Broadwind (BWEN) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $34.1 million, down 7.5–8% year-over-year, with a net loss of $0.5 million ($(0.02) per share), as strong growth in Gearing and Industrial Solutions offset declines in Heavy Fabrications and wind operations.

• Strategic transformation included the sale of the Abilene, TX facility (generating $17.2–19.5 million in proceeds), exit from wind tower production by Q3 2026, and redeployment of capital to core segments.

• Gearing and Industrial Solutions segments achieved strong revenue growth (up 42% and 64% year-over-year, respectively), reaching profitable scale and record backlogs, driven by demand in power generation and critical infrastructure.

• Gross profit and margins improved despite lower total revenue, reflecting the shift to higher-margin businesses.

• Capital redeployment targets bolt-on acquisitions and organic investments in power generation and infrastructure, leveraging significant net operating loss carryforwards.

Financial highlights

• Q1 2026 consolidated revenue was $34.1 million, down from $36.8 million in Q1 2025.

• Adjusted EBITDA for Q1 2026 was $2.2 million (6.5% margin), down from $2.4 million prior year.

• Gross profit was $4.3–4.7 million, with gross margin improving to 13.8% from 11.7% year-over-year.

• Net loss for Q1 2026 was $0.5 million ($(0.02) per share), compared to $0.4 million loss in Q1 2025.

• Total cash and credit facility availability at quarter-end was $25.1 million; pro forma liquidity improves by $10 million after Abilene sale.

Outlook and guidance

• Full-year 2026 financial guidance withdrawn following the Abilene facility sale; wind business to be reclassified as discontinued operations in Q2 2026.

• Expectation of steady, ratable revenue growth in Gearing and Industrial Solutions, supported by strong demand and record backlogs.

• Book-to-bill ratio of 1.1–1.6x and backlog extends into 2027–2028, especially in Industrial Solutions.

• Anticipate improved utilization, profitability, and sufficient liquidity for at least the next twelve months, but note risks if operational performance or collections deteriorate.

• OBBBA legislation will phase out AMP credits after 2027 and restrict credits for certain foreign-sourced components, impacting wind segment profitability.