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Broadwind Energy (BWEN)
NASDAQ:BWEN

Broadwind Energy (BWEN) AI Stock Analysis

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Broadwind Energy

(NASDAQ:BWEN)

Rating:57Neutral
Price Target:
$2.00
▲(5.82%Upside)
Broadwind Energy's overall stock score is heavily influenced by its challenging financial performance, which limits the score despite some positive technical indicators. The company's strategic guidance and recent corporate actions provide a mixed outlook, balancing near-term operational challenges with potential long-term improvements.
Positive Factors
Debt Reduction
Proceeds from the sale could be used to lower debt or for strategic acquisitions, enhancing the company's financial position.
Market Expansion
The company is expanding its service and commercial teams for the clean fuels’ Pressure Reducing System (PRS) line to better serve customers outside the Permian and Eagle Ford regions into the Denver-Julesburg (DJ) and Bakken regions.
Order Growth Potential
The company's growing participation in the power generation market, including new order growth potential from refurbishment opportunities in the hydroelectric market bodes well for higher capacity utilization, and should translate into improving margins.
Revenue Diversification
The company's focus on growth opportunities in power and infrastructure verticals should make it more attractive to investors.
Negative Factors
Cost Reduction
The company will stop incurring roughly $8M in annual GAAP operating costs associated with the Manitowoc facility.
Revenue Impact
Investors should expect $15-20M of annual non-wind revenues from the Manitowoc plant to not reflect in 2026 financials.

Broadwind Energy (BWEN) vs. SPDR S&P 500 ETF (SPY)

Broadwind Energy Business Overview & Revenue Model

Company DescriptionBroadwind Energy, Inc. is an American company that provides a wide range of products and services primarily for the energy and infrastructure sectors. With a focus on the wind energy industry, Broadwind manufactures wind turbine towers and heavy fabrications, as well as offers precision gearing and specialty weldments. The company also serves other industrial sectors, including oil and gas, mining, and general industrial markets, with its diverse manufacturing capabilities.
How the Company Makes MoneyBroadwind Energy makes money through the manufacturing and sale of wind turbine towers and other industrial components. Its key revenue streams include the production of heavy steel structures and precision gears, which are essential for the construction and operation of wind farms. The company also generates income from providing maintenance and repair services for its products. Broadwind has strategic partnerships with major players in the wind energy sector, which help secure long-term contracts and steady revenue streams. Additionally, the company's involvement in other sectors, such as oil and gas, and mining, contributes to its earnings by diversifying its customer base and reducing reliance on a single industry.

Broadwind Energy Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 17.39%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
Broadwind's earnings call reflected a balanced outlook. While there was growth in revenue and orders in key segments like Heavy Fabrications and Industrial Solutions, there were also challenges such as revenue declines in the Gearing segment and supply chain issues. The overall sentiment is neutral, with a mix of positive strategic developments and operational challenges.
Q1-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Broadwind reported revenue of $37 million and adjusted EBITDA of $2.4 million for Q1 2025, with sequential growth in both revenue and gross margin.
Order Rate Increase
Order rates increased by 5% year-over-year to $30 million, driven by stronger demand for wind repowering adapters and natural gas turbine content.
Heavy Fabrication and Industrial Solutions Order Growth
Orders within Heavy Fabrication increased by 10% year-over-year, and Industrial Solutions orders increased by 38% year-over-year, setting a new record for orders and backlog.
Strategic Market Wins
Gearing orders showed a 13% increase versus Q4 2024, with notable wins in the power generation market and an uplift in oil and gas gearing.
Full-Year Guidance Reiteration
The company reiterated its full-year 2025 revenue guidance of $140 million to $160 million and adjusted EBITDA guidance of $13 million to $15 million.
Negative Updates
Revenue Decline in Certain Segments
Overall consolidated revenues decreased by 2% due to a slowdown in the oil and gas sector, with Gearing revenue down 28% year-over-year and Industrial Solutions revenue down 29% year-over-year.
Supply Chain Delays
Supply chain headwinds impacted shipments in the Industrial Solutions segment, contributing to a year-over-year revenue decline.
Operational Inefficiencies
The Gearing segment experienced an adjusted EBITDA loss of $0.2 million due to lower revenue and operational inefficiencies.
Company Guidance
During Broadwind's first quarter 2025 earnings call, the company provided financial guidance for the full fiscal year. Broadwind reiterated its expectation for full-year revenue to range between $140 million and $160 million, with an adjusted EBITDA projected between $13 million and $15 million. In the first quarter, the company achieved revenue of $36.8 million and an adjusted EBITDA margin of 6.4%, reflecting a 2% decrease in revenue compared to the same period last year. Despite challenges such as supply chain delays and a lower margin product mix, Broadwind reported increasing momentum with sequential growth in revenue and gross margin. The company highlighted strong demand in the wind repowering market and natural gas turbine content, which offset declines in mining and natural gas pressure-reducing systems. Orders increased 5% year-over-year to $30.5 million, with notable growth in the Heavy Fabrication segment, which saw orders rise 10% year-over-year. The Gearing segment experienced a 13% sequential increase in orders, and the Industrial Solutions segment set a new record with a 38% year-over-year increase in orders.

Broadwind Energy Financial Statement Overview

Summary
Broadwind Energy faces significant financial headwinds. Revenue and profit margins have contracted, and cash flow has deteriorated, reflecting operational inefficiencies and financial instability. The balance sheet shows moderate leverage but poor returns on equity. Overall, the company needs to address these financial challenges to improve its financial health.
Income Statement
45
Neutral
Broadwind Energy's TTM revenue has declined, with a notable drop from 2024 to 2025. The gross profit margin stands at 13.26%, while the net profit margin is negative at -0.51%, indicating unprofitability. EBIT and EBITDA margins are low at 1.64% and 5.26%, respectively, showing operational challenges.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio is 0.45, which suggests a moderate level of leverage, but ROE is negative at -1.23%, indicating poor returns on equity. The equity ratio of 45.86% provides some balance sheet strength, although total liabilities remain high.
Cash Flow
40
Negative
The free cash flow has turned negative, indicating cash flow challenges, with a significant decline from the previous year. The operating cash flow to net income ratio is negative, further highlighting issues in cash generation relative to net income.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
142.36M143.14M203.48M176.76M145.62M198.50M
Gross Profit
18.88M21.19M32.51M10.71M5.51M18.00M
EBIT
2.33M4.22M11.14M-6.61M-5.15M422.00K
EBITDA
7.49M10.99M17.47M-417.00K10.34M6.70M
Net Income Common Stockholders
-728.00K1.15M7.65M-9.73M2.85M-1.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.20M7.72M1.10M12.73M852.00K3.37M
Total Assets
129.32M128.29M135.16M144.54M118.05M119.68M
Total Debt
26.90M31.15M35.42M33.12M31.55M35.61M
Net Debt
25.69M23.43M34.32M20.39M30.70M32.24M
Total Liabilities
24.90M68.89M79.14M98.27M63.91M79.02M
Stockholders Equity
59.31M59.40M56.02M46.27M54.13M40.66M
Cash FlowFree Cash Flow
-2.88M10.19M-13.35M13.54M-14.53M3.64M
Operating Cash Flow
-88.00K13.81M-6.95M16.64M-12.83M5.19M
Investing Cash Flow
-2.63M-3.46M-6.38M-3.10M-1.67M-1.55M
Financing Cash Flow
2.85M-3.73M1.70M-1.67M11.98M-2.69M

Broadwind Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.89
Price Trends
50DMA
1.66
Positive
100DMA
1.63
Positive
200DMA
1.80
Positive
Market Momentum
MACD
0.06
Negative
RSI
61.73
Neutral
STOCH
72.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWEN, the sentiment is Positive. The current price of 1.89 is above the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.66, and above the 200-day MA of 1.80, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 72.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWEN.

Broadwind Energy Risk Analysis

Broadwind Energy disclosed 29 risk factors in its most recent earnings report. Broadwind Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Broadwind Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.52B12.345.41%3.62%4.15%-12.18%
CVCVV
60
Neutral
$21.33M-0.26%48.84%98.75%
57
Neutral
$42.99M30.96-1.24%-25.94%-108.22%
50
Neutral
$34.56M-30.59%-44.07%-78.93%
BWBW
49
Neutral
$129.89M29.28%-29.45%39.40%
49
Neutral
$60.81M77.71%1.71%-3.55%
44
Neutral
$16.41M-90.36%-87.59%51.14%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BWEN
Broadwind Energy
1.89
-1.84
-49.33%
BW
Babcock & Wilcox Company
1.12
-0.17
-13.18%
CVV
CVD Equipment
3.14
-1.01
-24.34%
TPIC
TPI Composites
1.25
-3.22
-72.04%
CETY
Clean Energy Technologies
0.30
-1.15
-79.31%
LASE
Laser Photonics Corp.
2.51
0.51
25.50%

Broadwind Energy Corporate Events

M&A TransactionsBusiness Operations and Strategy
Broadwind Energy Sells Manitowoc Operations to IES Holdings
Positive
Jun 5, 2025

On June 4, 2025, Broadwind Heavy Fabrications, a subsidiary of Broadwind, Inc., entered into an agreement to sell its industrial fabrication operations in Manitowoc, Wisconsin to Wisconsin Heavy Fabrication, LLC, a subsidiary of IES Holdings, Inc., for up to $13.8 million. This transaction, expected to close in the third quarter of 2025, aims to optimize Broadwind’s asset base, enhance liquidity, and support strategic focus on higher-margin precision manufacturing segments, while reducing operating costs and diversifying into other power generation and infrastructure markets.

The most recent analyst rating on (BWEN) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Broadwind Energy stock, see the BWEN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Broadwind Energy Holds Annual Stockholders Meeting
Neutral
May 19, 2025

On May 15, 2025, Broadwind, Inc. held its Annual Meeting of Stockholders where several key decisions were made. Stockholders elected six directors for a one-year term, approved executive compensation, ratified an amendment to the Company’s Section 382 Rights Agreement, and confirmed RSM US LLP as the independent public accounting firm for 2025.

The most recent analyst rating on (BWEN) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Broadwind Energy stock, see the BWEN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Broadwind Energy Reports Q1 2025 Financial Results
Neutral
May 13, 2025

Broadwind reported its first quarter 2025 results, showing a total revenue of $36.8 million and a net loss of $0.4 million. The company experienced a decline in revenue by 2.1% year-over-year, primarily due to lower sales in the mining, oil & gas, and natural gas turbine markets, although this was partially offset by stronger sales in the wind market. The Heavy Fabrications segment saw a 14.7% increase in revenue due to demand for wind repowering adapters, while the Gearing and Industrial Solutions segments faced significant declines. Despite challenges, Broadwind’s orders increased by 5% year-over-year, driven by demand for repowering adapters and natural gas turbine content. The company reiterated its full-year 2025 financial guidance, highlighting its focus on diversification and operational efficiency to drive profitability.

The most recent analyst rating on (BWEN) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Broadwind Energy stock, see the BWEN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.