Overview

• US precision manufacturer reported Q1 revenue down 7.5% yr/yr but beat analyst expectations

• Company posted Q1 net loss of $0.5 mln, or $0.02 per share

• Revenue decline driven by lower Heavy Fabrication sales, partly offset by Gearing and Industrial Solutions growth

Outlook

• Broadwind expects Gearing and Industrial Solutions to drive higher growth and profitability post-Wind exit

• Company sees strong demand in power generation, industrial, mining, and natural gas turbine markets

• Broadwind plans to pursue bolt-on acquisitions to accelerate growth in targeted markets

Result Drivers

• HEAVY FABRICATIONS DECLINE - Revenue drop mainly due to lower Heavy Fabrications sales, impacted by sale of Manitowoc operations, lower PRS demand, and a raw material supply issue with an OEM customer

• GEARING & INDUSTRIAL SOLUTIONS GROWTH - Gearing and Industrial Solutions segments saw revenue increases of 42% and 64%, driven by strong demand from power generation, mining, and natural gas turbine markets

• ORDER GROWTH - Orders rose 23% yr/yr, led by power generation and critical infrastructure demand

Company press release: ID:nGNX9ZSfNx

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$34.10 mln	$32.72 mln (3 Analysts)
Q1 EPS		-$0.02
Q1 Net Income		-$500,000
Q1 Adjusted EBITDA		$2.20 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the renewable energy equipment & services peer group is "buy"

• Wall Street's median 12-month price target for Broadwind Inc is $3.00, about 47.8% above its May 11 closing price of $2.03

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