BROADWIND, INC. Q1 FY2025 earnings call

• Broadwind delivered solid commercial and operational execution during the quarter with revenue of $37 million and adjusted EBITDA of $2.4 million, showing sequential growth in revenue and gross margin. - Stronger demand for wind repowering adapters and natural gas turbine content offset lower demand in mining and natural gas PRSs. - Orders increased 5% year-over-year to $30 million, with Heavy Fabrication up 10%, Gearing up 13% sequentially, and Industrial Solutions up 38% year-over-year. - Prudent investment in equipment technology to improve process capabilities, reduce costs, and improve profitability, e.g., Industrial Solutions investing in advanced testing equipment and UL certification for electrical panels, Heavy Fabrication investing in new milling and beveling equipment. - Expanding product mix into higher-margin adjacent markets with elevated quoting activity in key segments.

Heavy Fabrication segment: Q1 revenue was $25.2 million, up sequentially and year-over-year, with orders increasing 10% year-over-year due to strong demand for wind repowering adapters. Gearing segment: Q1 revenue was $6 million, down year-over-year, with orders of $8 million. Industrial Solutions segment: Q1 revenue was $5.6 million, down year-over-year, but orders exceeded $10 million, setting a new record backlog of nearly $23 million. Consolidated revenue for the quarter was $36.8 million, and adjusted EBITDA was $2.4 million.

• Reiterated full year 2025 revenue guidance: $140 million to $160 million. - Reiterated full year 2025 adjusted EBITDA guidance: $13 million to $15 million.

• U.S. trade policy uncertainty which could impact business. - Supply chain delays that affected operations. - Lower margin product mix leading to a less favorable EBITDA margin situation.

Q: Justin Clare asked about tariffs and their effect on cost structure and competitive environment.

A: Eric Blashford said tariffs have minor impact on wind as OEMs shifted supply chain, some onshoring seen in gearing.

Q: Sameer Joshi inquired about the drop in Industrial Solutions revenue.

A: Tom Ciccone stated it was due to temporary supply chain issues.

Q: Eric Stine asked about wind tower production in Manitowoc and 2026 outlook.

A: Eric Blashford said it's project-based, and 2026 volume expected to be consistent with '25 or slightly higher