Broadwind Energy (NASDAQ:BWEN) management highlighted a stronger demand environment and a strategic shift toward power generation and critical infrastructure markets during the company’s fourth quarter and full-year 2025 earnings call, while noting that fourth-quarter profitability was pressured by operational inefficiencies tied to a customer-directed raw material supply disruption.
Strategic shift and portfolio changes
CEO Eric Blashford described 2025 as “a pivotal year” in Broadwind’s evolution into a “leaner, more diversified business.” A key step in that effort was the divestiture of the company’s industrial fabrication operations in Wisconsin during the third quarter, which management said optimized its asset base, reduced overhead, improved capacity utilization at the Abilene facility, and increased balance sheet flexibility to pursue “higher value opportunities.”
Fourth-quarter operational backdrop and demand trends
Fourth-quarter performance was consistent with preliminary results the company issued in early February 2026, but management said results were impacted by a raw material supply disruption in the Heavy Fabrications business tied to an OEM customer’s directed buy program. The issue reduced throughput and operating efficiency during the quarter. Management said Broadwind implemented corrective actions, including working with the customer to bring on an alternative supplier, and expects operations to normalize during the first quarter of 2026.
Despite the disruption, management characterized demand conditions and customer activity as strong, led by project activity in the Gearing and Industrial Solutions segments. The company reported that fourth-quarter orders were nearly $39 million, including 38% year-over-year growth in both Gearing and Industrial Solutions, partially offset by a 20% year-over-year decline in Heavy Fabrications orders reflecting the Wisconsin divestiture.
Financial results and segment performance
CFO Tom Ciccone reported fourth-quarter consolidated revenue of $37.7 million, up 12% from the prior-year period. The increase was driven primarily by Industrial Solutions, where revenue rose 60% year-over-year. Ciccone added that the segment’s fourth-quarter revenue level was also 40% above the average of the past four quarters, and management believes that volume level will continue based on customer indications.
Adjusted EBITDA declined to $1.9 million from $2.1 million a year earlier. Ciccone attributed the decrease to lower capacity utilization in the Gearing segment and operating inefficiencies associated with the directed-buy raw material supplier issue.
Key segment details discussed on the call included:
- Heavy Fabrications: Fourth-quarter orders were nearly $18 million, down 20% year-over-year. Ciccone noted that excluding $6.3 million of industrial fabrication product-line orders tied to the Manitowoc facility in the prior year, orders increased more than 10% on an adjusted basis due to meaningful tower orders in the current quarter. Revenue increased 6% year-over-year to $21.6 million, supported by higher wind tower and repowering adapter sales. Adjusted EBITDA declined versus the prior year due to manufacturing inefficiencies linked to the raw material disruption.
- Gearing: Fourth-quarter orders increased 38% year-over-year to $9.7 million, reflecting strength in power generation and oil and gas, with management also pointing to a resurgence in oil and gas and the wind aftermarket. Segment revenue fell nearly 8% year-over-year to $7.0 million, which management said was impacted by lower demand from the wind aftermarket and mining, partially offset by power generation and oil and gas. The segment posted an adjusted EBITDA loss of $0.3 million compared to adjusted EBITDA of $0.1 million a year earlier, which Ciccone attributed primarily to reduced capacity utilization. The company ended 2025 with about $26 million of backlog in Gearing, a level it had not reached since 2023.
- Industrial Solutions: Fourth-quarter orders rose 38% year-over-year to $11.1 million. Backlog reached a record $38.1 million at quarter-end, marking the fifth consecutive quarter of record backlog, according to Ciccone. Revenue was $9.4 million, up sequentially and up 60% year-over-year, representing the highest revenue level ever recorded in the segment. Adjusted EBITDA increased to $1.5 million, or nearly a 16% segment margin, from $0.6 million, or a 10% margin, in the prior-year quarter.
Investments, capacity, and backlog visibility
Management detailed several investments aimed at boosting throughput and margins. In Gearing, the company completed three production part approval processes (PPAPs) tied to large power generation orders and installed and qualified equipment for electromechanical runout (EMRO) balancing of high-speed gear components, which Blashford said enables more in-house processing, shorter lead times, and improved quality and profitability.
In Industrial Solutions, Broadwind invested in equipment and staffing to “double” capacity across machining, welding, assembly, and kitting to address a growing backlog and expected demand in gas power generation equipment. Blashford added that in the second quarter the company plans to expand its North Carolina footprint by about 30% to accommodate future growth.
During the Q&A, management clarified that while floor space is expanding by 30%, production capacity has already doubled through staffing and equipment, and the business is operating on one shift with the ability to add another. Blashford said Industrial Solutions could “certainly get into the $70 million range” of revenue within the existing facility before hitting capacity constraints, and he cited strong end-market demand tied to natural gas turbines and data center-related distributed power needs.
For Heavy Fabrications, management said customer order releases tend to come roughly six months ahead of production needs. Blashford said the company has good visibility for towers and adapters into the third quarter of 2026, with customer indications that volume should continue through the remainder of 2026 and into 2027. Ciccone described expected backlog conversion in 2026 as “ratable,” without significant quarterly spikes.
For Gearing, Blashford told analysts the company expects “significant growth” and said “double-digit growth can be relied on” for the segment in 2026, citing a stronger starting backlog. Management said the segment’s focus in 2026 is more on execution and throughput against customer requested delivery dates, with a ramp expected in the first quarter and steadier revenue through the remaining quarters.
Liquidity and 2026 outlook
Broadwind ended the fourth quarter with nearly $25 million in total cash and credit availability. Ciccone said the total was down from the prior year because 2024 working capital benefited from advance payments from a major customer. Working capital was flat during the quarter and is expected to remain relatively consistent.
Management reaffirmed full-year 2026 guidance, calling for:
- Revenue: $140 million to $150 million
- Adjusted EBITDA: $8 million to $10 million
On the call, management also discussed commercial momentum in power generation. Blashford noted a $6 million follow-on order received in March 2026 for precision machine gearing components used in mid-size natural gas turbines, which he said power data centers and other applications. Ciccone added that including this order, the company had already booked nearly $11 million in first-quarter orders.
Blashford closed by emphasizing Broadwind’s positioning in what he described as a multi-year power generation cycle, ongoing increases in quote activity, and continued investment in people and operational programs, including plans to implement an ISO 45001 occupational health and safety readiness program to add to existing ISO 9001 and AS9100 certifications.
About Broadwind Energy (NASDAQ:BWEN)
Broadwind Energy, Inc (NASDAQ: BWEN) is an engineering and manufacturing company focused on the design, production and service of heavy industrial equipment for energy infrastructure and related markets. The company’s offerings include custom-engineered gearboxes, couplings, hydrodynamic drives and utility-scale wind turbine towers. In addition to new equipment, Broadwind Energy provides aftermarket repair, refurbishment and testing services to support the long-term operation of energy and industrial assets.
The company operates through two principal segments.
