Broadwind (BWEN, Financial) has secured a follow-on order exceeding $6 million from a major original equipment manufacturer in the natural gas turbine sector of the power generation market. This order constitutes the minimum commitment for the first year of a two-year agreement, which also includes provisions for additional volume. Under the terms of this agreement, Broadwind will be responsible for producing precision machined gearing products to be used in natural gas turbines. Production is slated to commence in the fourth quarter, with order fulfillment planned for 2026 and 2027.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Broadwind Inc (BWEN, Financial) is $4.33 with a high estimate of $6.00 and a low estimate of $3.00. The average target implies an upside of 73.33% from the current price of $2.50. More detailed estimate data can be found on the Broadwind Inc (BWEN) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Broadwind Inc's (BWEN, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Broadwind Inc (BWEN, Financial) in one year is $1.88, suggesting a downside of 24.8% from the current price of $2.5. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Broadwind Inc (BWEN) Summary page.
BWEN Key Business Developments
Release Date: May 13, 2025
- Revenue: $36.8 million, a 2% decrease year over year.
- Adjusted EBITDA: $2.4 million with a margin of 6.4%.
- Heavy Fabrication Revenue: $25.2 million, up 15% year over year.
- Gearing Revenue: $6 million, down 28% year over year.
- Industrial Solutions Revenue: $5.6 million, down 29% year over year.
- Q1 Orders: $30.5 million, a 5% increase year over year.
- Cash and Credit Facility Availability: Approximately $23 million.
- Full Year 2025 Revenue Guidance: $140 million to $160 million.
- Full Year 2025 Adjusted EBITDA Guidance: $13 million to $15 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Broadwind Inc (BWEN, Financial) reported a sequential growth in both revenue and gross margin, with first quarter revenue at $37 million and adjusted EBITDA at $2.4 million.
- The company experienced a 5% year-over-year increase in order rates, reaching $30 million, driven by strong demand for wind repowering adapters and natural gas turbine content.
- Orders within the Heavy Fabrication business increased 10% year over year, reflecting continued strong demand for wind repowering adapters.
- The Industrial Solutions segment recorded a 38% year-over-year increase in orders, setting a new record for orders and backlog due to strength in the global gas turbine market.
- Broadwind Inc (BWEN) is investing in equipment technology to improve process capabilities, reduce costs, and enhance profitability, including advanced testing equipment and new milling and beveling equipment.
Negative Points
- First quarter consolidated revenues decreased by 2% due to an extended slowdown within the oil and gas sector.
- Gearing revenue was down 28% year over year due to broad-based softness in the oil and gas gearing market.
- Industrial Solutions revenue decreased by 29% year over year, primarily due to the timing of certain aftermarket shipments into the natural gas turbine market.
- The company experienced supply chain delays, impacting shipments and contributing to a lower margin product mix.
- Despite strong demand in certain segments, the overall production levels were affected by low capacity utilization, particularly within the Gearing segment.
