Broadwind secures record gearing order for power market

CICERO, Ill. - Broadwind (NASDAQ:BWEN), a precision manufacturer serving global markets with a market capitalization of $33.14 million, has announced a record order for precision machined gearing products aimed at the power generation market. The company’s bookings for these products from a leading original equipment manufacturer (OEM) of natural gas turbines surpassed $2.0 million in the first quarter of 2025. According to InvestingPro data, the company currently trades near its 52-week low of $1.41, suggesting potential value opportunity for investors.

This substantial order reflects the increasing demand for components that support the United States’ electrical infrastructure. Broadwind has strategically expanded its manufacturing capabilities to meet this demand, moving beyond traditional gearing. The company has recently invested in advanced machining capabilities and obtained additional quality certifications, such as ITAR, CMMC, and the AS9100 registration, which are necessary for defense and aerospace applications. With a solid current ratio of 1.54, the company maintains strong liquidity to support its expansion initiatives.

Eric Blashford, President and CEO of Broadwind, expressed that the significant order from the OEM customer confirms the company’s strategy and recent investments. He also mentioned that the successful fulfillment of this order could position Broadwind for further growth in the power generation market, a sector they see as a multi-year opportunity that extends across all of their business units. The company’s financial health appears stable, with InvestingPro analysis showing positive earnings of $0.05 per share over the last twelve months, despite operating with modest gross margins of 14.8%.

Broadwind’s expansion into specialized manufacturing for clean tech and other applications aligns with the broader industry’s shift towards more sustainable and efficient energy solutions. The company’s efforts to enhance its capabilities and secure necessary certifications underscore its commitment to meeting the evolving needs of the power generation market. For deeper insights into Broadwind’s financial health and growth potential, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.

The information for this report is based on a press release statement from Broadwind, Inc.

In other recent news, Broadwind Energy reported its fourth-quarter 2024 earnings, exceeding expectations with an earnings per share (EPS) of -$0.04, compared to the forecasted -$0.06. However, the company’s revenue for the same quarter was $33.6 million, falling slightly short of the anticipated $34.45 million and marking a 28% decrease year-over-year. For the full year 2024, Broadwind’s revenue was $143 million, with an adjusted EBITDA of $13.3 million. Looking ahead, Broadwind has provided a revenue guidance range of $140 million to $160 million for 2025, with adjusted EBITDA expected between $13 million and $15 million.

In other developments, H.C. Wainwright adjusted Broadwind Energy’s stock price target from $8.00 to $6.00 while maintaining a Buy rating. This adjustment aligns with Broadwind’s 2025 revenue and adjusted EBITDA guidance, which are lower than the firm’s previous expectations. Broadwind’s management is navigating challenges in the wind sector, with a focus on diversifying into industrial, gearing, and natural gas sectors. The company has also secured a significant order from the hydroelectric market, contributing to a stable outlook for 2025.

Additionally, Broadwind is actively working to mitigate tariff impacts by passing cost increases to customers in the wind sector and shortening quote life windows in other segments. The company’s strategic investments in infrastructure upgrades and certifications are expanding its market reach, particularly in the hydroelectric market refurbishment. These efforts are part of Broadwind’s broader strategy to reduce its historical reliance on the wind market and capitalize on new growth opportunities.

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