Executive Summary

Q1 2025 revenue was $36.8M and diluted EPS was ($0.02); adjusted EBITDA was $2.4M (6.4% margin), with total orders up 5% y/y to $30.5M; backlog was $117.0M, and FY2025 guidance was reiterated at $140–$160M revenue and $13–$15M adjusted EBITDA .
Versus consensus, Q1 revenue beat ($36.8M vs $32.8M), EPS was better than expected (loss of $0.02 vs loss of $0.037), and adjusted EBITDA was roughly in line, framing a modest overall beat on the top line and EPS; Q4 2024 also beat revenue consensus [Values retrieved from S&P Global]*.
Heavy Fabrications revenue rose 14.7% y/y on wind repowering adapters, while Gearing (-28.4% y/y) and Industrial Solutions (-29.3% y/y) were impacted by softer mining/oil & gas and timing/supply chain issues; gross margin was 11.7%, up 45 bps sequentially .
Call commentary highlighted improving orders across non-wind markets (power generation, infrastructure), explicit 45x IRA recognition (~$2.5M in Q1), and stable outlook for onshore wind through 2026; management maintained FY guidance and emphasized operational discipline and diversification .
Post-quarter, Broadwind agreed to sell its Manitowoc, WI industrial fabrication operations for ≥$13M, expected to close in Q3 2025; management expects ~$8M annualized operating cost reduction and improved utilization—an incremental catalyst for leverage and liquidity .

What Went Well and What Went Wrong

What Went Well

Heavy Fabrications strength: segment sales +14.7% y/y to $25.2M, operating income $2.2M, adjusted EBITDA $3.4M; driven by wind repowering adapters . “Customer activity continues to strengthen… demand for wind repowering adapters… drove the increase in total orders” — Eric Blashford .
Non-wind momentum: Record orders/backlog in Industrial Solutions; segment orders $10.1M (+38% y/y), backlog ~$22.9M; book-to-bill 1.8x, supported by natural gas turbine demand tied to grid/data center loads .
Liquidity and leverage: Cash and availability ~$22.6M; net leverage 1.4x, within target ≤2.0x; operational discipline held adjusted EBITDA margin flat sequentially despite mix/supply chain delays .

What Went Wrong

Demand softness and mix: Revenue declined 2.1% y/y; Gearing (-28.4% y/y) and Industrial Solutions (-29.3% y/y) weighed by mining/oil & gas weakness and shipment timing; gross margin compressed to 11.7% y/y .
Supply chain delays: Industrial Solutions shipments were delayed, temporarily depressing Q1 revenue and EBITDA; management expects improvement through 2025 .
Sequential backlog decline: Consolidated backlog decreased sequentially to $117.0M, reflecting timing of bookings and deliveries .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$37.616	$33.565	$36.838
Diluted EPS ($USD)	$0.07	($0.04)	($0.02)
Adjusted EBITDA ($USD Millions)	$4.170	$2.149	$2.368
Adjusted EBITDA Margin %	—	6.4%	6.4%
Gross Profit ($USD Millions)	$6.637	$3.789	$4.326
Total Orders ($USD Millions)	$28.996	$37.470	$30.455
Backlog ($USD Millions)	—	$125.5	$117.0

Segment breakdown (Q1 2025 vs Q1 2024):

Segment	Q1 2024 Revenue ($M)	Q1 2025 Revenue ($M)	Q1 2024 Op Inc ($M)	Q1 2025 Op Inc ($M)	Q1 2024 Adj. EBITDA ($M)	Q1 2025 Adj. EBITDA ($M)
Heavy Fabrications	$22.016	$25.248	$2.046	$2.241	$3.135	$3.448
Gearing	$8.337	$5.966	$0.025	($0.892)	$0.668	($0.244)
Industrial Solutions	$7.994	$5.647	$1.767	$0.330	$1.920	$0.491

KPIs and operating metrics:

KPI	Q1 2024	Q1 2025
Cash + Availability ($M)	$22.4	$22.6
Net Debt / TTM Adj. EBITDA (x)	1.4x	1.4x
Gross Margin %	—	11.7%
Heavy Fabrications Orders ($M)	$11.221	$12.391
Gearing Orders ($M)	$10.446	$7.960
Industrial Solutions Orders ($M)	$7.329	$10.104
Gearing Book-to-Bill (Q1 2025)	—	1.3x
Industrial Solutions Book-to-Bill (Q1 2025)	—	1.8x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($M)	FY 2025	$140–$160	$140–$160	Maintained
Adjusted EBITDA ($M)	FY 2025	$13–$15	$13–$15	Maintained

Additional context: Assumes ~50% utilization in Heavy Fabrications in 2025; consistent onshore wind demand through 2026 .

Earnings Call Themes & Trends

Topic	Q3 2024	Q4 2024	Q1 2025	Trend
Wind repowering adapters	Building adapters for multiple OEMs; increased demand	Muted new towers; visibility through 2025; repowering strong	Heavy Fab revenue +14.7% y/y on adapters; orders +10% y/y	Strengthening within a muted tower backdrop
Tariffs/onshoring	Customer reshoring; certifications enabling wins	Expect tariffs + antidumping measures to benefit domestic towers	Minor cost impact; pass-through; seeing onshoring lift in oil & gas gearing	Supportive for domestic manufacturing
Power generation (gas turbines, data centers)	Strong demand; record bookings in Industrial Solutions	Continued strength; record bookings; adding capacity	Record orders/backlog; investing in electrical panels; UL certification	Secular tailwind intensifying
Supply chain	Anticipated Q4 inventory build for shipments	Deposit balances normalized in 2025	Q1 shipment delays; largely resolved; improving in Q2	Transient headwind improving
45x IRA credit	—	—	Recognized ~$2.5M in Q1 ; theoretical benefit detailed in investor materials	Positive margin tailwind
PRS product line (L-70)	Field testing; strong interest	Launch; attractive pricing; customer interest	Ready for full release; target ~10% of revenue by 2026	Scaling with high-margin rental/service mix

Management Commentary

“Customer activity continues to strengthen with orders increasing 5% on year-over-year basis… our focus is to continue our diversification strategy… improving our operational efficiency, and increasing asset utilization” — Eric Blashford .
“Within our Gearing segment we entered the power generation market having secured greater than $2 million of related orders from a leading OEM of natural gas turbines” .
“Despite adverse product mix and supply chain delays… we delivered non-GAAP adjusted EBITDA margin of 6.4%… lean operations, cost management and customer focus position us to continue delivering profitable growth” .
“We believe that domestic onshore wind tower activity will continue at its present rate through 2026… tariffs and antidumping measures… will continue to benefit domestic wind tower manufacturers” .
Post-quarter strategic action: “By consolidating our operations, we expect to materially improve… utilization… while reducing annualized operating costs by approximately $8 million upon closing” .

Q&A Highlights

Heavy Fabrications outlook: Strong Q1 revenue driven by repowering adapters; towers starting in Q2 at Manitowoc, supporting higher Q2/Q3 revenue .
Tariffs: Minimal direct cost impact to BWEN (pass-through); seeing potential onshoring lift in oil & gas gearing; OEMs already diversifying internals sourcing .
Industrial Solutions: Q1 weakness primarily due to supply chain delays; backlog hit record; issues largely resolved early Q2 .
Inventory build: ~$9.6M inventory increase driven mainly by starting tower run in Manitowoc and larger tower designs in Abilene .
45x IRA credit and cost actions: ~+$2.5M 45x recognized in Q1; targeted cost reductions continuing in Gearing to align capacity with demand .
PRS strategy: Target ~10% of revenue ($15–$20M) by 2026; rentals/service expected to carry higher margins .

Estimates Context

How results compared to Wall Street consensus (S&P Global):

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue Consensus Mean ($M)	$36.70*	$31.90*	$32.76*
Revenue Actual ($M)	$35.50*	$33.565	$36.838
Primary EPS Consensus Mean ($)	($0.04)*	($0.073)*	($0.0367)*
Primary EPS Actual ($)	$0.00*	($0.04)	($0.02)
EBITDA Consensus Mean ($M)	$2.094*	$1.288*	$2.312*
EBITDA Actual ($M)	$2.850*	$1.410*	$1.886*

Q1 2025: Revenue beat; EPS loss narrower than expected; EBITDA near consensus. Q4 2024: Revenue beat; EPS close to consensus. Q3 2024: Slight revenue miss; EPS at break-even versus a loss expected [Values retrieved from S&P Global]*.

Key Takeaways for Investors

Mix-driven quarter: Strength in Heavy Fabrications on repowering adapters offset softness in Gearing and Industrial Solutions shipments; sequential gross margin improvement suggests operating discipline despite headwinds .
Non-wind growth drivers intact: Record bookings/backlog and book-to-bill in Industrial Solutions tied to gas turbine demand (data centers/grid) support the 2025/26 thesis .
Policy tailwinds: Tariffs and antidumping measures support domestic towers; 45x IRA credit (~$2.5M in Q1) offers incremental margin support as volumes ramp .
Liquidity and leverage manageable: ~$22.6M cash + availability; net leverage 1.4x; post-quarter divestiture expected to add liquidity and reduce costs, improving utilization and margin potential .
Guidance credibility: FY2025 revenue $140–$160M and EBITDA $13–$15M maintained; order momentum and cost controls underpin operating leverage through the year .
Near-term trading implications: Narrative skewed positive on top-line beats and IRA benefit; watch for Q2/Q3 sequential revenue lift as tower runs start and Industrial Solutions shipments normalize .
Medium-term thesis: Diversification into power generation/infrastructure, quality certifications (AS9100, ITAR, CMMC), and PRS growth (including rentals) position BWEN for improved margin mix and reduced cyclicality .

Additional Press Releases Relevant to Q1 2025

Largest precision machined gearing order to date in power generation, bookings >$2.0M with leading natural gas turbine OEM (April 2, 2025) .
Agreement to sell Manitowoc industrial fabrication operations for ≥$13M; expected ~$8M annualized operating cost reduction, improved utilization; pro forma cash ~$9.4M and net debt ~$3.7M (announced June 4, 2025) .

S&P Global estimates disclaimer: All values marked with an asterisk (*) are retrieved from S&P Global.

BROADWIND, INC. (BWEN)·Q1 2025 Earnings Summary