Broadwind, Inc. Q2 FY2025 earnings call

• Continued to advance strategic priorities, focusing on high-value precision manufacturing end markets. - Second quarter revenue increased driven by wind and industrial verticals. - Announced pending sale of Manitowoc industrial fabrication operations, expected to add cash and reduce costs. - Order rates rose 14% year-over-year to $21 million, with robust demand from power generation and oil & gas offsetting softness in other sectors. - Invested in equipment technology to improve processes and profitability. - Industrial Solutions saw strong order growth and record backlog, investing in manufacturing capacity. - Heavy Fabrication expanded service/commercial teams for Clean Fuels PRS line and saw visibility in wind tower production through 2025 and 2026.

Consolidated revenues for the second quarter were $39.2 million, an 8% increase versus the prior year period. Adjusted EBITDA declined to $2.1 million versus prior year's $3.6 million. Q2 orders totaled $21 million, a 14% increase year-over-year. Heavy Fabrications: Q2 orders were $0.2 million; revenue was $25 million, up 27% year-over-year, with adjusted EBITDA flat at $2.8 million. Gearing: Orders were $6.8 million, up over $2 million year-over-year; revenue was $7.3 million, down year-over-year, with an adjusted EBITDA loss of $0.1 million. Industrial Solutions: Orders were nearly $14 million, surpassing prior records; backlog hit a new high of nearly $30 million; revenue was $7.4 million, up 30% sequentially and 14% year-over-year, with adjusted EBITDA of $0.7 million (down slightly year-over-year).

• Suspended full-year 2025 guidance due to Manitowoc sale timing; expect to reinstate post-closing in Q3 2025. - Industrial Solutions has visibility through 2028 and beyond from key customers like GE Vernova. - Potential order pull-in in 2026 and 2027 due to tax law changes affecting wind projects. - Wind tower production has good visibility through 2025 and into 2026.

• Trade policy uncertainty. - Timing of Manitowoc sale impacting revenue recognition. - Transitional costs from winding down Manitowoc operations.

Q: Justin Clare asked about uncertainty from the Manitowoc sale and other business uncertainties affecting guidance.

A: Thomas A. Ciccone said it's mostly timing related with some transitional costs, and no other major uncertainties in other business units.

Q: Justin Clare asked about visibility and capacity in Industrial Solutions.

A: Eric B. Blashford said Industrial Solutions has visibility through '28 and beyond from key customers, and they have capacity with plans to expand capabilities like robotic welding.

Q: Amit Dayal asked about capitalizing on power generation demand and tower order visibility.

A: Eric B. Blashford said they expanded sales reps, released new products, and there could be order pull-in in '26 and '27 due to tax law changes.

Q: Eric Stine asked about wind-related orders and cost savings from Manitowoc divestiture.

A: Eric B. Blashford said they have good visibility through 2026 for towers and adapters, and Thomas A. Ciccone said cost savings from Manitowoc divestiture are mostly in cost of goods sold as fixed overhead.