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 the company executed a strategic exit from wind tower production and sold the Abilene facility.

• Gearing and Industrial Solutions segments delivered strong revenue growth (up 42% and 64% year-over-year), improved profitability, and record order momentum, driven by power generation and critical infrastructure demand.

• Remaining businesses are higher growth, more predictable, and more profitable, with improved earnings quality and less policy dependence.

• Divestiture of wind operations in Abilene, TX and Manitowoc, WI increased focus on power generation and critical infrastructure, optimizing the asset base and improving balance sheet flexibility.

• Major strategic shift includes reclassifying wind business as discontinued operations in Q2 2026 and redeploying capital toward higher-margin, recurring revenue businesses.

Financial highlights

• Q1 2026 consolidated revenues were $34.1 million, down from $36.8 million in Q1 2025, with adjusted EBITDA of $2.2 million (6.5% margin), down from $2.4 million year-over-year.

• Gross profit for Q1 2026 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, or $(0.02) per share, compared to a net loss of $0.4 million in Q1 2025.

• Total orders exceeded $37 million, up 23% year-over-year, with record backlogs in Gearing and Industrial Solutions.

• Cash and credit facility availability at quarter end was $25.1 million; net debt was $14.1–$15.0 million.

Outlook and guidance

• Strategic exit from wind tower production to be completed by Q3 2026, with focus shifting to higher-margin, less volatile markets.

• Backlog in Gearing and Industrial Solutions supports steady revenue growth for the remainder of the year and into 2027 and 2028.

• Full year 2026 financial guidance withdrawn following the sale of the Abilene facility.

• Management anticipates sufficient liquidity for at least the next twelve months, but notes risk if operational performance or customer collections deteriorate.

• OBBBA legislation will phase out AMP credits after 2027 and restrict credits for components sourced from certain foreign entities, likely reducing wind segment profitability.