Broadwind Provides Business Update
Announces $21 million Wind Tower Orders with Major Turbine OEM for Delivery in 2021
CICERO, Ill., Aug. 31, 2020 (GLOBE NEWSWIRE) -- Broadwind (NASDAQ: BWEN), a diversified precision manufacturer of specialized components and solutions serving global markets, today
provided an update on new order activity and current business conditions.
Broadwind today announced that it has received wind tower orders from an existing wind turbine customer, representing a total value of approximately $21 million. Broadwind will manufacture the tower sections at its Abilene, Texas facility. The Company expects to deliver the tower sections to its customer during the first half of 2021.
A wind turbine OEM customer has chosen to postpone a portion of a tower order originally scheduled for the third quarter 2020 to the first quarter of 2021. Further, within the Company’s Gearing segment, demand conditions remain below prior-year levels, with expectations for improved order activity into 2021.
Due to the reduced plant capacity utilization, Broadwind estimates that up to $2.5 million of adjusted EBITDA will shift from the second half 2020 to the first half 2021. The Company believes that most of the revenue and EBITDA shift will adversely impact third quarter 2020 results. Importantly, the Company has not experienced any material customer cancellations within its order book.
“While the timing of wind tower orders can vary from quarter to quarter, our tower backlog remains at elevated levels, providing improved visibility as we look ahead to 2021,” stated Eric Blashford, President and CEO of Broadwind. “While the impact of COVID-19 has pushed some customer orders out into early next year, all indications are that tower demand activity is expected to remain strong over the next twelve months, given the overall strength of the wind market supported by the recent Production Tax Credit safe-harbor extension. For the full-year 2020, we anticipate revenue of approximately $200 million, together with double digit percent year-over-year growth in Adjusted EBITDA, supported by our ongoing diversification efforts and a stable outlook within our core clean tech markets.”