BWEN

Image source: The Motley Fool. Aug. 11, 2026 at 11:00 a.m. ET President and Chief Executive Officer - Eric Blashford Vice President and Chief Financial Officer - Thomas A. Ciccone Operator: Greetings, and welcome to Broadwind Second Quarter 26 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Tom Ciccone. Thomas A. Ciccone: Thank you. Operator: You may begin. Thomas A. Ciccone: Good morning, and welcome to the Broadwind Second Quarter 26 Results Conference Call. Leading the call today is our CEO, Eric Blashford and I am Tom Ciccone, the company's vice president and chief financial officer. We issued a press release before the market opened today, detailing our second quarter results. I would like to remind you that management's commentary and response to questions on today's conference call may include forward looking statements which by their nature, are uncertain and outside of the company's control. Although these forward looking statements are based on management's current expectations and beliefs, actual results may differ materially. For discussion of some of the factors, that could cause actual results to differ, please refer to the risk factors section of our latest annual and quarterly filings with the SEC. Additionally, please note that you could find reconciliations of historical non GAAP financial measures discussed during our call in the press release issued today. As noted in the press release issued this morning, in conjunction with the April sale of our Avail Infrastructure Solutions facility, the results of the heavy fabrication segment excluding pressure reducing systems, have been reflected as discontinued operations. Unless otherwise noted, the discussions today will relate to our continuing operations. At the conclusion of our prepared remarks, we will open the line for questions. With that, I will turn the call over to Eric. Eric Blashford: Thanks, Tom. And welcome, everyone, to our call today. During the second quarter, we continued a successful strategic pivot toward becoming a pure play precision manufacturing business focused on the domestic power generation, critical infrastructure markets. Customer demand was robust during the second quarter, as momentum accelerated across our key verticals. Following our strategic exit from wind tower manufacturing over the last year, Broadwind is operating from a position of increased financial flexibility and strategic focus. Given the strong foundation of our core Gearing and Industrial Solutions segments, we are building a precision manufacturing platform positioned to benefit from what we expect will become a sustained multiyear investment cycle in electricity generation, transmission, and distribution driven by accelerating load growth from AI data centers a domestic manufacturing renaissance, a shift toward electrification, alongside the need to replace and modernize an aging grid. We believe our gearing and industrial solutions business position us for stronger, more stable growth trajectory than at any point in our history, characterized by attractive margin profiles, greater revenue visibility, and a potential for meaningfully improved earnings quality. Further, we believe our 100% domestic manufacturing footprint technical expertise, and long standing customer relationships position us well to capitalize on sustained momentum across our key vertical markets. Providing customers with an integrated, onshore solution for the most complex, large scale, manufacturing challenges. At a segment level, Industrial Solutions generated EBITDA margin of nearly 19% during the quarter, reflecting strong execution and a higher value sales mix. Within gearing, profitability also improved due to increased sales volume, reflective of our recent elevated order levels. As customer demand has strengthened, we further optimize our asset base and human capital. A dynamic that is translated to improved operating leverage, and visibility as we look forward to the second half of 2026. On a comparable basis, total backlog for our Industrial Solutions and Gearing segments increased a combined 93% as of June 30. When compared to the prior year period. We ended the second quarter with a book to bill of 1.5x. Our capital allocation priorities remain centered on creating long term shareholder value through a combination of sustained organic growth, together with opportunistic investments in complementary products and solutions, within our targeted markets. With a strengthened balance sheet, and a streamlined operating structure, we are actively evaluating opportunities that seek to scale our precision manufacturing expertise through bolt on acquisitions that meet our strict investment criteria. We remain constructive on the opportunities we are seeing in the market and we will continue to remain patient yet opportunistic acquirers of complementary precision manufacturing assets that meet our parameters around sector focus, profitability, model durability, and valuation. Within the gearing segment, Q2 orders increased by 138% to $16 million increasing the backlog to nearly $38 million Demand growth within the Gearing segment has been supported by strong customer activity and power generation, including demand associated with data center related powering requirements as well as improving activity within upstream oil and gas. Quoting activity remains robust in this segment. Our Industrial Solutions segment had yet another strong quarter. As orders increased 24% year over year to a record $17.2 million driving backlog to a new record of $47.4 million Natural gas turbine demand remains strong, supported in part by data center related power demand and broader global electrification trends. We believe these represent important growth drivers for this segment We are positioning the business to serve that demand. Operationally, we continue to optimize our processes to increase throughput velocity and capacity. In our gearing division, we are executing a floor space optimization initiative aimed at improving material flow, and enhancing operational efficiency. As part of this effort, key machining centers are being reconfigured into cellular manufacturing layouts to streamline production processes. These improvements are expected to reduce wasted motion increase productivity, and increase throughput in support of the continued strong demand in power generation and critical infrastructure markets. In the industrial solutions segment, we are already seeing the benefits of expanding our North Carolina facility footprint in Q2. Expansion of the warehouse by approximately 30% has enabled us to handle the higher sales volume in a more efficient manner. Due to its improved layout. This has also opened much needed processing and packaging space to accommodate the continued growth we expect. Gearing revenue increased 24% year over year to $9 million. Driven by continued growth in power generation demand. Industrial Solutions revenue rose 79% to $13.2 million primarily reflecting higher shipments of natural gas turbine components for both new build and aftermarket applications. In summary, the business continues to perform well as we sharpen our focus within adjacent higher margin precision manufacturing markets. Our strategic pivot away from the wind tower business and toward markets offering more attractive growth margin, and demand characteristics, has repositioned Broadwind to pursue more consistent profitable growth and higher quality earnings. With that, I will turn the call over to Tom for a discussion of our second quarter financial performance. Thomas A. Ciccone: Thank you, Eric. Turning to Slide 5 for an overview of our second quarter performance. We delivered another strong quarter marked by significant revenue growth, improved profitability and continued order momentum across both operating segments. Second quarter consolidated revenues were 24.3 million representing a 67% increase versus the prior year period. This increase is reflective of the strong order activity levels we have been recognizing in both the Gearing and Industrial Solutions segments. As noted last quarter, we expected Q1 to be the low watermark in terms of 2026 revenue within our businesses. And we saw sequential increases within both segments. Adjusted EBITDA improved from an EBITDA loss of $1.1 million in the prior year second quarter to a positive $1.6 million in the current year. Second quarter orders exceeded $35 million increasing more than $14 million from the prior year period driven primarily by strength in gearing and higher PRS activity. As a reminder, PRS activity was previously reported within the heavy fabrication segment. Going forward, PRS activity will be included in the consolidated financial performance. But individually does not meet the reportable segment criteria. Turning to slide 6 for a discussion of our Gearing segment. Q2 Gearing orders remained strong at $15.2 million an increase of 138% versus the prior year and 22% sequentially. Reflecting broad based demand across major end markets. We ended Q2 with $37.6 million in backlog. Representing a fourth consecutive quarter with an increased level of backlog. Our Q2 orders and backlog totals are approaching the strongest levels in the segment's recent history reflecting strength within our end markets most notably within power generation and oil and gas. Segment revenue was $9 million an increase both sequentially and versus the prior year. Reflective of strong power generation deliveries. We recognize adjusted EBITDA of 0.4 million compared to an adjusted EBITDA loss of $100 thousand in the prior year period. As we noted previously, as volumes continue to recover in this segment, we anticipate improved operating leverage, and higher margins. Turning to Slide 7. Industrial Solutions booked over $17 million in new orders during the second quarter. An increase of 24% over the prior year and 18% sequentially. Industrial Solutions continued its exceptional momentum achieving new records in both orders and backlog, while extending its backlog growth streak to 8 consecutive quarters. In addition, orders of 17.2 million exceeded the prior record by more than $2.5 million. Q2 segment revenue was $13.2 million up almost 80% versus the prior year period. Reflective of our elevated order levels and strong backlog. The $13 million of revenue recognized in Q2 also represents a quarterly record for the segment. Second quarter adjusted EBITDA was $2.5 million versus $0.7 million recorded in the prior year period. This improvement reflects higher capacity utilization, a favorable product mix, and cost efficiencies realized during the quarter. While we expect EBITDA margin to adjust down to more typical levels moving forward, we currently expect revenue to remain above recent historical levels subject to customer schedules product mix, and prevailing market conditions. This expectation also reflects the recent expansion of our Sanford, North Carolina facility where we increased our manufacturing footprint by approximately 30%. At the end of Q2. Turning to Slide 8. We ended the second quarter with total cash and availability on our credit facility, of more than $40 million, or $31.3 million after adjusting for the minimum excess availability requirement In place effective Q1. This strong liquidity position together with our significantly reduced debt levels, gives us substantial financial flexibility as we enter the second half of 2026. In terms of working capital, we have seen a modest increase in working capital within our continuing operations in Q2 as those businesses continue to ramp up. However, that increase is more than offset by a reduction in inventory associated with the Abilene Tower operations which declined by more than $6 million during the quarter. That concludes my remarks. I will turn the call back over to Eric to continue our discussion. Eric Blashford: Thanks, Tom. Now allow me to provide some thoughts as we move into Q3 and beyond. We continue to make a decisive shift toward power generation in critical infrastructure markets that we believe offer attractive long term growth characteristics. The strategic moves we have made to divest of our 2 tower manufacturing facilities position us to focus on higher growth and higher margin opportunities to leverage our precision manufacturing expertise supported by a strengthened balance sheet. Once we complete our remaining wind tower orders, in Q3 satisfying our contractual obligations, Broadwind will have completed our strategic pivot away from wind, positioning us to fully advance our power gen and critical manufacturing vertical market strategy. Our remaining facilities in Chicago, Pittsburgh, and Sanford, North Carolina near Raleigh have more than 450 thousand-square-foot of manufacturing space available to serve our customers. Quarter upon quarter strong order growth within the Gearing and Industrial Solutions segments from power generation specifically with distributed power, as well as growing opportunities in both small frame and utility scale natural gas turbines support our strategy to expand in this market. Quote activity continues to increase in both gearing and industrial solutions. Generated by our ability to solve the complex precision manufacturing and sourcing challenges faced by customers in this growing market. To that end, we have added engineering and manufacturing resources to meet this demand in both divisions. In our Gearing segment, we continue to execute our strategy to move beyond traditional gearing toward new opportunities in other precision machine products for power generation, aerospace, and defense. We believe that the continuing strength in incoming orders from power generation sector may reflect the early stages of a sustained multiyear investment cycle We are positioning the business to participate in that opportunity. Lastly, we also see improving order activity in traditional gearing markets supporting upstream oil and gas, specifically within the fracking aftermarket as certain customers evaluate or begin returning older rigs to service in response to strengthening, commodity price environment. Industrial solutions, our commercial performance continues to set records in both orders and backlog. The robust demand that began in early 25 has continued for 6 quarters so far and continues to show strength. As the global demand for natural gas power generation equipment remains robust, and our customers bring additional production capacity online, we believe this is an extended period of growth. In summary, I am pleased with the order growth and the strategic actions we have taken over the last year, and I am excited to execute our plan. Within our core divisions, we have created a firm foundation for growth. This, combined with our strengthened balance sheet, positioned us to execute our strategy both organically and through acquisitions. We have been working with several advisers to secure a pipeline of opportunities to consider and are being very selective and disciplined in our search and evaluation. Our divisions are well positioned to support the nation's growing need for power generation and infrastructure improvement which we see as long term opportunities for us. Our commitment to quality, technical expertise, and the ability to solve complex manufacturing challenges for our customers, continue to help us win new opportunities. We have strategically pivoted our business, are investing wisely, and are taking decisive actions toward higher value and growing end markets. We are pleased that our order intake continues to expand positioning us for improved utilization of a reduced of our reduced manufacturing footprint in 2026. As we strengthen our foundation for steady, profitable growth, serving the power generation, critical infrastructure, and other key markets with high quality precision components and proprietary products to capitalize on the improved demand in years ahead. With that, I will turn the call over to the moderator for the Q and A session. Operator: Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press 1 on your telephone keypad. You may press 2 if you like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset when pressing the star keys. 1 moment please while we poll for questions. Our first question comes from Stefan Thomason with ROTH. Your line is now live. Stefan Thomason: Hi. This is Stefan Thomason on for Justin Clare. You had another quarter of strong orders and started to improve visibility in the balance of 26. But did not reinstate guidance. What else needs to happen here to give you guys enough confidence to reinstate it? Thank you. Eric Blashford: Yeah. I will take that. Just at this time, given the ongoing wind down of our operations in Abilene, we just did not think it was prudent for that to happen. So we definitely want that wind down of the operations to be complete. Which is happening here in Q3 as scheduled. So, that would be the first kind of domino to fall before we would be putting back you know, guidance out there. Stefan Thomason: Okay. Good to know. And then my next question would be on gearing. So what drove the strong gearing orders? Was there any outsized notable orders, or is this a good indication of future demand? Eric Blashford: Yeah. I would say this is a good indication of future demand. And, guys, sorry. We have got a thunderstorm warning behind us up here, the siren. that is what it is, but we are fine. So yeah, it was the demand was across all of our normal verticals. Oil and gas, I mentioned in my prepared remarks, rig counts are starting to go up a bit. They are up about 9%. But we think that is primarily due to customers putting older rigs that had been sidelined back in action. So we are seeing some aftermarket demand from that. But I think in general, Stefan, it would be indicative of future demand. Perfect. Thanks. I will hop back in the queue. Operator: Thank you. Thanks. Our next question comes from Eric Stine with Craig Hallum. Your line is now live. Eric Stine: Hi, Eric. Hi, good morning. So, I mean, you are almost done with the remnants of wind. I know it is another quarter. So just curious, I mean, sounds like you are certainly being thoughtful in terms of potential additions to the platform. But any thoughts you can share on areas capabilities that you might be looking at, Any details would be very helpful. Eric Blashford: Yeah, thanks, Eric. This is Eric. We are focused on opportunities that expand our precision manufacturing capabilities. We are looking into power gen critical infrastructure, grid hardening, maybe even defense and aerospace. But attractive targets would be complementary. Terms of customers, capabilities, or capacity. We are not gonna recreate the wheel. We see our gearing business and our industrial solutions business as core. And so we want to add to those businesses and serve those customers. that is where we are hunting now, Eric. Eric Stine: Okay. Not too far afield from what you have got in place now, it sounds like. Eric Blashford: Yeah. We see power gen and critical infrastructure and grid as really long term plays. I mean, it is it is a 10- or 15-year demand cycle here. So I think investing in those markets would prove well from an acquisition standpoint for us. Eric Stine: Got it. Okay. Thank you. And then, maybe just turning to Industrial Solutions. Good that you have completed the 30% expansion. But, I mean, if you could talk about your potential to do that longer term, and I guess the reason for that question is, correct me if I am wrong, but I think you lag your largest customer by 5 to 6 quarters, and that customer in the last quarter or 2 has seen a massive upstep in orders and their messages to that backlog. So just talked about your potential to expand more. Beyond the 30%. Eric Blashford: Yeah. That customer again, that is that is GE Vernova. it is it is common knowledge that they are a primary in that segment. They are expecting growth. of 18% to 20%, given their guidance. And we think we can keep up with that. I mentioned before, when we move into this new part of our facility, it opens up for packaging, picking and packaging, space there. But it also what it also does is allows us to expand our manufacturing footprint in the original space. As we look to M&A, especially if we can find it more local, we will look to add manufacturing footprint there so we can continue to grow local to the Sanford Raleigh area. So our manufacturing can be local. And then we can use that 130 thousand-square-foot facility, which is now both manufacturing and picking and packing and shipping to be final picking and packing and shipping. So I think we can grow substantially in that facility. I have mentioned before to a $75-ish million rate. But beyond that, this M&A we are looking at, in that specific part of our business could add manufacturing space. Allowing further growth. Eric Stine: Okay. And maybe just sneak 1 last 1 in. I mean, talk about the growth opportunity, as you said. I mean, it is well known. it is very much tied to GE Vernova, which is a good thing. But maybe any limiting factors or the potential to add additional OEMs to that list? Eric Blashford: Yeah. Yeah, we are actually working with all 5 of the top-5 players in natural gas turbines, both in the large scale Sorry, guys. that is another warning here. We got thunderstorms in the background here. But we are looking at, other customers in that same segment, Both in gearing and industrial solutions. They have somewhat different supply chain solutions required so it is not exactly a match to what we primarily do for GE Vernova. But we are looking at other customers in both gearing, and industrial solutions in that space, in the power generation space to grow. So we are not so concentrated within that 1 customer. Operator: Okay. Thank you. Thanks, Eric. Thanks, Eric. Our next question comes from Sameer Joshi with H. C. Wainwright. Sameer Joshi: Hey, good morning, Tom, Eric. Thanks for taking my questions. So in your backlog that you already have in the bag, is there any component of revenues that are expected from the data center market And a corollary to that is in your pipeline, are you seeing any slowdown because of the various states and regional bans on data centers coming up? Eric Blashford: Well, we service, both oil and gas and power gen in both divisions. it is hard to divide power gen into what is just general demand growth and what is specific from AI. But I do know that both our primary customers in that space, Tout, AI as a primary demand driver, especially in the U.S. So while we think about 30% to 40%, of our revenue in gearing, is in power gen. And a higher percentage of industrial solutions in power gen, I do not have a specific breakdown as the drivers of that demand coming from AI, but I know it is significant. If that helps you. Sameer Joshi: Yeah. Yeah. Just wanted to see that. And then, will you remind us in both gearing as well as industrial solutions, what is sort of the conversion cycle from backlog adding to backlog to actually realizing those revenues in terms of months, year? Is there any average for those 2? Eric Blashford: Well, yeah, I will take that. Typically, we have we have said publicly that the conversion rate for a typical gearing order is about 6 months. Now given the demand that we have, again, in power generation, some of those customers have asked us to plan production beyond 2026. So it is beyond that 6 month normal cycle. But say you are an oil and gas customer, you are a mining customer, or you are a material handling customer, 6 months is normally, a good benchmark for conversion of backlog into orders. With Industrial Solutions, that typically again, it is depending on the need. If it is a new install, it can be up to 18 months or even further out. If it is aftermarket, we can turn orders we can turn backlog with well under 3 months if we need to. If you are looking for conversion rate 6 months to a year, is a good benchmark. Thomas A. Ciccone: Yeah, I would also say that yeah, with the improved visibility that some of our customers have, we are seeing backlog well into the out years. We are seeing significant backlog in 2028 already. So I think that really helps kind of level-set that in terms of when we are going to convert that backlog into revenue. Sameer Joshi: Yeah. No. It is good to see that, I mean, the 6 month conversion cycle for gearing, is sort of typical, but then you already have advanced orders and visibility into, as you said, 2027, 2028. So that is always good to see. Eric Blashford: Yes. Sameer Joshi: Just switching quickly to cost side. I think in prepared remarks, you mentioned your expecting to increase engineering and manufacturing resources So how should we think of costs, operating costs going up, and maybe how does it impact gross margins in the near term? Thomas A. Ciccone: I would say that would be ratable going forward. I would not expect any degradation in gross margins due to those due to those increases. Think in terms of quality engineers, general engineers, and production people just to keep the volume, moving in the direction we are going. Eric Blashford: it is not gonna be a lag. On gross profit percentage. Thomas A. Ciccone: Yeah. I would say that particular example will not be a drag on margin. You may see some degradation due to mix change, especially within sorry, guys, again. We might have to take shelter here, but you may see some margin degradation due to mix. Especially within our biz business unit. But any other cost increases would be in response to higher volume. Sameer Joshi: Yeah. And I guess, it also speaks to, leverage, that you may have as you add these resources and revenues grow. So that is good to know. For taking my questions and stay safe. Eric Blashford: Thank you. Yeah. We are in Chicago here. So if any of our investors in Chicago, you might need to take shelter as well. Next question, please, if we have 1. Operator: We have reached the end of the question-and-answer session. Eric Blashford: I would now like to turn the call back over to Eric Blashford for closing comments. Well, yes, thanks for listening in, everyone. We are excited about our opportunities. We are excited about the strategic pivot and look forward to coming to you after Q3 to tell you about our results then. Thank you very much, everyone. Operator: This concludes today's conference. You may disconnect your lines at this time. And we thank you for your participation. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Successfully transitioned to a pure-play precision manufacturing business by exiting the wind tower market to focus on high-margin domestic power generation and critical infrastructure. Positioned to capitalize on a multiyear investment cycle in the electrical grid driven by AI data center load growth, domestic manufacturing reshoring, and general electrification. Achieved record orders and backlog in Industrial Solutions, supported by robust demand for natural gas turbine components in both new build and aftermarket applications. Optimized the asset base through floor space reconfiguration in Gearing and a 30% facility expansion in North Carolina to enhance throughput velocity and operational efficiency. Leveraged a 100% domestic manufacturing footprint to provide integrated onshore solutions for complex large-scale manufacturing challenges. Improved operating leverage and earnings quality as the sales mix shifts toward higher-value precision products with greater revenue visibility. Maintained a disciplined capital allocation strategy focused on organic growth and selective bolt-on acquisitions that meet strict profitability and sector-focus criteria. Anticipates completing remaining wind tower contractual obligations in Q3 2026, marking the final exit from the wind segment. Expects sustained growth in natural gas power generation equipment demand as global customers bring additional production capacity online. Projects revenue to remain above historical levels in Industrial Solutions, though EBITDA margins are expected to normalize from the current 19% level due to product mix. Planning for a multiyear demand cycle in power generation, with some customers already booking production capacity through 2028. Actively evaluating a pipeline of M&A opportunities in grid hardening, aerospace, and defense to scale precision manufacturing expertise. Reclassified heavy fabrication results (excluding pressure reducing systems) as discontinued operations following the April sale of the Avail Infrastructure Solutions facility. Reported a 93% year-over-year increase in combined backlog for Gearing and Industrial Solutions, reaching a book-to-bill ratio of 1.5x. Noted a $6 million reduction in inventory related to the wind-down of Abilene Tower operations, significantly strengthening the balance sheet. Management deferred reinstating financial guidance until the Abilene facility wind-down is fully completed in Q3 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated they will not reinstate guidance until the wind-down of Abilene operations is complete, which is scheduled for Q3 2026. The decision is framed as a matter of prudence to ensure the strategic pivot is fully executed before providing forward-looking metrics. The 138% increase in orders is considered indicative of future demand across all verticals, particularly in power generation and oil and gas. Recent strength in oil and gas is partially driven by customers returning older, sidelined rigs to service in response to a stronger commodity price environment. The recent 30% expansion in North Carolina allows for increased manufacturing footprint in original spaces by moving packaging and shipping to the new area. Management is actively working with all top-five natural gas turbine players to diversify the customer base beyond GE Vernova. Standard gearing orders typically convert in 6 months, but power generation demand has extended visibility into 2027 and 2028. Industrial Solutions conversion ranges from under 3 months for aftermarket parts to over 18 months for new installations.

CICERO, Ill., Aug. 11, 2026 (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 2026. As previously announced, on April 30, 2026, the Company’s wholly owned subsidiary, Broadwind Heavy Fabrications, Inc. (“Heavy Fabrications”) entered into a definitive agreement under which Heavy Fabrications sold its production facility in Abilene, Texas (the “Facility”), including real property, equipment, machinery and other items, to IES Infrastructure for an aggregate purchase price of up to $19.5 million in cash and non-cash consideration in the form of a below market lease, subject to certain purchase price adjustments. The sale of the Facility resulted in the Company completing a strategic exit from wind fabrications. As such, the results of operations of the wind and industrial fabrication operations, excluding pressure reducing system (“PRS”) operations, have been reclassified to discontinued operations within Broadwind’s consolidated statements of operations and retrospectively for all periods presented beginning in the second quarter of 2026. Unless otherwise noted, the discussions and disclosure tables throughout this press release relate only to the Company’s continuing operations as disclosed. SECOND QUARTER 2026 RESULTS(As compared to the second quarter 2025) Total revenue of $24.3 million, +67% y/y GAAP loss from continuing operations of ($0.7) million, or ($0.03) per diluted share Non-GAAP Adjusted EBITDA of $1.6 million, or 6.4% of total revenue* Total orders of $35.2 million, +68% y/y Liquidity at June 30, 2026 of $40.1 million ($31.3 million after adjusting for the minimum excess availability requirement), with $6.3 million of total debt and financing leases *For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release MANAGEMENT COMMENTARY “During the second quarter, we continued a successful strategic pivot toward becoming a pure-play precision manufacturing business focused on the domestic power generation and critical infrastructure markets,” stated Eric Blashford, President and CEO of Broadwind. “Customer demand was robust during the second quarter, as broad-based order momentum accelerated across our power generation, energy, and industrial verticals. Orders in our Industrial Solutions and Gearing segments organically increased 24% and 138%, respectively, when compared to the prior-year period.” “Following our strategic exit from wind tower manufacturing, Broadwind is operating from a position of increased financial flexibility and strategic focus,” continued Blashford. "We are building a precision manufacturing platform positioned to benefit from a multi-year investment cycle in electricity generation, transmission and distribution. We believe our domestic manufacturing footprint, technical expertise and long-standing customer relationships position us well to capitalize on these favorable market conditions.” “At a segment level, Industrial Solutions generated segment-level EBITDA margin of nearly 19% during the quarter, reflecting strong execution and a higher-value sales mix,” noted Blashford. “Within Gearing, profitability improved due to increased sales volume reflective of our recent elevated order levels.” "As customer demand has strengthened, we've optimized utilization of our asset base and gained improved visibility into the remainder of 2026,” noted Blashford. “On a comparable basis, total backlog for our Industrial Solutions and Gearing segments increased a combined 93% as of June 30, 2026, when compared to the prior-year period. We ended the second quarter 2026 with a book-to-bill of 1.5x” “Our capital allocation priorities remain centered on creating long-term shareholder value through a combination of sustained organic growth, together with opportunistic investments in complementary products and solutions within our targeted vertical markets,” concluded Blashford. “With a strengthened balance sheet and a streamlined operating structure, we are actively evaluating opportunities that seek to scale our precision manufacturing expertise within high-value power generation and infrastructure-weighted end-markets, including those with a proven track record of durable profitable growth.” CONSOLIDATED SECOND QUARTER 2026 FINANCIAL RESULTS Broadwind reported a loss from continuing operations of ($0.7) million, or ($0.03) per basic share in the second quarter 2026, compared to a loss of ($3.0) million, or ($0.13) per basic share, in the second quarter 2025. The Company reported Adjusted EBITDA, a non-GAAP measure, of $1.6 million in the second quarter compared to ($1.1) million in the prior year period. For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release. Revenue increased 67% on a year-over-year basis in the second quarter due to higher demand in the Gearing and Industrial Solutions segments. Industrial Solutions revenue grew 79% year-over-year, due primarily to strong demand for natural gas turbine content. Revenue from the Gearing segment grew 24% due primarily to increased demand from power generation and oil & gas customers, partially offset by lower demand primarily from steel customers. Total orders increased 68% in the second quarter, when compared to the prior year period, benefiting largely from accelerating growth in the power generation, oil & gas, and steel end markets. At the end of the second quarter, Broadwind had total cash on hand and availability under its credit facility of $40.1 million, or $31.3 million after adjusting for the minimum excess availability requirement. The Company had $6.3 million of debt and financing leases. SEGMENT RESULTS Gearing SegmentBroadwind provides custom gearboxes, loose gearing, precision machined components and heat treat services to a broad set of customers in diverse markets, including power generation, oil & gas production, surface and underground mining, wind energy, steel, material handling and other infrastructure markets. Gearing segment sales increased by 24% to $9.0 million in the second quarter 2026, as compared to the prior year period, primarily driven by higher demand from power generation and oil & gas customers, partially offset by decreased demand from steel customers. The segment reported an operating loss of ($0.2) million in the second quarter, compared to an operating loss of ($0.8) million in the prior year period. Segment non-GAAP adjusted EBITDA was $0.4 million in the second quarter, as compared to ($0.1) 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 79% to $13.2 million in the second quarter 2026, as compared to the prior year period, primarily driven by sales of components for gas turbines into new-build and aftermarket applications. The segment reported operating income of $2.3 million in the second quarter compared to operating income of $0.5 million in the prior year period. Segment non-GAAP adjusted EBITDA was $2.5 million in the second quarter compared to $0.7 million in the prior year period. SECOND QUARTER 2026 RESULTS CONFERENCE CALL Broadwind will host a conference call today, August 11, 2026, 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. ABOUT BROADWIND Broadwind (Nasdaq: BWEN) is a precision manufacturer of structures, equipment and components for power generation, critical infrastructure, 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 MEASURES The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, share-based compensation and other stock payments, restructuring costs, impairment charges, other non-cash gains and losses and transaction costs) 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) the impact of our sale of the Abilene, Texas production facility and its effect on our financial results, (ii) our expectations and beliefs with respect to our financial guidance as set forth in our press releases from time to time, (iii) the impact of global health concerns on the economies and financial markets and the demand for our products; (iv) 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; (v) 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; (vi) our ability to operate our business efficiently, comply with our debt obligations, manage capital expenditures and costs effectively, and generate cash flow; (vii) 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; (viii) our ability to continue to grow our business organically and through acquisitions; (ix) the production, sales, collections, customer deposits and revenues generated by new customer orders and our ability to realize the resulting cash flows; (x) information technology failures, network disruptions, cybersecurity attacks or breaches in data security; (xi) the sufficiency of our liquidity and alternate sources of funding, if necessary; (xii) our ability to realize revenue from customer orders and backlog; (xiii) the economy and the potential impact it may have on our business, including our customers; (xiv) 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; (xv) the effects of market disruptions and regular market volatility, including fluctuations in the price of oil, gas and other commodities; (xvi) competition from new or existing industry participants including, in particular, increased competition from foreign tower manufacturers; (xvii) the effects of the change of administrations in the U.S. federal government; (xviii) our ability to successfully integrate and operate acquired companies and to identify, negotiate and execute future acquisitions; (xix) the potential loss of tax benefits if we experience an “ownership change” under Section 382 of the Internal Revenue Code of 1986, as amended; (xx) the effects of proxy contests and actions of activist stockholders; (xxi) the limited trading market for our securities and the volatility of market price for our securities; (xxii) our outstanding indebtedness and its impact on our business activities (including our ability to incur additional debt in the future); and (xxiii) 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 Annual Report on Form 10-K for the year ended December 31, 2025. 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. CONTACT: IR CONTACT Noel Ryan or Brian Hawthorne [email protected]

Interested in Broadwind Energy, Inc.? Here are five stocks we like better. Broadwind is completing its strategic exit from wind tower manufacturing, with remaining orders expected to be finished in the third quarter after selling its Abilene facility. Second-quarter continuing-operations revenue rose 67% to $24.3 million, while adjusted EBITDA improved to $1.6 million from a $1.1 million loss. Industrial Solutions posted record revenue and a nearly 19% adjusted EBITDA margin. Orders and backlog reached record or multiyear highs: total orders exceeded $35 million, comparable backlog increased 93% year over year, and the company ended the quarter with more than $40 million in cash and credit availability. Management is evaluating selective acquisitions in power generation, critical infrastructure, aerospace and defense but has not reinstated financial guidance. Broadwind Energy (NASDAQ:BWEN) reported sharply higher second-quarter revenue, improved adjusted EBITDA and record order activity in its continuing Gearing and Industrial Solutions businesses as the company advances its exit from wind tower manufacturing. Chief Executive Officer Eric Blashford said the company is repositioning itself as a precision manufacturing supplier focused on domestic power generation and critical infrastructure markets. Broadwind sold its Abilene facility in April, and heavy fabrication results excluding pressure-reducing systems have been classified as discontinued operations. The company expects to complete its remaining wind tower orders during the third quarter. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “Once we complete our remaining wind tower orders in Q3, satisfying our contractual obligations, Broadwind will have completed our strategic pivot away from wind,” Blashford said. Second-quarter consolidated revenue from continuing operations rose 67% year over year to $24.3 million, driven by higher order activity and deliveries in both operating segments. Adjusted EBITDA improved to $1.6 million, compared with an adjusted EBITDA loss of $1.1 million in the prior-year quarter. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Chief Financial Officer Tom Ciccone said the company had expected the first quarter to represent its low point for 2026 revenue, and both segments recorded sequential revenue growth in the second quarter. Gearing revenue: $9 million, up 24% from a year earlier, supported by power-generation deliveries. Gearing adjusted EBITDA: $0.4 million, compared with a $0.1 million loss a year earlier. Industrial Solutions revenue: $13.2 million, up nearly 80% year over year and a quarterly record for the segment. Industrial Solutions adjusted EBITDA: $2.5 million, compared with $0.7 million in the prior-year period. Industrial Solutions generated an adjusted EBITDA margin of nearly 19% during the quarter, which management attributed to higher capacity utilization, favorable product mix and cost efficiencies. Ciccone said the margin is expected to move down toward more typical levels over time, though the company currently expects revenue to remain above recent historical levels, subject to customer schedules, product mix and market conditions. → Is Wingstop's Growth Story Losing Steam? Total second-quarter orders exceeded $35 million, increasing by more than $14 million from the prior-year period. On a comparable basis, combined backlog for the Gearing and Industrial Solutions segments was up 93% as of June 30 from a year earlier, and Broadwind ended the quarter with a book-to-bill ratio of 1.5 times. Gearing orders increased 138% year over year and 22% sequentially to $16.2 million. The segment ended the quarter with backlog of $37.6 million, its fourth straight quarterly backlog increase. Management cited demand across power generation, oil and gas, mining and material-handling markets, with particular strength in power generation and improving aftermarket activity related to upstream oil and gas equipment. Industrial Solutions booked a record $17.2 million in second-quarter orders, up 24% from a year earlier and 18% sequentially. Backlog reached a record $47.4 million, extending the segment’s streak of sequential backlog growth to eight quarters. The segment produces components for natural gas turbine applications, including new-build and aftermarket shipments. Blashford said Broadwind is seeing demand tied to distributed power, small-frame natural gas turbines and utility-scale turbine applications. He said the company cannot specifically separate the impact of AI-related data center demand from broader power-generation demand, but noted that key customers cite AI as a significant driver. Broadwind expanded the warehouse at its Sanford, North Carolina facility by approximately 30% at the end of the second quarter. Management said the added space has improved logistics and created additional processing and packaging capacity while also enabling further expansion of manufacturing activity in the original facility. During the call, Blashford said the Sanford operation could grow to an approximately $75 million annual revenue rate. He added that potential acquisitions in the local area could provide additional manufacturing space to support future growth. In the Gearing business, Broadwind is reconfiguring machining centers into cellular manufacturing layouts as part of a floor-space optimization project. The company said the effort is intended to improve material flow, reduce wasted motion and raise throughput. Broadwind ended the quarter with more than $40 million of total cash and credit-facility availability, or $31.3 million after accounting for a minimum excess-availability requirement. Ciccone said working capital increased modestly in continuing operations as those businesses ramped, but the increase was more than offset by a more than $6 million reduction in inventory associated with the Abilene tower operation. Broadwind did not reinstate financial guidance despite stronger order trends and backlog visibility. Blashford said management wants to complete the Abilene wind-down, which is scheduled for the third quarter, before issuing guidance again. The company is also evaluating bolt-on acquisitions that would expand its precision manufacturing capabilities. Blashford said potential targets would be focused on power generation, critical infrastructure, grid hardening, aerospace or defense and would need to complement Broadwind’s existing customers, capabilities or capacity. Management said it is working with advisors to develop an acquisition pipeline but plans to remain selective and disciplined on sector focus, profitability, durability and valuation. Broadwind also said it is seeking to diversify its customer base in power generation, while continuing to work with major natural gas turbine manufacturers. Broadwind Energy, Inc (NASDAQ: BWEN) is an engineering and manufacturing company focused on the design, production and service of heavy industrial equipment for energy infrastructure and related markets. The company's offerings include custom-engineered gearboxes, couplings, hydrodynamic drives and utility-scale wind turbine towers. In addition to new equipment, Broadwind Energy provides aftermarket repair, refurbishment and testing services to support the long-term operation of energy and industrial assets. The company operates through two principal segments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Broadwind Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Consolidated Revenue: $24.3 million, a 67% increase versus the prior year period. Adjusted EBITDA: Improved to a positive $1.6 million from a loss of $1.1 million in the prior year second quarter. Gearing Segment Revenue: Increased 24% year over year to $9 million. Gearing Segment Adjusted EBITDA: $0.4 million, compared to a loss of $0.1 million in the prior year period. Industrial Solutions Revenue: Rose 79% to $13.2 million, a quarterly record for the segment. Industrial Solutions Adjusted EBITDA: $2.5 million versus $0.7 million in the prior year period. Industrial Solutions EBITDA Margin: Nearly 19% during the quarter. Total Orders: Exceeded $35 million, increasing more than $14 million from the prior year period. Book-to-Bill: 1.5 times at the end of the second quarter. Gearing Orders: Increased by 138% to $16.2 million. Gearing Backlog: Nearly $38 million. Industrial Solutions Orders: Increased 24% year over year to a record $17.2 million. Industrial Solutions Backlog: A new record of $47.4 million. Combined Backlog Growth: Increased 93% as of June 30 compared to the prior year period. Liquidity: Total cash and availability on credit facility of more than $40 million, or $31.3 million after adjusting for minimum excess availability requirements. Warning! GuruFocus has detected 4 Warning Signs with BWEN. Is BWEN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Broadwind Inc (NASDAQ:BWEN) reported a 67% year-over-year increase in consolidated revenues to $24.3 million, driven by strong order activity in both Gearing and Industrial Solutions segments. Adjusted EBITDA improved significantly from a loss of $1.1 million in the prior year to a positive $1.6 million, reflecting better operational leverage and cost efficiencies. Combined backlog for Gearing and Industrial Solutions increased 93% year-over-year, with a book-to-bill ratio of 1.5 times, indicating strong future revenue visibility. Industrial Solutions achieved record quarterly orders of $17.2 million and record revenue of $13.2 million, supported by robust demand for natural gas turbine components. The company completed a strategic pivot away from wind tower manufacturing, focusing on higher-margin precision manufacturing for power generation and critical infrastructure, with a strengthened balance sheet and over $40 million in liquidity. Broadwind Inc (NASDAQ:BWEN) did not reinstate financial guidance due to the ongoing wind-down of its Abilene operations, which is expected to be completed in Q3 2026. The company remains heavily reliant on GE Vernova as a primary customer in Industrial Solutions, though it is working to diversify across other OEMs. EBITDA margins in Industrial Solutions are expected to adjust down to more typical levels from the near-19% achieved in Q2, due to potential product mix changes. The wind-down of wind tower operations continues to impact financials, with remaining orders to be fulfilled in Q3, creating uncertainty in the near term. The company faces potential margin pressure from increased engineering and manufacturing resources, though management expects this to be offset by higher volumes. Q: What drove the strong Gearing orders, and is this a good indication of future demand? A: Eric Blashford (CEO) stated that the demand was broad-based across all normal verticals, including oil and gas, where rig counts are starting to increase as customers return older rigs to service. He confirmed that the order strength is a good indication of future demand. Q: Can you provide details on the areas and capabilities you are looking at for potential acquisitions to expand the platform? A: Eric Blashford (CEO) explained that the company is focused on opportunities that expand precision manufacturing capabilities in power generation, critical infrastructure, grid hardening, and possibly defense and aerospace. He emphasized that targets would be complementary in terms of customers, capabilities, or capacity, and that they are not looking to "recreate the wheel" but rather add to their core Gearing and Industrial Solutions businesses. Q: Given the completion of the 30% expansion at the Industrial Solutions facility, what is the potential to expand further, especially considering the growth of your largest customer? A: Eric Blashford (CEO) noted that the expansion opens up space for packaging and shipping, allowing for further manufacturing growth in the original space. He stated that the facility can grow to a $75 million-ish revenue rate, and that potential M&A in that specific business area could add manufacturing space to support further growth, particularly to serve GE Vernova's expected 18%-20% growth. Q: Are there any limiting factors or the potential to add additional OEMs to your customer list, given the current concentration with GE Vernova? A: Eric Blashford (CEO) confirmed that Broadwind is working with all five of the top players in natural gas turbines. While their supply chain solutions differ from what they primarily do for GE Vernova, the company is actively looking at other customers in both Gearing and Industrial Solutions within the power generation space to grow and reduce concentration. Q: Is there any component of your backlog expected from the data center market, and are you seeing any slowdown due to regional bans on data centers? A: Eric Blashford (CEO) stated that while it's difficult to divide power generation demand into general growth versus AI-specific demand, AI is a primary demand driver for their key customers. He estimated that 30%-40% of Gearing revenue and a higher percentage of Industrial Solutions revenue is in power generation, with AI being a significant, though not specifically quantified, driver. Q: What is the conversion cycle from backlog to revenue for the Gearing and Industrial Solutions segments? A: Eric Blashford (CEO) stated that the typical conversion rate for a Gearing order is about 6 months, though some power generation customers are planning production beyond 2026. For Industrial Solutions, new installs can take up to 18 months, while aftermarket orders can convert in under three months. Tom Ciccone (CFO) added that they are already seeing significant backlog in 2028, which provides improved visibility. Q: How should we think about operating costs going up with the planned increase in engineering and manufacturing resources, and how will it impact gross margins? A: Eric Blashford (CEO) stated that the cost increases will be ratable and should not cause degradation in gross margins. Tom Ciccone (CFO) added that while there may be some margin degradation due to product mix changes, the cost increases are in response to higher volume and should not be a drag on margins. Q: What has to happen for the company to reinstate financial guidance? A: Tom Ciccone (CFO) explained that the company did not reinstate guidance due to the ongoing wind down of operations in Abilene. He stated that the wind down is scheduled to be complete in Q3, and that would be the first step before they would consider putting guidance back out there. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Broadwind Inc (NASDAQ:BWEN) reported strong revenue growth in its core gearing and industrial solutions segments, with increases of over 40% and 60% year-over-year, respectively. The company is strategically exiting the wind tower production business to focus on higher growth and more predictable markets, which are not policy-dependent. Broadwind Inc (NASDAQ:BWEN) has seen a significant increase in orders, with the gearing segment experiencing a 65% increase in Q1 orders, supporting a backlog of $30.5 million. The Industrial Solutions segment set a new record for both orders and backlog, driven by strong demand for natural gas turbine components. Investments in new equipment and technology are enhancing process capabilities, reducing costs, and improving profitability, making Broadwind Inc (NASDAQ:BWEN) one of the most vertically integrated manufacturers of critical components in the U.S. First quarter consolidated revenues decreased by 8% compared to the prior-year period, primarily due to a decline in the Heavy Fabrication segment. Adjusted EBITDA declined slightly to $2.2 million from $2.4 million in the previous year, indicating some pressure on profitability. The Heavy Fabrication segment experienced a 35% decrease in revenue, reflecting the sale of the Manitowoc Industrial Fabrications business and lower demand. Broadwind Inc (NASDAQ:BWEN) has withdrawn its full-year 2026 financial guidance following the sale of the Abilene facility, creating uncertainty about future financial performance. The company faces challenges in the oil and gas sector, with low rig counts and customers being cautious with capital expenditures, impacting demand for gearing products. Warning! GuruFocus has detected 5 Warning Signs with BWEN. Is BWEN fairly valued? Test your thesis with our free DCF calculator. Q: How do you expect the conversion of the remaining backlog for HeavyFab, and what effect could this have on inventory levels and overall liquidity? A: The $25 million backlog, primarily related to towers, will be completed out of the Avalene facility over the next two quarters. We expect inventory levels to decrease as we convert these orders, but this will be partially offset by increases in our gearing and industrial solutions segments as they ramp up. Overall, the impact on liquidity will be muted. - CFO, Tom Ciccone Q: With the sale of Avalene, how will operating expenses change, and are there any other actions planned to optimize the business? A: Operating expenses associated with the Avalene facility will be eliminated as we exit. We are reviewing all costs to optimize the business in light of this transaction, but no significant changes are expected in the cost structure of other business units. - CFO, Tom Ciccone Q: Can you discuss the opportunity for Broadwind to expand content per turbine in the natural gas market and trends in order size or project scope? A: We are engaged with several gas turbine producers and are expanding our content in industrial solutions, particularly in hot gas path components. We are also exploring additional components within natural gas turbines, focusing on precision machine gearing. - CEO, Eric Lashford Q: How do you expect the backlog in gearing and industrial solutions to flow, and what does this imply for the next 12 to 18 months? A: We expect steady, ratable growth for the rest of the year, with bookings extending into 2027 and 2028. The backlog execution depends on customer demand timing, but we have capacity to fill in the interim. - CFO, Tom Ciccone Q: What are the trends in the oil and gas sector for gearing, and how is Broadwind positioned? A: The oil and gas gearing sector has been low due to customers being frugal with capital. However, we are seeing demand for aftermarket components as customers put older rigs back to work, indicating some improvement. - CEO, Eric Lashford Q: What are the potential areas for inorganic growth, and how does Broadwind plan to use its strengthened balance sheet? A: We aim to grow inorganically using our gearing and industrial solutions platforms. We are interested in precision machining with exposure to defense, aerospace, power generation, and grid hardening. - CEO, Eric Lashford Q: What EBITDA margins should be expected over the next 12 to 18 months as you focus on new segments? A: In the gearing segment, margins should improve with increased volume and operating leverage. In industrial solutions, we expect margins to normalize over the year despite revenue growth. - CFO, Tom Ciccone Q: Is there a potential rebranding for Broadwind as you exit the wind fabrication business? A: We are considering rebranding, but no decision has been made yet. Some divisions already operate under different names, and we are evaluating the overall company branding. - CEO, Eric Lashford For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. May 12, 2026 President and Chief Executive Officer — Eric Blashford Chief Financial Officer — Thomas A. Ciccone Eric Blashford: Thank you, Tom. And welcome to our call today. During the first quarter, we advanced our business transformation strategy while delivering strong revenue growth, margin realization, and order momentum in our core Gearing and Industrial Solutions segments. Higher demand in the power generation and critical infrastructure end markets drove revenue growth of more than 40% in gearing, and more than 60% in industrial solutions year over year. We anticipate our strategic exit from wind tower production will be complete in the 2026. So Gearing and Industrial Solutions will represent our core businesses. Moving forward. Excluding the divested product lines, within the heavy fabrication segment, Broadwind generated approximately $64 million of revenue on a trailing 12-month basis through the end of the first quarter. Our remaining businesses are higher growth more predictable, more profitable and not policy dependent, with meaningfully improved earnings quality. Over time, we will use our core Gearing and Industrial Solutions segments as a platform to grow a business of increasing scale and profitability. Within the Gearing segment, Q1 orders increased more than 65%, to $13.2 million supporting a backlog of $30.5 million Demand growth within the Gearing segment has been largely driven by strong customer activity in power generation, driven by the AI data center boom as well as industrial and mining markets. Quoting activity remains robust, with green shoots now forming in defense. Our Industrial Solutions segment had yet another strong quarter. As orders increased 44% year over year to $14.6 million driving backlog to a record $43.3 million Natural gas turbine demand remains very strong. Also driven by the AI center boom. As well as global electrification. Representing key growth drivers for this segment and we are happy to meet that demand. Operationally, we continue to invest in equipment and technology to increase our process capabilities reduce costs, and improve our profitability. In gearing, this quarter, we commissioned new very high precision grinding and mechanical balancing equipment to improve quality, reduce lead times in the production of high speed reduction gearing such as the gearing used on natural gas turbines. These technology improvements make us 1 of the most vertically integrated manufacturers of these types of critical components in the US. In the industrial solutions segment, we continue to make investments to improve our capacity and capabilities in order to meet the strong customer demand that we are experiencing from our key gas turbine equipment customers. We are on track to expand our local footprint in our North Carolina facility in Q2. This expansion will increase production space in North Carolina by 30% which is necessary to service our strong backlog that position us to handle the future growth projected in this market. Within our heavy fabrication segment, Q1 revenue decreased by 35% reflecting the sale of the Manitowoc Industrial Fabrications business last year, lower PRS demand, and the residual impact of the OEM directed biomaterial supply issue we experienced late last year. Revenue in our Gearing segment increased 42% year over year, to $8.5 million given the steady ramp up in power generation related demand. Within industrial solutions, revenue grew 64% year over year, to $9.2 million primarily due to stronger shipments of natural gas turbine components. In summary, the team and business continued to perform well as we sharpen our focus within adjacent higher margin precision manufacturing verticals. Our progress on an industry specific certifications such as AS9.1 thousand for aerospace and defense, and the cybersecurity maturity model certification or CMMC 2.0 for the defense market and others combined with targeted investments in capacity and capability, is yielding the results we expected and more. Our decision to strategically pivot from the unpredictable, uncertain, and policy dependent wind tower business and repurpose that capital toward higher growth, more predictable, more profitable markets positions us well for the future. With that, I will turn the call over to Tom for a discussion of our first quarter financial performance. Thomas A. Ciccone: Thank you, Eric. Turning to Slide 5 for an overview of our first quarter performance versus the prior year period. First quarter consolidated revenues were $34.1 million representing an 8% decrease As expected, we experienced a decrease in our heavy fabrication segment. However, outside of the heavy fabrication segment, first quarter revenues within our gearing and industrial solutions segments increased more than 40%, 60%, respectively. Reflective of the strong order activity levels we have been recognizing. Adjusted EBITDA declined slightly to $2.2 million versus the prior year of $2.4 million However, adjusted EBITDA increased approximately 16% sequentially driven by improved capacity utilization, and a more profitable mix. First quarter orders remained strong at $37 million Orders increased within our Gearing and Industrial Solutions segment driven by strength in the power generation, and natural gas turbine verticals. While orders decreased within our heavy fabrication segment, reflective of our exit of the Manitowoc facility, late in 2025. Turning to Slide 6 for a discussion of our heavy fabrication segment. As expected with the wind down of the Manitowoc operations, we continue to see decreases in revenue, orders and backlog. We anticipate this to continue going forward especially in light of our recently announced sale of our Abilene facility pursuant to which we strategically exited the wind market. First quarter orders of $9.7 million primarily consists of wind tower production that will continue through 2026 out of the Abilene facility as well as some baseline PRS activity. As a reminder, we will retain the PRS business and we are evaluating segment reporting following the divestiture. We will provide additional detail as the process is finalized. First quarter revenues of $16.4 million and adjusted EBITDA of $1.7 million are both down versus the comparative prior year period. Due to the wind down of our Manitowoc operations the resolve raw material supply issue and lower PRS demand. Turning to Slide 7. Q1 gearing orders remained strong at $13.2 million an increase of 66% versus the prior year and 36% sequentially. We ended Q1 with over $30 million in backlog, a level we have not reached since 2023. As we noted in prior quarters, we continue to see strong orders from power generation, and oil and gas customers and that momentum continued into Q2 as we booked more than $6 million in orders in April alone. Segment revenue was $8.5 million an increase both sequentially and versus the prior year, reflective of the stronger recent order intake levels. We recognized adjusted EBITDA of $600 thousand compared to an adjusted EBITDA loss of $200 thousand in the prior year period. As our volumes continue to recover, we are improving our capacity utilization driving improved operating leverage. Turning to Slide 8. Industrial Solutions booked $15 million of new orders during the first quarter. 44% increase over the prior year. During the first quarter, the segment set a new record for both orders and backlog, and is on track to do so again in Q2 as it has already recorded over $10 million in orders during April alone. The $43 million backlog total is more than $5 million above the previous high watermark Set in Q4. Q1 represents the sixth straight quarter setting a record backlog level. Q1 segment revenue was $9.2 million up over 60% versus the prior year reflective of the elevated order levels received recently. As we noted last quarter, we expect this business will operate at these elevated revenue levels over the medium term. First quarter adjusted EBITDA was $1.8 million or 19% of revenue. This represents a significant increase from the $500 thousand in adjusted EBITDA and 8.7% EBITDA margin in the prior year, as the segment benefited from improved capacity utilization and a more favorable mix of products sold. Turning to Slide 9. We ended the first quarter with total cash and availability on our credit facility of more than $25 million or $16.4 million after adjusting for the minimum excess availability requirement in place effective Q1. Pro forma for the sale of the Abilene facility our liquidity improves approximately $10 million reflective of credit availability adjustments and required debt payments. During Q1, operating working capital increased slightly as a decrease within our heavy fabrication segment was more than offset by increases within our gearing and industrial solutions segment in line with their increasing activity levels. Finally, with respect to our financial guidance, as noted last week, with the sale of the Abilene facility, we have elected to withdraw our full year 2026 financial guidance. That concludes my remarks. I will turn the call back over to Eric to continue our discussion. Eric Blashford: Thanks, Tom. Now allow me to provide some thoughts as we move into Q2 and beyond. We continue to make a decisive shift toward increasingly stable, growing power generation critical infrastructure markets. The strategic moves we have made with our tower facilities position us to focus on higher growth, and higher margin opportunities that leverage our precision manufacturing expertise. And to do so with a strengthened balance sheet. We will complete our remaining wind tower orders through Q3 and then direct our full attention to our growth strategy. Our remaining facilities in Chicago, Pittsburgh, and Sanford, North Carolina near Raleigh, have more than 450 thousand square feet of manufacturing space ready to serve our customers. Quarter upon quarter of strong order growth within the gearing and industrial solutions segments from power generation specifically within distributed power, as well as growing opportunities in both small frame and utility scale natural gas turbines support our strategy to expand in this market. Quote activity continues to increase in both gearing and industrial solutions. Generated by our ability to solve complex precision manufacturing and sourcing challenges faced by our customers in this growing market. We have prudently added resources to meet this demand in both divisions. In our gearing segment, we continue to execute our strategy to move beyond traditional gearing for new opportunities in other precision machine products. For power generation aerospace, and defense. We see the continuing strength incoming orders from the power generation sector as the beginning of a super cycle for which we are prepared. Expansion of our very high precision and vertically integrated capabilities to serve the high speed gear segment I mentioned earlier increases our value add to key customers. We are pleased with the increasing level of customer activity we are seeing in various new infrastructure related opportunities such as material processing and defense. We expect further inroads in defense as we complete our CMMC 2.0 certification later this year which is a requirement when producing certain defense related products. Lastly, there is also improving order activity in traditional gearing markets supporting oil and gas. Specifically the fracking aftermarket as certain customers begin putting older, rigs back in service. In Industrial Solutions, our commercial performance continues to set new records in both orders and backlog. The strong demand that we began experiencing in 2025 continues to accelerate in 2026. As the global demand for natural gas power generation equipment grows, and as our customers bring additional production capacity online, we believe this is an extended period of growth. Some of our key customers have sold out their production capacity for the remainder of the decade. Which gives us confidence that this period of strong demand is still in its early stages. In summary, I am pleased with the order growth, and the strategic actions we have taken over the last year and I am excited to execute our plan. Our divisions are well positioned to support the nation's growing need for power generation and infrastructure improvement. Which we see as long term opportunities for us. Our quality, quick response, and ability to solve complex manufacturing challenges for our customers continue to help us win new opportunities. We have refocused our business, are investing wisely, and are taking decisive strategic actions towards higher value growing end markets. We are encouraged that our order intake continues to grow positioning us for improved utilization, of our reduced manufacturing footprint in 2026. As we strengthen our foundation for steady, profitable growth serving the power generation critical infrastructure, and other key markets with high quality precision components and proprietary products to capitalize on improved demand in the years ahead. With that said, I will turn the call over to the moderator for the Q&A session. Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. Confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. Our first question comes from Justin Clare with ROTH Capital Partners. Your line is now live. Analyst (Justin Clare): Hey, good morning. Thanks for taking our questions here. Eric Blashford: Good morning, Justin. Thomas A. Ciccone: Morning. Analyst (Justin Clare): I wanted to start out with Heavy Fab. Just wanted to see how you would frame the conversion of the remaining back for Heavy Fab, the $25 million how do you expect that to convert between Q2 and Q3? And then just wanted to see how you are thinking about the inventory levels for the overall business as you convert the remaining orders for heavy fab here and then what the effect could be on your overall liquidity, Because I am imagining you may have a lower inventory level as you convert the remaining orders here. Thomas A. Ciccone: Yes. Thanks, Justin. So of the $25 million of backlog, the overwhelming majority of this is towers related that will be completing out of the Abilene facility here. And that and that should be very, very ratable over the next 2 quarters. So you know, it is probably 5 months. Think of it you know, 1/5 over the next 5 months, if you will. So I think that you can you can call that fairly ratable you know, post close 3 I mean, post 1 here. The other thing I would mention is overall, when we are looking at not just inventory balances, but our operating working capital, have maybe $10 million of operating capital associated with our wind business at the end of the quarter. So we expect that will obviously decrease, but we are expecting that to be partially offset by increases within you know, our gearing and our biz segments as those continue to ramp up here, over the balance of the year? So there may be some benefit, but I think it will be muted. Analyst (Justin Clare): Yeah. Got it. Okay. And then with the sale of Abilene, just wondering how we should think about the overall operating expenses for the business here. And how you anticipate that changing as you exit that wind tower business? And then any other actions we should be looking for in terms of things that you may be looking to do to optimize the business? As you shift to, you know, a focus on power generation and critical infrastructure? Thomas A. Ciccone: Well, yeah, yeah, we do have, the operating expenses associated with that facility will go away as we exit the facility. I do not think that they are their cost structures significantly different than what we have within the other business units So it should we should not see any consolidated impact there. In terms of other costs, that we are looking at, we are, you know, we are looking at all of our costs and trying to optimize that in light of this transaction going forward. Analyst (Justin Clare): Got it. Okay. And then maybe just 1 more You know, you had indicated natural gas content drove order growth for Industrial Solutions and Gearing. Wondering if you could talk about the opportunity for Broadwind to expand, you know, content per turbine or wallet share within the nat gas end markets. And then I guess, what you are seeing in terms of order size or project scope and how that is trending? Eric Blashford: Yes. Thanks, Justin. This is Eric. Well, I will tell you that we are engaged with a couple different producers of gas turbines. Primarily the ones that are that are in the utility scale. There is we are we are engaged right now with 4 of the top 10 right now. Of course, we do have some concentration on a couple of those. As far as content, the content for industrial solutions is broad as we discussed before, We tend to support those installations on what is called not hot gas path, but surrounding the hot gas path. So we continue to invest in capabilities to grow share within that product set. So I think we are growing within our primary customer and another 3 on top of that. We are also growing content from industrial solutions kinda beyond what we what we do by taking more manufacturing on ourselves. With regard to gearing, we do production gearing. And we are looking at some other components within the natural gas turbine, but it will be limited primarily to that reduction gearing that we discussed before because that is primarily what these turbines need from us as far as precision machine gearing. Okay. Got it. Thank you. Appreciate it. Thomas A. Ciccone: Thanks, Justin. Eric Blashford: Thanks, Justin. Operator: Our next question comes from Eric Stine with Craig Hallum. Your line is now live. Analyst (Eric Stine): Hi, Eric. Hi, Tom. Good morning. Eric Blashford: Good morning. Thomas A. Ciccone: Good morning. Analyst (Eric Stine): So, obviously, you are you know, focusing here. You have been investing in gearing and industrial for some time. Curious, could you update us on you have got really strong backlog in both segments, update us on how you would expect that backlog to flow in both businesses, whether that has changed or you know, improved your ability to exit execute on that and then just what that implies over the next say, 12 to 18 months? Thomas A. Ciccone: Sure. Sure. Eric Blashford: Thanks, Eric. I think we are we are seeing is that we think that Q1 is probably the low watermark our revenues for both of those segments. We do expect these revenues to ramp up I do not think we can take our order run rate and extrapolate that to mean our what we are gonna book in terms of revenue because we are probably booking further into the future than we have in the past. But I think just suffice to say, I think we can expect a steady ratable growth for the balance of this year. And we are I should add that we are booking into 2027. And actually a little bit into 2028. Now that is depending on when the customers want product, not depending on our capability to deliver it when the customers want it. They are looking further out A couple of our customers are booked literally to the end of the decade, and so we have some advanced notice of some of their products. They want to secure capacity now instead of waiting. Analyst (Eric Stine): So I do not wanna put words in your mouth, but you could, it sounds like you could execute on this backlog in both segments, you know, perhaps over the next 12 or so months, But in some cases, as you said, it has to do when the customers want that production, and that would potentially be the limiting factor. Correct. Now which also means there is more capacity. We have to fill in the interim. Yep. Yep. Okay. Got it. I mean, is it something where you are able to disclose kinda what your the percentage? And it sounds like it would be more skewed to industrial solutions when you are talking about booking further out, but are you able to kinda give a high level view of, say, what in that backlog, what is kinda earmarked for 2028 versus 2027 and 2020? Thomas A. Ciccone: We could probably provide that on the next call We can provide some color there. At this point, I would say it is primarily 2027. Anything that is not in this year would be 2027. I think we are just starting to touch 2028. But we can add some color to that maybe on the next call for sure. Eric Blashford: Yeah and you are correct. The you are correct. The customer that is pushing some or requesting some 2028 due dates delivery dates would be out of the Industrial Solutions segment, not so much out of hearing. Analyst (Eric Stine): Yep. Okay. Got it. And then could you just talk a little bit about gearing? You mentioned some positive trends in oil and gas. And certainly, you know, you are hearing just I mean, it is a distant memory, but early in the year, gas prices or, I am sorry, oil prices, pretty depressed. And you are hearing people start to talk about that is really weighed on their oil and gas business and that it really has not picked up, you know, even with oil price appreciation given geopolitical factors. So maybe talk about that. I mean, is that something you that you are kind of concerned about or on the lookout for, or is there a reason that gearing would be a little bit insulated from what some others are seeing? Eric Blashford: Well, gearing has been or oil and gas gearing, as you know, has been at a low for shoot. 6 or 7 quarters now. And it is because of a couple things. 1 is the customers are being more frugal with their capital Their rigs are a lot more are a lot more productive, so you do not need to add rigs to add to add output. However, what is going on now is, we have customers that are putting some of their old rigs back to work. And replacing some components within their existing rigs. So what we are seeing is what I would call quick turn domestic supply for our customers as they put some of their old equipment back to work. Got it. So, I mean, maybe is this a possibility that actually I mean, you are seeing some improvement there. As you said, low levels, but you are seeing some improvement there. Because customers are in fact a little bit cautious, but they are trying to get more out of their existing equipment rather than new capital. Right. that is correct. So the rig count, in the US remains down. The customers are not really putting new rigs back to work. there is been a couple over the last couple of weeks that have been redeployed. But where we are seeing the demand is what I would call aftermarket Meaning, the customers that have rigs working, or need to keep those rigs functioning, and they are replacing some of their wear their gearing wear parts with new components, not new rigs. Upgrading existing rigs. Analyst (Eric Stine): Okay. Alright. that is helpful. Last 1 for me. Just I mean, pretty clear signaling that you that you aim to use a stronger balance sheet to add to your business. So I am curious. Maybe it is too early or maybe you just cannot talk about, you know, some specific thoughts. But just curious when you look at your platform, what are what are some areas where you potentially could fill in? Eric Blashford: Well, of course, we have been pretty open about wanting to grow inorganically We are gonna use those 2 both those platforms gearing and industrial solutions as platforms to grow. We like precision machining with exposure to defense and aerospace. Already have some exposure to power generation if we can find something in power generation that would make sense, we would certainly like to bolt that on. We also like grid hardening. Think in terms of transmission distribution. A lot of the grid in The US is quite old. and in need of upgrade. And we think there is a position for us to take to support that upgrade. Okay. Thank you. Thomas A. Ciccone: Thanks, Eric. Eric Blashford: Thanks, Eric. Operator: Our next question comes from Amit Dayal with H. C. Wainwright. Your line is now live. Analyst (Amit Dayal): Thank you. Good morning, everyone. Thanks for taking my questions. It looks like you have a pretty clear strategy in front of you with the new segments you are focused on. In that context, you know, what should we expect EBITDA margins to sort of, you know, come through maybe over the next 12 to 18 months as you sort of clean up the you know, the businesses you are exiting and focus on these new segments? Thomas A. Ciccone: Sure. Yes, I will take that 1. Thanks, Amit. So would say within our gearing segment, we should expect margins to continue to improve For them, it is really it is really about volume and operating leverage. They have a big fixed cost structure. And the and the more revenue that we can produce out of that plant, the more profitable the overall plant is. So, we should see that continue to improve ratably. In terms of our biz, we should see our mix normalize. The last 2 quarters, I think we have we have got a very strong mix of products sold. And I we expect that to increase we expect that to normalize, I should say, over the balance of the year. Although, you know, revenue going up, but in terms of margins, I think you will see you will see that normalize a little bit in over the balance of the year. Analyst (Amit Dayal): Understood. And then, you know, we have spoken about this guys, you know, 1 on 1 in prior calls. But, you know, with the new fabrication now sort of out of the way, is there a potential rebranding coming for the company overall? Eric Blashford: Yeah. The question really is we do not know yet. there is a certain of our divisions are already operating with different names, Bradford Gear, which we would not rebrand. But the overall company, we are thinking about it. I would I would stay tuned on that. The word Broadwind wind in it, but there is a whole lot more that Broadwind means to many people than just than just wind, a wind company. So stay tuned. We have thought about it. We are considering it, but no decision at this point. Analyst (Amit Dayal): Understood. And then just last 1. On the defense side, who are the customers on the defense side, Eric? Eric Blashford: Some of them well, there is Oh, what kind of Brian, this just to get a sense of Yeah. What I would what I would say is some of them do not want us to us to disclose their name. But let's say there are parts for weapon systems. there is parts for the naval systems, and there is parts for helicopters. Analyst (Amit Dayal): Okay. Thank you. And that is all I have, guys. I will take my other questions offline. Thomas A. Ciccone: Thank you. Operator: Thank you, We have reached the end of the question and answer session. I would now like to turn the call back over to Eric Blashford. for closing comments. Eric Blashford: Yes. Thanks, everyone, for listening today. We are on the move. Excited to execute our strategy. So stay tuned on that. We look forward to speaking with you again after Q2 to discuss our results. Have a great day, everyone. Operator: This concludes today's conference. You may disconnect your lines at this time. And we thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Broadwind (BWEN) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in Broadwind Energy, Inc.? Here are five stocks we like better. Broadwind’s first-quarter revenue fell 8% to $34.1 million as the company continued winding down its heavy fabrication business, including its exit from wind tower production. Adjusted EBITDA was $2.2 million, slightly below last year but up sequentially on better utilization and mix. Gearing showed strong momentum, with orders up 66% year over year and backlog topping $30 million, the highest since 2023. Revenue rose 42% and the segment returned to profitability as demand from power generation, industrial, and mining markets strengthened. Industrial Solutions delivered record orders and backlog, with backlog reaching $43.3 million and revenue up 64% from a year earlier. Management also said the Sanford, North Carolina expansion should boost capacity by 30% to support growing natural gas turbine-related demand. Broadwind Energy (NASDAQ:BWEN) reported lower consolidated first-quarter revenue as the company continued to wind down and divest parts of its heavy fabrication business, while management pointed to strong order growth and improving profitability in its Gearing and Industrial Solutions segments. Chief Executive Officer Eric Blashford said the quarter reflected continued progress on the company’s “business transformation strategy,” with the Gearing and Industrial Solutions segments benefiting from demand tied to power generation and critical infrastructure markets. He said the company expects its strategic exit from wind tower production to be complete in the third quarter of 2026. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum “Gearing and Industrial Solutions will represent our core businesses moving forward,” Blashford said. Excluding divested product lines within the heavy fabrication segment, he said Broadwind generated about $64 million of revenue on a trailing 12-month basis through the end of the first quarter. Vice President and Chief Financial Officer Thomas Ciccone said first-quarter consolidated revenue was $34.1 million, down 8% from the prior-year period. Adjusted EBITDA was $2.2 million, compared with $2.4 million a year earlier, but rose about 16% sequentially, which Ciccone attributed to better capacity utilization and a more profitable mix. → MercadoLibre Boldly Invests in Growth: Discount Deepens The Heavy Fabrication segment posted first-quarter revenue of $16.4 million and adjusted EBITDA of $1.7 million, both down from the prior-year period. Ciccone said the decrease reflected the wind-down of the Manitowoc operation, a previously resolved raw material supply issue and lower PRS demand. First-quarter orders in the segment were $9.7 million, consisting primarily of wind tower production expected to continue through the third quarter of 2026 at the Abilene facility, along with baseline PRS activity. Ciccone said Broadwind will retain the PRS business and is evaluating segment reporting following the divestiture. → 3 Ways to Target the Resources Powering AI and Data Centers The Gearing segment recorded first-quarter orders of $13.2 million, up 66% from the prior year and 36% sequentially. Backlog exceeded $30 million, which Ciccone said was the highest level since 2023. Segment revenue was $8.5 million, up 42% from the prior-year period, and adjusted EBITDA was $0.6 million, compared with an adjusted EBITDA loss of $0.2 million a year earlier. Blashford said demand in the Gearing segment has been driven by power generation, industrial and mining markets, with power generation activity tied in part to the AI data center boom. He also said quoting activity remains strong, with emerging opportunities in defense. The company has commissioned new high-precision grinding and mechanical balancing equipment aimed at improving quality and reducing lead times in high-speed reduction gearing, including gearing used on natural gas turbines. Blashford said those investments make Broadwind “one of the most vertically integrated manufacturers” of such critical components in the United States. Industrial Solutions posted first-quarter orders of $14.6 million, up 44% from the prior year, and backlog reached a record $43.3 million. Ciccone said the segment set records for both orders and backlog during the quarter and was on track to do so again in the second quarter after recording more than $10 million in orders during April alone. Revenue in the segment was $9.2 million, up 64% from the prior-year period, driven primarily by stronger shipments of natural gas turbine components. Adjusted EBITDA was $1.8 million, or 19% of revenue, compared with $0.5 million and an 8.7% margin a year earlier. Blashford said natural gas turbine demand remains strong, supported by AI-related data center demand and global electrification trends. The company is also expanding its Sanford, North Carolina, facility near Raleigh. Blashford said the expansion, expected in the second quarter, will increase production space in North Carolina by 30% to help serve backlog and projected future growth. Broadwind ended the first quarter with more than $25 million of total cash and availability on its credit facility, or $16.4 million after adjusting for a minimum excess availability requirement, Ciccone said. He added that, on a pro forma basis for the sale of the Abilene facility, liquidity improves by about $10 million, reflecting credit availability adjustments and required debt payments. The company withdrew its full-year 2026 financial guidance following the Abilene facility sale. Ciccone said operating working capital increased slightly in the first quarter, as decreases in Heavy Fabrication were more than offset by increases in Gearing and Industrial Solutions tied to higher activity levels. During the question-and-answer session, Ciccone said the remaining Heavy Fabrication backlog of about $25 million is primarily tower-related and should convert “very, very ratably” over the next two quarters. He also said the company had about $10 million of operating working capital associated with the wind business at quarter-end, which is expected to decline, though increases in Gearing and Industrial Solutions may partially offset that benefit. Blashford said Broadwind’s remaining facilities in Chicago, Pittsburgh and Sanford, North Carolina, provide more than 450,000 square feet of manufacturing space. He said the company is seeing strong order activity in distributed power, small-frame and utility-scale natural gas turbines, and infrastructure-related markets. In response to a question from Eric Stine of Craig-Hallum, Ciccone said management expects first-quarter revenue to be the “low water mark” for both Gearing and Industrial Solutions, with steady growth expected over the balance of the year. Blashford added that some orders are being booked into 2027 and “a little bit into 2028,” based on customer delivery timing rather than Broadwind’s production capability. On oil and gas, Blashford said Gearing demand remains tied largely to aftermarket activity rather than new rigs. He said customers are replacing wear parts and putting some older rigs back to work, while the U.S. rig count remains down. Asked by Amit Dayal of H.C. Wainwright about future margins, Ciccone said Gearing margins should continue to improve as volumes rise and operating leverage increases. For Industrial Solutions, he said revenue is expected to rise, but margins may normalize after a favorable product mix in recent quarters. Blashford also said the company is evaluating inorganic growth opportunities using Gearing and Industrial Solutions as platforms. Areas of interest include precision machining with exposure to defense and aerospace, power generation and grid hardening, including transmission and distribution infrastructure. “We’ve refocused our business, are investing wisely, and are taking decisive strategic actions towards higher value growing end markets,” Blashford said. Broadwind Energy, Inc (NASDAQ: BWEN) is an engineering and manufacturing company focused on the design, production and service of heavy industrial equipment for energy infrastructure and related markets. The company's offerings include custom-engineered gearboxes, couplings, hydrodynamic drives and utility-scale wind turbine towers. In addition to new equipment, Broadwind Energy provides aftermarket repair, refurbishment and testing services to support the long-term operation of energy and industrial assets. The company operates through two principal segments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Broadwind Energy Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

CICERO, Illinois, May 12, 2026 (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 first quarter 2026. FIRST QUARTER 2026 RESULTS (As compared to the first quarter 2025) Total revenue of $34.1 million GAAP net loss of ($0.5) million, or ($0.02) per diluted share Non-GAAP Adjusted EBITDA of $2.2 million, or 6.5% of total revenue* Total orders of $37.4 million, +23% y/y Ratio of net debt to trailing twelve-month non-GAAP adjusted EBITDA of 1.7x as of March 31, 2026 *For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release MANAGEMENT COMMENTARY “During the first quarter, we continued to advance our business transformation strategy, while delivering strong revenue growth, margin realization, and order growth in our core gearing and industrial solutions segments,” stated Eric Blashford, President and CEO of Broadwind. “First quarter revenue in the gearing and industrial solutions segments increased more than 40% and 60%, respectively, when compared to the year-ago period, driven by strong demand from within our core power generation and critical infrastructure markets.” “With the recently announced sale of our Abilene facility and related strategic exit from Wind tower production in the third quarter of 2026, Gearing and Industrial Solutions will represent our core businesses, moving forward,” continued Blashford. “Excluding the divested product lines within the Heavy Fabrications segment, Broadwind generated approximately $64 million of revenue on a trailing twelve-month basis through the end of the first quarter.” “While our exit from the Wind market will result in a smaller company over the near term, our remaining businesses are higher-growth, more predictable, and more profitable, with a meaningfully improved quality of earnings profile, going forward,” noted Blashford. “We intend to use our core gearing and industrial solutions segments as a platform upon which to grow a business of increasing scale and profitability, over time.” “Within the Gearing segment, orders increased 66% in the first quarter, supporting a backlog of $30.5 million,” continued Blashford. “Demand growth within the Gearing segment has been largely driven by strong customer activity within the power generation, industrial, and mining markets. Our Industrial Solutions segment had another strong quarter, as orders increased 44% year-over-year, with backlog at a record $43.3 million,” stated Blashford. “Natural gas turbine demand remains very strong, representing the key growth driver for this segment.” “From the sale of our Abilene facility in April 2026, we received net cash proceeds of approximately $17.2 million” stated Blashford. “Given the recent strategic actions to optimize our asset base and shed underutilized facilities, we are positioned to pursue higher growth, higher value bolt-on opportunities that have the potential to accelerate our growth within our targeted vertical markets, with an emphasis on accretive, highly complementary precision manufacturing assets.” CONSOLIDATED FIRST QUARTER 2026 FINANCIAL RESULTS Broadwind reported a net loss of ($0.5) million, or ($0.02) per basic share in the first quarter 2026, compared to a net loss of ($0.4) million, or ($0.02) per basic share, in the first quarter 2025. The Company reported Adjusted EBITDA, a non-GAAP measure, of $2.2 million in the first quarter compared to $2.4 million in the prior year period. For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release. Revenue decreased 7.5% on a year-over-year basis in the first quarter due to lower activity within the Heavy Fabrication segment, partially offset by higher sales volume in the Gearing and Industrial Solutions segments. Heavy Fabrications revenue decreased 35%, when compared to the prior year period, due to the sale of the Manitowoc, Wisconsin industrial fabrication operations, lower PRS demand, and a raw material supply issue under a directed-buy program of an OEM customer. Industrial Solutions revenue grew 64% year-over-year, due primarily to strong demand for natural gas turbine content. Revenue from the Gearing segment grew 42% due primarily to increased demand from power generation and mining customers, partially offset by lower demand from steel customers. Total orders increased 23% in the first quarter, when compared to the prior year period, benefiting largely from rapid growth in the power generation end market. At the end of the first quarter, Broadwind had total cash on hand and availability under its credit facility of $25.1 million, or $16.4 million after adjusting for the minimum excess availability requirement. The Company’s ratio of net debt to trailing twelve-month Adjusted EBITDA was 1.7x as of March 31, 2026. After adjusting our credit availability and reflecting required debt payments, we expect the sale of the Abilene facility will improve our liquidity by approximately $10 million. 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 and compressed natural gas pressure reducing systems. Heavy Fabrications segment sales decreased by 35% to $16.4 million in the first quarter 2026, as compared to the prior year period, due to the raw material supply issue from a directed buy program with an OEM customer, lower PRS demand, and the sale of the Manitowoc industrial fabrication operations. The segment reported operating income of $0.8 million in the first quarter, as compared to operating income of $2.2 million in the prior year period. Segment non-GAAP adjusted EBITDA was $1.7 million in the first quarter, compared to $3.4 million in the prior-year period. Gearing Segment Broadwind provides custom gearboxes, loose gearing, precision machined components and heat treat services to a broad set of customers in diverse markets, including power generation, oil & gas production, surface and underground mining, wind energy, steel, material handling and other infrastructure markets. Gearing segment sales increased by 42% to $8.5 million in the first quarter 2026, as compared to the prior year period, primarily driven by higher demand from power generation and mining customers, partially offset by decreased demand from steel customers. The segment reported an operating loss of ($0.1) million in the first quarter, compared to an operating loss of ($0.9) million in the prior year period. Segment non-GAAP adjusted EBITDA was $0.6 million in the first quarter, as compared to ($0.2) 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 64% to $9.2 million in the first quarter 2026, as compared to the prior year period, primarily driven by increased sales of natural gas turbine content. The segment reported operating income of $1.6 million in the first quarter compared to operating income of $0.3 million in the prior year period. Segment non-GAAP adjusted EBITDA was $1.8 million in the first quarter compared to $0.5 million in the prior year period. FIRST QUARTER 2026 RESULTS CONFERENCE CALL Broadwind will host a conference call today, May 12, 2026, 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, May 19, 2026: Teleconference Replay: 844-512-2921 Conference ID: 13760011 ABOUT BROADWIND Broadwind (Nasdaq: BWEN) is a precision manufacturer of structures, equipment and components for power generation, critical infrastructure, 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 MEASURES The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, share-based compensation and other stock payments, restructuring costs, impairment charges, other non-cash gains and losses, and the gain from the sale of the Manitowoc industrial fabrication operations) 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) the impact of our sale of the Abilene, Texas production facility and its effect on our financial results, (ii) our expectations and beliefs with respect to our financial guidance as set forth in our press releases from time to time, (iii) the impact of global health concerns on the economies and financial markets and the demand for our products; (iv) 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; (v) 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; (vi) our ability to operate our business efficiently, comply with our debt obligations, manage capital expenditures and costs effectively, and generate cash flow; (vii) 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; (viii) our ability to continue to grow our business organically and through acquisitions; (ix) the production, sales, collections, customer deposits and revenues generated by new customer orders and our ability to realize the resulting cash flows; (x) information technology failures, network disruptions, cybersecurity attacks or breaches in data security; (xi) the sufficiency of our liquidity and alternate sources of funding, if necessary; (xii) our ability to realize revenue from customer orders and backlog; (xiii) the economy and the potential impact it may have on our business, including our customers; (xiv) 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; (xv) the effects of market disruptions and regular market volatility, including fluctuations in the price of oil, gas and other commodities; (xvi) competition from new or existing industry participants including, in particular, increased competition from foreign tower manufacturers; (xvii) the effects of the change of administrations in the U.S. federal government; (xviii) our ability to successfully integrate and operate acquired companies and to identify, negotiate and execute future acquisitions; (xix) the potential loss of tax benefits if we experience an “ownership change” under Section 382 of the Internal Revenue Code of 1986, as amended; (xx) the effects of proxy contests and actions of activist stockholders; (xxi) the limited trading market for our securities and the volatility of market price for our securities; (xxii) our outstanding indebtedness and its impact on our business activities (including our ability to incur additional debt in the future); and (xxiii) 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 Annual Report on Form 10-K for the year ended December 31, 2025. 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. CONTACT: IR CONTACT Noel Ryan or Brian Hawthorne [email protected]