Key Highlights

  • Consolidated Revenue rose 48% year over year to USD 22.3 million.
  • Adjusted EBITDA was USD 0.5 million, against a loss of USD 1.2 million.
  • Industrial Solutions orders reached a record USD 19.6 million, up 42%.
  • Total orders were USD 33.7 million, with power generation above 70%.

Broadwind (NASDAQ:BWEN) reported third-quarter 2026 revenue of USD 22.25 million, against an estimate of USD 23.88 million. Loss per share was USD 0.10, against an estimate of USD 0.03. Management said consolidated revenue increased 48% from the prior-year period, reflecting order activity and Backlog conversion across the Gearing and Industrial Solutions segments, along with higher pressure reducing systems activity.

Adjusted EBITDA was USD 0.5 million, compared with an adjusted EBITDA loss of USD 1.2 million in the prior-year quarter. Management said the company is continuing a transformation into a pure-play precision Manufacturing Business focused on domestic power generation. Results of the Heavy Fabrication segment, excluding pressure reducing systems, are reflected as discontinued operations.

Segment Results and Orders

Industrial Solutions orders increased 42% year over year to a record USD 19.6 million, and backlog reached a record USD 57 million. Segment revenue was USD 10.4 million, against USD 7.9 million, and Operating Income was USD 1.3 million, against USD 0.4 million. Operating Margin was 12.0%, against 5.7%. The filing attributes the order increase mainly to Demand tied to new gas turbine projects.

Gearing orders were USD 9.8 million in the quarter, and backlog grew to nearly USD 38 million. Gearing sales increased 36%. For the nine months, Gearing orders were USD 39.1 million, up 28%, which the filing attributes mainly to demand from oil and gas customers. Gearing revenue for the nine months was USD 27.1 million, and the segment recorded an operating loss of USD 0.2 million, against a loss of USD 2.3 million a year earlier.

Total orders were USD 33.7 million, an increase of 13%, with power generation-related orders representing more than 70% of the quarter's order book. Management said Natural Gas turbine demand remains strong, supported in part by global electrification trends that include data centers, and that quoting activity in Gearing remains robust.

Income Statement Lines and Discontinued Operations

Gross profit was USD 2.9 million, against USD 1.0 million in the prior-year quarter, with cost of sales of USD 19.4 million, against USD 14.0 million. Selling, general and administrative expenses were USD 3.4 million, against USD 3.2 million. The company reported an operating loss of USD 0.6 million. The prior-year quarter included an operating income of USD 5.9 million, which reflected a USD 8.2 million gain on the sale of the Manitowoc industrial fabrication operations.

The company recorded a net loss of USD 3.5 million for the nine months ended September 30, 2026, against Net Income of USD 6.1 million for the same period in 2025. Orders from discontinued operations totaled USD 0.7 million for the quarter and USD 7.5 million for the nine months, against USD 13.7 million and USD 23.5 million a year earlier.

Liquidity, MCM Acquisition and Priorities

As of September 30, 2026, cash and cash equivalents totaled USD 16.2 million, an increase of USD 15.7 million from December 31, 2025. USD 3.0 million was outstanding under the 2022 Credit facility. Total cash and availability on the credit Facility was nearly USD 40 million, or USD 31 million after adjusting for the minimum excess availability requirement.

On a pro forma basis, after the MCM acquisition and related credit facility amendment announced on November 2, cash and availability was approximately USD 16.5 million, with total Debt of USD 13 million. Management said it is targeting net Leverage below its long-term target of 2.0x through Earnings growth and debt repayment. The company's Form S-3 expired on October 12, 2026.

Management listed its priorities as integrating and growing MCM and continuing to optimize its operations. The reported items for the quarter are revenue of USD 22.3 million, adjusted EBITDA of USD 0.5 million, record Industrial Solutions orders and backlog and the MCM acquisition. The company is listed on the Nasdaq Capital Market.