Broadwind Announces First Quarter 2021 Results

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CICERO, Ill., May 07, 2021 (GLOBE NEWSWIRE) — Broadwind (NASDAQ: BWEN), a diversified precision manufacturer of specialized components and solutions serving global markets, today announced results for the first quarter 2021.

FIRST QUARTER 2021 RESULTS(As compared to the first quarter 2020)

  • Wind tower section orders up 103% year-over-year
  • Total revenue of $32.7 million, down 33% year-over-year
  • Total net loss of ($1.2) million, or ($0.07) per basic share
  • Total non-GAAP adjusted EBITDA of $1.2 million, down 66% year-over-year
  • Total cash and excess availability of $21.6 million, up 13% year-over-year

For the three months ended March 31, 2021, Broadwind reported total revenue of $32.7 million, a decline of 33% when compared to the prior-year period. The Company reported a net loss of ($1.2) million, or ($0.07) per basic share in the first quarter 2021, compared to net income of $1.0 million, or $0.06 per diluted share, in the first quarter 2020. The Company reported adjusted EBITDA, a non-GAAP measure, of $1.2 million in the first quarter 2021, compared to $3.6 million in the prior-year period.

First quarter results were impacted by a more than one-week outage at the Company’s Abilene, Texas tower facility due to adverse weather conditions during February 2021; a temporary shift in the timing of a large customer order initially slated to be delivered in the first quarter; and continued, pandemic-related supply chain issues. On a combined basis, these factors resulted in an approximately $9 million negative impact to first quarter 2021 revenue.   Both Heavy Fabrications and Gearing Segment revenue declined on a year-over-year basis in the first quarter, partially offset by growth in the Industrial Solutions segment.

During the first quarter, the Company was eligible for the Employee Retention Tax Credit (ERC), as outlined under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and further modified under the Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021. For the three months ended March 31, 2021, the Company earned $3.4 million in refundable tax credits, which will be utilized to offset increased payroll costs resulting from pandemic-related disruptions described in this release.

The Company has booked approximately 60% of its full-year 2021 optimal wind tower capacity, including approximately $4 million of new wind tower orders received in April 2021. Currently, both of the Company’s tower production facilities in Texas and Wisconsin are fully operational.


During the first quarter, the Company continued to advance a multi-year strategy to capitalize on favorable secular growth trends within the domestic wind energy market; further diversify consolidated revenues into complementary end-markets; improve operating efficiency and plant utilization; and maintain a disciplined capital structure positioned to support growth.

Capitalize on favorable policy environment. During the next decade, Broadwind anticipates that both new and existing subsidies will be used to drive significant, incremental investments in both onshore and offshore wind installations. In March 2021, the Biden Administration announced its intent to deploy 30 gigawatts (GW) of offshore wind power by 2030, consistent with an ongoing policy seeking to accelerate clean energy transition. Additionally, the Company anticipates an increase of more than 80 GW of U.S. onshore wind energy capacity over the next decade. The Company anticipates sustained corporate and industrial demand for renewable energy, together with a favorable policy backdrop, both representing significant long-term catalysts for secular growth within the renewables sector. As a tower supplier for three of the four largest wind turbine manufacturers operating in the U.S. market, the Company believes it remains well positioned to capitalize on increased demand for wind energy. To that end, wind tower orders increased by more than $7 million in the first quarter 2021, when compared to the prior-year period.

Achieve scale through efficiency. The Company remains focused on operating its production facilities at or near capacity, while reducing costs through improvement initiatives. In addition to securing new tower orders from multiple turbine manufacturers in the first quarter of 2021, new order demand from Gearing and Industrial Fabrication customers increased sequentially, reflecting an early recovery in cyclical end markets.

Diversify sales mix. As a leading precision manufacturer of structures, equipment and components for clean tech and other applications, the Company continues to further diversify its sales mix across a wide range of non-wind markets, including the industrial, mining and natural gas turbine markets. In the first quarter 2021, revenue from customers in non-wind markets represented 37% of total revenue, up from 26% in the prior-year period.

Disciplined capital management. The Company continues to retain sufficient liquidity to support the ongoing operations of its business, together with potential organic and inorganic growth investments. Total cash and availability under the credit facility was $21.6 million as of March 31, 2021, versus $19.0 million as of March 31, 2020. As of March 31, 2021, the ratio of net debt to trailing twelve-month non-GAAP adjusted EBITDA was 1.0X, excluding $9.2 million in loans received under the Paycheck Protection Program.

On March 9, 2021, the Company commenced an equity offering of shares of the Company’s common stock. During the quarter ended March 31, 2021, the Company issued 1,100,000 shares of the Company’s common stock under such equity offering. The net proceeds (before upfront costs) to the Company from the sale of such shares were approximately $6.4 million, after deducting commissions.


“Although our first quarter results were adversely impacted by a combination of adverse weather conditions, a shift in the timing of a customer order and pandemic-related supply chain constraints, our business recovered during April, supported by new customer orders and improved plant utilization. We are seeing a broad market recovery that will drive growth in our industrial businesses in the second half of this year,” stated Eric Blashford, President and CEO of Broadwind.

“Wind tower orders more than doubled on a year-over-year basis in the first quarter, as original equipment manufacturer (OEM) customers began to fill production slots for the second half of 2021,” continued Blashford. “To date, we have booked approximately 60% of our optimal wind tower production capacity for the full-year 2021. First quarter gearing orders improved sequentially, supported by increased demand within both industrial and energy markets, consistent with our expectations for a gradual recovery in the Gearing segment during 2021.”

“Following the one-year extension of the renewable electricity production tax credit (PTC) announced in late 2020, together with other recent policy actions intended to accelerate private investment in new wind energy installations, expectations around medium-term onshore wind capacity additions continue to improve,” Blashford continued.

“Currently, we anticipate that approximately 35 GW of new onshore wind capacity will be added to the U.S. market by year-end 2023,” continued Blashford. “In the last two years, project developers have installed more wind power capacity than any other energy generating technology, as the levelized, unsubsidized cost of wind energy continues to decline.”

“In March the Biden Administration announced a transformational plan to deploy 30 GW of new offshore wind energy capacity by 2030, including provisions for the construction of new facilities to support…

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