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Broadwind Announces Fourth Quarter and Full-Year 2024 Results

1. Fourth quarter 2024 revenue was $33.6 million; net loss was $0.9 million. 2. Wind-related revenue declined by 27% in heavy fabrications segment. 3. Total orders surged by 85% compared to last year, reaching record levels. 4. Cash reserves stood at $33 million; low debt-to-EBITDA ratio of 0.6x. 5. 2025 guidance projects revenue between $140-$160 million amid muted wind market.

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FAQ

Why Neutral?

The company reported a net loss but an increase in orders, reflecting mixed performance. Similar patterns in the past saw stagnant stock prices despite revenue spikes.

How important is it?

Financial results paired with strong order growth can suggest potential recovery, but past losses hinder immediate investor confidence.

Why Short Term?

Recent order increases may stabilize revenues soon but rely heavily on external factors, like wind market conditions, influencing short-term price movements.

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CICERO, Ill., March 05, 2025 (GLOBE NEWSWIRE) -- Broadwind (Nasdaq: BWEN, or the “Company”), a diversified precision manufacturer of specialized components and solutions serving global markets, today announced results for the fourth quarter and full-year 2024. FOURTH QUARTER 2024 RESULTS Total revenue of $33.6 millionNet loss of ($0.9) million, or ($0.04) per shareTotal non-GAAP adjusted EBITDA of $2.1 million, or 6.4% of total revenueRatio of net debt to trailing twelve-month non-GAAP adjusted EBITDA of 0.6x as of December 31, 2024 FULL-YEAR 2024 RESULTS Total revenue of $143.1 millionNet income of $1.2 million, or $0.05 per shareTotal non-GAAP adjusted EBITDA of $13.3 million, or 9.3% of total revenue Broadwind reported a net loss of ($0.9) million, or ($0.04) per share in the fourth quarter 2024, compared to net income of $1.1 million, or $0.05 per share, in the fourth quarter 2023. The Company reported adjusted EBITDA, a non-GAAP measure, of $2.1 million in the fourth quarter compared to $4.4 million in the prior year period. For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release. Fourth quarter results were impacted by lower customer demand across each reporting segment, when compared to the prior year period, particularly within the Company’s wind and oil/gas end-markets. Total wind-related revenue within our heavy fabrication segment decreased 27% compared to the prior year period, as weakness in the domestic onshore wind activity persisted into the fourth quarter.   Total orders increased 85% in the fourth quarter, when compared to the prior year period, benefiting from increased customer demand across all reporting segments and most of the Company’s vertical markets. Within the Industrial Solutions segment, orders and backlog reached record levels during the fourth quarter driven by demand for natural gas turbines. Consolidated backlog increased on a sequential basis to $125.5 million as of December 31, 2024.   As of December 31, 2024, Broadwind had total cash on hand and availability under its credit facility of $33 million. The Company’s ratio of net debt to trailing twelve month non-GAAP adjusted EBITDA was 0.6x at the end of the fourth quarter 2024. MANAGEMENT COMMENTARY “While customer project activity remained below prior year levels during the fourth quarter, primarily due to lower activity within our wind and oil/gas markets, new orders increased to the highest level in nearly two years, resulting in a book-to-bill of 1.1x in the period,” stated Eric Blashford, President and CEO of Broadwind. “We expect that a combination of increased order intake and recent cost-saving measures will enhance our operating leverage over the coming year, consistent with our strategic focus on profitable growth.” “Total orders increased 85% in the fourth quarter versus the prior year period, supported by demand growth across nearly every customer end-market,” continued Blashford. “Orders within our industrial end-markets increased by more than 300% in the fourth quarter, while wind orders doubled as compared to the prior year period. While we expect our oil/gas markets to remain soft in the near-term, we anticipate ratable improvements in order activity across our diverse end-markets as we move through 2025.” “Within our Heavy Fabrications segment, we received our first substantial order for large fabrications serving the hydroelectric market during the fourth quarter. Within our Gearing segment, we’ve continued to gain traction with new customers within the aeroderivative turbine and medical technology markets where our precision machining expertise is in high demand,” continued Blashford. “Natural gas turbine demand remained very strong in the fourth quarter, which continued to benefit our Industrial Solutions segment, which generated record orders and backlog in the period.” “We remain highly focused on asset optimization, particularly with respect to utilization rates across our manufacturing system,” continued Blashford. “Recent order growth is expected to support a meaningful uplift in plant utilization in 2025, well above the levels experienced this past year. As order rates continue to recover, and backlog conversion accelerates, we intend to realize improved fixed-cost absorption across the Company during 2025.” “On a full-year basis, we successfully advanced our strategic priorities during a period of softer demand, culminating in another year of profitability,” continued Blashford. “Our 100% U.S. manufacturing footprint, highly skilled domestic workforce, and depth of experience producing large-scale, technical fabrications remain highly valued competitive advantages, particularly in a policy environment that is expected to favor domestic manufacturers. Looking ahead, we remain focused on further expanding our commercial focus across high-value, growing end-markets, further improving our operational efficiency and asset utilization, while selectively deploying capital toward high-return intellectual property and manufacturing capabilities valued by our customers.” “At the end of the fourth quarter, we had $33 million of available cash and liquidity to support our operations, which includes an advanced payment negotiated with a major customer late in the year,” noted Blashford. “As of December 31, 2024, our net leverage was 0.6x, well within our target range of at or below 2.0x.” “Today, we introduced financial guidance for the full year 2025,” concluded Blashford. “While new U.S. onshore wind development is expected to remain muted over the coming year, we’re encouraged by the pace of order growth within our core, non-wind markets, which positions us for improved optimization of our manufacturing base over the coming year. Amidst a policy environment that favors domestic manufacturers, we believe that our business is well-positioned ahead of a cyclical demand recovery.” SEGMENT RESULTS Heavy Fabrications Segment Broadwind provides large, complex and precision fabrications, and proprietary industrial processing equipment, to customers in a broad range of industrial markets. Key products include wind towers, compressed natural gas pressure reducing systems and industrial fabrications, including mining and material handling components and other frames/structures. Heavy Fabrications segment sales declined by 30.8% to $20.4 million in the fourth quarter 2024, as compared to the prior year period, primarily driven by a 27% decline in wind-related revenue. The segment reported operating income of $1.3 million in the fourth quarter, as compared to operating income of $2.6 million in the prior year period. Segment non-GAAP adjusted EBITDA was $2.6 million in the fourth quarter, as compared to $3.7 million in the prior year period. Gearing SegmentBroadwind provides custom gearboxes, loose gearing, precision machined components and heat treat services to a broad set of customers in diverse markets, including oil & gas production, surface and underground mining, wind energy, steel, material handling and other infrastructure markets. Gearing segment sales declined by 31.0% to $7.6 million in the fourth quarter 2024, as compared to the prior year period, primarily driven by softness in demand from our oil & gas markets. The segment reported an operating loss of ($0.6) million in the fourth quarter, compared to operating income of $0.7 million in the prior year period. Segment non-GAAP adjusted EBITDA was $0.1 million in the fourth quarter, as compared to $1.3 million in the prior year period. Industrial Solutions Segment Broadwind provides supply chain solutions, light fabrication, inventory management, kitting and assembly services, primarily serving the combined cycle natural gas turbine market as well as other clean technology markets.   Industrial Solutions segment sales declined by 2.8% to $5.9 million in the fourth quarter 2024, as compared to the prior year period, primarily driven by lower demand for aftermarket units. The segment reported operating income of $0.4 million in the fourth quarter compared to operating income of $0.8 million in the prior year period. Segment non-GAAP adjusted EBITDA was $0.6 million in the fourth quarter, as compared to $1.0 million in the prior year period. FINANCIAL GUIDANCE Today, Broadwind introduced financial guidance for the full year 2025. The following financial guidance reflects the Company’s current expectations and beliefs. All guidance is current as of the time provided and is subject to change.  Full Year 2025$ in MillionsLowMidHigh    Total Revenue $140$150$160Adjusted EBITDA$13$14$15     FOURTH QUARTER AND FULL-YEAR 2024 RESULTS CONFERENCE CALL Broadwind will host a conference call today, March 5, 2025, at 11:00 a.m. ET to review the Company’s financial results, discuss recent events and conduct a question-and-answer session. A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company’s corporate website at https://investors.bwen.com/investors. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software. To participate in the live teleconference: Live Teleconference:                877-407-9716 To listen to a replay of the teleconference, which will be available through Wednesday, March 12, 2025: Teleconference Replay:           844-512-2921Conference ID:                           13751146 ABOUT BROADWIND Broadwind (Nasdaq: BWEN) is a precision manufacturer of structures, equipment and components for clean tech and other specialized applications. With facilities throughout the U.S., our talented team is committed to helping customers maximize performance of their investments—quicker, easier and smarter. Find out more at www.bwen.com NON-GAAP FINANCIAL MEASURESThe Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, share-based compensation and other stock payments, restructuring costs, impairment charges, proxy contest-related expenses and other non-cash gains and losses) as supplemental information regarding the Company’s business performance. The Company’s management uses this supplemental information when it internally evaluates its performance, reviews financial trends and makes operating and strategic decisions. The Company believes that this non-GAAP financial measure is useful to investors because it provides investors with a better understanding of the Company’s past financial performance and future results, which allows investors to evaluate the Company’s performance using the same methodology and information as used by the Company’s management. The Company's definition of adjusted EBITDA may be different from similar non-GAAP financial measures used by other companies and/or analysts. FORWARD-LOOKING STATEMENTS This release contains “forward-looking statements”—that is, statements related to future, not past, events— as defined in Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), that reflect our current expectations regarding our future growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities, as well as assumptions made by, and information currently available to, our management. We have tried to identify forward looking statements by using words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “should,” “may,” “plan” and similar expressions, but these words are not the exclusive means of identifying forward looking statements. Forward-looking statements include any statement that does not directly relate to a current or historical fact. Our forward-looking statements may include or relate to our beliefs, expectations, plans and/or assumptions with respect to the following: (i) our expectations and beliefs with respect to our financial guidance as set forth in this release; (ii) the impact of global health concerns on the economies and financial markets and the demand for our products; (iii) state, local and federal regulatory frameworks affecting the industries in which we compete, including the wind energy industry, and the related extension, continuation or renewal of federal tax incentives and grants, including the advanced manufacturing tax credits, and state renewable portfolio standards as well as new or continuing tariffs on steel or other products imported into the United States; (iv) our customer relationships and our substantial dependency on a few significant customers and our efforts to diversify our customer base and sector focus and leverage relationships across business units; (v) our ability to operate our business efficiently, comply with our debt obligations, manage capital expenditures and costs effectively, and generate cash flow; (vi) the economic and operational stability of our significant customers and suppliers, including their respective supply chains, and the ability to source alternative suppliers as necessary; (vii) our ability to continue to grow our business organically and through acquisitions; (viii) the production, sales, collections, customer deposits and revenues generated by new customer orders and our ability to realize the resulting cash flows; (ix) information technology failures, network disruptions, cybersecurity attacks or breaches in data security; (x) the sufficiency of our liquidity and alternate sources of funding, if necessary; (xi) our ability to realize revenue from customer orders and backlog (including our ability to finalize the terms of the remaining obligations under a supply agreement with a leading global wind turbine manufacturer); (xii) the economy and the potential impact it may have on our business, including our customers; (xiii) the state of the wind energy market and other energy and industrial markets generally, including the availability of tax credits, and the impact of competition and economic volatility in those markets; (xiv) the effects of market disruptions and regular market volatility, including fluctuations in the price of oil, gas and other commodities; (xv) competition from new or existing industry participants including, in particular, increased competition from foreign tower manufacturers; (xvi) the effects of the change of administrations in the U.S. federal government; (xvii) our ability to successfully integrate and operate acquired companies and to identify, negotiate and execute future acquisitions; (xviii) the potential loss of tax benefits if we experience an “ownership change” under Section 382 of the Internal Revenue Code of 1986, as amended; (xix) the effects of proxy contests and actions of activist stockholders; (xx) the limited trading market for our securities and the volatility of market price for our securities; (xxi) our outstanding indebtedness and its impact on our business activities (including our ability to incur additional debt in the future); and (xxii) the impact of future sales of our common stock or securities convertible into our common stock on our stock price. These statements are based on information currently available to us and are subject to various risks, uncertainties and other factors that could cause our actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements including, but not limited to, those set forth under the caption “Risk Factors” in Part I, Item 1A of our most recently filed Form 10-K. We are under no duty to update any of these statements. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or other factors that could cause our current beliefs, expectations, plans and/or assumptions to change. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. IR CONTACT Noel Ryan, IRCBWEN@val-adv.com BROADWIND, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(IN THOUSANDS, EXCEPT SHARE DATA)             December 31, December 31,      2024   2023 ASSETS   CURRENT ASSETS:    Cash$7,721  $1,099  Accounts receivable, net 13,454   19,231  AMP credit receivable 2,533   7,051  Contract assets 836   1,460  Inventories 39,950   37,405  Prepaid expenses and other current assets 2,374   3,500   Total current assets 66,868   69,746 LONG-TERM ASSETS:    Property and equipment, net 45,572   47,123  Operating lease right-of-use assets, net 13,841   15,593  Intangible assets, net 1,403   2,064  Other assets 606   630 TOTAL ASSETS$128,290  $135,156         LIABILITIES AND STOCKHOLDERS' EQUITY   CURRENT LIABILITIES:    Line of credit and current maturities of long-term debt$1,454  $5,903  Current portion of finance lease obligations 2,266   2,153  Current portion of operating lease obligations 2,115   1,851  Accounts payable 16,080   20,728  Accrued liabilities 3,605   6,477  Customer deposits 18,037   16,500   Total current liabilities 43,557   53,612 LONG-TERM LIABILITIES    Long-term debt, net of current maturities 7,742   6,250  Long-term finance lease obligations, net of current portion 3,777   3,372  Long-term operating lease obligations, net of current portion 13,799   15,888  Other 15   15   Total long-term liabilities 25,333   25,525 COMMITMENTS AND CONTINGENCIES           STOCKHOLDERS' EQUITY:    Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued    or outstanding -   -  Common stock, $0.001 par value; 45,000,000 shares authorized; 22,593,589    and 21,840,301 shares issued as of December 31, 2024 and    December 31, 2023, respectively 23   22  Treasury stock, at cost, 273,937 shares as of December 31, 2024 and December 31, 2023,   respectively (1,842)  (1,842) Additional paid-in capital 401,564   399,336  Accumulated deficit (340,345)  (341,497)  Total stockholders' equity 59,400   56,019 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$128,290  $135,156          BROADWIND, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(IN THOUSANDS, EXCEPT PER SHARE DATA)(UNAUDITED)           Three Months Ended December 31, Twelve Months Ended December 31,   2024   2023   2024   2023                   Revenues$33,565  $46,598  $143,136  $203,477 Cost of sales 29,776   39,566   121,947   170,969 Gross profit 3,789   7,032   21,189   32,508          OPERATING EXPENSES:       Selling, general and administrative 3,912   4,592   16,303   20,705 Intangible amortization 165   166   661   664  Total operating expenses 4,077   4,758   16,964   21,369 Operating (loss) income (288)  2,274   4,225   11,139          OTHER (EXPENSE) INCOME, net:       Interest expense, net (762)  (1,030)  (3,078)  (3,201)Other, net 77   (11)  79   (48) Total other expense, net (685)  (1,041)  (2,999)  (3,249)         Net (loss) income before provision for income taxes (973)  1,233   1,226   7,890 (Benefit) provision for income taxes (59)  162   74   241 NET (LOSS) INCOME$(914) $1,071  $1,152  $7,649                   NET (LOSS) INCOME PER COMMON SHARE - BASIC:       Net (loss) income$(0.04) $0.05  $0.05  $0.36          WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC 22,172   21,449   21,896   21,189          NET (LOSS) INCOME PER COMMON SHARE - DILUTED:       Net (loss) income$(0.04) $0.05  $0.05  $0.36          WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED 22,224   21,633   21,975   21,491           BROADWIND, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED)          Twelve Months Ended December 31,     2024   2023 CASH FLOWS FROM OPERATING ACTIVITIES:   Net income$1,152  $7,649       Adjustments to reconcile net cash provided by (used in) operating activities:   Depreciation and amortization expense 6,684   6,383   Deferred income taxes -   (10)  Share-based compensation 1,160   877   Allowance for credit losses (5)  82   Common stock issued under defined contribution 401(k) plan 1,199   1,336   (Gain) loss on disposal of assets (114)  42   Changes in operating assets and liabilities:     Accounts receivable 5,782   (2,295)   AMP credit receivable 4,518   (7,051)   Contract assets 624   495    Inventories (2,545)  6,857    Prepaid expenses and other current assets 1,126   (210)   Accounts payable (4,392)  (6,008)   Accrued liabilities (2,872)  2,782    Customer deposits 1,537   (18,050)   Other non-current assets and liabilities (48)  175 Net cash provided by (used in) operating activities 13,806   (6,946)      CASH FLOWS FROM INVESTING ACTIVITIES:   Purchases of property and equipment (3,618)  (6,405) Proceeds from disposals of property and equipment 159   21 Net cash used in investing activities (3,459)  (6,384)      CASH FLOWS FROM FINANCING ACTIVITIES:   (Payments on) proceeds from line of credit, net (4,637)  4,705  Payments for deferred financing costs (20)  (48) Proceeds from long-term debt 4,107   1,056  Payments on long-term debt (1,399)  (1,872) Payments on finance leases (1,646)  (1,409) Shares withheld for taxes in connection with issuance of restricted stock (130)  (735)Net cash (used in) provided by financing activities (3,725)  1,697       NET INCREASE (DECREASE) IN CASH 6,622   (11,633)CASH beginning of the period 1,099   12,732 CASH end of the period$7,721  $1,099       Supplemental cash flow information:   Interest paid$1,555  $2,073  Income taxes paid$192  $17       Non-cash investing and financing activities:   Equipment additions via finance lease$1,376  $719  Non-cash purchases of property and equipment$257  $482  Settlement of incentive compensation liability with stock$-  $619        BROADWIND, INC. AND SUBSIDIARIESSELECTED SEGMENT FINANCIAL INFORMATION(IN THOUSANDS)(UNAUDITED)    Three Months Ended Twelve Months Ended   December 31, December 31,    2024   2023   2024   2023 ORDERS:      Heavy Fabrications$22,428  $9,985  $53,934  $50,594  Gearing 7,016   3,603   26,562   24,814  Industrial Solutions 8,026   6,619   27,317   25,652   Total orders$37,470  $20,207  $107,813  $101,060           REVENUES:      Heavy Fabrications$20,429  $29,503  $82,657  $133,368  Gearing 7,630   11,061   35,588   45,408  Industrial Solutions 5,863   6,035   26,056   25,159  Corporate and Other (357)  (1)  (1,165)  (458)  Total revenues$33,565  $46,598  $143,136  $203,477           OPERATING INCOME/(LOSS):      Heavy Fabrications$1,296  $2,554  $7,128  $15,006  Gearing (567)  654   (138)  1,846  Industrial Solutions 413   848   3,265   3,160  Corporate and Other (1,430)  (1,782)  (6,030)  (8,873)  Total operating income (loss)$(288) $2,274  $4,225  $11,139            BROADWIND, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(IN THOUSANDS)(UNAUDITED)         Consolidated Three Months Ended December 31, Twelve Months Ended December 31,     2024   2023   2024   2023 Net (Loss) Income  $(914) $1,072  $1,152  $7,649 Interest Expense   762   1,031   3,078   3,201 Income Tax (Benefit) Provision   (59)  162   74   241 Depreciation and Amortization   1,698   1,611   6,684   6,383 Share-based Compensation and Other Stock Payments   662   559   2,347   2,220 Proxy Contest-Related Expenses   -   1   (10)  1,780  Adjusted EBITDA (Non-GAAP) $2,149  $4,436  $13,325  $21,474             Heavy Fabrications Segment Three Months Ended December 31, Twelve Months Ended December 31,    2024   2023   2024   2023 Net Income $167  $1,696  $6,755  $13,862 Interest Expense  218   149   1,071   649 Income Tax (Benefit) Provision  991   711   (617)  493 Depreciation  1,006   907   3,938   3,518 Share-based Compensation and Other Stock Payments  202   224   791   936  Adjusted EBITDA (Non-GAAP) $2,584  $3,687  $11,938  $19,458            Gearing Segment Three Months Ended December 31, Twelve Months Ended December 31,    2024   2023   2024   2023 Net (Loss) Income $(651) $585  $(405) $1,553 Interest Expense  75   59   237   262 Income Tax Provision  9   9   30   32 Depreciation and Amortization  556   555   2,183   2,270 Share-based Compensation and Other Stock Payments  104   107   441   453  Adjusted EBITDA (Non-GAAP) $93  $1,315  $2,486  $4,570            Industrial Solutions Segment Three Months Ended December 31, Twelve Months Ended December 31,    2024   2023   2024   2023 Net Income $332  $625  $2,673  $2,504 Interest Expense  92   151   517   512 Income Tax (Benefit) Provision  (13)  62   70   96 Depreciation and Amortization  113   99   427   380 Share-based Compensation and Other Stock Payments  75   48   258   196  Adjusted EBITDA (Non-GAAP) $599  $985  $3,945  $3,688            Corporate and Other Three Months Ended December 31, Twelve Months Ended December 31,    2024   2023   2024   2023 Net Loss $(762) $(1,834) $(7,871) $(10,270)Interest Expense  377   672   1,253   1,778 Income Tax (Benefit) Provision  (1,046)  (620)  591   (380)Depreciation and Amortization  23   50   136   215 Share-based Compensation and Other Stock Payments  281   180   857   635 Proxy Contest-Related Expenses  -   1   (10)  1,780  Adjusted EBITDA (Non-GAAP) $(1,127) $(1,551) $(5,044) $(6,242)          

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