Broadwind rises on preliminary 2025 results despite supply chain issues
Industrial manufacturer forecasts organic growth of over 20% in 2026 after strategic divestment
Broadwind Energy Inc. shares gained momentum on Thursday after the industrial manufacturer reported preliminary 2025 financial results that exceeded expectations, while introducing 2026 guidance that masks stronger underlying performance following a strategic divestment.
The Cicero, Illinois-based company announced preliminary full-year 2025 revenue of $155 million to $160 million, with net income expected to reach $4.7 million to $5.7 million. Non-GAAP adjusted EBITDA is projected at $8 million to $9 million for the year, according to a regulatory filing.
However, the results were not without challenges. During the fourth quarter, Broadwind experienced a raw material supply issue within its Heavy Fabrications segment under a directed-buy program for an OEM customer, which reduced manufacturing throughput and operating efficiency. The company has implemented corrective actions and expects the operational impact to resolve during the first quarter of 2026.
For 2026, Broadwind guided revenue between $140 million and $150 million with adjusted EBITDA of $8 million to $10 million. While the headline revenue figure appears to decline from 2025 levels, this reflects the September 8, 2025 sale of the company's Manitowoc, Wisconsin operations for $13.5 million in cash to Wisconsin Heavy Fabrication, LLC, a subsidiary of IES Holdings, Inc.
The Manitowoc facility contributed approximately $41 million in revenue during 2025 and $25 million in 2024. Excluding the divested operations, Broadwind is forecasting organic revenue growth of more than 20% in 2026 compared to the prior year. Order rates have been particularly robust, with orders increasing more than 70% year-over-year in 2025, led by strength in the power generation vertical.
The Manitowoc divestment is expected to generate $8 million in annual cost reductions as operations consolidate into the company's Abilene, Texas facility, allowing Broadwind to focus on higher-margin precision manufacturing verticals. The strategic move is designed to streamline operations and enhance balance sheet flexibility.
Separately, Broadwind entered into a Fourth Amendment to its credit agreement with Wells Fargo Bank on February 4, according to SEC filings. The amendment lowered the Fixed Charge Coverage Ratio requirement to a range of 0.75 to 1.0 for the twelve-month period ending November 30, 2025, and maintained that lower level through December 31, 2026, down from a previous range of 1.0 to 1.1. The modification also excluded certain designated capital expenditures from the calculation, providing the company with additional covenant flexibility.
Broadwind specializes in manufacturing structures, equipment, and components for the renewable energy sector, particularly wind energy applications. The company reported strong demand across its core vertical markets during the fourth quarter, including power generation, industrial, and energy sectors.
The stock currently trades around $3.26, giving the company a market capitalization of approximately $74 million. Analyst consensus price targets sit at $4.33, suggesting upside potential as the company executes on its organic growth strategy and resolves supply chain disruptions.
Broadwind has scheduled a conference call to discuss its fourth quarter and full-year 2025 results, during which management will likely provide additional color on the supply chain resolution timeline and the integration of remaining operations following the Manitowoc divestiture. Investors will be focused on the company's ability to convert its robust order book into profitable growth and maintain momentum in the power generation market heading into 2026.