and assistance throughout your project journey.

Sustainability and Environmental Commitment We are committed to sustainability in everything we do. Our products are designed to reduce environmental impact, and our manufacturing processes adhere to the highest standards of environmental stewardship.

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Main Suppliers (or Upstream Service Providers) of TPI Composites Company

TPI Composites is a leading manufacturer of composite wind turbine blades and other composite components for the wind energy industry. The company has a wide range of suppliers that provide it with raw materials, components, and services necessary for its manufacturing operations.

Key Suppliers

TPI Composites' key suppliers include:

• Hexion Inc. (NYSE: HXL): A global producer of thermosetting resins and specialty chemicals. Hexion supplies TPI Composites with epoxy resins, which are used to make the composite materials used in wind turbine blades.
• Owens Corning (NYSE: OC): A leading manufacturer of fiberglass and other composite materials. Owens Corning supplies TPI Composites with fiberglass reinforcements, which are used to provide strength and durability to wind turbine blades.
• General Electric (NYSE: GE): A multinational conglomerate that operates in various industries, including energy and aviation. GE supplies TPI Composites with nacelles, which house the generators and other components of wind turbines.
• Siemens Gamesa Renewable Energy (BME: SGRE): A global leader in the wind energy industry. Siemens Gamesa supplies TPI Composites with wind turbine blades and other components.
• Vestas Wind Systems (CPH: VWS): A Danish company that is one of the world's largest wind turbine manufacturers. Vestas supplies TPI Composites with wind turbine blades and other components.

Other Suppliers

In addition to its key suppliers, TPI Composites also relies on a number of other suppliers for various materials, components, and services. These suppliers include:

• Tooling suppliers: Companies that provide TPI Composites with the molds and other tooling used to manufacture wind turbine blades.
• Equipment suppliers: Companies that provide TPI Composites with the machinery and equipment used in its manufacturing operations.
• Logistics providers: Companies that provide TPI Composites with transportation and logistics services.
• Engineering and design services: Companies that provide TPI Composites with engineering and design services for its wind turbine blades and other products.

Supplier Relationships

TPI Composites has long-standing relationships with its suppliers. The company works closely with its suppliers to ensure that it receives high-quality materials and components at competitive prices. TPI Composites also provides technical support and other assistance to its suppliers to help them improve their products and services.

Supplier Websites

The following is a list of websites for the key suppliers of TPI Composites:

• Hexion Inc.: https://www.hexion.com/
• Owens Corning: https://www.owenscorning.com/
• General Electric: https://www.ge.com/
• Siemens Gamesa Renewable Energy: https://www.siemensgamesa.com/
• Vestas Wind Systems: https://www.vestas.com/

Main Customers of TPI Composites

TPI Composites primarily serves the following downstream companies in the wind energy industry:

1. Vestas Wind Systems A/S

• Website: https://www.vestas.com/en/
• Vestas is a leading global manufacturer of wind turbines, providing complete solutions for wind energy generation.

2. NextEra Energy Resources, LLC

• Website: https://www.nexteraenergyresources.com/
• NextEra Energy is one of the largest electric utilities in the United States, with a significant portfolio of wind energy assets.

3. General Electric Renewable Energy

• Website: https://www.ge.com/renewableenergy/
• General Electric Renewable Energy manufactures and supplies a range of wind turbine technologies and related services.

4. Siemens Gamesa Renewable Energy

• Website: https://www.siemensgamesa.com/en-int/
• Siemens Gamesa is a global leader in the wind energy sector, offering onshore and offshore wind turbine solutions.

5. Envision Energy

• Website: https://www.envision-energy.com/
• Envision Energy is a Chinese wind turbine manufacturer with a growing global presence.

6. Mingyang Smart Energy Group Co., Ltd.

• Website: https://www.sdewes.com/en/
• Mingyang Smart Energy is a Chinese wind turbine manufacturer with a strong presence in the domestic market.

7. Goldwind Technology Co., Ltd.

• Website: https://www.goldwindglobal.com/
• Goldwind Technology is a Chinese wind turbine manufacturer with operations in various countries worldwide.

8. Windey

• Website: https://www.windey.com/
• Windey is a Dutch wind turbine manufacturer specializing in small and medium-sized turbines for distributed generation applications.

9. Nordex SE

• Website: https://www.nordex-online.com/
• Nordex is a German wind turbine manufacturer with a global footprint in the onshore wind energy market.

10. Senvion SE

• Website: https://www.senvion.com/
• Senvion is a German wind turbine manufacturer with a focus on offshore wind projects.

TPI Composites, Inc. is a leading manufacturer of composite wind blades and other composite structures for the clean energy and transportation industries. The company's key revenue stream is the sale of wind blades to wind turbine manufacturers.

Estimated Annual Revenue

In 2022, TPI Composites reported revenue of approximately $2.8 billion. The majority of this revenue (over 90%) was derived from the sale of wind blades. The company also generates some revenue from the sale of other composite structures, such as automotive parts and aerospace components.

Key Revenue Drivers

The key revenue drivers for TPI Composites are:

• Demand for wind energy: The demand for wind energy is increasing globally as countries move to reduce their carbon emissions. This is driving demand for wind turbines and, in turn, wind blades.
• Market share: TPI Composites is a leading manufacturer of wind blades, with a significant market share in both the onshore and offshore wind markets. The company's strong market position allows it to capture a large portion of the growing demand for wind blades.
• Product innovation: TPI Composites is constantly innovating its products to improve efficiency and reduce costs. The company's latest generation of wind blades are lighter and more durable than previous models, which makes them more attractive to wind turbine manufacturers.
• Global presence: TPI Composites has manufacturing facilities in the United States, Mexico, China, Turkey, and India. This global presence allows the company to serve customers in all major wind markets.

Key Revenue Risks

The key revenue risks for TPI Composites are:

• Competition: The wind blade market is competitive, with a number of major players. TPI Composites faces competition from both domestic and international manufacturers.
• Economic conditions: The demand for wind energy can be affected by economic conditions. A slowdown in the global economy could lead to a decrease in demand for wind turbines and, in turn, wind blades.
• Technological changes: The wind energy industry is constantly evolving, with new technologies being developed all the time. TPI Composites must constantly innovate its products to stay ahead of the competition.

Overall

TPI Composites is a well-positioned company in the growing wind energy market. The company's key revenue stream is the sale of wind blades, and it is a leading manufacturer of these products. The company's strong market position, product innovation, and global presence are key revenue drivers. However, the company faces competition from other manufacturers and is exposed to risks from economic conditions and technological changes.

Key Partners of TPI Composites

TPI Composites partners with a wide range of organizations to support its operations and drive growth. These partnerships play a crucial role in the company's supply chain, manufacturing processes, and distribution channels.

Suppliers

• Hexcel (www.hexcel.com): A leading global supplier of advanced composite materials and structures. TPI Composites relies on Hexcel for carbon fiber and other raw materials essential for its composites manufacturing.
• Toray Industries (www.toray.com): A multinational corporation specializing in synthetic fibers, chemicals, and advanced materials. TPI Composites sources carbon fiber and other composite materials from Toray.
• Mitsubishi Rayon (www.mrc.co.jp/en/): A Japanese chemical and materials manufacturer. TPI Composites utilizes Mitsubishi Rayon's carbon fiber and other composite materials in its products.

Manufacturing Partners

• Saertex (www.saertex.com): A German manufacturer of non-crimp fabrics (NCF) used in composites production. TPI Composites collaborates with Saertex to design and optimize NCFs for its wind blade manufacturing.
• Gurit (www.gurit.com): A Swiss company providing composite materials, reinforcements, and engineered structural components. TPI Composites partners with Gurit to enhance its composites manufacturing processes and product performance.
• ASK Chemicals (www.ask-chemicals.com): A German supplier of foundry chemicals and services. TPI Composites relies on ASK Chemicals for specialized materials used in its metal casting operations.

Distributors

• Vestas (www.vestas.com): A global leader in wind turbine manufacturing. TPI Composites supplies wind blades and other composite components to Vestas.
• Siemens Gamesa (www.siemensgamesa.com): A Spanish-German wind turbine manufacturer. TPI Composites provides wind blades and other composite components to Siemens Gamesa.
• GE Renewable Energy (www.ge.com/renewableenergy): A global provider of renewable energy solutions. TPI Composites supplies wind blades and other composite components to GE Renewable Energy.

Other Key Partners

• National Renewable Energy Laboratory (NREL) (www.nrel.gov): A U.S. Department of Energy laboratory dedicated to renewable energy research and development. TPI Composites collaborates with NREL on advanced composites technologies and wind blade optimization.
• American Composites Manufacturers Association (ACMA) (www.acmanet.org): A trade association representing the composites industry in the United States. TPI Composites is an active member of ACMA, participating in industry events and initiatives.

Key Cost Structure of TPI Composites, Inc.

Raw Materials and Components (60-70% of total costs)

• Carbon fiber and other composite materials
• Resin and other chemicals
• Wind turbine blades
• Other components

Manufacturing (20-25% of total costs)

• Labor costs
• Equipment costs
• Factory overhead

Sales and Marketing (5-10% of total costs)

• Marketing campaigns and advertising
• Sales commissions and incentives
• Customer service and support

Research and Development (3-5% of total costs)

• Innovation in composite materials and manufacturing processes
• Development of new products and technologies

General and Administrative (2-5% of total costs)

• Salaries and benefits for administrative staff
• Rent and utilities for office space
• Professional fees

Estimated Annual Cost

The estimated annual cost structure of TPI Composites, Inc. for 2023 is as follows:

• Raw Materials and Components: $700 million - $800 million
• Manufacturing: $250 million - $300 million
• Sales and Marketing: $60 million - $100 million
• Research and Development: $40 million - $60 million
• General and Administrative: $20 million - $30 million

Total Estimated Annual Cost: $1.07 billion - $1.29 billion

Key Factors Affecting Cost Structure

• Fluctuations in raw material prices
• Changes in production volumes
• Introduction of new technologies and products
• R&D investments
• Competition and industry trends

Sales Channels

TPI Composites primarily sells its products through the following channels:

• OEMs (Original Equipment Manufacturers): TPI supplies composite components and systems directly to OEMs in the wind energy, aerospace, automotive, and other industrial markets. These OEMs incorporate TPI's products into their finished products, such as wind turbines, aircraft, and vehicles.
• Distributors: TPI sells certain products through distributors, who then resell them to end-users. Distributors typically serve smaller customers or those in specific regions.
• Direct Sales: TPI also sells directly to end-users, including industrial companies, utilities, and government agencies. This channel is typically used for large or specialized orders.

Estimated Annual Sales

TPI Composites does not publicly disclose its sales by channel. However, based on the company's financial statements and industry analysts' estimates, the following is a breakdown of estimated annual sales by channel:

• OEMs: $1.2 billion (75%)
• Distributors: $250 million (15%)
• Direct Sales: $150 million (10%)

Additional Details

• Geographic Distribution: TPI Composites has a global sales network with operations in North America, Europe, Asia, and South America. The majority of sales are generated in North America and Europe.
• Customer Concentration: The company's sales are concentrated among a relatively small number of large customers, particularly in the wind energy industry.
• Sales Force: TPI Composites has a dedicated sales force that works closely with OEMs, distributors, and end-users to develop and maintain relationships.
• Marketing and Sales Programs: The company invests in marketing and sales programs to promote its products and services, including webinars, trade shows, and advertising campaigns.
• E-commerce: TPI Composites offers online sales through its website for certain products, primarily in the automotive and industrial markets.

TPI Composites' Customer Segments

TPI Composites, Inc. operates in the composite wind blade and mobility sectors. The company's customer base primarily consists of wind turbine manufacturers and original equipment manufacturers (OEMs) in the automotive and aerospace industries.

Wind Blade Customers

The wind blade segment is TPI Composites' core business, accounting for the majority of its revenue. The company's customer base in this segment includes leading wind turbine manufacturers such as:

• Vestas Wind Systems
• Siemens Gamesa Renewable Energy
• General Electric
• Nordex
• Enercon

TPI Composites estimates that its annual sales to its top 5 wind blade customers account for approximately 80% of its total wind blade revenue. In 2022, the company reported wind blade sales of approximately $1.5 billion.

Mobility Customers

TPI Composites' mobility segment focuses on manufacturing composite components for the automotive and aerospace industries. The company's customers in this segment include:

• Automotive: Ford Motor Company, General Motors, Tesla, Rivian Automotive
• Aerospace: Airbus, Boeing, Bombardier, Embraer

The mobility segment is a relatively new area of focus for TPI Composites, but it is expected to drive significant growth in the coming years. In 2022, the company reported mobility sales of approximately $250 million.

Estimated Annual Sales

TPI Composites' estimated annual sales for each customer segment are as follows:

• Wind Blade: $1.5 billion
• Mobility: $250 million

Total Estimated Annual Sales: $1.75 billion

Note: These are estimates based on publicly available information and may vary slightly from actual sales figures.

TPI Composites' Value Proposition

1. Cost Competitiveness

• TPI Composites' automated manufacturing processes and economies of scale enable it to produce wind turbine blades at a lower cost than many of its competitors.
• The company's vertical integration, which includes the production of its own composite materials, further reduces costs.
• TPI Composites' global presence allows it to take advantage of lower labor costs in certain regions.

2. Product Quality and Reliability

• TPI Composites' blades are known for their high quality and reliability.
• The company uses advanced materials and manufacturing processes to ensure that its blades meet the demanding requirements of the wind industry.
• TPI Composites' blades have a long track record of performance in the field, with a low incidence of defects or failures.

3. Customer Service

• TPI Composites is committed to providing excellent customer service.
• The company has a dedicated team of customer service representatives who are available to assist customers with any questions or concerns.
• TPI Composites also offers a variety of support services, such as training and technical assistance.

4. Innovation

• TPI Composites is constantly innovating to improve its products and processes.
• The company invests heavily in research and development, and it has a number of patents for its innovative blade designs and manufacturing processes.
• TPI Composites' commitment to innovation has helped it to maintain a competitive edge in the wind industry.

5. Sustainability

• TPI Composites is committed to sustainability.
• The company uses recycled materials in its products, and it has a number of programs in place to reduce its environmental impact.
• TPI Composites' sustainability efforts have helped it to attract customers who are looking for environmentally responsible suppliers.

Overall, TPI Composites' value proposition is based on its cost competitiveness, product quality and reliability, customer service, innovation, and sustainability. These factors have helped TPI Composites to become one of the leading suppliers of wind turbine blades in the world.

Financial Risks

• Declining revenue: TPI Composites has experienced a decline in revenue over the past few years. In 2019, the company's revenue was $1.07 billion, but it fell to $967.3 million in 2020 and $852.6 million in 2021. This decline is due to several factors, including the COVID-19 pandemic, the decline in the oil and gas industry, and the increasing competition from foreign manufacturers.
• Low profit margins: TPI Composites has low profit margins. In 2021, the company's gross profit margin was only 12.3%. This is due to the high cost of raw materials and the company's low production efficiency.
• High debt: TPI Composites has a high level of debt. As of December 31, 2021, the company had $452.6 million in debt. This debt is a burden on the company's finances and increases the risk of bankruptcy.

Operational Risks

• Production delays: TPI Composites has a history of production delays. This is due to several factors, including the complexity of the company's products, the reliance on third-party suppliers, and the company's low production efficiency.
• Quality problems: TPI Composites has also had problems with quality. This is due to several factors, including the use of low-quality materials, the lack of quality control, and the company's low production efficiency.
• Environmental risks: TPI Composites' operations pose several environmental risks. These risks include the release of hazardous chemicals, the generation of wastewater, and the consumption of energy.

Strategic Risks

• Changing customer demand: The demand for TPI Composites' products is dependent on the demand for wind turbines and automotive parts. This demand is subject to change, which could impact the company's financial performance.
• Competition: TPI Composites faces competition from several other companies, including Vestas Wind Systems, Siemens Gamesa Renewable Energy, and General Electric. This competition could limit the company's ability to grow and increase its market share.
• Technological change: The wind turbine and automotive industries are constantly evolving. This could lead to the development of new technologies that could make TPI Composites' products obsolete.

Overall, TPI Composites is a high-risk company. The company faces several financial, operational, and strategic risks. These risks could have a negative impact on the company's financial performance and could even lead to bankruptcy.