Broadwind Energy (NASDAQ:BWEN) reported sharply higher second-quarter revenue, improved adjusted EBITDA and record order activity in its continuing Gearing and Industrial Solutions businesses as the company advances its exit from wind tower manufacturing.
Chief Executive Officer Eric Blashford said the company is repositioning itself as a precision manufacturing supplier focused on domestic power generation and critical infrastructure markets. Broadwind sold its Abilene facility in April, and heavy fabrication results excluding pressure-reducing systems have been classified as discontinued operations. The company expects to complete its remaining wind tower orders during the third quarter.
Revenue and EBITDA Improve
Second-quarter consolidated revenue from continuing operations rose 67% year over year to $24.3 million, driven by higher order activity and deliveries in both operating segments. Adjusted EBITDA improved to $1.6 million, compared with an adjusted EBITDA loss of $1.1 million in the prior-year quarter.
Chief Financial Officer Tom Ciccone said the company had expected the first quarter to represent its low point for 2026 revenue, and both segments recorded sequential revenue growth in the second quarter.
- Gearing revenue: $9 million, up 24% from a year earlier, supported by power-generation deliveries.
- Gearing adjusted EBITDA: $0.4 million, compared with a $0.1 million loss a year earlier.
- Industrial Solutions revenue: $13.2 million, up nearly 80% year over year and a quarterly record for the segment.
- Industrial Solutions adjusted EBITDA: $2.5 million, compared with $0.7 million in the prior-year period.
Industrial Solutions generated an adjusted EBITDA margin of nearly 19% during the quarter, which management attributed to higher capacity utilization, favorable product mix and cost efficiencies. Ciccone said the margin is expected to move down toward more typical levels over time, though the company currently expects revenue to remain above recent historical levels, subject to customer schedules, product mix and market conditions.
Orders and Backlog Reach New Highs
Total second-quarter orders exceeded $35 million, increasing by more than $14 million from the prior-year period. On a comparable basis, combined backlog for the Gearing and Industrial Solutions segments was up 93% as of June 30 from a year earlier, and Broadwind ended the quarter with a book-to-bill ratio of 1.5 times.
Gearing orders increased 138% year over year and 22% sequentially to $16.2 million. The segment ended the quarter with backlog of $37.6 million, its fourth straight quarterly backlog increase. Management cited demand across power generation, oil and gas, mining and material-handling markets, with particular strength in power generation and improving aftermarket activity related to upstream oil and gas equipment.
Industrial Solutions booked a record $17.2 million in second-quarter orders, up 24% from a year earlier and 18% sequentially. Backlog reached a record $47.4 million, extending the segment’s streak of sequential backlog growth to eight quarters. The segment produces components for natural gas turbine applications, including new-build and aftermarket shipments.
Blashford said Broadwind is seeing demand tied to distributed power, small-frame natural gas turbines and utility-scale turbine applications. He said the company cannot specifically separate the impact of AI-related data center demand from broader power-generation demand, but noted that key customers cite AI as a significant driver.
Capacity Investments and Liquidity
Broadwind expanded the warehouse at its Sanford, North Carolina facility by approximately 30% at the end of the second quarter. Management said the added space has improved logistics and created additional processing and packaging capacity while also enabling further expansion of manufacturing activity in the original facility.
During the call, Blashford said the Sanford operation could grow to an approximately $75 million annual revenue rate. He added that potential acquisitions in the local area could provide additional manufacturing space to support future growth.
In the Gearing business, Broadwind is reconfiguring machining centers into cellular manufacturing layouts as part of a floor-space optimization project. The company said the effort is intended to improve material flow, reduce wasted motion and raise throughput.
Broadwind ended the quarter with more than $40 million of total cash and credit-facility availability, or $31.3 million after accounting for a minimum excess-availability requirement. Ciccone said working capital increased modestly in continuing operations as those businesses ramped, but the increase was more than offset by a more than $6 million reduction in inventory associated with the Abilene tower operation.
Guidance and Acquisition Strategy
Broadwind did not reinstate financial guidance despite stronger order trends and backlog visibility. Blashford said management wants to complete the Abilene wind-down, which is scheduled for the third quarter, before issuing guidance again.
The company is also evaluating bolt-on acquisitions that would expand its precision manufacturing capabilities. Blashford said potential targets would be focused on power generation, critical infrastructure, grid hardening, aerospace or defense and would need to complement Broadwind’s existing customers, capabilities or capacity.
Management said it is working with advisors to develop an acquisition pipeline but plans to remain selective and disciplined on sector focus, profitability, durability and valuation. Broadwind also said it is seeking to diversify its customer base in power generation, while continuing to work with major natural gas turbine manufacturers.
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.
