Strong Order Growth and Record Backlogs
Total Q1 orders of ~$37.0M with Gearing orders up ~66% YoY to $13.2M (36% sequentially) and Industrial Solutions orders up ~44% YoY (~$14.6–$15.0M). Industrial Solutions backlog reached a record ~$43.3M (more than $5M above prior high); Gearing backlog ~ $30.5M.
Segment Revenue Expansion (Gearing & Industrial Solutions)
Gearing Q1 revenue rose ~42% YoY to $8.5M. Industrial Solutions Q1 revenue rose ~64% YoY to $9.2M, driven by natural gas turbine and power generation demand.
Margin and EBITDA Improvements in Core Segments
Industrial Solutions adjusted EBITDA was $1.8M, a margin of 19% vs $0.5M and 8.7% prior year. Gearing adjusted EBITDA improved to $0.6M vs a prior-year loss of $0.2M, reflecting better capacity utilization and mix.
Operational Investments to Support Growth
Commissioned high-precision grinding and mechanical balancing equipment in Gearing; expanding North Carolina production space by ~30% in Q2 to meet backlog. Investments intended to increase vertical integration and reduce lead times for high-speed reduction gearing.
Strategic Portfolio Pivot and Certifications
Management accelerating exit from wind tower business to focus on higher-growth, higher-margin Gearing and Industrial Solutions. Progress on industry certifications (AS9100-type aerospace/defense certification and CMMC 2.0 cybersecurity) to support defense/aerospace opportunities.
Improving Liquidity Pro Forma and Trailing-FY Revenue Context
Total cash and credit availability >$25M ( ~$16.4M after required minimum excess availability). Pro forma for Abilene sale, liquidity would improve by ~ $10M. Remaining heavy fabrication (excluding divested lines) generated ~$64M of trailing 12-month revenue through Q1.