Broadwind reports Q3 EPS 20c, consensus 8c

Reports Q3 revenue $57.2M, consensus $58.22M. “We delivered a strong third quarter performance, one highlighted by significant year-over-year increases in revenue, net income, margin realization and non-GAAP adjusted EBITDA,” stated Eric Blashford, President and CEO of Broadwind. “We generated double-digit year-over-year revenue growth across each of our reporting segments during the third quarter, with Heavy Fabrications segment revenue increasing more than 25% above the prior-year period given improved demand for wind tower sections and high-flow Pressure Reducing Systems units.” “Our third quarter results benefited from a combination of improved operating leverage, continued price discipline, a higher value sales mix and improved process efficiencies, including early benefits from our recent investments in coatings automation and weld-prep technology,” continued Blashford. “These actions, together with the benefit provided by the IRA’s advanced manufacturing tax credit, resulted in third quarter non-GAAP adjusted EBITDA margin of more than 13%, an increase of more than 900 basis points as compared to the prior year period.” “We remain highly focused on balance sheet optimization as we seek to build liquidity, further reduce net leverage and improve working capital efficiency,” continued Blashford. “Our net leverage profile improved meaningfully over the last year, with our ratio of net debt to trailing twelve-month non-GAAP adjusted EBITDA declining to 1.7x as of September 30, 2023,” noted Blashford. “At the end of the third quarter, our advanced manufacturing credit receivable totaled more than $11 million, representing credits earned under the IRA. We are currently evaluating the sale of these earned credits to unaffiliated institutional third parties, an approach which, if pursued, would accelerate monetization of these credits during 2024.” “Looking ahead, we remain well-positioned to capitalize on a pending recovery in onshore wind investment, while leveraging our precision manufacturing expertise across new energy transition verticals, including renewable fuels and power generation,” concluded Blashford. “While we see early signs of a recovery within our onshore wind markets, 2024 is expected to be a transitional year for the industry. As before, we remain focused on delivering profitable growth through organic share gains and product innovation, consistent with our focus on long-term value creation.”