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Broadwind (BWEN) investor relations material
Broadwind Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue for Q2 2025 increased 7.6–8% year-over-year to $39.2M, driven by wind, industrial, and power generation demand, but net loss was $0.99–$1.0M due to manufacturing inefficiencies and higher fixed costs.
Orders rose 14% year-over-year to $21M, with strong demand in power generation, oil & gas, and record backlog in Industrial Solutions.
Announced definitive agreement to sell Manitowoc industrial fabrication operations for up to $13.8M, expected to close in Q3 2025, adding $13M cash and reducing annual costs by $8M.
Strategic focus on high-value precision manufacturing, domestic production, and asset optimization to improve balance sheet flexibility.
OBBBA legislation phases out wind tax credits after 2027, expected to reduce future wind segment demand and profitability.
Financial highlights
Q2 2025 revenue was $39.2M, up 7.6–8% year-over-year; gross margin declined to 10.1% from 15.3–15.8% last year.
Adjusted EBITDA was $2.1M (5.3% margin), down from $3.6M (10%) in Q2 2024; net loss was $0.99–$1.0M, or ($0.04) per share.
Cash and credit availability at quarter-end ranged from $14.9M to $18.4M; net debt to trailing twelve month Adjusted EBITDA rose to 3.0x.
Net working capital investment increased to $42.5M, mainly from inventory buildup for wind tower orders.
Free cash flow was negative $12.8M for Q2 2025; net cash used in operating activities was $20.5M for the first half.
Outlook and guidance
Full-year 2025 guidance suspended pending Manitowoc sale; updated guidance to be provided post-transaction.
Strong order intake and backlog in Industrial Solutions and Gearing segments position the company for improved utilization and growth into 2026.
OBBBA's phase-out of wind tax credits after 2027 is expected to materially reduce wind segment demand and profitability.
Net leverage expected to normalize in 2H25 following wind tower order completions and Manitowoc sale.
Company expects to benefit from domestic production, precision manufacturing, and expansion into higher-value markets.
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