Investors in Broadwind, Inc. (BWEN) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 18, 2025 $7.5 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also me ...

Financial Performance - Net revenues for Q1 2025 were $36,838, a 2.1% decrease from $37,616 in Q1 2024[100] - The company recorded a net loss of $370 in Q1 2025, compared to a net income of $1,510 in Q1 2024, representing a 124.5% decline[101] - Adjusted EBITDA for Q1 2025 was $2,368, down from $4,170 in Q1 2024, a decrease of 43.2%[98] Orders and Backlog - Total orders received in Q1 2025 were $30,455, an increase of 5.0% from $28,996 in Q1 2024[99] - Backlog at the end of Q1 2025 was $116,957, down from $159,912 in Q1 2024, reflecting a decrease of 26.8%[97] - Industrial Solutions segment orders increased by 38% compared to the prior year, driven by new gas turbine projects[99] - Gearing segment revenue decreased by 28% year-over-year, primarily due to reduced shipments to oil and gas customers[110] Capital Expenditures and Debt - Capital expenditures in Q1 2025 were $916, a decrease of 47.5% from $1,744 in Q1 2024[97] - As of March 31, 2025, total debt was $12,191, an increase from $7,690 in the previous year[97] - As of March 31, 2025, outstanding notes payable for capital expenditures amounted to $1,527 million, with monthly payments ranging from $1 to $20 and an interest rate of approximately 7%[117] Cash Flow and Liquidity - For the three months ended March 31, 2025, net cash used in operating activities totaled $8,037 million, a significant increase compared to net cash provided of $5,857 million in the prior year period[124] - The company reported a net decrease in cash of $6,517 million for the three months ended March 31, 2025, compared to a decrease of $26 million in the same period of 2024[123] - Net cash provided by financing activities for the three months ended March 31, 2025, was $2,436 million, an increase from net cash used of $4,139 million in the prior year period[126] - The company anticipates that current cash resources and available credit will be adequate to meet liquidity needs for at least the next twelve months[120] - The increase in net cash used in operating activities during the current year was primarily due to an increase in inventory and a decrease in customer deposits[124] - The company may encounter cash flow and liquidity issues if assumptions regarding production and sales do not align with management's expectations[121] - If operational performance deteriorates, the company may lose access to the 2022 Credit Facility, impacting operational flexibility and requiring additional financing[122] Regulatory and Stock Information - A shelf registration statement on Form S-3 was filed on September 22, 2023, allowing the company to offer securities for general corporate purposes until October 12, 2026[118] - The company has approximately $11,667 million in common stock available for issuance under a Sales Agreement as of March 31, 2025[119] Segment Performance - Operating income for the Heavy Fabrications segment increased by $195, attributed to higher segment revenue despite a less profitable product mix[109]

Financial Data and Key Metrics Changes - First quarter consolidated revenues were $36,800,000, a 2% decrease year over year, but a sequential increase of almost 10% due to stronger demand for wind repowering [10] - Adjusted EBITDA margin was 6.4%, primarily affected by low capacity utilization and a lower margin mix of products sold across all segments [10] - First quarter orders totaled $30,500,000, an increase of 5% compared to the prior year [11] Business Line Data and Key Metrics Changes - Heavy Fabrication segment revenue was $25,200,000, up 15% year over year, driven by increased demand for wind tower adapters [12] - Gearing revenue was $6,000,000, down 28% year over year due to softness in the oil and gas gearing market, partially offset by strength in wind and industrial sectors [8][13] - Industrial Solutions revenue was $5,600,000, down 29% year over year, primarily due to timing of aftermarket shipments in the natural gas turbine market [9][14] Market Data and Key Metrics Changes - Orders in the Heavy Fabrication business increased 10% year over year, reflecting strong demand for wind repowering adapters [5] - Industrial Solutions segment recorded over $10,000,000 in orders, surpassing the previous record, with a backlog of nearly $23,000,000 [14] - Gearing orders were down approximately $2,500,000 year over year but showed sequential improvement [12] Company Strategy and Development Direction - The company is focusing on expanding its product mix within higher margin adjacent markets and investing in equipment technology to improve process capabilities [6][7] - There is a strategic shift towards stable recurring project revenue streams across diverse end markets, particularly in power generation and grid hardening [19] - The company is also evaluating export opportunities and expanding its service and commercial teams for its Clean Fuels PRS line [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the domestic onshore wind tower activity continuing at its current rate through 2026, with sustained demand for repowering adapters [18] - The company anticipates full year revenue to be in the range of $140,000,000 to $160,000,000 and adjusted EBITDA to be between $13,000,000 and $15,000,000 [16] - Management acknowledged supply chain challenges but expects improvements in revenue totals over the balance of 2025 [15] Other Important Information - The company ended the first quarter with approximately $23,000,000 in cash and availability on its credit facility [16] - A tax credit of approximately $2,500,000 was recognized in Q1 [58] Q&A Session Summary Question: Discussion on Heavy Fabrications segment and revenue trends - Management noted strong demand for repowering adapters and expects revenue to increase in the Heavy Fabrication segment through 2025, particularly in Manitowoc [25][27] Question: Impact of tariffs on cost structure - Management indicated that tariffs have a minor impact due to supply chain adjustments made by OEM partners, with some materials sourced from less impacted countries [29][30] Question: Outlook for gearing demand amid low oil prices - Management acknowledged a lull in oil and gas gearing but noted stronger orders in the power generation sector, indicating potential growth opportunities [32][33] Question: Assessment of Industrial Solutions segment performance - Management confirmed that the drop in revenue was primarily due to supply chain delays, which have been largely resolved [40][41] Question: Revenue expectations for the PRS product line - Management anticipates that the PRS line could contribute between $15,000,000 and $20,000,000 to revenue in 2026, with expectations for similar gross margins [46][49]

Financial Data and Key Metrics Changes - The company's first quarter consolidated revenues were $36.8 million, a 2% decrease year-over-year, but a nearly 10% increase sequentially due to stronger demand for wind repowering [10] - Adjusted EBITDA margin was 6.4%, primarily affected by low capacity utilization and a lower margin product mix across all segments [10] - First quarter orders totaled $30.5 million, a 5% increase compared to the same period last year [11] Business Line Data and Key Metrics Changes - Heavy Fabrication segment revenue was $25 million, up 15% year-over-year, driven by increased demand for wind tower adapters [8] - Gearing revenue was $6 million, down 28% year-over-year due to softness in the oil and gas gearing market, partially offset by strength in wind and industrial sectors [8] - Industrial Solutions revenue was $5.6 million, down 29% year-over-year, primarily due to timing issues with aftermarket shipments in the natural gas turbine market [9] Market Data and Key Metrics Changes - Orders in the Heavy Fabrication business increased 10% year-over-year, reflecting strong demand for wind repowering adapters [5] - Industrial Solutions segment orders surpassed $10 million, setting a new record, with a backlog of nearly $23 million at the end of the first quarter [14] - Gearing orders were down approximately $2.5 million year-over-year but showed sequential growth, indicating a potential recovery in the market [12] Company Strategy and Development Direction - The company is focusing on expanding its product mix within higher margin adjacent markets and investing in equipment technology to improve process capabilities and profitability [6][7] - There is a strategic shift towards stable recurring project revenue streams across diverse end markets, particularly in power generation and natural gas turbines [18] - The company is also evaluating export opportunities and expanding its service and commercial teams for its Clean Fuels PRS line [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the domestic onshore wind tower activity continuing at its current rate through 2026, supported by sustained demand for repowering adapters [17] - The company anticipates full-year revenue to be in the range of $140 million to $160 million, with adjusted EBITDA between $13 million and $15 million [16] - Management noted that supply chain issues experienced in Q1 are expected to be temporary, with improvements anticipated in subsequent quarters [14] Other Important Information - The company ended the first quarter with approximately $23 million in cash and availability on its credit facility, reflecting a return to normal operating levels [15] - A significant inventory build occurred in Q1 as the company prepared for a new tower run-in and transitioned to a new tower design [15] Q&A Session Summary Question: Can you discuss the heavy fabrications segment and the repowering opportunity? - Management noted strong demand for repowering adapters and expects revenue to increase in the heavy fabrications segment through 2025, particularly in Manitowoc [25][27] Question: How are tariffs affecting your cost structure? - Management indicated that while some components are sourced overseas, the impact of tariffs is minor due to proactive supply chain adjustments [29][30] Question: What is the outlook for the gearing market given the drop in oil prices? - Management acknowledged a lull in oil and gas gearing but noted stronger orders in power generation, indicating potential growth opportunities despite low oil prices [32][33] Question: Is the drop in Industrial Solutions revenue solely due to supply chain issues? - Management confirmed that the revenue drop was primarily due to supply chain delays, which are expected to be resolved [39][40] Question: What are the revenue expectations for the PRS product line in 2026? - Management anticipates that the PRS product line could contribute between $15 million and $20 million, representing about 10% of total revenue [46][48]

Financial Performance - Broadwind Energy reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.03, and compared to earnings of $0.07 per share a year ago, indicating an earnings surprise of 33.33% [1] - The company posted revenues of $36.84 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.56%, although this represents a decline from year-ago revenues of $37.62 million [2] Stock Performance - Broadwind Energy shares have declined approximately 14.4% since the beginning of the year, contrasting with the S&P 500's decline of only 0.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $39.55 million, and for the current fiscal year, it is $0.07 on revenues of $152.66 million [7] Industry Outlook - The Manufacturing - General Industrial industry, to which Broadwind Energy belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance Summary - Total revenue decreased year-over-year to $36.8 million in 1Q25 from $37.6 million in 1Q24[15] - Gross profit decreased year-over-year to $4.3 million in 1Q25 from $6.6 million in 1Q24[15] - Adjusted EBITDA decreased year-over-year to $2.4 million in 1Q25 from $4.2 million in 1Q24[16] - GAAP Net Income turned into a loss of $0.4 million in 1Q25, compared to a profit of $1.5 million in 1Q24[17] - Gross margin decreased year-over-year to 11.7% in 1Q25[14] - Adjusted EBITDA margin decreased year-over-year to 6.4% in 1Q25[14] Segment Performance - Heavy Fabrications segment revenue increased to $25.2 million in 1Q25 from $22.0 million in 1Q24[20] - Heavy Fabrications segment orders increased by 10.4% year-over-year to $12.4 million in 1Q25[19, 21] - Gearing segment revenue decreased by 28.4% year-over-year in 1Q25[25] - Industrial Solutions segment orders increased by 38% year-over-year in 1Q25[32] Balance Sheet - Cash and LOC availability at quarter-end was $22.6 million in 1Q25[39, 40] - Net leverage was 1.4x at March 31, 2025[39]

Financial Performance - Broadwind reported a net loss of ($0.4) million, or ($0.02) per diluted share in Q1 2025, compared to net income of $1.5 million, or $0.07 per diluted share in Q1 2024[4]. - Total revenue for Q1 2025 was $36.8 million, a decline of 2.1% year-over-year, primarily due to lower sales in mining, oil & gas, and natural gas turbine markets[5]. - Adjusted EBITDA for Q1 2025 was $2.4 million, representing 6.4% of total revenue, down from $4.2 million in the prior year[4][9]. - Revenues for Q1 2025 were $36,838,000, a decrease of 2.07% compared to $37,616,000 in Q1 2024[28]. - Gross profit for Q1 2025 was $4,326,000, down 34.67% from $6,637,000 in Q1 2024[28]. - Operating income for Q1 2025 was $184,000, a significant decline from $2,078,000 in Q1 2024[29]. - Net loss for Q1 2025 was $370,000, compared to a net income of $1,510,000 in Q1 2024[29]. Orders and Revenue Segments - Total orders increased by 5% year-over-year to $30.5 million, driven by demand for wind repowering adapters and natural gas turbine content[6][9]. - Total orders for Q1 2025 were $30,455,000, an increase of 5.04% from $28,996,000 in Q1 2024[33]. - The Heavy Fabrications segment saw a revenue increase of 14.7% to $25.2 million, primarily due to higher demand for wind repowering adapters[12]. - The Gearing segment experienced a revenue decline of 28.4% to $6.0 million, mainly due to reduced demand in mining and oil & gas markets[14]. - The Industrial Solutions segment's revenue decreased by 29.3% to $5.6 million, attributed to lower shipments of natural gas turbine content[16]. - Adjusted EBITDA for Q1 2025 was $2,368,000, down 43.14% from $4,170,000 in Q1 2024[36]. - Heavy Fabrications segment revenues increased to $25,248,000 in Q1 2025 from $22,016,000 in Q1 2024[33]. Financial Position - As of March 31, 2025, Broadwind had total cash and availability of $22.6 million, with a net debt to trailing twelve-month adjusted EBITDA ratio of 1.4x[7][10]. - Total current liabilities increased to $45,112,000 in Q1 2025 from $43,557,000 in Q4 2024[26]. - Total stockholders' equity decreased slightly to $59,309,000 in Q1 2025 from $59,400,000 in Q4 2024[26]. - Cash at the end of Q1 2025 was $1,204,000, a decrease from $1,073,000 at the end of Q1 2024[30]. Future Outlook - The company reiterated its full-year 2025 revenue guidance, projecting total revenue between $140 million and $160 million[18]. - Management expects steady improvements in order activity across diverse end-markets for the remainder of the year[8].

Core Insights - Broadwind reported a net loss of $0.4 million, or $0.02 per diluted share, in Q1 2025, a decline from a net income of $1.5 million, or $0.07 per diluted share, in Q1 2024 [3] - Total revenue for Q1 2025 was $36.8 million, down 2.1% year-over-year, primarily due to lower sales in mining, oil & gas, and natural gas turbine markets, partially offset by increased sales in the wind market [4][8] - Adjusted EBITDA for Q1 2025 was $2.4 million, representing 6.4% of total revenue, compared to $4.2 million in the prior year [3][8] Financial Performance - Revenue in the Heavy Fabrications segment increased by 14.7% to $25.2 million, driven by demand for wind repowering adapters [11] - The Gearing segment saw a revenue decline of 28.4% to $6.0 million, primarily due to lower demand in mining and oil & gas markets [13] - The Industrial Solutions segment's revenue decreased by 29.3% to $5.6 million, attributed to lower shipments for natural gas turbine content [15] Orders and Backlog - Total orders increased by 5% year-over-year to $30.5 million, with significant demand for repowering adapters and natural gas turbine content [5][8] - The Industrial Solutions segment achieved record levels in both orders and backlog for the second consecutive quarter [5] - The consolidated backlog decreased sequentially to $117.0 million as of March 31, 2025 [5] Management Commentary - The CEO noted that customer activity is strengthening, with orders increasing 5% year-over-year, and emphasized the company's focus on diversification in growing markets like power generation and infrastructure [7] - The company expects steady improvements in order activity across diverse end-markets for the remainder of the year [7] - Investments in machining capabilities and quality certifications are seen as providing a competitive advantage in the power generation market [7] Segment Results - Heavy Fabrications segment reported operating income of $2.2 million, up from $2.0 million in the prior year [11] - Gearing segment reported an operating loss of $0.9 million, compared to an operating income of $0.03 million in the prior year [13] - Industrial Solutions segment reported operating income of $0.3 million, down from $1.8 million in the prior year [15] Financial Guidance - Broadwind reiterated its financial guidance for full-year 2025, projecting total revenue between $140 million and $160 million and adjusted EBITDA between $13 million and $15 million [17]

Company Announcement - Broadwind (Nasdaq: BWEN) will release its first quarter 2025 financial results before the market opens on May 13, 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] - To participate in the live teleconference, the dial-in number is 877-407-9716 [2] - A replay of the teleconference will be available until May 20, 2025, with the replay number being 844-512-2921 and Conference ID: 13752898 [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]

Group 1 - Broadwind Energy, Inc. (BWEN) closed at $1.68, with a daily increase of +1.82%, outperforming the S&P 500 which gained 0.13% [1] - Over the past month, BWEN shares have increased by 13.01%, contrasting with the Industrial Products sector's decline of 10.03% and the S&P 500's decline of 6.3% [1] Group 2 - The upcoming earnings per share (EPS) for Broadwind Energy, Inc. are projected at -$0.03, indicating a 142.86% decrease from the same quarter last year [2] - Quarterly revenue is estimated to be $33.94 million, down 9.8% from the previous year [2] Group 3 - For the entire fiscal year, earnings are projected at $0.07 per share, with revenue expected to be $152.66 million, reflecting increases of +40% and +6.65% respectively from the prior year [3] Group 4 - Recent adjustments to analyst estimates for Broadwind Energy, Inc. indicate evolving short-term business trends, with positive revisions suggesting analyst optimism about the company's profitability [4] Group 5 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Broadwind Energy, Inc. at 3 (Hold) [6] Group 6 - Broadwind Energy, Inc. has a Forward P/E ratio of 25.39, which is a premium compared to its industry's Forward P/E of 19.11 [7] - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 171, placing it in the bottom 32% of over 250 industries [7]