Broadwind Energy (BWEN) AI Stock Analysis

• Market Cap: $55.30M
• Dividend Yield: N/A
• Average Volume (3M): 268.56K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.93
• Revenue Growth: -18.38%
• EPS Growth: -128.11%
• Country: US
• Employees: 411
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.04
• Shares Outstanding: 23,041,464
• 10 Day Avg. Volume: 453,073
• 30 Day Avg. Volume: 268,558
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 13.78
• 1Y Price Target: $4.25
• Price Target Upside: 77.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $2.50 ▲(4.17% Upside)

Broadwind Energy's overall stock score reflects significant financial challenges, particularly in profitability and cash flow management, which weigh heavily on the score. While technical indicators show some positive momentum, the lack of profitability and valuation concerns are major detractors. The earnings call provided mixed signals, with strategic initiatives offering potential upside, but current operational inefficiencies and suspended guidance add uncertainty.

Positive Factors

Revenue Growth

The 8% year-over-year revenue growth indicates strong demand in the wind and industrial verticals, suggesting a positive trend in market expansion and product adoption.

Strategic Divestiture

The sale of the Manitowoc facility will enhance liquidity and reduce operational costs, improving financial flexibility and focusing resources on core business areas.

Record Orders

Record order levels in the Industrial Solutions segment indicate strong market demand and a robust backlog, supporting future revenue stability and growth.

Negative Factors

Profitability Challenges

The decline in adjusted EBITDA highlights ongoing profitability challenges, impacting the company's ability to generate sufficient returns and maintain financial health.

Production Inefficiencies

Production inefficiencies reduce operational efficiency and profitability, necessitating improvements in manufacturing processes to sustain competitive advantage.

Suspension of Financial Guidance

The suspension of financial guidance creates uncertainty about future performance, potentially affecting investor confidence and strategic planning.

Broadwind Energy Business Overview & Revenue Model

Company Description

Broadwind, 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 Money

Broadwind Energy generates revenue through multiple key streams, primarily by manufacturing and supplying wind turbine components to various customers in the renewable energy sector. The company produces wind towers, which are essential structures for hosting turbines, and gearboxes, which are critical for converting wind energy into usable power. Broadwind also offers services related to the maintenance and repair of wind energy equipment, adding to its revenue sources. Significant partnerships with major wind turbine manufacturers and project developers further enhance its earnings potential, as these collaborations can lead to long-term contracts and increased production volumes. Additionally, the growing demand for renewable energy solutions due to global sustainability initiatives contributes positively to Broadwind's financial performance.

Broadwind Energy Financial Statement Overview

Summary

Broadwind Energy faces financial challenges, particularly in profitability and cash flow management. Revenue shows slight growth, but margins are under pressure, and the company is not currently profitable. The balance sheet is stable, but improvements in profitability and cash flow are essential for long-term sustainability.

Income Statement

Broadwind Energy's income statement shows mixed results. The TTM data indicates a slight revenue growth of 1.96%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -1.52%. Gross profit margin has decreased to 11.91% from previous periods, and both EBIT and EBITDA margins are relatively low at 0.67% and 4.17%, respectively. The company needs to improve its cost management and operational efficiency to enhance profitability.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio stands at 0.61, indicating a manageable level of leverage. However, the return on equity is negative at -3.71%, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio is not provided, but the overall leverage and equity position seem stable, though improvements in profitability are needed to enhance ROE.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is positive at 124.64%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is negative, highlighting cash flow issues. The company must focus on improving cash generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.14M	143.14M	203.48M	176.76M	145.62M	198.50M
Gross Profit	17.29M	21.19M	32.51M	10.71M	5.51M	18.00M
EBITDA	6.05M	10.99M	17.47M	-417.00K	10.34M	6.70M
Net Income	-2.20M	1.15M	7.65M	-9.73M	2.85M	-1.49M
Balance Sheet
Total Assets	130.51M	128.29M	135.16M	144.54M	118.05M	119.68M
Cash, Cash Equivalents and Short-Term Investments	1.04M	7.72M	1.10M	12.73M	852.00K	3.37M
Total Debt	36.17M	31.15M	35.42M	33.12M	31.55M	35.61M
Total Liabilities	71.56M	68.89M	79.14M	98.27M	63.91M	79.02M
Stockholders Equity	58.95M	59.40M	56.02M	46.27M	54.13M	40.66M
Cash Flow
Free Cash Flow	-6.46M	10.19M	-13.35M	13.54M	-14.53M	3.64M
Operating Cash Flow	-3.27M	13.81M	-6.95M	16.64M	-12.83M	5.19M
Investing Cash Flow	-3.20M	-3.46M	-6.38M	-3.10M	-1.67M	-1.55M
Financing Cash Flow	6.56M	-3.73M	1.70M	-1.67M	11.98M	-2.69M

Broadwind Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.4 is above the 20-day moving average (MA) of 2.17, above the 50-day MA of 2.18, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 81.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWEN.

Broadwind Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVV	54 Neutral	$26.70M	―	-1.47%	―	34.35%	93.12%
LASE	54 Neutral	$56.68M	―	-61.47%	―	123.75%	66.85%
XCH	54 Neutral	$113.55M	―	―	―	―	―
BWEN	51 Neutral	$55.30M	30.96	-3.73%	―	-18.38%	-128.11%
CETY	39 Underperform	$12.09M	―	-58.13%	―	-80.89%	50.95%
BURU	35 Underperform	$44.47M	―	220.90%	―	-98.68%	91.24%

Broadwind Energy Corporate Events

Broadwind Energy Sells Manitowoc Operations for Optimization

In the second quarter of 2025, Broadwind reported a 7.6% increase in total revenue to $39.2 million, driven by higher sales in the wind and industrial sectors. Despite this growth, the company faced a net loss of $1.0 million, attributed to inefficiencies and lower demand in certain segments. The company is optimizing its operations by selling its Manitowoc industrial fabrication operations, expected to close in the third quarter, which will add approximately $13 million in cash and reduce annual costs by $8 million. This strategic move is part of Broadwind’s focus on higher-margin precision manufacturing verticals, positioning it for sustained growth.