Broadwind Energy (NASDAQ: BWEN) reported Q4 EPS of ($0.12), in-line with the analyst estimate of ($0.12). Revenue for the quarter came in at $40.3 million versus the consensus estimate of $40.81 million.

FOURTH QUARTER 2020 RESULTS(As compared to the fourth quarter 2019)

• Total revenue of $40.3 million, (18%) y/y
• Total gross profit of $2.7 million, (33%) y/y
• Total net loss of ($2.0) million, or ($0.12) per basic share
• Total non-GAAP adjusted EBITDA of $0.2 million, (87%) y/y
• Total cash and excess availability of $24.1 million, +27% y/y

MANAGEMENT COMMENTARY

“For the full-year 2020, total revenue, margin capture, free cash flow and non-GAAP adjusted EBITDA all increased versus the prior-year, as total wind tower section sales approached multi-year highs,” stated Eric Blashford, President and CEO of Broadwind. “Our proven technical capabilities, complete turnkey solutions, engineering expertise and production of complex fabrications across a wide range of industries represents a unique value proposition, one that continues to gain traction in the markets we serve.”

“Fourth quarter orders more than doubled versus the prior-year period to $36 million, driven mainly by more than $20 million of increased wind-related orders,” continued Blashford. “To date, we have booked more than 50% of our optimal wind tower production capacity for the full-year 2021. We believe our gearing business has begun to recover, given improved order levels and elevated quoting activity.”

“The outlook for the domestic wind energy industry continues to improve, driven by increased commercial and industrial demand for renewables, together with bipartisan support for policies that seek to accelerate new investment in both onshore and offshore installations,” noted Blashford. “We remain a key participant in the clean energy transition, our long-term customer relationships with the world’s leading wind turbine original equipment manufacturers position us to benefit from a significant, multi-year investment cycle in carbon-neutral energy resource development.”

“During the past decade, wind has become one of the most efficient sources of energy available to the market, driven by continued technological advancements,” continued Blashford. “Given the improved competitiveness of wind as a viable, low-cost energy source, policymakers, including those in the current presidential administration, have expressed a commitment to driving increased investment in our industry. The recent one-year extension of the renewable electricity production tax credit (PTC), the introduction of an investment tax credit designed to subsidize offshore wind development, together with the United States’ recent decision to rejoin as a signatory under the Paris Climate Accord, each represent meaningful policy catalysts for our industry. Looking ahead, we expect any major stimulus plan intended to further subsidize domestic growth in renewable energy production would likely include a provision for the wind industry, representing a significant opportunity for Broadwind.”

“Exiting the year, we had more than $24 million in total cash and availability under our line of credit to support organic and inorganic growth opportunities,” continued Blashford. “Total net leverage declined to 0.2x at year-end 2020, assuming PPP loan forgiveness, versus 1.7x at year-end 2019.”

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