Broadwind's Q1 2025: Contradictions Unveiled on Wind Tower Demand, Supply Chains, and Tariff Impacts

Wind tower demand and growth expectations, supply chain disruptions and revenue impact, demand and revenue trends in Heavy Fabrications, impact of tariffs on cost structure, and visibility into demand for oil and gas gearing are the key contradictions discussed in Broadwind's latest 2025Q1 earnings call.



Strong Performance in Wind Repowering and Power Generation:
- Broadwind's Heavy Fabrication segment reported Q1 revenue of $25 million, up 15% year-over-year, driven by increased demand for wind tower adapters.
- Orders for the Gearing business rose by 13% sequentially, attributed to strategic power generation market wins and lift in oil and gas gearing, possibly due to tariff-related onshoring.

Supply Chain Challenges and Operational Inefficiencies:
- The Gearing segment experienced an adjusted EBITDA loss of $0.2 million, primarily due to lower revenue from softer order intake levels and operational inefficiencies in Q1.
- The Industrial Solutions segment saw a temporary delay in revenue due to supply chain issues, impacting the shipment of complex and large equipment packages.

Backlog Growth and Market Expansion in Industrial Solutions:
- Industrial Solutions orders surpassed $10 million in Q1, achieving a new quarterly record, with backlog reaching nearly $23 million.
- Growth in this segment is driven by strong demand for natural gas turbine content and increased production capacity by key customers.

Tariffs and Onshoring Impact on Cost Structure:
- While some tariffs have minor impacts on Broadwind's wind segment, the company has mitigated this by shifting supply chains to less affected countries.
- Broadwind is benefiting from potential onshoring due to tariffs, with increased oil and gas gearing demand and interest in domestic wind tower manufacturing.