Broadwind — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter was $22.3 million, a 48% increase year-over-year.
• GAAP loss from continuing operations was $1.0 million ($0.04 per diluted share), compared to income of $5.2 million ($0.22 per diluted share) in the prior year period.
• Non-GAAP Adjusted EBITDA was $0.5 million (2.0% of revenue), compared to a loss of $1.2 million in the prior year period.
• Total orders reached $33.7 million, a 13% increase year-over-year.
• Liquidity at September 30, 2026, was $39.7 million ($30.9 million after adjusting for minimum excess availability requirements), with $5.9 million in total debt and financing leases.
• Pro forma for the MCM acquisition and credit facility amendment, total debt was approximately $13.0 million and available liquidity was approximately $16.5 million.
• Cash and cash equivalents increased to $16.2 million from $0.5 million at the beginning of the period.
• Accounts receivable increased to $17.0 million from $11.2 million at the beginning of the period.
• Inventories increased to $29.3 million from $28.1 million at the beginning of the period.
• Total assets were $103.6 million, down from $116.8 million at December 31, 2025.
• Stockholders' equity was $63.6 million, down from $66.3 million at December 31, 2025.

Guidance and Future Outlook:

• Management prioritizes the successful integration of MCM, further optimization of the asset base, and focused organic growth within core power generation and infrastructure markets.
• The company aims to pursue accretive bolt-on acquisitions that expand capabilities, reach, and value proposition.
• MCM is expected to be immediately accretive, add a higher-margin revenue stream, and enhance earnings quality.
• The acquisition positions Broadwind to capitalize on sustained, multi-year investment in domestic grid expansion, hardening, and resilience.

Business Segments and Product Lines:

• Gearing Segment: Sales increased 36% to $9.6 million, driven by higher demand in power generation, industrial, and oil & gas markets. The segment reported operating income of $0.1 million compared to an operating loss of $0.6 million in the prior year. Non-GAAP Adjusted EBITDA was $0.7 million, up from $0.1 million.
• Industrial Solutions Segment: Sales increased 32% to $10.4 million, primarily driven by natural gas turbine content. The segment reported operating income of $1.3 million, up from $0.4 million in the prior year. Non-GAAP Adjusted EBITDA was $1.4 million, up from $0.6 million.
• Pressure Reducing Systems (PRS): Orders increased to $4 million.
• Both reporting segments grew revenue by more than 30% on an organic basis.
• Adjusted EBITDA margin increased more than 500 basis points in the Industrial Solutions segment and 600 basis points in the Gearing segment versus the prior year.
• The Gearing segment achieved its first operating profit since the second quarter of 2024.
• Power generation-related orders accounted for more than 70% of the third-quarter order book, increasing 18% year-over-year.

Market and Competitive Landscape:

• Demand remained robust across core power generation markets.
• Continued investment in natural gas-fired power generation drove order growth.
• The company focuses on a vertical market strategy targeting stable, growing end markets with strong competitive moats.
• MCM serves the domestic electrical transmission and distribution sector.

Risks and Challenges:

• Forward-looking statements highlight risks including the ability to integrate MCM operations efficiently.
• Potential impacts from global health concerns, regulatory frameworks, and the phase-out or renewal of federal tax incentives and grants.
• Risks related to tariffs on steel or other imported products.
• Dependency on a few significant customers and the need to diversify the customer base.
• Economic volatility, market disruptions, and fluctuations in commodity prices (oil, gas).
• Cybersecurity attacks, network disruptions, and information technology failures.
• Sufficiency of liquidity and alternate sources of funding.
• Potential loss of tax benefits due to an "ownership change" under Section 382 of the Internal Revenue Code.
• Volatility of the stock price and limited trading market for securities.

Management Commentary and Tone:

• Eric Blashford, President and CEO, stated the company continued executing on its strategic transformation into a pure-play precision manufacturing business focused on domestic power generation and critical infrastructure.
• Management noted a targeted shift toward higher-value, more durable revenue streams.
• The tone reflected confidence in the strategic exit from wind fabrications and the acquisition of MCM as a catalyst for growth.
• Management highlighted improved operating leverage and profitability across both segments.

Other Key Points:

• On April 30, 2026, the Company's subsidiary Broadwind Heavy Fabrications, Inc. sold its Abilene, Texas production facility to IES Infrastructure for $19.5 million in cash and non-cash consideration (below market lease), completing a strategic exit from wind fabrications.
• Results of wind and industrial fabrication operations (excluding PRS) have been reclassified to discontinued operations for all periods presented beginning in the second quarter of 2026.
• The Company announced its first acquisition in nearly a decade with the purchase of MCM Acquisition Company, Inc.
• A conference call was held on November 12, 2026, to review results and discuss recent events.
• The Company reported a gain on the sale of Manitowoc industrial fabrication operations in the prior year period, which is not present in the current quarter's results.