Sign in

You're signed outSign in or to get full access.

BI

BROADWIND, INC. (BWEN)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered a revenue beat and record orders driven by power generation and renewables; total revenue was $44.2M (+25% y/y) and orders were $43.6M (+90% y/y) .
  • GAAP diluted EPS was $0.32, boosted by an $8.2M gain from the Manitowoc divestiture; non-GAAP Adjusted EBITDA was $2.4M, down y/y due to heavy fab inefficiencies and lower gearing utilization .
  • Guidance raised: FY2025 revenue to $155–$160M (from $145–$155M) while Adjusted EBITDA held at $9–$10M (excludes divestiture gain) .
  • Strategic actions sharpened focus and liquidity: sale of Manitowoc, $3M buyback authorization, $26.8M cash + LOC availability, and net leverage ~0.8x; catalysts include accelerating power-gen backlog and $11M new wind tower orders slated for Q1 2026 .

What Went Well and What Went Wrong

What Went Well

  • Orders surged: “incoming orders rising to $44 million, up 90% year over year and doubling sequentially,” led by power generation and strong wind orders .
  • Strategic portfolio reshaping: sale of Wisconsin industrial fabrication operations produced a net gain of $8.2M; consolidation to Abilene improves utilization and reduces overhead .
  • Power generation momentum: industrial solutions backlog set a new record (~$36M), with management citing data center-driven distributed power demand and multi-year tailwinds (visibility into 2027–2028) .

What Went Wrong

  • Margin headwinds: Adjusted EBITDA fell to $2.4M vs $3.4M y/y; heavy fab faced inefficiencies on a unique low-volume tower build and gearing saw lower utilization and unplanned downtime .
  • Gearing softness in revenue (-23% y/y to $7.1M) despite strong orders, reflecting prior order gap and lead times; segment EBITDA slipped to $0.1M .
  • PRS (pressure-reducing systems) demand was soft; management attributed it to customer capital constraints amid oil price dynamics and timing, expecting a future resurgence .

Financial Results

Consolidated Performance vs Prior Quarters

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$36.838 $39.235 $44.239
GAAP Diluted EPS ($)-$0.02 -$0.04 $0.32
Adjusted EBITDA ($USD Millions)$2.368 $2.085 $2.407
Gross Profit Margin (%)11.74%*10.13%*10.2%

Values with asterisk retrieved from S&P Global.

Actuals vs Wall Street (S&P Global) Consensus

MetricQ1 2025Q2 2025Q3 2025
Revenue Consensus Mean ($USD Millions)$32.76$37.65$41.10
Revenue Actual ($USD Millions)$36.84 $39.24 $44.24
EPS Normalized Consensus Mean ($)-$0.037$0.01$0.01
EPS Normalized Actual ($)-$0.02-$0.04-$0.029

Values retrieved from S&P Global.

Highlights:

  • Revenue beat all three quarters; Q3 beat ~7.6% vs consensus ($44.24M vs $41.10M).
  • EPS normalized missed in Q2 and Q3; GAAP Q3 EPS was aided by the $8.2M gain on sale (non-operational) .

Segment Revenue Breakdown

Segment Revenue ($USD Millions)Q1 2025Q2 2025Q3 2025
Heavy Fabrications$25.248 $24.989 $29.364
Gearing$5.966 $7.284 $7.069
Industrial Solutions$5.647 $7.363 $7.872
Corporate & Other-$0.023 -$0.401 -$0.066
Total Revenue$36.838 $39.235 $44.239

KPIs and Operating Metrics

KPIQ1 2025Q2 2025Q3 2025
Total Orders ($USD Millions)$30.455 $20.956 $43.585
Heavy Fab Orders ($USD Millions)$12.391 $0.248 $13.885
Gearing Orders ($USD Millions)$7.960 $6.799 $15.877
Industrial Solutions Orders ($USD Millions)$10.104 $13.909 $13.823
Heavy Fab Backlog ($USD Millions)$95.0 (3Q24) → $35.7 (3Q25)
Gearing Backlog ($USD Millions)$13.3 (3Q24) → $23.1 (3Q25)
Industrial Solutions Backlog ($USD Millions)$16.0 (3Q24) → $35.9 (3Q25)
Cash + LOC Availability ($USD Millions)$22.6 (Q1-end) ~$15.0 (Q2-end) $26.8 (Q3-end)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY 2025$145–$155 $155–$160 Raised
Adjusted EBITDA ($USD Millions)FY 2025$9–$10 $9–$10 Maintained
Guidance StatusFY 2025Suspended in Q2 due to pending Manitowoc sale Reinstated Q3 (excludes $8.2M gain) Reinstated

Notes:

  • Q1 2025 had earlier guidance of Revenue $140–$160M and Adjusted EBITDA $13–$15M, which was subsequently suspended in Q2 and reset in Q3 post-divestiture .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3 2025)Trend
Power Generation DemandQ2: Industrial Solutions set record orders/backlog; market resurgence; visibility; capacity adds (robotics, paint, machining) Orders +140% y/y from power-gen customers; industrial solutions backlog ~$36M; multi-year tailwind; data centers driving distributed power; visibility into 2027–2028 Accelerating
Wind Towers & RepoweringQ1: Heavy Fab revenue +14.7% y/y on repowering adapters; visibility into 2025–2026 Heavy Fab revenue +43% y/y; resumed Manitowoc limited run; $11M new tower orders for Q1 2026; good visibility through H1 2026 Improving
Tariffs / Trade PolicyQ2: Volatile policy backdrop; domestic footprint as advantage Tariff cost pass-through with timing; reshoring benefits seen in gearing orders Manageable tailwind
Capacity UtilizationQ2: Margin pressure from low utilization in gearing; working capital spike Expect improved operating leverage as production normalizes; gearing ~45% utilized, room to grow; Abilene margins higher vs rented Manitowoc Improving
Manitowoc DivestitureQ2: Pending sale; ~$13M cash, ~$8M annual cost reductions; guidance suspended Closed sale; $8.2M gain; used cash to reduce debt and LOC; net leverage ~0.8x Completed/positive
PRS Product LineQ1: Mixed demand; PRS softer Softness attributed to customer capital constraints (oil price); expected recovery with new budgets Stabilizing
CapEx & Capacity ExpansionQ2: Investments underway across segments CapEx ~2–3% of revenue; Sanford expansion planned (+35% floor space H2 2026) Scaling

Management Commentary

  • “Customer activity remains robust, with incoming orders rising to $44 million, up 90% year over year and doubling sequentially” .
  • “In early September, we completed the sale of our industrial fabrication operations in Wisconsin, resulting in a net gain of $8.2 million” .
  • “Segment backlog hit a new record of almost $36 million at the end of the third quarter...fourth straight quarter setting a record backlog level” (Industrial Solutions) .
  • “We’re expanding resources to meet [power generation] demand...adding vertical machining, robotics, coatings, and machining capabilities” .
  • “We believe that domestic onshore wind tower activity will continue at its present pace through 2026...we have good visibility for tower production through the first half of 2026” .

Q&A Highlights

  • 2026 Growth Drivers: Power generation and critical infrastructure expected to lift industrial solutions and gearing in 2026; gearing softness reflects prior order gap and lead times (deliveries in 2026) .
  • Margins Outlook: Tariff-related cost increases are passed through; margins expected to be similar in 2026 with potential improvement from higher utilization and absence of 2025 headwinds .
  • Heavy Fab Margins/Utilization: Abilene (owned) yields slightly higher margins than Manitowoc (rented); higher utilization is key to margin expansion .
  • PRS Demand: Weakness viewed as timing; customers cite oil prices and capital budgets—management expects resurgence .
  • Capacity Expansion & Visibility: Industrial Solutions CapEx remains modest (~2–3% of revenue); plan to increase Sanford floor space by ~35% in H2 2026; gearing ~45% utilized, adding in-house balancing to improve control .
  • Wind Order Pattern: Customers prefer ratable POs; visibility into H1 2026 with indications beyond; heavy fab backlog normalizes as large orders get fulfilled .

Estimates Context

  • Consensus coverage is thin (Q3 revenue had 1 estimate; EPS had 3), which limits robustness; however, Q3 revenue beat (~$44.24M actual vs ~$41.10M estimate), while normalized EPS missed (actual -$0.029 vs $0.01 estimate). GAAP EPS ($0.32) benefited from the $8.2M gain on sale and is not indicative of core profitability trajectory .
  • Given the raised revenue guidance and strong order momentum in power generation, Street models may need to revise top-line upward for FY2025, while maintaining caution on near-term margins due to operational inefficiencies and gearing utilization dynamics .

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue trajectory improving with a notable Q3 beat and a raised FY2025 revenue guide; power generation demand is a multi-year tailwind with record industrial solutions backlog — supportive of top-line revisions and narrative momentum. Bold near-term catalyst: continued order flow and $11M wind tower orders for Q1 2026 .
  • Underlying profitability remains mixed: Adjusted EBITDA fell y/y on heavy fab inefficiencies and gearing utilization; watch execution on process normalization and utilization lift into 2026 .
  • GAAP EPS in Q3 is non-recurring driven; focus on normalized EPS/EBITDA to assess core earnings power post-divestiture .
  • Balance sheet flexibility strengthened: $26.8M liquidity, net leverage ~0.8x, and term debt/LOC paydown — enables opportunistic buybacks ($3M authorization) and bolt-on investments .
  • Strategic focus sharpened: consolidation to Abilene improving asset utilization; scaling Sanford capacity (+35%) and in-house capabilities in gearing to capture power-gen growth .
  • Macro/tariff backdrop is a relative advantage for 100% domestic footprint; management indicates tariff pass-through and reshoring benefits in orders (especially gearing) .
  • Trading setup: Watch near-term margins and execution updates on Q4 call (including FY2026 outlook), order cadence in power-gen/wind repowering, and buyback activity as potential sentiment drivers .