BROADWIND, INC. Q3 FY2024 earnings call

• Broadwind delivered a solid Q3 with near double-digit EBITDA margin and seventh consecutive profitable quarter despite reduced revenue. - Booked $23 million in orders in Q3, a 45% increase from the year ago period, driven by increased demand across segments. - Heavy Fabrication saw increased demand for wind turbine repowering adapters and PRS, partially offset by decreased orders in industrial and mining sectors. - Gearing orders increased 46% y-o-y due to power generation and infrastructure demand. - Industrial Solutions orders increased 52% y-o-y due to strength in the global gas turbine market. - Operationally, invested in innovative technology: Tower facility in Abilene installed new portable milling system; Gearing deployed portable laser scanning for faster quote turnaround. - Undertook cost reduction actions contributing over $4 million in annualized cost savings.

Heavy Fabrication: Q3 revenue was $21 million, down 46% from the year ago period. Orders in the third quarter were $11.1 million, up both sequentially and versus the prior year period. Segment EBITDA was $3.4 million, a decrease of $3.5 million versus the prior year period. Gearing: Revenue was $9.2 million, down $2.2 million versus the prior year quarter. Orders were $4.4 million, up $1.4 million versus the prior year, but below desired levels due to softness in oil and gas. Segment EBITDA was $0.6 million, a decrease from $0.9 million in the prior year quarter. Industrial Solutions: Revenue was $5.7 million, a decrease versus the prior year period. Orders totaled $7.4 million in the third quarter, an increase both sequentially and versus the prior year. Segment EBITDA was $0.6 million, a decrease of $0.3 million versus the prior year period.

• Anticipates fourth quarter 2024 revenue to be in the range of $31 million to $33 million and adjusted EBITDA to be in the range of $1 million to $1.5 million. - Domestic onshore wind activity poised to accelerate in 2025-2026; excited about new PRS model testing. - Gearing continuing to broaden sales mix into less cyclical markets; Industrial Solutions on pace for another record order year.

• Uncertainty in wind project economics due to sustained higher interest rates and declining steel prices. - Continued softness in the oil and gas market.

Q: Thoughts on wind and election impact?

A: Election not expected to impact Broadwind; wind poised to accelerate in 2025-2026 with recent rate reductions and steel price declines benefiting project economics.

Q: Power generation products/services?

A: Industrial Solutions segment provides supply chain solutions, light manufacturing, panel manufacturing for combined-cycle natural gas turbines, with strong demand and customers sold out for next 5 years.

Q: Revenue growth strategies?

A: Focus on improving process capabilities, obtaining quality certifications (e.g., AS9100), and expanding commercial outreach, with RFQs tripling in some segments showing early fruits of these efforts.