What Broadwind Energy (BWEN) Said on Its Q3 Earnings Call

Key Points

• Q3 revenue from continuing operations rose 48% to $22.3 million, and adjusted EBITDA improved to $0.5 million from a $1.2 million loss a year earlier. Total orders increased 13% to $33.7 million, with power-generation products accounting for more than 70%.
• Industrial Solutions set records with $19.6 million in orders and a $57 million backlog; revenue rose 32% to $10.4 million. Gearing revenue increased 36% to $9.6 million, and the segment returned to operating profit for the first time since Q2 2024.
• Broadwind completed its acquisition of MCM, which management expects to add an immediately accretive, higher-margin revenue stream. After the deal, the company had about $16.5 million in pro forma cash and credit availability and $13 million in debt; management plans to integrate MCM, support growth and reduce debt.

Broadwind Energy NASDAQ: BWEN reported a 48% increase in third-quarter 2026 revenue as demand for power generation equipment and other industrial products helped lift orders and backlog. The company also outlined plans to integrate its recently acquired electrical transmission and distribution supplier, MCM.

Revenue from continuing operations rose to $22.3 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved to $0.5 million from a loss of $1.2 million a year earlier. Total orders increased 13% to $33.7 million, with power generation-related orders accounting for more than 70% of the quarter’s order book, CEO Eric Blashford said.

Chief Financial Officer Tom Ciccone said the results of the Heavy Fabrications segment, excluding pressure reducing systems, are reported as discontinued operations. Management’s financial discussion focused on continuing operations unless otherwise noted.

Industrial Solutions Sets Order and Backlog Records

Industrial Solutions orders rose 42% year over year to a record $19.6 million, while backlog reached a record $57 million. Segment revenue increased 32% to $10.4 million, supported by demand for natural gas turbine components. Adjusted EBITDA rose to $1.4 million from $0.6 million.

Ciccone said the segment’s adjusted EBITDA margin moderated to approximately 13%, as management had expected after three quarters in the high teens. He said a low-double-digit margin is a more appropriate expectation based on the current product mix and operating profile. Revenue is expected to remain above recent historical levels, subject to customer schedules, product mix and market conditions.

Blashford said Broadwind added 30% capacity this year at its Industrial Solutions operation and could expand production further by adding a second shift. The company could also move some manufacturing to an adjacent site if needed, although it would have to find a location. He said hiring workers could be a challenge, but that Broadwind believes it can keep pace with customer growth for at least the next couple of years.

Gearing Profit Improves Despite Lower Orders

Gearing orders fell to $9.8 million from $15.9 million a year earlier, largely because the prior-year period included a $6 million order from a natural gas turbine equipment manufacturer. Oil and gas orders nearly doubled to almost $6 million, partially offsetting the decline.

Gearing revenue rose 36% to $9.6 million, and adjusted EBITDA increased to $0.7 million from $0.1 million. The segment recorded its first operating profit since the second quarter of 2024, according to Blashford. Backlog rose for a fifth consecutive quarter to $37.8 million.

Ciccone said early fourth-quarter Gearing orders were on pace to exceed the third-quarter total. Blashford said demand from U.S. hydraulic fracturing customers was improving, while large power generation orders can be uneven from quarter to quarter.

Asked about a reduction in space at the company’s Illinois Gearing facility, Blashford said the remaining space can support the previously discussed $65 million to $70 million annual revenue run rate. The vacated area was underutilized and less suitable for production, he said.

MCM Acquisition and Liquidity

Broadwind completed its acquisition of Alabama-based MCM on October 30, marking its first acquisition in nearly a decade. MCM manufactures components for electrical transmission and distribution customers from a 37,000-square-foot facility in Northport. Blashford said the business sources its raw materials domestically and is expected to add a higher-margin revenue stream that will be immediately accretive.

Following the acquisition and a related credit facility amendment, Broadwind had approximately $16.5 million in pro forma cash and credit facility availability and $13 million in total debt, Ciccone said. The company ended the third quarter with nearly $40 million in cash and credit availability, or $31 million after its minimum excess availability requirement.

Ciccone said Broadwind expects the addition of MCM to help it generate free cash flow and reduce net leverage below its long-term target of 2.0 times through earnings growth and debt repayment. Blashford said near-term priorities include integrating MCM, supporting organic growth and reducing debt.

About Broadwind Energy (NASDAQ:BWEN)

Broadwind Energy, Inc. is a precision manufacturer that produces structures, equipment and components for the wind energy, clean technology and other industrial markets. The company provides engineered manufacturing solutions for customers that require large-scale fabrication, machining, assembly and related services. Broadwind's product and service offerings include wind turbine towers, heavy fabrications, industrial equipment and precision gearing. Its manufacturing capabilities include welding, machining, gear manufacturing, assembly, engineering and supply-chain support.

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