Broadwind (BWEN) Q3 2025: Orders Surge 90% as Power Generation Backlog Sets New Record
Broadwind’s Q3 showcased a decisive pivot toward high-growth power generation and renewables, with orders up 90% and industrial solutions backlog at a record high. The Manitowoc divestiture and manufacturing consolidation signal a leaner, more focused business primed for improved utilization in 2026. Management’s visibility into demand and ability to pass through cost pressures support a stable margin outlook as capacity ramps to meet robust infrastructure needs.
Summary
- Order Momentum Accelerates: Incoming orders nearly doubled sequentially, reflecting sustained demand from power generation and infrastructure customers.
- Manufacturing Footprint Rationalized: Manitowoc divestiture and Abilene consolidation drive improved asset utilization and lower overhead.
- Visibility Into 2026 Demand: Record backlog and capacity investments position Broadwind to capitalize on multi-year power sector tailwinds.
Performance Analysis
Broadwind delivered a 25% year-over-year revenue increase in Q3, propelled by heavy fabrication and industrial solutions segments. The quarter’s standout metric was a 90% surge in orders to $44 million, the highest since 2022, with power generation customers now accounting for nearly 20% of total revenue. This reflects a strategic shift away from legacy industrial fabrication toward higher-value, growth-oriented end markets.
Heavy fabrication revenue jumped 43% as wind tower and repowering adapter shipments resumed, while industrial solutions revenue climbed 37% on strong gas turbine equipment demand. In contrast, the gearing segment saw revenues fall 23% due to softness in mining and industrial, though orders in this segment rebounded sharply, up 260% to $16 million, indicating future strength. Adjusted EBITDA declined to $2.4 million, impacted by low gearing utilization and inefficiencies tied to unique tower builds, but management expects margin recovery as operations normalize and capacity utilization rises.
- Industrial Solutions Backlog Sets Record: Segment backlog reached nearly $36 million, marking four consecutive quarters of record levels.
- Gearing Orders Rebound: A $6 million follow-on order from a natural gas turbine OEM led to a 260% YoY jump, signaling a return to growth in 2026.
- Liquidity Enhanced by Manitowoc Sale: Sale proceeds paid down debt and boosted cash, reducing credit line utilization to $3.8 million.
Operational investments in automation and machining are expected to further drive cost efficiencies and margin improvement as Broadwind enters 2026 with a streamlined footprint and robust order pipeline.
Executive Commentary
"This quarter, our performance was driven by strong demand across our power generation and renewables markets, with third quarter orders increasing 90% year-over-year, supported by broad-based growth across all of our reporting segments."
Eric Blashford, Chief Executive Officer
"We used that cash to pay off a portion of our term loan with the balance applied to our line of credit, which decreased from $17.6 million down to $3.8 million during Q3. Also boosting liquidity was a decrease in our operating working capital of almost $5 million, primarily driven by reduced inventory levels."
Tom Ciccone, Vice President and Chief Financial Officer
Strategic Positioning
1. Focused Expansion in Power Generation and Infrastructure
Broadwind’s strategic pivot centers on power generation, with particular emphasis on natural gas turbines, distributed power, and renewables. The company’s 100% domestic manufacturing base gives it a competitive edge as OEMs prioritize supply chain reliability and U.S.-made content. Recent wins in the gearing and industrial solutions segments, especially from data center and utility-scale customers, validate this focus and underpin management’s bullish outlook into 2026 and beyond.
2. Manufacturing Consolidation and Overhead Reduction
The divestiture of Manitowoc and consolidation into Abilene, Texas, sharpen Broadwind’s operational focus and enhance asset utilization. The Abilene facility, as an owned asset, offers higher margins and improved flexibility. Management expects these moves to materially improve capacity utilization and reduce fixed costs, supporting a more scalable, profitable growth model.
3. Capacity Investments to Meet Backlog and Demand
Incremental investments in robotics, coatings, and machining, along with a planned 35% expansion in industrial solutions floor space, are designed to address record backlogs and anticipated growth in power equipment demand. Gearing capacity remains underutilized at 45%, providing ample runway for volume-driven margin improvement as orders convert to revenue in 2026 and 2027.
Key Considerations
Broadwind’s Q3 results reflect a company in transition, moving away from low-margin legacy work and toward high-growth, high-value sectors. Management’s disciplined capital allocation and operational streamlining are meant to maximize returns from a robust demand environment in power generation and infrastructure.
Key Considerations:
- Order Book Quality: Growth is concentrated in power generation and renewables, reducing exposure to cyclical industrial fabrication.
- Margin Recovery Potential: Operational inefficiencies and downtime in Q3 are expected to abate, with improved utilization driving margin expansion in 2026.
- Tariff Pass-Throughs: Management reports stable margin outlook as tariff-driven cost increases are largely passed through to customers, albeit with some timing lag.
- CapEx Discipline: Ongoing investments remain within 2-3% of revenue, focused on automation and capacity expansion to support backlog conversion.
Risks
Broadwind faces risks tied to customer budget cycles, particularly in oil and gas, where PRS demand is sensitive to commodity prices. Tariff volatility and potential supply chain disruptions could pressure margins if pass-throughs lag. The company’s reliance on power generation and infrastructure markets, while currently a tailwind, introduces exposure to project delays or policy shifts. Execution risk remains around scaling new capacity and maintaining quality as order volumes ramp.
Forward Outlook
For Q4 2025, Broadwind guided to:
- Continued strong demand in power generation and renewables
- Improved operating leverage as production normalizes and Abilene utilization rises
For full-year 2025, management raised revenue guidance to $155 to $160 million and maintained adjusted EBITDA at $9 to $10 million (excluding the Manitowoc gain):
- Revenue growth led by heavy fabrication and industrial solutions
- Margin recovery expected as operational headwinds subside
Management emphasized record backlog visibility into 2026 and confidence in passing through cost increases, with the expectation that capacity investments will support further growth in the second half of 2026 and beyond.
Takeaways
Broadwind’s strategic actions are reshaping its earnings power and risk profile, with order momentum and backlog visibility supporting a multi-year growth thesis aligned with infrastructure and power sector trends.
- Backlog-Driven Growth: Record orders and segment backlogs, especially in industrial solutions, set the stage for sustained revenue expansion into 2026 and 2027.
- Margin Upside from Utilization: The shift to owned facilities and higher-capacity utilization is expected to drive margin recovery as inefficiencies subside.
- Watch for Execution on Capacity Expansion: Investors should monitor the pace of backlog conversion and the impact of new investments on throughput and profitability in the coming quarters.
Conclusion
Broadwind’s Q3 performance underscores a business in transformation, with order momentum and operational streamlining positioning it to capture secular growth in power generation and infrastructure. Margin recovery and backlog conversion will be critical as management executes on its focused, capital-light expansion strategy into 2026.
Industry Read-Through
Broadwind’s results highlight broad-based strength in power generation and infrastructure manufacturing, with data center buildouts and grid modernization fueling demand for precision components. The ability to pass on tariff costs and maintain margin discipline is a key signal for other domestic manufacturers navigating trade policy volatility. The pivot from legacy industrial fabrication to high-value energy and infrastructure markets is likely to be echoed by peers seeking more stable, secular growth drivers. Investors should watch for similar order momentum and capacity expansion strategies across the sector as the energy transition accelerates.