Broadwind (BWEN) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue rose 12.4% year-over-year to $37.7 million, driven by strong demand in core verticals and strategic execution, despite a raw material supply disruption in Heavy Fabrications.

• Divestiture of the Wisconsin/Manitowoc industrial fabrication operation in Q3 2025 optimized the asset base, improved balance sheet flexibility, and increased revenue diversification.

• Robust order growth in Gearing and Industrial Solutions segments, with Q4 orders up 38% year-over-year and record backlog levels achieved.

• Maintained a 100% domestic manufacturing footprint, benefiting from reshoring trends and trade tariffs favoring US wind tower manufacturers.

• Strategic investments in technology, capacity, and footprint expansion to support future growth.

Financial highlights

• Q4 2025 consolidated revenue was $37.7 million, up 12.4% year-over-year, with Industrial Solutions revenue up 60% to $9.4 million and Heavy Fabrications up 6% to $21.6 million; Gearing revenue fell 8% to $7.0 million.

• Q4 adjusted EBITDA was $1.9 million (5.0% margin), down from $2.1 million year-over-year; GAAP net loss was $0.9 million.

• Full-year 2025 revenue reached $158.1 million, with adjusted EBITDA of $8.7 million (5.5% margin) and GAAP net income of $5.2 million.

• Q4 orders totaled nearly $39 million, with strong growth in Gearing and Industrial Solutions, but a 20% decline in Heavy Fabrications due to divestiture.

• Ended Q4 with $25 million in cash and credit availability; net leverage at 1.6x.

Outlook and guidance

• 2026 revenue guidance reaffirmed at $140–$150 million, with adjusted EBITDA expected between $8–$10 million.

• Organic growth for 2026 projected to exceed 20% year-over-year, excluding divested operations, with double-digit revenue growth expected in Gearing and sustained elevated levels in Industrial Solutions.

• Heavy Fabrications has visibility for steady production into Q3 2026 and indications of continued volume through 2027.

• Book-to-bill ratio of 1.2x in Industrial Solutions supports continued growth expectations.

• Management anticipates maintaining 20% organic revenue growth for several years, driven by strong end-market demand.