Broadwind Energy (NASDAQ:BWEN – Get Free Report) released its quarterly earnings results on Tuesday. The industrial products company reported ($0.03) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.02), FiscalAI reports. The firm had revenue of $8.19 million during the quarter, compared to analyst estimates of $34.97 million. Broadwind Energy had a negative return on equity of 2.05% and a net margin of 3.30%.
Here are the key takeaways from Broadwind Energy’s conference call:
- Strong second-quarter performance: Revenue rose 67% year over year to $24.3 million, while adjusted EBITDA improved to a $1.6 million profit from a $1.1 million loss. Both Gearing and Industrial Solutions posted higher revenue and profitability.
- Order momentum remained robust, with total backlog for the continuing Gearing and Industrial Solutions businesses up 93% year over year and a 1.5x book-to-bill ratio. Gearing orders increased 138% to $16.2 million, while Industrial Solutions orders reached a record $17.2 million.
- Management expects sustained demand from power generation, natural-gas turbines, data-center electricity needs, grid modernization, and electrification. The company is expanding capacity, adding engineering and manufacturing resources, and exploring selective bolt-on acquisitions in precision manufacturing, critical infrastructure, defense, and aerospace.
- Broadwind has not reinstated financial guidance, citing uncertainty until the wind-tower wind-down is completed in the third quarter. Management also cautioned that Industrial Solutions’ exceptionally high second-quarter EBITDA margin should return to more typical levels, with product mix potentially creating some margin pressure.
- The company ended the quarter with more than $40 million of cash and credit-facility availability, or $31.3 million after minimum-availability restrictions, alongside significantly reduced debt. This provides flexibility for organic investment and disciplined acquisitions.
Broadwind Energy Price Performance
Shares of BWEN traded down $0.08 during mid-day trading on Wednesday, reaching $5.26. 523,911 shares of the company’s stock were exchanged, compared to its average volume of 569,208. The company has a quick ratio of 0.65, a current ratio of 1.92 and a debt-to-equity ratio of 0.11. Broadwind Energy has a 52-week low of $1.88 and a 52-week high of $5.70. The company has a market cap of $123.08 million, a price-to-earnings ratio of 23.91 and a beta of 1.78. The company has a 50-day simple moving average of $4.51 and a two-hundred day simple moving average of $3.31.
Analyst Upgrades and Downgrades
Read Our Latest Analysis on BWEN
Institutional Investors Weigh In On Broadwind Energy
Large investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. acquired a new position in shares of Broadwind Energy in the first quarter worth $25,000. XTX Topco Ltd purchased a new stake in shares of Broadwind Energy in the second quarter valued at $25,000. Virtu Financial LLC acquired a new stake in shares of Broadwind Energy during the third quarter valued at $31,000. LPL Financial LLC increased its position in Broadwind Energy by 62.0% during the 4th quarter. LPL Financial LLC now owns 31,637 shares of the industrial products company’s stock worth $90,000 after purchasing an additional 12,102 shares in the last quarter. Finally, Mariner LLC increased its position in Broadwind Energy by 17.1% during the 4th quarter. Mariner LLC now owns 36,120 shares of the industrial products company’s stock worth $102,000 after purchasing an additional 5,268 shares in the last quarter. Institutional investors and hedge funds own 33.27% of the company’s stock.
About Broadwind Energy
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.
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