Financial Data and Key Metrics Changes - Second quarter consolidated revenues were $39.2 million, an 8% increase compared to the prior year period [11] - Adjusted EBITDA for the second quarter declined to $2.1 million from $3.6 million in the prior year, with an adjusted EBITDA margin dropping by 5.3% [12] - Total cash and availability on the credit facility at the end of the second quarter was approximately $15 million, with line of credit borrowings increasing to support a nearly $14 million increase in operating working capital [18] Business Line Data and Key Metrics Changes - Revenue in the Heavy Fabrication segment grew year over year by 27% to $25 million, driven by increased sales of wind power sectors [13] - Gearing orders increased to $6.8 million, up over $2 million compared to the prior year, although segment revenue fell to $7.3 million, down over $3 million year over year [14][15] - Industrial Solutions recorded nearly $14 million in orders, surpassing the previous record of $10 million, with segment revenue up 30% sequentially to $7.4 million [16] Market Data and Key Metrics Changes - Customer activity in the power generation market saw a 14% year-over-year increase in order rates, totaling $21 million [5] - Orders within the industrial solutions business more than tripled year over year, driven by strong demand for new gas turbine units [7] - The company noted robust demand from power generation and increasing demand from oil and gas customers, offsetting softness in wind, industrials, and mining [5] Company Strategy and Development Direction - The company is focusing on high-value precision manufacturing end markets and optimizing its asset footprint through the sale of its industrial fabrication operations in Manitowoc [4][5] - Investments are being made in equipment technology to improve process capabilities and profitability, particularly in the Industrial Solutions segment [8] - The company aims to capitalize on growth opportunities in the natural gas turbine market and is expanding its manufacturing capacity to meet future demand [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the domestic onshore wind power activity continuing at its present rate through 2026, with sustained demand for wind repowering adapters [23] - The company anticipates improved utilization of its manufacturing footprint for the rest of the year and into 2026, positioning itself for steady, profitable growth [25] - Management highlighted the importance of a diverse customer base during periods of trade policy uncertainty, emphasizing the competitive advantage of a 100% domestic manufacturing base [11] Other Important Information - The company is suspending its previously issued financial guidance for the full year 2025 due to the pending asset sale of Manitowoc [18] - The expected completion of the Manitowoc transaction is anticipated to add approximately $13 million in cash to the balance sheet while reducing costs by $8 million annually [5] Q&A Session Summary Question: Guidance uncertainty related to the Manitowoc sale - Management indicated that uncertainty is mostly related to timing, with some transitional costs expected as operations wind down [28][29] Question: Visibility into additional demand for Industrial Solutions - Management noted strong visibility with key customers, particularly GE Vernova, and indicated that they can fulfill increased demand with existing capacity [34][35] Question: Strategies to capitalize on growing demand for power generation - The company has expanded its independent sales rep organizations and is increasing capacity in Industrial Solutions and gearing markets to meet demand [41][42] Question: Demand outlook for wind-related business - Management expects a pull-in of orders in 2026 and 2027 as developers take advantage of recent tax law changes [49] Question: Demand visibility for tower orders - Management confirmed strong visibility for orders through 2026, with a good flow of power and adapter orders expected [53]

Financial Performance - Broadwind's total revenue increased by 7.6% year-over-year in Q2 2025, reaching $39.2 million[16], driven by strong demand from the wind and industrial verticals[12] - Gross margin decreased to 10.1% in Q2 2025 due to manufacturing inefficiencies in the Heavy Fabrications segment and lower capacity utilization within the Gearing segment[12] - Adjusted EBITDA margin decreased to 5.3% year-over-year, amounting to $2.1 million in Q2 2025, as labor was added to support increased volumes in the wind and power generation verticals[12, 15] - GAAP Net Income turned into a loss of $1.0 million in Q2 2025, compared to a profit of $0.5 million in Q2 2024[17] Segment Performance - Heavy Fabrications segment revenue increased due to wind tower and repowering adapter sales, reaching $25.0 million[20, 23] - Heavy Fabrications segment EBITDA margin decreased to 11.4% in Q2 2025[20] - Gearing segment revenue declined by 30% year-over-year to $7.3 million in Q2 2025, but orders increased by 45% to $6.8 million[26, 27, 28] - Industrial Solutions segment revenue increased by 13.9% year-over-year to $7.4 million, with orders up by 207% to $13.9 million[32, 33, 34] Balance Sheet - Net working capital investment increased by 24% year-over-year to $42.5 million in Q2 2025[40, 43] - Total inventory increased to $51.4 million in Q2 2025[45] - Cash and LOC availability at quarter-end was $14.9 million[41]

[Q2 2025 Financial and Operational Highlights](index=1&type=section&id=SECOND%20QUARTER%202025%20RESULTS) Broadwind reported a 7.6% year-over-year revenue increase to $39.2 million, driven by growth in the Heavy Fabrications and Industrial Solutions segments, despite swinging to a net loss of ($1.0) million and a decline in adjusted EBITDA to $2.1 million - Revenue growth was primarily driven by increased sales in the wind and industrial verticals, specifically from the Heavy Fabrications and Industrials Solutions segments[4](index=4&type=chunk) - Total orders increased by **14% YoY** to **$21.0 million**, boosted by demand from power generation and oil & gas customers, though the consolidated backlog fell **31.5% YoY** to **$95.3 million**[5](index=5&type=chunk)[8](index=8&type=chunk) - The company's net debt to trailing twelve-month Adjusted EBITDA ratio increased to **3.0x** from **1.4x** in the previous quarter, attributed to higher working capital needs for wind tower production[6](index=6&type=chunk) Q2 2025 Financial Summary | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $39.2 | $36.5 | +7.6% YoY | | **Net (Loss)/Income** | ($1.0) | $0.5 | - | | **Diluted EPS** | ($0.04) | $0.02 | - | | **Adjusted EBITDA** | $2.1 | $3.6 | -41.7% YoY | [Management Commentary](index=1&type=section&id=MANAGEMENT%20COMMENTARY) Management highlighted progress in its diversification strategy, capitalizing on investments in power generation and electrification, with the pending sale of Manitowoc operations optimizing its footprint and strengthening the balance sheet - The company announced the pending sale of its Manitowoc industrial fabrication operations, expected to close in Q3 2025, anticipated to add approximately **$13 million** in cash and reduce annual costs by an estimated **$8 million**[7](index=7&type=chunk) - Customer demand is strengthening, particularly for natural gas turbine content and oil & gas aftermarket products, with a **$6 million** follow-on order for gearing products secured in July for early 2026 deliveries[7](index=7&type=chunk) - Q2 2025 margins were temporarily compressed due to: - Early production process inefficiencies at Manitowoc and Abilene facilities - Additional overhead to support higher production volumes - Lower capacity utilization in the Gearing segment[7](index=7&type=chunk) - Management expressed confidence that its domestic production footprint, expansion into higher-value markets, and strategic actions position the company for sustained profitable growth[9](index=9&type=chunk) [Segment Performance Analysis](index=2&type=section&id=SEGMENT%20RESULTS) Segment performance was mixed in the second quarter, with Heavy Fabrications and Industrial Solutions segments showing revenue growth, while the Gearing segment experienced a sharp decline and operating loss [Heavy Fabrications Segment](index=2&type=section&id=Heavy%20Fabrications%20Segment) - Revenue growth was driven by an increase in wind tower sections and repowering adapters sold, partially offset by lower demand from the mining end-market[11](index=11&type=chunk) Heavy Fabrications Segment Performance | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :--- | :--- | :--- | :--- | | **Sales** | $25.0 | $19.6 | +27.4% YoY | | **Operating Income** | $1.7 | $1.6 | +6.3% YoY | | **Adjusted EBITDA** | $2.8 | $2.8 | Flat YoY | [Gearing Segment](index=2&type=section&id=Gearing%20Segment) - The significant decline in sales was primarily driven by lower demand from oil & gas customers[13](index=13&type=chunk) Gearing Segment Performance | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :--- | :--- | :--- | :--- | | **Sales** | $7.3 | $10.5 | -30.3% YoY | | **Operating (Loss)/Income** | ($0.8) | $0.5 | - | | **Adjusted EBITDA** | ($0.1) | $1.2 | - | [Industrial Solutions Segment](index=2&type=section&id=Industrial%20Solutions%20Segment) - Revenue growth was primarily driven by increased sales of natural gas turbine content, with this segment also setting records for both orders and backlog for the third consecutive quarter[5](index=5&type=chunk)[15](index=15&type=chunk) Industrial Solutions Segment Performance | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :--- | :--- | :--- | :--- | | **Sales** | $7.4 | $6.5 | +13.9% YoY | | **Operating Income** | $0.5 | $0.6 | -16.7% YoY | | **Adjusted EBITDA** | $0.7 | $0.8 | -12.5% YoY | [Financial Guidance](index=2&type=section&id=FINANCIAL%20GUIDANCE) Broadwind has suspended its previously issued financial guidance for the full year 2025 due to the pending sale of its Manitowoc operations, with updated guidance expected after the transaction closes - The company is suspending its full-year 2025 financial guidance due to the pending sale of its Manitowoc operations, which is expected to close in Q3 2025[16](index=16&type=chunk)[17](index=17&type=chunk) - For the full-year 2024, the Manitowoc operations being sold generated approximately **$25 million** in revenue with EBITDA margins of **8-9%**[17](index=17&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section provides the unaudited condensed consolidated financial statements for the period ended June 30, 2025, including Balance Sheets, Statements of Operations, and Statements of Cash Flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash** | $1,037 | $7,721 | | **Total Current Assets** | $78,301 | $66,868 | | **Total Assets** | $130,511 | $128,290 | | **Total Current Liabilities** | $51,307 | $43,557 | | **Total Liabilities** | $71,558 | $68,890 | | **Total Stockholders' Equity** | $58,953 | $59,400 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Condensed Consolidated Statements of Operations (in thousands) | Income Statement Item (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenues** | $39,235 | $36,452 | | **Gross Profit** | $3,975 | $5,566 | | **Operating (Loss) Income** | ($165) | $1,257 | | **Net (Loss) Income** | ($989) | $482 | | **Diluted EPS** | ($0.04) | $0.02 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Item (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($20,498) | ($3,427) | | **Net cash used in investing activities** | ($2,115) | ($2,375) | | **Net cash provided by financing activities** | $15,929 | $5,641 | | **Net decrease in cash** | ($6,684) | ($161) | | **Cash, end of period** | $1,037 | $938 | [Non-GAAP Financial Measures Reconciliation](index=7&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES) This section provides a detailed reconciliation of the non-GAAP measure, Adjusted EBITDA, to the most directly comparable GAAP measure, Net (Loss) Income, on both a consolidated and segment basis Consolidated Adjusted EBITDA Reconciliation (in thousands) | Reconciliation Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net (Loss) Income** | **($989)** | **$482** | | Interest Expense | $783 | $726 | | Income Tax Provision | $33 | $53 | | Depreciation and Amortization | $1,643 | $1,718 | | Share-based Compensation | $615 | $663 | | **Adjusted EBITDA (Non-GAAP)** | **$2,085** | **$3,642** |

Core Insights - Broadwind reported a net loss of $1.0 million, or $0.04 per diluted share, in Q2 2025, a decline from a net income of $0.5 million, or $0.02 per diluted share, in Q2 2024 [2][8] - Revenue increased by 7.6% year-over-year to $39.2 million, driven by higher sales in the wind and industrial sectors [3][8] - Total orders rose by 14% year-over-year to $21.0 million, with significant demand from power generation and oil & gas customers [4][8] Financial Performance - Adjusted EBITDA for Q2 2025 was $2.1 million, down from $3.6 million in the same period last year, representing 5.3% of total revenue [2][8] - The Heavy Fabrications segment saw a revenue increase of 27.4% to $25.0 million, primarily due to demand for wind tower sections [10][8] - The Gearing segment experienced a revenue decline of 30.3% to $7.3 million, attributed to lower demand from domestic energy markets [12][8] Operational Highlights - The Industrial Solutions segment's revenue increased by 13.9% to $7.4 million, driven by stronger order intake for natural gas turbine content [14][8] - The consolidated backlog decreased by 31.5% year-over-year to $95.3 million as of June 30, 2025 [4] - The company had total cash and availability under its credit facility of $14.9 million at the end of Q2 2025, with a net debt to trailing twelve-month adjusted EBITDA ratio of 3.0x [5][8] Management Commentary - The CEO highlighted progress in diversifying into higher-value precision manufacturing markets and increased demand for wind-related content [6] - The pending sale of the industrial fabrication operations in Manitowoc, Wisconsin, is expected to close in Q3 2025, adding approximately $13 million in cash and reducing costs by an estimated $8 million annually [6][15] - The company anticipates improved profitability as production normalizes throughout the year [6] Segment Results - Heavy Fabrications segment reported operating income of $1.7 million, compared to $1.6 million in the prior year [10][8] - Gearing segment reported an operating loss of $0.8 million, down from an operating income of $0.5 million in the previous year [12][8] - Industrial Solutions segment reported operating income of $0.5 million, slightly down from $0.6 million in the prior year [14][8]

Company Performance - Broadwind Energy, Inc. (BWEN) closed at $2.87, reflecting a +2.5% increase from the previous day, outperforming the S&P 500's daily loss of 0.3% [1] - Prior to the latest trading session, shares of Broadwind Energy had gained 54.7%, significantly exceeding the Industrial Products sector's gain of 6.17% and the S&P 500's gain of 3.64% [1] Upcoming Earnings - The company is expected to report an EPS of $0.02, indicating stability compared to the same quarter of the previous year [2] - Revenue is anticipated to be $38.02 million, representing a 4.31% increase compared to the year-ago quarter [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $0.08 per share, reflecting a +60% change from the prior year [3] - Revenue for the fiscal year is estimated at $151.29 million, indicating a +5.7% change from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Broadwind Energy reflect evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - Adjustments in estimates are associated with imminent stock price performance, and the Zacks Rank system is designed to capitalize on this phenomenon [5] Zacks Rank and Valuation - Broadwind Energy currently holds a Zacks Rank of 1 (Strong Buy), with an impressive track record of outperformance [6] - The company has a Forward P/E ratio of 35, which is a premium compared to the industry average Forward P/E of 21.94 [7] Industry Context - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 27, placing it in the top 11% of all industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]

Company Announcement - Broadwind (Nasdaq: BWEN) will release its second quarter 2025 financial results before the market opens on August 12, 2025 [1] - A conference call is scheduled for the same day at 11:00 a.m. ET to discuss the financial results and recent events [1] Conference Call Details - A webcast of the conference call and presentation materials will be available on the Company's Investor Relations website [2] - The live teleconference can be accessed at 877-407-9716, with a replay available until August 19, 2025, at 844-512-2921 [2] Company Overview - Broadwind is a precision manufacturer of structures, equipment, and components for clean tech and specialized applications [3] - The Company operates facilities throughout the U.S. and aims to help customers maximize the performance of their investments [3]

Core Viewpoint - Broadwind has secured a follow-on order exceeding $6 million from a leading OEM in the natural gas turbine segment, marking a significant commitment under a two-year agreement with potential for additional volume [1][2]. Group 1: Company Overview - Broadwind is a diversified precision manufacturer of specialized components and equipment, serving global markets, with a focus on clean tech and other specialized applications [3]. - The company operates facilities throughout the U.S. and aims to enhance customer performance through efficient manufacturing processes [3]. Group 2: Order Details - The recent order involves the production of precision machined gearing products specifically for natural gas turbines, with production set to commence in the fourth quarter of 2025 and fulfillment expected in 2026 and 2027 [2]. - This order is part of a broader strategy to leverage sustained demand trends in the power generation market, highlighting the company's manufacturing capabilities [3]. Group 3: Management Insights - Eric Blashford, President and CEO of Broadwind, emphasized that the expanded commitment reflects the company's strength in precision manufacturing and supports long-term growth in higher-value precision-machining verticals [3].

Group 1 - Broadwind Energy, Inc. (BWEN) stock closed at $2.51, reflecting a -2.71% change from the previous day's closing price, underperforming compared to the S&P 500's daily gain of 0.54% [1] - The company experienced a significant gain of 44.13% over the past month, outperforming the Industrial Products sector's gain of 5.35% and the S&P 500's gain of 4.2% [1] Group 2 - The upcoming earnings report for Broadwind Energy is expected to show an EPS of $0.02, indicating stability compared to the same quarter last year, with a projected quarterly revenue of $38.02 million, up 4.31% year-over-year [2] - For the annual period, earnings are anticipated to be $0.08 per share and revenue is expected to reach $151.29 million, reflecting increases of +60% and +5.7% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates for Broadwind Energy suggest a positive outlook, indicating analysts' confidence in the company's business performance and profit potential [3] - The Zacks Rank system, which includes estimate changes, currently ranks Broadwind Energy as 1 (Strong Buy), indicating a strong potential for outperformance [5] Group 4 - Broadwind Energy is trading at a Forward P/E ratio of 32.25, which is a premium compared to its industry's Forward P/E of 21.89 [6] - The Manufacturing - General Industrial industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 36, placing it in the top 15% of over 250 industries [6]

Company Performance - Broadwind Energy, Inc. (BWEN) stock decreased by 1.06% to $1.86, underperforming the S&P 500 which fell by 0.33% [1] - The stock has declined by 0.53% over the past month, lagging behind the Industrial Products sector's gain of 6.25% and the S&P 500's gain of 4.07% [1] Earnings Projections - The upcoming earnings disclosure is anticipated to show earnings per share (EPS) of $0.02, unchanged from the same quarter last year [2] - Quarterly revenue is projected at $38.02 million, reflecting a 4.31% increase from the previous year [2] Full Year Estimates - For the full year, earnings are estimated at $0.08 per share, representing a 60% increase from the previous year, with revenue projected at $151.29 million, a 5.7% increase [3] - Recent analyst estimate revisions indicate a positive outlook for the company's business and profitability [3] Zacks Rank and Valuation - Broadwind Energy, Inc. currently holds a Zacks Rank of 2 (Buy), with the Zacks Rank system showing a strong historical performance [5] - The company is trading at a Forward P/E ratio of 23.5, which is higher than the industry average of 22.58, suggesting a premium valuation [6] Industry Context - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 65, placing it in the top 27% of over 250 industries [6] - The strength of industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, with value investing being a preferred strategy in various market conditions [1][2] - The Style Scores system developed by Zacks highlights stocks with specific traits, particularly those with high grades in the "Value" category, which are considered strong value stocks when combined with a high Zacks Rank [2] Company Analysis: Broadwind Energy (BWEN) - Broadwind Energy (BWEN) currently has a Zacks Rank of 2 (Buy) and an A rating for Value, indicating strong potential for value investors [3] - BWEN's P/E ratio stands at 12.22, significantly lower than the industry average P/E of 21.72, suggesting it may be undervalued [3] - Over the past 52 weeks, BWEN's Forward P/E has fluctuated between a high of 122.56 and a low of 4.52, with a median of 8.47, indicating volatility in its valuation [3][4] - The combination of BWEN's current valuation metrics and its positive earnings outlook positions it as a compelling value stock at this time [4]