Winners And Losers Of Q2: TPI Composites (NASDAQ:TPIC) Vs The Rest Of The Renewable Energy Stocks

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the renewable energy industry, including TPI Composites (NASDAQ:TPIC) and its peers.

Renewable energy companies are buoyed by the secular trend of green energy that is upending traditional power generation. Those who innovate and evolve with this dynamic market can win share while those who continue to rely on legacy technologies can see diminishing demand, which includes headwinds from increasing regulation against “dirty” energy. Additionally, these companies are at the whim of economic cycles, as interest rates can impact the willingness to invest in renewable energy projects.

The 15 renewable energy stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 9.3% below.

The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Amidst this news, renewable energy stocks have had a rough stretch. On average, share prices are down 6.1% since the latest earnings results.

TPI Composites (NASDAQ:TPIC)

Founded in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems.

TPI Composites reported revenues of $309.8 million, down 18.7% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a miss of analysts’ earnings estimates.

“In the second quarter we were able to complete the divestiture of our Automotive business and we closed the Nordex Matamoros plant for Nordex, two loss making businesses that have negatively impacted TPI’s performance. We also continued the ramp of ten lines either in startup or transition. As these lines enter serial production and utilization increases, combined with the divestiture of the Automotive business and shut down of the Nordex Matamoros plant, we are positioned to return the company to profitability and positive free cash flow in the second half of the year,” said Bill Siwek, President and CEO of TPI Composites.

Interestingly, the stock is up 27.9% since reporting and currently trades at $4.40.

Read our full report on TPI Composites here, it’s free.

Best Q2: Sunrun (NASDAQ:RUN)

Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ:RUN) provides residential solar electricity, specializing in panel installation and leasing services.

Sunrun reported revenues of $523.9 million, down 11.2% year on year, outperforming analysts’ expectations by 1.2%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates.

The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $16.88.

Is now the time to buy Sunrun? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Blink Charging (NASDAQ:BLNK)

One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Blink Charging reported revenues of $33.26 million, up 1.3% year on year, falling short of analysts’ expectations by 14.5%. It was a disappointing quarter as it posted a miss of analysts’ operating margin and earnings estimates.

As expected, the stock is down 34.4% since the results and currently trades at $1.66.

Read our full analysis of Blink Charging’s results here.

Fluence Energy (NASDAQ:FLNC)

Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.

Fluence Energy reported revenues of $483.3 million, down 9.9% year on year. This result surpassed analysts’ expectations by 4.4%. Zooming out, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.

The stock is up 55% since reporting and currently trades at $21.48.

Read our full, actionable report on Fluence Energy here, it’s free.

Plug Power (NASDAQ:PLUG)

Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors.

Plug Power reported revenues of $143.4 million, down 44.9% year on year. This print came in 23% below analysts' expectations. Overall, it was a softer quarter as it also produced full-year revenue guidance missing analysts’ expectations.

The stock is up 2.6% since reporting and currently trades at $2.14.

Read our full, actionable report on Plug Power here, it’s free.

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