• Full-Year Revenue: $143 million.
• Full-Year Adjusted EBITDA: $13.3 million.
• Q4 Revenue: $33.6 million, a 28% decrease from the prior year quarter.
• Q4 Adjusted EBITDA: $2.1 million.
• Q4 Adjusted EBITDA Margin: 6.4%.
• Q4 Orders: $37 million, an 85% increase from Q4 2023.
• Heavy Fabrications Q4 Revenue: $20.4 million, down 31% year-over-year.
• Gearing Q4 Revenue: $7.6 million, down 31% year-over-year.
• Industrial Solutions Q4 Revenue: $5.9 million.
• Total Cash and Credit Facility Availability: Approximately $33 million.
• 2025 Revenue Guidance: $140 million to $160 million.
• 2025 Adjusted EBITDA Guidance: $13 million to $15 million.

• Warning! GuruFocus has detected 6 Warning Signs with BWEN.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Broadwind Inc (NASDAQ:BWEN) reported strong commercial and operational execution in 2024, achieving full-year revenue of $143 million and adjusted EBITDA of $13.3 million.
• The company experienced a significant increase in order rates, with orders rising 85% from the fourth quarter of 2023 to $37 million.
• Broadwind Inc (NASDAQ:BWEN) is expanding its product mix within higher-margin adjacent markets, with elevated quoting activity in Heavy Fabrications and Industrial Solutions.
• The company is investing in equipment technology to improve process capabilities, reduce costs, and enhance profitability, including upgrades to key fabrication equipment.
• Broadwind Inc (NASDAQ:BWEN) achieved a 55% reduction in its recordable incident rate in 2024, demonstrating a strong focus on team member safety.

Negative Points

• Fourth quarter consolidated revenues decreased by 28% compared to the prior year quarter, primarily due to reduced activity in the onshore wind and oil and gas sectors.
• Adjusted EBITDA margin fell to 6.4% due to lower capacity utilization, despite targeted cost reductions.
• The Heavy Fabrications segment saw a 31% decline in revenue year-over-year, mainly due to a decrease in tower production and natural gas Pressure Reducing Systems shipments.
• Gearing revenue decreased by 31% year-over-year, reflecting broad-based softness in the oil and gas and steel markets.
• The company anticipates continued muted demand for domestic onshore wind tower activity through 2026, impacting future growth prospects.

Q & A Highlights

Q: Can you confirm your expectations for wind demand through 2026 and provide visibility on your GE contract? A: We expect wind demand to remain muted through 2026, with potential improvement in 2027. We have firm visibility on our GE contract through 2025, knowing the towers we will build through September and having indications beyond that. - Eric Blashford, President, Chief Executive Officer, Director

Q: How should we think about the linearity of 2025 revenue given your guidance and backlog visibility? A: Wind will be stable throughout the year, but Q1 will be softer due to pull-ins from Q4 2024. We expect revenue to increase ratably through the year, with Q1 being the lowest quarter. - Eric Blashford, President, Chief Executive Officer, Director and Thomas Ciccone, Chief Financial Officer, Vice President

Q: Can you explain the discrepancy between low project activity and improved order activity? A: Project activity refers to active orders, while order activity includes future bookings. We have strong visibility on our wind backlog and are seeing increased order activity in non-wind markets, which balances out the muted wind project activity. - Eric Blashford, President, Chief Executive Officer, Director

Q: How are tariffs impacting your guidance, and what should we watch for in terms of positives and negatives? A: Tariffs are factored into our guidance. We quote to order and limit quote life to manage potential inflationary impacts. So far, tariffs have not disrupted order activity, but we are seeing increased inquiries for onshoring. - Eric Blashford, President, Chief Executive Officer, Director

Q: What growth are you anticipating for each segment in 2025, and how might margins improve? A: Industrial Solutions is expected to continue its growth pace, driven by natural gas turbine demand. Gearing will grow from a slower start, while Towers will remain flat. Margins could improve with better capacity utilization and as new markets mature. - Eric Blashford, President, Chief Executive Officer, Director and Thomas Ciccone, Chief Financial Officer, Vice President

Q: Has the executive order on wind permitting affected order activity, and what is the potential impact? A: The executive order has not yet impacted order activity, but it could slow projects due to permitting delays, potentially keeping 2026 demand similar to 2025. - Eric Blashford, President, Chief Executive Officer, Director

Q: Can you elaborate on your hydroelectric offering and its potential as a revenue stream? A: Our hydroelectric offering involves refurbishing heavy fabrication inside dams. It is expected to be a repeating revenue stream, aiding capacity utilization, though not as significant as towers. - Eric Blashford, President, Chief Executive Officer, Director

Q: What is the outlook for book-to-bill ratios across your segments in 2025? A: We expect a book-to-bill greater than 1 in Gearing, closer to 1 in Industrial Solutions, and less than 1 in Heavy Fabrications due to working off existing long-term agreements. - Thomas Ciccone, Chief Financial Officer, Vice President

For the complete transcript of the earnings call, please refer to the full earnings call transcript.