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Broadwind Energy (BWEN)
NASDAQ:BWEN
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Broadwind Energy
(NASDAQ:BWEN)
64Neutral
Positive Factors
Operational Improvements
Operational improvements are largely implemented, with management taking steps to improve revenue growth for the non-Wind segment.
Order Growth
Total orders increased by 45% YoY in 3Q24, supported by the well diversified revenue segments with backlog increasing to $124.3M.
Negative Factors
Market Recovery
Further Patience Required For A Wind Market Recovery.
Regulatory Uncertainty
The stock has come under pressure post the Trump election win due to uncertainty surrounding regulatory policy for renewables under the new administration.
Broadwind Energy (BWEN) vs. S&P 500 (SPY)
Market Cap
$34.82M
Dividend YieldN/A
Average Volume (3M)89.36K
Price to Earnings (P/E)29.3
Beta (1Y)0.62
Revenue Growth-29.65%
EPS Growth-84.94%
CountryUS
Employees411
SectorIndustrials
Sector Strength75
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.05
Shares Outstanding22,319,653
10 Day Avg. Volume92,647
30 Day Avg. Volume89,357
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.87
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.07
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside161.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Broadwind Energy Business Overview & Revenue Model
Company DescriptionBroadwind, Inc. manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets. It offers steel towers and adapters primarily to wind turbine manufacturers. The Gearing segment provides gearing, and gearboxes and systems for onshore and offshore oil and gas fracking and drilling, surface and underground mining, wind energy, steel, material handling, and other infrastructure markets. This segment also offers heat treat services for aftermarket and original equipment manufacturer applications. The Industrial Solutions segment provides supply chain solutions for offering instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services, and electromechanical devices; light fabrication, inventory management, and kitting and assembly services; packaging solutions; and fabricating services for panels and sub-assemblies to combined cycle natural gas turbine market. The company sells its products to the energy, mining, and infrastructure sector customers through its direct sales force and independent sales agents. The company was formerly known as Broadwind Energy, Inc. and changed its name to Broadwind, Inc. in May 2020. Broadwind, Inc. is headquartered in Cicero, Illinois.
How the Company Makes MoneyBroadwind Energy generates revenue through the design and manufacture of wind towers and precision gearing systems. In the Towers and Heavy Fabrications segment, the company earns money by supplying wind turbine manufacturers with custom-designed towers, which are critical components in wind energy generation. This segment also includes the production of other large, complex steel structures for various industries. In the Gearing segment, revenue is derived from the sale of precision gear systems that are used in industries such as oil and gas, mining, and transportation. Broadwind Energy benefits from long-term contracts and partnerships with major wind turbine manufacturers and other industrial clients, providing a stable revenue stream. The company's growth is supported by the increasing demand for renewable energy solutions and the need for durable, high-precision components in various industrial sectors.
Broadwind Energy Financial Statement Overview
Summary
Broadwind Energy demonstrates some financial stability with improved cash flow and reduced leverage, though profitability and revenue growth remain concerns. The company needs to focus on improving operational efficiency and profitability to enhance its financial health.Income Statement
Broadwind Energy shows a volatile revenue trend with a decrease in 2024 to $143.1M from $203.5M in 2023. Gross profit margin for 2024 was 14.8%, down from 16% in 2023. The net profit margin dropped significantly to 0.8% in 2024. EBIT and EBITDA margins were both 2.9% in 2024, indicating operational challenges.62
Positive
Balance Sheet
The company has improved its debt situation, with a debt-to-equity ratio decreasing to 0.39 in 2024. The equity ratio stands at 46.3%, showing strong equity backing. However, the return on equity decreased to 1.9% in 2024, reflecting reduced profitability.70
Positive
Cash Flow
Cash flow improved significantly, with a positive free cash flow of $10.2M in 2024 compared to negative $13.4M in 2023. Operating cash flow to net income ratio is strong at 11.99, indicating effective cash generation from operations.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 143.14M | 203.48M | 176.76M | 145.62M | 198.50M | Gross Profit |
| 21.19M | 32.51M | 10.71M | 5.51M | 18.00M | EBIT |
| 4.22M | 11.14M | -6.61M | -5.15M | 422.00K | EBITDA |
| 4.22M | 17.47M | -417.00K | 10.34M | 6.70M | Net Income Common Stockholders |
| 1.15M | 7.65M | -9.73M | 2.85M | -1.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.72M | 1.10M | 12.73M | 852.00K | 3.37M | Total Assets |
| 128.29M | 135.16M | 144.54M | 118.05M | 119.68M | Total Debt |
| 23.41M | 35.42M | 33.12M | 31.55M | 35.61M | Net Debt |
| 15.69M | 34.32M | 20.39M | 30.70M | 32.24M | Total Liabilities |
| 68.89M | 79.14M | 98.27M | 63.91M | 79.02M | Stockholders Equity |
| 59.40M | 56.02M | 46.27M | 54.13M | 40.66M |
| Cash Flow | Free Cash Flow | |||
| 10.19M | -13.35M | 13.54M | -14.53M | 3.64M | Operating Cash Flow |
| 13.81M | -6.95M | 16.64M | -12.83M | 5.19M | Investing Cash Flow |
| -3.46M | -6.38M | -3.10M | -1.67M | -1.55M | Financing Cash Flow |
| -3.73M | 1.70M | -1.67M | 11.98M | -2.69M |
Broadwind Energy Technical Analysis
Negative
1.53
Price Trends
1.53
Positive
1.67
Negative
1.96
Negative
Market Momentum
<0.01
Positive
47.71
Neutral
18.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWEN, the sentiment is Negative. The current price of 1.53 is below the 20-day moving average (MA) of 1.57, above the 50-day MA of 1.53, and below the 200-day MA of 1.96, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $34.82M | 29.27 | 2.00% | ― | -29.65% | -84.94% | |
63 Neutral | $4.23B | 11.54 | 5.34% | 209.77% | 4.14% | -9.49% | |
50 Neutral | $42.28M | ― | -30.59% | ― | -44.07% | -78.93% | |
45 Neutral | $19.96M | ― | -7.36% | ― | 11.47% | 54.59% | |
44 Neutral | $18.34M | ― | -109.72% | ― | -83.96% | 29.71% | |
43 Neutral | $44.38M | ― | 29.28% | ― | -30.29% | 40.03% | |
40 Underperform | $43.53M | ― | 77.71% | ― | -8.18% | -20.81% |
* Industrials Sector Average
Performance Comparison
BWEN
Broadwind Energy
1.53
-0.62
-28.84%
BW
Babcock & Wilcox Company
0.46
-0.60
-56.60%
CVV
CVD Equipment
2.97
-1.55
-34.29%
TPIC
TPI Composites
0.94
-2.70
-74.18%
CETY
Clean Energy Technologies
0.40
-1.10
-73.33%
LASE
Laser Photonics Corp.
2.94
0.88
42.72%
Broadwind Energy Earnings Call Summary
Earnings Call Date:Mar 05, 2025
(Q4-2024)
| % Change Since: 2.00%|
Next Earnings Date:May 13, 2025
Earnings Call Sentiment Neutral
Broadwind demonstrated strong execution in a challenging market environment, with significant order growth and operational efficiencies. However, the company faces challenges with declining revenues and reduced activity in key markets like wind and oil & gas.Q4-2024 Updates
Positive Updates
Significant Order Growth
Orders increased by 85% from the fourth quarter of 2023 to $37 million. Order growth was broad-based across nearly all markets, including heavy fabrications, gearing, and industrial solutions.
Investment in Quality Certifications
Broadwind's investments in quality and security certifications like AS9100, ITAR, and CMMC 2.0 are generating new quote opportunities and bookings, particularly in aeroderivative turbine and aerospace verticals.
Strong Performance in Industrial Solutions
Full year 2024 revenue and adjusted EBITDA for the Industrial Solutions segment reached record levels, driven by strong demand in the global gas turbine market.
Cost Actions and Operational Efficiency
Cost actions resulted in about $4 million in annualized savings, positioning the company for improved operating leverage in 2025.
Cash Position and Free Cash Flow
Broadwind ended the fourth quarter with total cash and availability of approximately $33 million, aided by a $13 million reduction in operating working capital.
Negative Updates
Revenue Decline
Fourth quarter consolidated revenues decreased by 28% compared to the prior year, primarily due to reduced activity within the wind and oil and gas markets.
Decreased Activity in Wind and Oil & Gas Sectors
Q4 revenue in the heavy fabrication segment was down 31% year-over-year, with gearing revenue also down 31% due to softness in the oil and gas and steel markets.
Challenging Market Environment
Broadwind continues to face a transitional demand environment, with muted onshore wind tower activity expected through 2026.
Lower Utilization and EBITDA Margin
Adjusted EBITDA margin fell to 6.4% in Q4 2024, primarily due to lower capacity utilization.
Company Guidance
During the call, Broadwind provided financial guidance for the full year 2025, anticipating revenue to be between $140 million and $160 million, with adjusted EBITDA expected to range from $13 million to $15 million. The company experienced strong order growth in the fourth quarter of 2024, with orders increasing by 85% from the previous year to $37 million. Despite a decrease in fourth-quarter revenue to $33.6 million, down 28% from the prior year, Broadwind reported a rebound in order activity, marking its highest intake level in nearly two years. The heavy fabrication segment saw fourth-quarter orders of $22.4 million, while gearing orders were $7 million, both showing sequential growth. The industrial solutions segment recorded $8 million in fourth-quarter orders, setting a record booking level. The company expects the domestic onshore wind tower activity to remain steady through 2026, and it is optimistic about the momentum in non-wind markets, including industrial and power generation sectors, which contributed to the strong order growth.Broadwind Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
Broadwind Energy Reports Q4 2024 Financial Results
Neutral
Mar 5, 2025
Broadwind reported its fourth quarter and full-year 2024 financial results, highlighting a total revenue of $33.6 million for the fourth quarter and $143.1 million for the full year. The company experienced a net loss in the fourth quarter due to decreased customer demand, particularly in the wind and oil/gas markets. However, total orders increased by 85% in the fourth quarter, driven by demand in industrial solutions and other segments, leading to a record backlog. Despite challenges, Broadwind remains optimistic about 2025, with expectations of improved manufacturing optimization and order growth in non-wind markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.