Broadwind Energy (BWEN) Tops Q1 EPS by 10c, Revenues Miss; Offers 2Q Revenue Guidance Above Consensus

Broadwind Energy (NASDAQ: BWEN) reported Q1 EPS of ($0.07), $0.10 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $32.73 million versus the consensus estimate of $35.55 million.

“Although our first quarter results were adversely impacted by a combination of adverse weather conditions, a shift in the timing of a customer order and pandemic-related supply chain constraints, our business recovered during April, supported by new customer orders and improved plant utilization. We are seeing a broad market recovery that will drive growth in our industrial businesses in the second half of this year,” stated Eric Blashford, President and CEO of Broadwind.

“Wind tower orders more than doubled on a year-over-year basis in the first quarter, as original equipment manufacturer (OEM) customers began to fill production slots for the second half of 2021,” continued Blashford. “To date, we have booked approximately 60% of our optimal wind tower production capacity for the full-year 2021. First quarter gearing orders improved sequentially, supported by increased demand within both industrial and energy markets, consistent with our expectations for a gradual recovery in the Gearing segment during 2021.”

“Following the one-year extension of the renewable electricity production tax credit (PTC) announced in late 2020, together with other recent policy actions intended to accelerate private investment in new wind energy installations, expectations around medium-term onshore wind capacity additions continue to improve,” Blashford continued.

“Currently, we anticipate that approximately 35 GW of new onshore wind capacity will be added to the U.S. market by year-end 2023,” continued Blashford. “In the last two years, project developers have installed more wind power capacity than any other energy generating technology, as the levelized, unsubsidized cost of wind energy continues to decline.”

“In March the Biden Administration announced a transformational plan to deploy 30 GW of new offshore wind energy capacity by 2030, including provisions for the construction of new facilities to support the production of wind turbine components, including those produced by Broadwind,” stated Blashford. “We believe this plan and related policy considerations reflect a long-term, bipartisan commitment to achieving a net zero economy, one where our long-term customer OEM relationships, technical expertise and strategic asset base position us to support the ongoing clean energy transition.”

“At the end of the first quarter, we had more than $21 million in total cash and availability under our line of credit to support operations and growth opportunities,” continued Blashford.

GUIDANCE:

Broadwind Energy sees Q2 2021 revenue of $45-50 million, versus the consensus of $42.73 million.

“We expect an increase in shipments in the second quarter, particularly within our Heavy Fabrication and Gearing segments. We expect second quarter 2021 revenue to be in a range of $45 to $50 million and adjusted EBITDA to be in a range of $4.5 to $5.0 million, after including approximately 3.0 million of additional ERC benefits,” concluded Blashford.

For earnings history and earnings-related data on Broadwind Energy (BWEN) click here.

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