CEO Message

“Broadwind started the year strong. Revenue was up 20% and we doubled our EBITDA margin to 7% from last year. Our team members’ focus on continuous operational improvement and stringent cost reduction is reflected in our financial performance. Towers results exceeded our plan, as we operated at full capacity to meet aggressive customer delivery schedules, while successfully converting to a new tower model in the Abilene plant.

“Gearing revenue was soft due to weak order intake late last year, but orders have risen sharply since the beginning of 2017 due to recovering oil and gas markets and the expansion of our sales organization. The work we did in 2016 to improve delivery times, raise productivity and reduce costs will translate into significant financial improvements as the year progresses.

Ms. Kushner continued, “Our tower order intake was weak in the first quarter and the near-term demand outlook for our Manitowoc plant is down significantly, as the impact of our customers pre-ordering components in advance of the safe harbor Production Tax Credit deadline was greater than we anticipated. While the medium-term outlook for our tower business remains strong, we have taken immediate action to reduce headcount and lower our tower production rate through at least the next two quarters. Despite the addition of Red Wolf and the recovery of Gearing volumes, we have revised down our full-year outlook to reflect flat year-over-year revenue with EBITDA growth exceeding 15 percent. We believe this tower weakness is short-term and reflects the structure of the PTC qualification rules. This does not alter our strategic objective of doubling revenue and EBITDA margins over the next three years.”

-May 2, 2017 Broadwind Announces Q1 2017 Results

“Broadwind had a solid fourth quarter, culminating in our first profitable year. We exceeded our targets for every metric that we set at the beginning of the year. Orders in 2016 totaled $275 million, nearly triple the orders in 2015. We removed $9 million from manufacturing overhead and operating expenses in 2016, which was $1 million more than our target. Our tower production was on schedule in both plants, and productivity in our Abilene plant improved dramatically during 2016, ending the year at a record level with record low overtime. This is a reflection of the process improvements we made throughout the year and the strong team we have in place. Our Gearing segment managed well through a challenging year. On 30% lower sales, we were able to cut the segment’s operating loss by $5 million and generate positive net cash flow.”

Ms. Kushner continued, “Late last year, our Board approved a strategy whereby we plan to double our sales over the next three years by growing our existing businesses and expanding our presence in clean tech. We plan to accomplish this by a combination of organic growth and bolt-on acquisitions including the recently announced Red Wolf transaction. The Abilene tower plant expansion will be complete by mid-2017 and will offer us important operating flexibility and a 30% increase in capacity at this plant. For FY 2017, we expect revenue of $210-220 million and EBITDA of approximately $14-16 million. For Q1 2017, we expect revenue of $54-56 million and EBITDA of approximately of $3 million. Income guidance is highly uncertain pending a third-party determination of purchase accounting for Red Wolf. We will update income guidance following Q1 2017.”

-February 23, 2017 Broadwind Energy Announces Q4 and Full-Year 2016 Results

“The acquisition of Red Wolf aligns with a new growth strategy approved by our Board late last year. Our intention is to double our revenue over the next 3 years through organic growth, such as the expansion currently underway in our Abilene tower plant, plus strategic bolt-on acquisitions like Red Wolf, to expand and diversify our business. Additionally, we will continue to focus on driving increased profitability through improving our commercial and operational execution. The Red Wolf acquisition is expected to be immediately accretive to Broadwind’s earnings. The additional income will be shielded for income tax purposes by utilizing Broadwind’s significant net operating loss carryforwards.”

-Broadwind Energy Acquires Red Wolf Company, LLC

“The Red Wolf team has built a strong, growing business which aligns well with our capabilities, and supports our vision for growth. Red Wolf’s sales are primarily in the after-market space, where the company supports the large, global installed base of utility-scale natural gas-fired turbines.”

-January 30, 2017 Broadwind Energy Reaches Agreement to Acquire Red Wolf Company, LLC

“We are pleased to be starting the year off strong with this new order. The Broadwind team is proud to represent US manufacturing and the role we play in the wind industry in the US.”

-January 18, 2017 Broadwind Energy Announces $28 Million in New Tower Orders

“We have booked over $250 million in new tower orders so far in 2016. Both of our tower manufacturing facilities are operating consistently and a good portion of our 2017 capacity is under contract. We are proud of the contributions our highly-skilled team is making to U.S. manufacturing and to the wind industry.”

-December 7, 2016 Broadwind Announces $23 Million in New Tower Orders

“We are happy to cultivate this relationship with The PrivateBank. This new credit facility provides better terms and borrowing availability, as well as a lower borrowing cost, which will be important as we fund business expansions and consider strategic, bolt-on acquisitions.”

-October 28, 2016 Broadwind had a strong third quarter.

“The investments we’ve made to systematize our production processes have significantly improved the operations and raised productivity and margins in our tower plants. Our Gearing business was cash neutral in a weak revenue environment. Our Company-wide cost management efforts are ahead of plan. Employees at all levels are contributing their ideas to our cost reduction program. It’s exciting to see the creativity of our workforce.”

Ms. Kushner continued, “The expansion of our Abilene tower facility is progressing on target. When this project is completed in mid-2017, our capacity at this plant will increase by 30%. We are focused on securing remaining orders for 2017, continued cost management efforts and making additional gains in operational efficiencies. For the fourth - quarter, our production mix is less favorable, and we expect to earn approximately $500,000 on revenue of $44-46 million.”
-Broadwind Energy Announces Q3 2016 Results: Improved Operating Efficiencies and Successful Cost Management Evident”

-October 27, 2016 Broadwind Energy Announces Closure of $20 Million Credit Facility

“The strong demand for wind energy in the Texas region supports this expansion of our Abilene facility. We are moving forward aggressively to bring this additional 30% capacity on line which should support incremental annual revenues of approximately $15-20 million, while adding some important operating flexibility.”

-July 29, 2016 Broadwind Energy Announces Expansion of Abilene, TX Tower Facility

“Broadwind had a solid second quarter. We booked $176 million in new orders, essentially filling our tower backlog for the remainder of 2016 and locking in a significant portion of tower production through 2019. Gearing is seeing strength in the wind and steel markets that is helping to offset weak orders in the oil & gas and mining markets. Overall tower revenue was down compared to Q2 2015, as expected, attributable to lower steel costs, a spike in tower deliveries in the second quarter of last year and planned lower production in our Wisconsin plant. In Gearing, despite lower revenue, successful cost management efforts led to a narrowed operating loss compared to Q2 2015. Our cash outlook is strong, so we repaid $2.4 million of debt early, leaving only the low-interest subsidized loan in place.”

Ms. Kushner continued, “Our tower plants are running very well, and we are ahead of schedule on contracted deliveries despite a model changeover during the quarter. We are focused on securing remaining tower orders for 2017, expanding our gearing customer base and tightly managing costs across the Company. For the second half of the year, we expect to be modestly profitable on revenue of $86-90 million.”

-July 27, 2016 Broadwind Energy Announces Second-Quarter 2016 Results

“We are pleased to be awarded this order for 2017 production. There is a lot of positive momentum occurring within our Towers business as we continue to benefit from the strong wind market dynamics in the U.S. Our plants are running smoothly and we continue to deliver exceptional quality towers ahead of schedule.”

-July 21, 2016 BWEN Announces $15 Million in New Tower Orders

“The market visibility has improved significantly given the certainty of the Production Tax Credit structure, and we are pleased to receive this long-term commitment from our customer. This agreement extends our backlog through 2019.”

-June 2, 2016 Broadwind Signs Three-Year $137 Million Wind Turbine Tower Supply Agreement

“Persio’s extensive operational, supply chain and logistics experience will be an invaluable asset to Broadwind. Cary’s broad experience in executive management, operations, corporate turn-arounds, and corporate growth strategies will strengthen our ability to execute on our business strategies. I am delighted they are joining Broadwind.”

-May 19, 2016 Broadwind Energy Appoints Persio Lisboa and Cary Wood to Board

“The outlook for the wind industry in the U.S. has strengthened over the past few months with the extension of the PTC and the release of the latest IRS guidelines which provide specific guidance supporting new windfarms. The employees at our Manitowoc and Abilene plants are producing high-quality towers to help meet this demand.”

-May 12, 2016 Broadwind Announces $34 Million in New Tower Orders.

“Broadwind is off to a solid start in 2016, nearly doubling our order intake compared to Q1 2015 and generating $3 million of free cash flow during the quarter. Our Towers and Weldments segment has recovered soundly from the production challenges we faced predominantly in the Abilene facility for most of last year, and tower production is once again flowing at plant designed rates. In the Gearing segment, we continue to manage our costs judiciously amidst significantly lower sales to oil & gas and mining customers. Due in part to our stringent cost management across the Company, the consolidated operating loss for the quarter was reduced by $2 million compared to Q1 2015. We remain on track to reduce fixed overhead and SGA expenses by $8 million in 2016, compared to 2015.”

Ms. Kushner continued, “We continue to be focused on improving production and tightly managing costs across the Company. For Q2, we expect $42-44 million in revenue and a small operating loss, consistent with Q1 2016.”

-April 28, 2016 Broadwind Announces Q1 2016 Results

“2015 was a challenging year for Broadwind. Our Towers and Weldments segment experienced production challenges and supply chain issues and our Gearing segment suffered from weak demand due to the downturn in the oil & gas and mining markets. Despite these significant challenges, in the fourth quarter we sold the unprofitable Services business, significantly reduced our working capital, paid down debt and built up our cash balance. Our Abilene tower production returned to plant-design levels in the current quarter. In Gearing we applied strict cost control practices and were able to reduce the annual operating loss by $1 million despite 30% less revenue in this segment. In addition, we reduced our annual corporate expenses by $2 million.”

Ms. Kushner continued, “In 2016, we will continue our focus on improving production and tightly managing costs across the Company. As we look to Q1, we expect $45-47 million in revenue and an improvement to a $1.5-$2.0 million operating loss with a return to positive EBITDA generation.”

-February 26, 2016 Broadwind Announces Fourth-Quarter and Full-Year 2015 Results

“The Rights Plan was designed to serve the interests of all shareholders by helping to protect Broadwind’s valuable tax assets of approximately $200 million that can be used to offset future taxable income.”

-February 5, 2016 Broadwind Energy Approves Extension of Section 382 Rights Plan

“We can see with hindsight that this contract was a poor fit for the site layout and organizational maturity of our Abilene plant. As a result, our fourth-quarter production rate was just one-quarter of our design capacity. This drove significant labor inefficiencies and very low overhead absorption. In early January, we made the decision to curtail this production run in Abilene and produce the remaining towers from this order in our Manitowoc facility. We have analyzed past performance in the Abilene plant, implemented upgraded methods and have now begun a new production run for a known product line with a long-term customer. Today the plant is again producing at or near the plant design rate.”

Ms. Kushner continued, “Despite these challenges, we ended 2015 with a cash balance that exceeded $12 million as expected, paid down a portion of our long-term debt, and our credit line remains undrawn. We remain focused on delivering improved performance, reducing costs, expanding throughput and enhancing efficiency.”

-February 6, 2016 Broadwind Announces Preliminary Q4 2015 Results; Lowers Guidance Due to Production Difficulties

"We are pleased to conclude this asset sale and we thank our Services employees for their hard work and dedication. During a period of significant uncertainty, the Services team did an outstanding job delivering high-quality service while maintaining their commitment to safety. The conclusion of this transaction allows us to better focus on our core business. We will continue to manufacture gearing within our Gearing Segment and believe this will lead to greater opportunity to support a wide range of wind turbine gearbox manufacturers and repair service companies."

-December 15, 2015 Broadwind Energy Completes Sale of Services Assets

"As previously announced, Broadwind experienced another tough quarter due in part to production issues in our Towers business and continued weakness in sales to oil and gas and mining customers. We have worked through the steel supplier quality issues, and tower production in Manitowoc is now approaching normal levels. Our Gearing segment booked $7 million of wind replacement gearing orders during the quarter, as we look to utilize our deep gearing knowledge to capitalize on the need for replacement gearing for the aging wind assets in the U.S. We continue to manage expenses judiciously, and our inventory balances dropped as expected during the quarter which freed up $5 million of cash. Our estimates for the fourth quarter are tempered as we work through a tower model changeover in the Abilene plant and anticipate continued weakness in the Gearing segment. As a result, we are estimating Q4 revenue of $44-45 million and an operating loss of $4-5 million."

Mr. Duprey concluded, "Our Board of Directors authorized a plan to divest the Services segment and we are currently in active discussions with potential buyers. A resolution is expected prior to year-end.”

-October 29, 2015 Broadwind Energy Announces Q3 2015 Results

“Broadwind had a solid second quarter with improved financial performance, despite the impact on our gearing and weldments businesses of the ongoing market weakness from oil and gas and mining customers. Consolidated gross margin for Q2 2015 recovered to 11% and our operating expenses declined to 8% of sales, a record low for the Company, reflecting the cost management actions implemented last quarter. We booked $60 million in new orders, including a $50 million tower order for 2016, and we extended our bank line of credit with better terms and better availability. Our Towers and Weldments segment sold 142 towers during the quarter, including 12 towers that were in inventory at March 31, 2015. Our production in Abilene is back on track and our Manitowoc facility continues to outperform prior-year levels. In Gearing, we continue to navigate through depressed oil and gas and mining markets, but despite significantly less revenue, we reduced Gearing’s operating loss by over 15% due in part to aggressive cost management and better manufacturing efficiencies."

"After much consideration, we have decided to evaluate strategic alternatives for our Services business. The wind services industry is becoming increasingly consolidated and the operational synergies with the rest of Broadwind appear limited. Our Services management team and employees will work with our customers to conduct business as usual during the strategic review period."

Mr. Duprey concluded, "Broadwind made significant strides forward in Q2 2015 and we expect to have a strong third quarter with projected operating income of $1-2 million. We expect to reduce raw material inventories by $5-7 million during the next several months and rebuild significant cash balances to more than $15 million by year-end.”

-July 30, 2015 Broadwind Energy Announces Q2 2015 Results 

“With the extension of the production tax credit at the end of 2014, demand for wind towers in 2016 is strong. This is a good start to filling out our capacity for 2016 and we are currently in active discussions on additional orders for 2016 and 2017 production volume.”

"After much consideration, we have decided to evaluate strategic alternatives for our Services business. The wind services industry is becoming increasingly consolidated and

-June 25, 2015 Broadwind Energy Announces $50 Million in New Tower Orders

"During the quarter, we faced three main challenges that contributed to our weak performance: restoring our Abilene tower plant to full capacity, navigating the West Coast port slowdown, and responding to weaker oil and gas and mining end markets. In the Abilene tower facility, we produced 18 fewer towers than in the prior year period, mainly in January and February, but by March the facility was performing near its targeted production rate, signaling that we are back on track in this facility. The West Coast port slowdown required us to produce towers ahead of schedule for which we had materials on hand. We navigated well through this challenge and were able to avoid losing production slots. However, we incurred higher logistics costs and ended the quarter holding more steel than is typical for our Abilene facility and $5 million of towers that will not be invoiced until Q2-Q3. Finally, we are dealing with weak oil and gas and mining demand for gears and weldments, and have reduced headcount and will idle two satellite production facilities to reduce overhead expense by approximately $600,000 per quarter.”

Mr. Duprey concluded, “The tower market outlook remains strong for 2016 and we are firming up our order book this quarter. With the operational improvements and cost reductions in place, we expect to have a profitable second quarter on par with Q2 2014.”

-April 30, 2015 Broadwind Energy Announces Q1 2015 Results

"The Production Tax Credit that was extended in late 2014 is having a positive impact on the outlook for 2016. We are in late stage discussions with our customers for 2016 tower orders."

-April 1, 2015 Broadwind Energy Announces $13 Million in New Tower Orders

“The fourth quarter and full-year results were significantly affected by the production issues in the Abilene tower facility. The entire team in our towers business has worked tirelessly to resolve these short-term production issues and move beyond them. The customer has certified the Abilene facility for normal production going forward and through-put has improved significantly from the fourth quarter. We are implementing a robust advanced product quality process (APQP) to ensure that future product introduction risks are addressed well in advance of production.”

Mr. Duprey continued, “Our performance in 2014 was not what it should have been, and this was an expensive learning experience for the business. Even with the temporary set-back at our Abilene facility, Broadwind continued to show year-over-year improvement; 2014 total revenue increased 12% compared to the prior year and our loss per share was reduced significantly. Our Gearing segment cut its operating loss by nearly half and its near break-even EBITDA was an improvement of 74% compared to the prior year.”

Mr. Duprey concluded, “With the tower qualification process behind us and production resuming to more typical levels, we expect to fulfill our 2015 order book of approximately 500 towers. Our three-year plant consolidation investment is complete, and we believe our Gearing and Services businesses will continue to make progress, contributing solid improvements to the top and bottom lines. We are confident in our ability to continue our improving trends and are therefore expecting to report 2015 sales of $255-$260 million and positive EPS.”

-January 26, 2015 Broadwind Energy Announces Q4 and Full Year Results

“The tower qualification issues in the Abilene tower facility which arose in the third quarter have taken longer than expected to rectify, resulting in lower revenue and additional labor and logistics costs. We are working closely with the customer to ensure the end product meets their standards, and expect final approval before the end of this quarter. The issues are isolated to the Abilene facility and a single customer. Our Manitowoc plant continues to meet and/or exceed its production goals. We and our dedicated employees are confident we have taken the necessary steps to remedy the situation in Abilene.”

-January 8, 2015 Broadwind Energy Lowers Fourth-Quarter Outlook

“We are nearing the end of 2014 with a solid backlog of tower orders that sets us up with a nice growth trajectory in 2015."

-December 2, 2014 Broadwind Energy Announces $9 Million in New Tower Orders

“Towers had a very difficult quarter, particularly in our Abilene facility where scaling up to full production capacity and adding a new tower design resulted in production disruptions and contributed to significant expense overruns. We underestimated the learning curve faced by a less seasoned workforce and maintenance expenses rose significantly at Abilene as we targeted higher capacity levels. We are working through those issues and expect to show improvement in the fourth quarter. Our Gearing business showed continued improvement at the bottom line, cutting its operating loss by over half compared to the prior year, which helped to offset the Towers and Weldments shortfall. Our Services segment improved significantly year-over-year with revenue up over 35% compared to the prior year third quarter and a reduced operating loss. The level of activity around gearbox repair, which is a core competency for the business, is increasing nicely.”

Mr. Duprey concluded, “We have been making great progress in improving the operational performance of the businesses, but we frankly overstressed the operational capability of the Abilene tower facility in Q3. We have shifted resources to bolster the Abilene operations, and should see improvement in the fourth quarter. Our best people are driving the retraining in Abilene and we will see the full benefit of these efforts in 2015. We are pleased with the operational improvements in our Gearing and Services segments as well as the increased demand for oil and gas work and blade repair in those respective segments. Overall, we continue to work diligently to advance our continuous improvement efforts which will translate into tangible bottom line improvements. We are reflecting the third quarter shortfall and tempered expectations for fourth quarter profitability in our financial outlook for the balance of the year. Due to a lower margin mix of tower sales and cyclically lower Services sales, we now expect to record a total of $248-250 million of revenue this year, with a net loss of approximately $4-5 million.”

-October 30, 2014 Broadwind Energy Announces Q3 2014 Results

“These orders solidify our 2015 tower production. I am pleased with our order book for 2015 and the level of quoting activity for 2016."

-October 15, 2014 Broadwind Energy Announces $11 Million in New Tower Orders

“We are delighted to have Eric as part of the Broadwind team. His deep manufacturing experience with large industrial products in multi-faceted, multi-plant environments will be a great addition to our organization. His history of leading strategic initiatives in both turnaround and growth environments will help Broadwind as we take our towers business to the next level.”

-October 6, 2014 Broadwind Names Eric Blashford President of Broadwind Towers, Inc.

“With these orders, nearly three quarters of our tower production capacity for 2015 is sold and we expect to fill the remaining capacity before year-end. We are in discussions with customers for additional commitments into 2016 and 2017 and look forward to a decision on the Production Tax Credit after the November elections. We remain confident about the demand for wind energy assets in the U.S.”

-September 10, 2014 Broadwind Energy Announces $14 Million in New Tower Orders

“We had an outstanding quarter from both a financial and operational perspective, allowing us to achieve year-to-date profitability for the first time in Broadwind’s history. Our Towers and Weldments segment results continue to significantly outpace the prior year, with tower volume up 39% and a 69% improvement in operating income. Our Gearing segment had a strong quarter, with a 19% improvement in revenue and a reduction in operating loss by over 50%. With the Gearing plant consolidation nearly behind us, we are making good progress improving our plant throughput. We booked over $18 million of Gearing orders during the quarter, the highest quarterly order rate in over four years, which demonstrates good progress with our expanded commercial efforts. In the Services segment, demand for blade repair work increased significantly over the prior year and we are seeing increased orders and quoting activity.”

Mr. Duprey concluded, “Broadwind hit a major milestone by achieving year-to-date profitability for the first time in the company’s history. As we near completion of our four-year restructuring project, and with our focus on continuous improvement, towers production nearly sold out for 2015 and Gearing orders and production improving, we have reached an inflection point. As we continue to generate strong organic growth, particularly in our towers business, we are seeing the increased operating leverage the business is capable of generating. With all that we have accomplished, we remain highly confident about the road ahead.”

-July 31, 2014 Broadwind Energy Announces Q2 2014 Results; Achieves Solid Year-To-Date Profitability

“With these orders, approximately two-thirds of our tower production capacity for 2015 is sold. We are currently in late stage discussions to fill the remaining 2015 tower capacity and have started discussions for additional commitments into 2016 and beyond. We are confident in the continued demand for wind energy assets in the U.S.”

-July 24, 2014 Broadwind Energy Announces $34 Million in New Tower Orders

“I am encouraged to see our transformation efforts in this business segment starting to bear fruit. With this order, our second quarter Gearing orders totaled nearly $19 million, the highest quarterly order rate in over four years, including a mix of wind and industrial orders. Industrial orders have strengthened in recent weeks due to increased demand for gears used in natural gas production equipment and growth in demand from steel customers. In addition, we recently concluded our Gearing plant labor union negotiation, and with our plant consolidation essentially complete, we are seeing visible incremental improvement in our production flow. Together, these factors indicate to us that our turnaround of the Gearing business is gaining traction.”

-July 1, 2014 Broadwind Energy Announces Significant Gearing Orders; Company Transformation Progresses as Labor Negotiations Conclude

“We are off to a solid start in 2014. Our first-quarter results reflect substantial improvement over the prior year, with revenue up a significant 29%, gross margin up 330 basis points, and an EPS improvement of $.25 over last year’s first quarter. Our Towers and Weldments segment recorded another solid quarter, improving tremendously as we produce efficiently against the past two quarters’ strong order flow. Gearing and Services faced some challenges during the quarter with low volumes and production inefficiencies as well as some unforeseen weather-related expenses, although Gearing orders did show a 61% improvement sequentially. Our Continuous Improvement projects are proceeding as planned, and we are seeing progress from those initiatives.”

Mr. Duprey concluded, “Overall, I am pleased with our first-quarter results, which were better than our guidance and set us up nicely to achieve our financial objectives for 2014. Our restructuring plan is paying off in increased operating leverage, and we are working hard to continue this progress by making the Gearing business competitive and profitable for the long-term. In Services, our new general manager is in place and we are focused on leveraging our robust in-field service capabilities in wind and beyond. In all, we remain on track to achieve profitability in 2014.”

-April 30, 2014 Broadwind Energy Announces Q1 2014 Results