Broadwind Energy (NASDAQ: BWEN) reported Q4 EPS of ($0.79), $0.40 worse than the analyst estimate of ($0.39). Revenue for the quarter came in at $27.2 million versus the consensus estimate of $25.25 million.

Broadwind CEO Stephanie Kushner stated, “Gearing delivered a second consecutive strong quarter and its first profitable year. Operational and organizational changes initiated earlier in 2018 have shifted the trajectory of the business and we are gaining market share and have a healthy backlog. We expect to capitalize on strong second half results and deliver solid profit margins in 2019.

Our tower business is recovering in the strong near-term domestic wind market, and our capacity utilization is rising. However, margins remain under pressure from imported towers which use significantly cheaper Asian steel. Our production of other heavy fabrications, particularly for mining and construction products, was up three-fold in 2018, and continues to be a diversification focus for the business.”

Our Process Systems segment has been challenged by Red Wolf’s reliance on a single gas turbine customer, but we have had some initial success with customer diversification and continue to make this a priority for the business. We expect the segment to perform much better in 2019.”

Kushner concluded, “Our 2019 outlook is for quarterly revenue at or above $40 million, and average EBITDA of about $2 million per quarter. First quarter EBITDA is expected to be $1.0-$1.5 million, impacted by the cost of ramping up tower production. Our expanded credit line will provide the capital to support our significant top-line recovery.”

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