CICERO, Ill., May  13, 2025  (GLOBE NEWSWIRE) --  Broadwind (Nasdaq: BWEN, or the “Company”), a diversified precision manufacturer of specialized components and solutions serving global markets, today announced results for the first quarter 2025.

FIRST QUARTER 2025 RESULTS

Total revenue of $36.8 millionNet loss of ($0.4) million, or ($0.02) per diluted shareTotal non-GAAP adjusted EBITDA of $2.4 million, or 6.4% of total revenueRatio of net debt to trailing twelve-month non-GAAP adjusted EBITDA of 1.4x as of March 31, 2025Total orders of $30.5 million, increased +5% y/y, as of March 31, 2025Reiterating full-year 2025 revenue and Adjusted EBITDA guidance

Broadwind reported a net loss of ($0.4) million, or ($0.02) per diluted share in the first quarter 2025, compared to net income of $1.5 million, or $0.07 per diluted share, in the first quarter 2024. The Company reported adjusted EBITDA, a non-GAAP measure, of $2.4 million in the first quarter compared to $4.2 million in the prior year period. For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release.

Revenue declined 2.1% on a year-over-year basis in the first quarter, primarily due to lower sales volume across the mining, oil & gas, and natural gas turbine end-markets, partly offset by stronger sales from the wind market.   Revenue in the Heavy Fabrications segment increased 14.7% compared to the prior year period, primarily due to increased demand for wind repowering adapters.   In the Gearing segment, revenue decreased 28.4% compared to the prior year period primarily due to lower demand in the mining and oil & gas end-markets. Within the Industrials Solutions segment, revenue decreased 29.3% compared to the prior year period, primarily due to lower shipments for aftermarket natural gas turbine content.

Total orders increased 5% in the first quarter, when compared to the prior year period, benefiting from increased customer demand for repowering adapters in the Heavy Fabrications segment, and natural gas turbine content in the Industrial Solutions segment. Within the Industrial Solutions segment, both orders and backlog reached record levels for the second consecutive quarter. The consolidated backlog decreased on a sequential basis to $117.0 million as of March 31, 2025.

At the end of the first quarter, Broadwind had total cash on hand and availability under its credit facility of $22.6 million. The Company’s ratio of net debt to trailing twelve month non-GAAP adjusted EBITDA was 1.4x at the end of the first quarter 2025.

MANAGEMENT COMMENTARY

“Customer activity continues to strengthen with orders increasing 5% on year-over-year basis, outpacing the average level seen over the past two years,” stated Eric Blashford, President and CEO of Broadwind. “With all five of our plants located within the United States we have limited direct exposure to the impact of U.S. trade policies. Therefore, our focus is to continue our diversification strategy directed at growing markets such as power generation and infrastructure, improving our operational efficiency, and increasing asset utilization, to expand profitability throughout 2025.”

“Demand for wind repowering adapters and natural gas turbine content drove the increase in total orders in the first quarter compared to the same period a year ago,” continued Blashford. “The Industrial Solutions segment recorded another record high of $10.1 million in orders this quarter, up 38% on a year-over-year basis. Orders for our PRS products, and within our mining end market were softer this quarter. However, we expect steady improvements in order activity across our diverse end-markets for the balance of this year.”

“Within our Gearing segment we entered the power generation market having secured greater than $2 million of related orders from a leading OEM of natural gas turbines,” continued Blashford. “Recent investments in industry leading machining capabilities and quality certifications, supported by our 100% U.S.-based manufacturing footprint, gives us a competitive advantage in growing end-markets like power generation.”

"Despite adverse product mix and supply chain delays impacting some deliveries, we delivered non-GAAP adjusted EBITDA margin of 6.4% during the first quarter," continued Blashford. "Our lean operations, cost management and customer focus position us to continue delivering profitable growth.”

“As of March 31, 2025, our net leverage was 1.4x, well within our target range of at or below 2.0x,” noted Blashford. “We had $22.6 million of available cash and liquidity to support our operations at the end of the first quarter.”

“Looking ahead to the rest of the year, we are reiterating our financial guidance for the full year 2025,” concluded Blashford. “Driven by improving orders, we see continuing momentum as we grow our core non-wind markets. With a policy environment that currently favors domestic manufacturers and limited exposure to evolving U.S. trade policies, we believe that our business is uniquely positioned for profitable growth through the cycle.”

SEGMENT RESULTS

Heavy Fabrications Segment 
Broadwind provides large, complex and precision fabrications, and proprietary industrial processing equipment, to customers in a broad range of industrial markets. Key products include wind towers and repowering adapters, compressed natural gas pressure reducing systems and industrial fabrications, including mining and material handling components and other frames/structures.

Heavy Fabrications segment sales increased by 14.7% to $25.2 million in the first quarter 2025, as compared to the prior year period, primarily driven by increased demand for wind repowering adapters. The segment reported operating income of $2.2 million in the first quarter, as compared to operating income of $2.0 million in the prior year period. Segment non-GAAP adjusted EBITDA was $3.4 million in the first quarter, as compared to $3.1 million in the prior year period.

Gearing Segment
Broadwind provides custom gearboxes, loose gearing, precision-machined components and heat treat services to a broad set of customers in diverse markets, including oil & gas production, surface and underground mining, wind energy, steel, material handling and other infrastructure markets.

Gearing segment sales declined by 28.4% to $6.0 million in the first quarter 2025, as compared to the prior year period, primarily driven by softness in demand from our mining and oil & gas end-markets. The segment reported an operating loss of ($0.9) million in the first quarter, compared to operating income of $0.03 million in the prior year period. Segment non-GAAP adjusted EBITDA was ($0.2) million in the first quarter, as compared to $0.7 million in the prior-year period.

Industrial Solutions Segment 
Broadwind provides supply chain solutions, light fabrication, inventory management, kitting and assembly services, primarily serving the combined cycle natural gas turbine market as well as other clean technology markets.

Industrial Solutions segment sales declined by 29.3% to $5.6 million in the first quarter 2025, as compared to the prior year period, primarily driven by lower shipments of natural gas turbine content. The segment reported operating income of $0.3 million in the first quarter compared to operating income of $1.8 million in the prior year period. Segment non-GAAP adjusted EBITDA was $0.5 million in the first quarter, as compared to $1.9 million in the prior year period.

FINANCIAL GUIDANCE

Today, Broadwind reiterated financial guidance for the full year 2025. The following financial guidance reflects the Company’s current expectations and beliefs. All guidance is current as of the time provided and is subject to change.

Full Year 2025$ in MillionsLowMidHigh  Total Revenue $140$150$160 Adjusted EBITDA$13$14$15

FIRST QUARTER 2025 RESULTS CONFERENCE CALL

Broadwind will host a conference call today, May 13, 2025, at 11:00 a.m. ET to review the Company’s financial results, discuss recent events and conduct a question-and-answer session.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company’s corporate website at https://investors.bwen.com/investors. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

Live Teleconference: 877-407-9716 To listen to a replay of the teleconference, which will be available through Tuesday, May 20, 2025:  Teleconference Replay:  844-512-2921Conference ID:  13752898

ABOUT BROADWIND

Broadwind (Nasdaq: BWEN) is a precision manufacturer of structures, equipment and components for clean tech and other specialized applications. With facilities throughout the U.S., our talented team is committed to helping customers maximize performance of their investments—quicker, easier and smarter. Find out more at www.bwen.com

NON-GAAP FINANCIAL MEASURES

The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, share-based compensation and other stock payments, restructuring costs, impairment charges, proxy contest-related expenses and other non-cash gains and losses) as supplemental information regarding the Company’s business performance. The Company’s management uses this supplemental information when it internally evaluates its performance, reviews financial trends and makes operating and strategic decisions. The Company believes that this non-GAAP financial measure is useful to investors because it provides investors with a better understanding of the Company’s past financial performance and future results, which allows investors to evaluate the Company’s performance using the same methodology and information as used by the Company’s management. The Company's definition of adjusted EBITDA may be different from similar non-GAAP financial measures used by other companies and/or analysts.

FORWARD-LOOKING STATEMENTS

This release contains “forward-looking statements”—that is, statements related to future, not past, events— as defined in Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), that reflect our current expectations regarding our future growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities, as well as assumptions made by, and information currently available to, our management. We have tried to identify forward looking statements by using words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “should,” “may,” “plan” and similar expressions, but these words are not the exclusive means of identifying forward looking statements. Forward-looking statements include any statement that does not directly relate to a current or historical fact. Our forward-looking statements may include or relate to our beliefs, expectations, plans and/or assumptions with respect to the following: (i) our expectations and beliefs with respect to our financial guidance as set forth in this release; (ii) the impact of global health concerns on the economies and financial markets and the demand for our products; (iii) state, local and federal regulatory frameworks affecting the industries in which we compete, including the wind energy industry, and the related extension, continuation or renewal of federal tax incentives and grants, including the advanced manufacturing tax credits and state renewable portfolio standards as well as new or continuing tariffs on steel or other products imported into the United States; (iv) our customer relationships and our substantial dependency on a few significant customers and our efforts to diversify our customer base and sector focus and leverage relationships across business units; (v) our ability to operate our business efficiently, comply with our debt obligations, manage capital expenditures and costs effectively, and generate cash flow; (vi) the economic and operational stability of our significant customers and suppliers, including their respective supply chains, and the ability to source alternative suppliers as necessary; (vii) our ability to continue to grow our business organically and through acquisitions; (viii) the production, sales, collections, customer deposits and revenues generated by new customer orders and our ability to realize the resulting cash flows; (ix) information technology failures, network disruptions, cybersecurity attacks or breaches in data security; (x) the sufficiency of our liquidity and alternate sources of funding, if necessary; (xi) our ability to realize revenue from customer orders and backlog (including our ability to finalize the terms of the remaining obligations under a supply agreement with a leading global wind turbine manufacturer); (xii) the economy and the potential impact it may have on our business, including our customers; (xiii) the state of the wind energy market and other energy and industrial markets generally, including the availability of tax credits, and the impact of competition and economic volatility in those markets; (xiv) the effects of market disruptions and regular market volatility, including fluctuations in the price of oil, gas and other commodities; (xv) competition from new or existing industry participants including, in particular, increased competition from foreign tower manufacturers; (xvi) the effects of the change of administrations in the U.S. federal government; (xvii) our ability to successfully integrate and operate acquired companies and to identify, negotiate and execute future acquisitions; (xviii) the potential loss of tax benefits if we experience an “ownership change” under Section 382 of the Internal Revenue Code of 1986, as amended; (xix) the effects of proxy contests and actions of activist stockholders; (xx) the limited trading market for our securities and the volatility of market price for our securities; (xxi) our outstanding indebtedness and its impact on our business activities (including our ability to incur additional debt in the future); and (xxii) the impact of future sales of our common stock or securities convertible into our common stock on our stock price. These statements are based on information currently available to us and are subject to various risks, uncertainties and other factors that could cause our actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements including, but not limited to, those set forth under the caption “Risk Factors” in Part I, Item 1A of our most recently filed Form 10-K. We are under no duty to update any of these statements. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or other factors that could cause our current beliefs, expectations, plans and/or assumptions to change. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results.

BROADWIND, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(IN THOUSANDS)
(UNAUDITED)  March 31, December 31, 2025   2024 ASSETS CURRENT ASSETS:  Cash $1,204  $7,721  Accounts receivable, net  11,166   13,454  AMP credit receivable 2,566   2,533  Contract assets 926   836  Inventories  49,516   39,950  Prepaid expenses and other current assets  2,768   2,374  Total current assets  68,146   66,868 LONG-TERM ASSETS:  Property and equipment, net  45,023   45,572  Operating lease right-of-use assets, net 14,355   13,841  Intangible assets, net  1,237   1,403  Other assets  557   606 TOTAL ASSETS $129,318  $128,290  LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:  Line of credit and current maturities of long-term debt $4,816  $1,454  Current portion of finance lease obligations  2,257   2,266  Current portion of operating lease obligations 2,306   2,115  Accounts payable  22,967   16,080  Accrued liabilities   3,890   3,605  Customer deposits  8,876   18,037  Total current liabilities  45,112   43,557 LONG-TERM LIABILITIES:  Long-term debt, net of current maturities  7,375   7,742  Long-term finance lease obligations, net of current portion  3,423   3,777  Long-term operating lease obligations, net of current portion 14,094   13,799  Other  5   15  Total long-term liabilities  24,897   25,333 COMMITMENTS AND CONTINGENCIES  STOCKHOLDERS' EQUITY:  Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued  or outstanding  -   -  Common stock, $0.001 par value; 45,000,000 shares authorized; 22,902,433  and 22,593,589 shares issued as of March 31, 2025 and  December 31, 2024, respectively  23   23  Treasury stock, at cost, 273,937 shares as of March 31, 2025 and December 31, 2024,  respectively (1,842)  (1,842) Additional paid-in capital  401,843   401,564  Accumulated deficit  (340,715)  (340,345) Total stockholders' equity  59,309   59,400 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $129,318  $128,290

BROADWIND, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
 (UNAUDITED)  Three Months Ended March 31, 2025   2024   Revenues $36,838  $37,616 Cost of sales  32,512   30,979 Gross profit  4,326   6,637  OPERATING EXPENSES: Selling, general and administrative  3,977   4,394 Intangible amortization  165   165  Total operating expenses  4,142   4,559 Operating income   184   2,078  OTHER (EXPENSE) INCOME, net: Interest expense, net  (516)  (532)Other, net  (2)  3  Total other expense, net  (518)  (529) Net (loss) income before provision for income taxes  (334)  1,549 Provision for income taxes  36   39 NET (LOSS) INCOME  $(370) $1,510   NET (LOSS) INCOME PER COMMON SHARE - BASIC: Net (loss) income  $(0.02) $0.07  WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC  22,361   21,595  NET (LOSS) INCOME PER COMMON SHARE - DILUTED: Net (loss) income  $(0.02) $0.07  WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED  22,361   21,807

BROADWIND, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)  Three Months Ended March 31, 2025  2024 CASH FLOWS FROM OPERATING ACTIVITIES:  Net (loss) income $(370)$1,510  Adjustments to reconcile net cash (used in) provided by operating activities:  Depreciation and amortization expense  1,702  1,596  Deferred income taxes  (11) (8) Stock-based compensation  189  225  Allowance for credit losses  (16) (2) Common stock issued under defined contribution 401(k) plan  286  287  Changes in operating assets and liabilities:  Accounts receivable  2,304  4,632  AMP credit receivable (33) 5,319  Contract assets (90) 800  Inventories   (9,566) 19  Prepaid expenses and other current assets  (394) 635  Accounts payable   6,815  (4,005) Accrued liabilities  285  (71) Customer deposits  (9,161) (5,097) Other non-current assets and liabilities  23  17 Net cash (used in) provided by operating activities  (8,037) 5,857  CASH FLOWS FROM INVESTING ACTIVITIES:  Purchases of property and equipment  (916) (1,744)Net cash used in investing activities  (916) (1,744) CASH FLOWS FROM FINANCING ACTIVITIES:  Proceeds from (payments on) line of credit, net  3,356  (4,657) Proceeds from long-term debt -  1,244  Payments on long-term debt  (361) (325) Payments on finance leases  (363) (401) Shares withheld for taxes in connection with issuance of restricted stock (196) - Net cash provided by (used in) financing activities  2,436  (4,139) 0.0% -  NET DECREASE IN CASH  (6,517) (26)CASH beginning of the period  7,721  1,099 CASH end of the period $1,204 $1,073

BROADWIND, INC. AND SUBSIDIARIES
SELECTED SEGMENT FINANCIAL INFORMATION
(IN THOUSANDS)
(UNAUDITED)   Three Months Ended  March 31,  2025   2024 ORDERS:  Heavy Fabrications $12,391  $11,221  Gearing  7,960   10,446  Industrial Solutions  10,104   7,329  Total orders $30,455  $28,996  REVENUES:  Heavy Fabrications $25,248  $22,016  Gearing  5,966   8,337  Industrial Solutions  5,647   7,994  Corporate and Other  (23)  (731)  Total revenues $36,838  $37,616  OPERATING INCOME/(LOSS):  Heavy Fabrications $2,241  $2,046  Gearing  (892)  25  Industrial Solutions  330   1,767  Corporate and Other  (1,495)  (1,760)  Total operating income (loss) $184  $2,078

BROADWIND, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS)
(UNAUDITED)   ConsolidatedThree Months Ended March 31,  2025   2024  Net (Loss) Income$(370) $1,510  Interest Expense 516   532  Income Tax Provision 36   39  Depreciation and Amortization 1,702   1,596  Share-based Compensation and Other Stock Payments 484   503  Proxy Contest-Related Expenses -   (10)  Adjusted EBITDA (Non-GAAP) $2,368  $4,170

Heavy Fabrications Segment Three Months Ended March 31,  2025  2024 Net Income $1,717 $2,587 Interest Expense  147  89 Income Tax Provision (Benefit)  378  (630) Depreciation  1,021  911 Share-based Compensation and Other Stock Payments  185  178  Adjusted EBITDA (Non-GAAP) $3,448 $3,135

Gearing Segment Three Months Ended March 31,  2025   2024 Net Loss $(961) $(35) Interest Expense  63   54 Income Tax Provision  6   7 Depreciation and Amortization  549   540 Share-based Compensation and Other Stock Payments  99   102  Adjusted EBITDA (Non-GAAP) $(244) $668

Industrial Solutions Segment Three Months Ended March 31,  2025  2024  Net Income $196 $1,584  Interest Expense  114  163  Income Tax Provision  13  23  Depreciation and Amortization  114  100  Share-based Compensation and Other Stock Payments  54  50  Adjusted EBITDA (Non-GAAP) $491 $1,920

Corporate and Other Three Months Ended March 31,  2025   2024  Net Loss $(1,322) $(2,626)  Interest Expense  192   226  Income Tax (Benefit) Provision   (361)  639  Depreciation and Amortization  18   45  Share-based Compensation and Other Stock Payments  146   173  Proxy Contest-Related Expenses  -   (10)  Adjusted EBITDA (Non-GAAP) $(1,327) $(1,553)