Sign in

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

BI

BROADWIND, INC. (BWEN)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $33.6M and adjusted EBITDA was $2.1M (6.4%), with diluted EPS of ($0.04); orders surged 85% YoY and book-to-bill reached 1.1x, driven by strength in Industrial Solutions and broad-based non-wind demand .
  • Segment results reflected wind and oil & gas softness: Heavy Fabrications revenue fell 31% YoY to $20.4M; Gearing fell 31% to $7.6M; Industrial Solutions declined 2.8% to $5.9M .
  • FY2025 guidance was introduced: revenue $140–$160M and adjusted EBITDA $13–$15M, with management positioning for improved plant utilization and operating leverage as backlog converts and non-wind demand accelerates .
  • Liquidity improved meaningfully; cash plus revolver availability was ~$33M at year-end, aided by advanced customer payments and a $13M operating working capital reduction in Q4, with deposits expected to normalize in 2025 .
  • Estimates context: S&P Global consensus for Q4 EPS and revenue could not be retrieved due to data limits; comparisons vs Street are unavailable at this time (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

  • Record orders/backlog in Industrial Solutions; Q4 orders totaled ~$8M and full-year orders ~$27M, underpinned by strong gas turbine demand, with customers reporting robust backlogs and expanding capacity .
  • Broad-based order recovery: consolidated Q4 orders of ~$37M (highest in nearly two years), with sequential and YoY increases across all segments; consolidated backlog rose to $125.5M .
  • Cost actions and liquidity: ~$4M annualized cost savings implemented in 2024, positioning for better leverage; Q4 free cash flow benefited from deposit inflows and a $13M reduction in operating working capital .

Specific quotes:

  • “New orders increased to the highest level in nearly two years, resulting in a book-to-bill of 1.1x in the period” .
  • “We anticipate full year revenue to be in the range of $140 million to $160 million and adjusted EBITDA to be in the range of $13 million to $15 million” .

What Went Wrong

  • Wind and oil & gas demand remained muted, pressuring Q4 revenue and margins; wind-related Heavy Fabrications revenue declined 27% YoY, and Gearing saw broad-based softness from oil & gas and steel .
  • Adjusted EBITDA margin compressed to 6.4%, reflecting lower capacity utilization despite cost reductions .
  • Near-term wind development outlook cautious; management expects wind softness to persist through 2026, with permitting uncertainties potentially slowing projects .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$36.5 $35.5 $33.6
Diluted EPS ($)$0.02 $0.00 ($0.04)
Adjusted EBITDA ($USD Millions)$3.6 $3.4 $2.1
Adjusted EBITDA Margin (%)10.0% 9.5% 6.4%

Segment breakdown (Revenue and Adjusted EBITDA):

SegmentQ3 2024 Revenue ($M)Q3 2024 Adj. EBITDA ($M)Q4 2024 Revenue ($M)Q4 2024 Adj. EBITDA ($M)
Heavy Fabrications$20.6 $3.4 $20.4 $2.6
Gearing$9.2 $0.6 $7.6 $0.1
Industrial Solutions$5.7 $0.6 $5.9 $0.6

KPIs and balance sheet:

KPIQ2 2024Q3 2024Q4 2024
Orders ($USD Millions)$18.4 $23.0 (up 45% YoY) $37.5
Backlog ($USD Millions)$139.1 $124.3 $125.5
Book-to-Bill (x)0.5x n/a1.1x
Net Debt / TTM Adj. EBITDA (x)1.1x 1.4x 0.6x
Cash + Availability ($USD Millions)$18.4 $19.0 ~$33.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance / ActualChange
Total RevenueFY 2025N/A$140–$160M Introduced
Adjusted EBITDAFY 2025N/A$13–$15M Introduced
Total RevenueQ4 2024$31–$33M $33.6M Beat high end
Adjusted EBITDAQ4 2024$1.0–$1.5M $2.1M Beat

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Wind demand & permittingExpect acceleration in 2025–26; LTA/backlog; ~50%–75% capacity available Gradual recovery expected; adapters for repowering; first sequential increase in tower sections Wind muted through 2026; firm 2025 visibility; tariffs/antidumping supportive for domestic towers Neutral/Cautious
Industrial Solutions / Gas turbinesRobust quoting; customers expanding capacity; IRA tailwinds Near-record bookings; continued strength Record orders and backlog; momentum sustained entering 2025 Improving
Gearing diversification (aero/defense)AS9100 near completion; tech upgrades Investments and quoting up; PPAP cycles New wins in aeroderivative/aerospace; added heat treat furnaces Improving from trough
PRS product (L-70)Release planned in Q3; ideal for industrial applications Field testing; strong interest Favorable field trials; increasing production Scaling
Orders/backlog & book-to-billBook-to-bill 0.5x; backlog $139.1M Orders +45% YoY; backlog $124.3M Orders +85% YoY; book-to-bill 1.1x; backlog $125.5M Improving
Supply chain / Working capitalDeposits normalized; WC stable outlook Positive Q3 cash flow; WC expected to rise in Q4 $13M WC reduction; deposits to normalize in 2025 Improving liquidity then normalizing
Regulatory/macrosIRA 10-year tax credit visibility supportive Expect demand across power gen Tariffs supportive; federal permitting may slow projects Mixed tailwinds/headwinds

Management Commentary

  • “Recent order growth is expected to support a meaningful uplift in plant utilization in 2025… As order rates continue to recover… we intend to realize improved fixed-cost absorption” .
  • “We believe that the new tariffs announced recently, combined with the existing antidumping measures in place, will continue to benefit the domestic wind tower manufacturers” .
  • “We’re excited about the launch of our newest model… the Broadwind Clean Fuels L-70… now in customer field trials with favorable results so far… increasing our production plan to meet anticipated demand” .
  • “We anticipate full year revenue to be in the range of $140 million to $160 million and adjusted EBITDA… $13 million to $15 million” .

Q&A Highlights

  • Wind trajectory and visibility: Management expects wind softness through 2026, with firm visibility on 2025 towers and adapters; Q4 pull-ins across towers, Gearing, and Industrial Solutions lifted Q4 but will make Q1 2025 softer, with ratable increases through the year .
  • Book-to-bill and segment growth: Anticipated >1.0 book-to-bill in Gearing, ~1.0 in Industrial Solutions; Heavy Fabrications constrained by LTA; 2025 growth skewed to Industrial Solutions and Gearing, towers flat .
  • Tariffs and pricing: Pass-through mechanics on wind and prudent quoting with shorter quote lives to protect margins; inquiries for onshoring increasing, boosting order activity .
  • Hydroelectric opportunity: New, repeatable fabrication opportunity aligned with core capabilities, expected to be a seven-figure recurring stream aiding utilization .

Estimates Context

  • S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable due to data limitations at the time of retrieval. As a result, comparisons to Wall Street consensus cannot be provided here. Values that would normally be cited from S&P Global are unavailable.

Key Takeaways for Investors

  • Order momentum and book-to-bill improved materially in Q4, with record Industrial Solutions orders/backlog and broad-based recovery across segments—an early signal of demand normalization in non-wind end-markets .
  • FY2025 guidance implies mid-single-digit to low-double-digit revenue growth and stable margins vs 2024, with upside if utilization improves at the high end of the range .
  • Wind remains a headwind; however, tariffs/antidumping and repowering adapters support domestic tower manufacturing, with management planning for muted conditions through 2026 .
  • Cost actions and improved liquidity ($33M cash + availability) increase resilience; deposits and working capital should normalize in 2025, reducing one-time free cash flow tailwinds seen in Q4 .
  • Near-term trading: Positive reaction catalysts include Q4 beats vs guidance and strong orders; caution warranted given wind softness and Q1 2025 expected to be the lowest quarter due to Q4 pull-ins .
  • Medium-term thesis: Diversification into gas turbines, aero/defense, PRS, and hydro, supported by certifications and new capabilities, should drive mix shift, utilization and margin expansion as PPAPs convert to longer production runs .
  • Focus areas: Track 2025 quarterly linearity, orders/book-to-bill trajectory in Gearing and Industrial Solutions, and permitting/tariff developments affecting wind timing .