Broadwind Announces Second Quarter 2025 Results

CICERO, Ill., Aug. 12, 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 second quarter 2025. SECOND QUARTER 2025 RESULTS Total revenue of $39.2 million, +7.6% y/yNet loss of ($1.0) million, or ($0.04) per diluted shareTotal non-GAAP adjusted EBITDA of $2.1 million, or 5.3% of total revenueTotal orders of $21.0 million, +14% y/y, as of June 30, 2025 Broadwind reported a net loss of ($1.0) million, or ($0.04) per diluted share in the second quarter 2025, compared to net income of $0.5 million, or $0.02 per diluted share, in the second quarter 2024. The Company reported adjusted EBITDA, a non-GAAP measure, of $2.1 million in the second quarter compared to $3.6 million in the prior year period. For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release. Revenue increased 7.6% on a year-over-year basis in the second quarter, due primarily to increased sales in the wind and industrial verticals. Revenue in the Heavy Fabrications segment increased 27.4% compared to the prior year period, primarily due to increased demand for wind tower sections and repowering adapters, partially offset by lower demand from mining customers. In the Gearing segment, revenue declined primarily due to lower demand within the domestic energy markets. Within the Industrials Solutions segment, revenue increased due to stronger order intake for natural gas turbine content. Total orders increased 14% in the second quarter, when compared to the prior year period, benefiting from increased demand from power generation and oil & gas customers, partially offset by lower orders from the industrial, wind, and mining end-markets. For the third consecutive quarter, the Industrial Solutions segment set records for both orders and backlog due to increased demand for natural gas turbine content. The consolidated backlog decreased 31.5% on a year-over-year basis to $95.3 million as of June 30, 2025. At the end of the second quarter, Broadwind had total cash on hand and availability under its credit facility of $14.9 million. The Company’s ratio of net debt to trailing twelve month Adjusted EBITDA was 3.0x at the end of the second quarter 2025, versus 1.4x at the end of the first quarter 2025. The sequential increase in the Company’s net leverage ratio is related to a near-term increase in working capital requirements related to fulfilling a temporary increase in wind tower volume. MANAGEMENT COMMENTARY “Our second quarter results reflect clear progress in our strategy to diversify into higher value precision manufacturing end markets, while also benefiting from increased demand for wind related content,” stated Eric Blashford, President and CEO of Broadwind. “Our disciplined execution has positioned us to capture tailwinds from accelerating customer investments in power generation and electrification, consistent with our long-term value creation strategy.” “In June, we announced the pending sale of our industrial fabrication operations in Manitowoc, Wisconsin,” continued Blashford. “This transaction represents a meaningful step forward in optimizing our footprint, enhancing balance sheet optionality, and sharpening our strategic focus within stable, higher-margin precision manufacturing verticals. “This transaction, which remains on pace to close during the third quarter 2025, is expected to add approximately $13 million of cash to our balance sheet, while reducing costs by an estimated $8 million annually.” “Customer activity continues to strengthen, led by demand for natural gas turbine content and for the oil & gas aftermarket,” continued Blashford. “In July, we built on this momentum with a $6 million follow-on order for gearing products. Given lead times associated with these orders, we anticipate deliveries to commence beginning in early 2026.” “Our focus on lean operations and cost discipline has enhanced our operating leverage,” continued Blashford. “However, in the second quarter of 2025, margins were temporarily impacted by early production process inefficiencies at our Manitowoc and Abilene facilities, additional overhead to support increased production volumes within the wind and power generation verticals, and lower capacity utilization levels within our Gearing segment. We expect profitability to improve as production normalizes throughout the duration of the year.” “Looking ahead, we believe our 100% domestic production footprint, advanced precision manufacturing capabilities, continued expansion into diverse, higher-value end markets, and recent strategic actions to enhance balance sheet flexibility and reduce fixed overhead position Broadwind for sustained profitable growth and long-term value creation,” concluded Blashford. 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 increased by 27.4% to $25.0 million in the second quarter 2025, as compared to the prior year period, primarily driven by an increase in wind tower sections and repowering adapters sold, partially offset by lower demand from the mining end-market. The segment reported operating income of $1.7 million in the second quarter, as compared to operating income of $1.6 million in the prior year period. Segment non-GAAP adjusted EBITDA was $2.8 million in the second quarter, in line with 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 30.3% to $7.3 million in the second quarter 2025, as compared to the prior year period, primarily driven by lower demand from oil & gas customers. The segment reported an operating loss of ($0.8) million in the second quarter, compared to operating income of $0.5 million in the prior year period. Segment non-GAAP adjusted EBITDA was ($0.1) million in the second quarter, as compared to $1.2 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 increased by 13.9% to $7.4 million in the second quarter 2025, as compared to the prior year period, primarily driven by increased sales of natural gas turbine content. The segment reported operating income of $0.5 million in the second quarter compared to operating income of $0.6 million in the prior year period. Segment non-GAAP adjusted EBITDA was $0.7 million in the second quarter, as compared to $0.8 million in the prior year period. FINANCIAL GUIDANCE On June 4, 2025, Broadwind announced that it has entered into a definitive agreement to sell its industrial fabrication operations in Manitowoc, Wisconsin for a minimum consideration of $13 million, with the possibility to receive additional funds subject to certain closing conditions. This transaction is expected to close during the third quarter of 2025, subject to the satisfaction of customary closing conditions. In connection with the pending asset sale, Broadwind is suspending its previously issued financial guidance for the full year 2025. Updated financial guidance will be provided upon the closure of the transaction, excluding contributions from the Manitowoc operations. For the full-year 2024, the Manitowoc operations generated revenue of approximately $25 million and EBITDA margins of 8 – 9%. SECOND QUARTER 2025 RESULTS CONFERENCE CALL Broadwind will host a conference call today, August 12, 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 Tuesday, August 19, 2025: Teleconference Replay:844-512-2921Conference ID:13754693 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 phase out, 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); (xxii) the impact of future sales of our common stock or securities convertible into our common stock on our stock price; (xxiii) our ability to complete the sale of our industrial fabrication operations in Manitowoc, Wisconsin (the “Manitowoc Sale”) in a timely manner, if at all; and (xxiv) the impact that the Manitowoc Sale may have on our current plans and operations. 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 and in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, and in our other filings with the Securities and Exchange Commission. 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 Stefan Neely or Noel RyanBWEN@val-adv.com BROADWIND, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(IN THOUSANDS)(UNAUDITED) June 30, December 31, 2025 2024 ASSETS CURRENT ASSETS: Cash$1,037 $7,721 Accounts receivable, net 15,436 13,454 AMP credit receivable 2,880 2,533 Contract assets 1,593 836 Inventories 51,432 39,950 Prepaid expenses and other current assets 2,074 2,374 Assets held for sale 3,849 - Total current assets 78,301 66,868 LONG-TERM ASSETS: Property and equipment, net 40,635 45,572 Operating lease right-of-use assets, net 9,982 13,841 Intangible assets, net 1,072 1,403 Other assets 521 606 TOTAL ASSETS$130,511 $128,290 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Line of credit and current maturities of long-term debt$19,099 $1,454 Current portion of finance lease obligations 2,229 2,266 Current portion of operating lease obligations 1,606 2,115 Accounts payable 20,025 16,080 Accrued liabilities 4,007 3,605 Customer deposits 4,341 18,037 Total current liabilities 51,307 43,557 LONG-TERM LIABILITIES: Long-term debt, net of current maturities 7,006 7,742 Long-term finance lease obligations, net of current portion 3,089 3,777 Long-term operating lease obligations, net of current portion 10,150 13,799 Other 6 15 Total long-term liabilities 20,251 25,333 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; 23,315,401 and 22,593,589 shares issued as of June 30, 2025 and December 31, 2024, respectively 23 23 Treasury stock, at cost, 273,937 shares as of June 30, 2025 and December 31, 2024, respectively (1,842) (1,842)Additional paid-in capital 402,476 401,564 Accumulated deficit (341,704) (340,345)Total stockholders' equity 58,953 59,400 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$130,511 $128,290 BROADWIND, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues$39,235 $36,452 $76,073 $74,068 Cost of sales. 35,260 30,886 67,772 61,865 Gross profit 3,975 5,566 8,301 12,203 OPERATING EXPENSES: Selling, general and administrative 3,974 4,143 7,951 8,537 Intangible amortization 166 166 331 331 Total operating expenses 4,140 4,309 8,282 8,868 Operating (loss) income (165) 1,257 19 3,335 OTHER (EXPENSE) INCOME, net: Interest expense, net (783) (726) (1,299) (1,258)Other, net (8) 4 (10) 7 Total other expense, net (791) (722) (1,309) (1,251) Net (loss) income before provision for income taxes (956) 535 (1,290) 2,084 Provision for income taxes 33 53 69 92 NET (LOSS) INCOME$(989) $482 $(1,359) $1,992 NET (LOSS) INCOME PER COMMON SHARE - BASIC: Net (loss) income$(0.04) $0.02 $(0.06) $0.09 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC 22,773 21,783 22,568 21,689 NET (LOSS) INCOME PER COMMON SHARE - DILUTED: Net (loss) income$(0.04) $0.02 $(0.06) $0.09 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED 22,773 22,003 22,568 21,904 BROADWIND, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(IN THOUSANDS)(UNAUDITED) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income$(1,359) $1,992 Adjustments to reconcile net cash used in operating activities: Depreciation and amortization expense 3,345 3,314 Deferred income taxes (9) 2 Stock-based compensation 546 576 Allowance for credit losses (16) (2)Common stock issued under defined contribution 401(k) plan 622 595 Gain on disposal of assets (1) (114)Changes in operating assets and liabilities: Accounts receivable (1,966) 5,061 AMP credit receivable (347) 5,360 Contract assets (757) 302 Inventories (11,482) (1,397)Prepaid expenses and other current assets 300 1,111 Accounts payable 4,134 (4,328)Accrued liabilities 402 (2,130)Customer deposits (13,696) (13,728)Other non-current assets and liabilities (214) (41)Net cash used in operating activities……………………………………………………………………………………………… (20,498) (3,427) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (2,116) (2,534)Proceeds from disposals of property and equipment 1 159 Net cash used in investing activities (2,115) (2,375) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from line of credit, net 17,634 5,914 Proceeds from long-term debt - 1,421 Payments on long-term debt (724) (681)Payments on finance leases (725) (883)Shares withheld for taxes in connection with issuance of restricted stock (256) (130)Net cash provided by financing activities 15,929 5,641 NET DECREASE IN CASH (6,684) (161)CASH beginning of the period 7,721 1,099 CASH end of the period$1,037 $938 BROADWIND, INC. AND SUBSIDIARIESSELECTED SEGMENT FINANCIAL INFORMATION(IN THOUSANDS)(UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 ORDERS: Heavy Fabrications$248 $9,138 $10,318 $20,359 Gearing 6,799 4,704 14,759 15,150 Industrial Solutions 13,909 4,530 24,013 11,859 Total orders$20,956 $18,372 $49,090 $47,368 REVENUES: Heavy Fabrications$24,989 $19,611 $50,236 $41,628 Gearing 7,284 10,454 13,251 18,791 Industrial Solutions 7,363 6,463 13,010 14,456 Corporate and Other (401) (76) (424) (807)Total revenues$39,235 $36,452 $76,073 $74,068 OPERATING INCOME/(LOSS): Heavy Fabrications$1,711 $1,557 $3,952 $3,601 Gearing (819) 482 (1,711) 508 Industrial Solutions 486 623 816 2,390 Corporate and Other (1,543) (1,405) (3,038) (3,164)Total operating income (loss)$(165) $1,257 $19 $3,335 BROADWIND, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(IN THOUSANDS)(UNAUDITED) ConsolidatedThree Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net (Loss) Income$(989) $482 $(1,359) $1,992 Interest Expense 783 726 1,299 1,258 Income Tax Provision 33 53 69 92 Depreciation and Amortization 1,643 1,718 3,345 3,314 Share-based Compensation and Other Stock Payments 615 663 1,099 1,165 Proxy Contest-Related Expenses - - - (10)Adjusted EBITDA (Non-GAAP)$2,085 $3,642 $4,453 $7,811 Heavy Fabrications SegmentThree Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net Income$1,500 $1,699 $3,217 $4,287 Interest Expense 207 264 354 354 Income Tax Provision (Benefit) 3 (408) 381 (1,038)Depreciation 964 1,022 1,985 1,933 Share-based Compensation and Other Stock Payments 168 222 353 400 Adjusted EBITDA (Non-GAAP)$2,842 $2,799 $6,290 $5,936 Gearing SegmentThree Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net (Loss) Income$(878) $422 $(1,839) $387 Interest Expense 58 53 121 106 Income Tax Provision 1 7 7 14 Depreciation and Amortization 550 553 1,099 1,093 Share-based Compensation and Other Stock Payments 123 128 221 230 Adjusted EBITDA (Non-GAAP)$(146) $1,163 $(391) $1,830 Industrial Solutions SegmentThree Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net Income$319 $471 $516 $2,055 Interest Expense 135 115 249 278 Income Tax Provision 23 35 35 58 Depreciation and Amortization 114 106 228 205 Share-based Compensation and Other Stock Payments 81 76 135 126 Adjusted EBITDA (Non-GAAP)$672 $803 $1,163 $2,722 Corporate and OtherThree Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net Loss$(1,930) $(2,110) $(3,253) $(4,737)Interest Expense 383 294 575 520 Income Tax Provision (Benefit) 6 419 (354) 1,058 Depreciation and Amortization 15 37 33 83 Share-based Compensation and Other Stock Payments 243 237 390 409 Proxy Contest-Related Expenses - - - (10)Adjusted EBITDA (Non-GAAP)$(1,283) $(1,123) $(2,609) $(2,677)

Broadwind Announces Second Quarter 2025 Results

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