Clean tech equipment maker Broadwind's Q2 revenue beats expectations

Overview

• Broadwind Q2 revenue rises 7.6% y/y, beating analyst expectations

• Company reports Q2 net loss of $1.0 mln, adjusted EBITDA at $2.1 mln

• Co announces pending sale of Manitowoc operations, adding $13 mln to balance sheet

Outlook

• Broadwind suspends full-year 2025 guidance due to pending Manitowoc sale

• Company expects Manitowoc sale to close in Q3 2025

• Broadwind plans to update guidance post-Manitowoc sale closure

• Company anticipates improved profitability as production normalizes

Result Drivers

• WIND AND INDUSTRIAL SALES - Revenue rose 7.6% y/y in Q2, driven by increased sales in the wind and industrial verticals

• HEAVY FABRICATIONS GROWTH - Revenue in the Heavy Fabrications segment increased 27.4% y/y, driven by demand for wind tower sections and repowering adapters

• GEARING DECLINE - Revenue in the Gearing segment fell due to lower demand in domestic energy markets

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the renewable energy equipment & services peer group is "buy"

• Wall Street's median 12-month price target for Broadwind Inc is $4.00, about 37.7% above its August 11 closing price of $2.49

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nGNX28f8fZ