Broadwind Announces Second Quarter 2025 Results

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]