Broadwind books USD-21m wind tower order, another gets postponed

US wind industry supplier Broadwind (NASDAQ:BWEN) has secured tower orders worth around USD 21 million (EUR 17.6m) from an existing customer described as a “major turbine OEM”.

The company will make the tower sections at its facility in Abilene, Texas, and expects to deliver the order during the first half of 2021.

In a business update on Monday, Broadwind also said that a different wind turbine customer has opted to postpone a part of a tower order that was originally slated for the third quarter of 2020 to the first quarter of 2021.

Additionally, Broadwind’s gearing segment is seeing lower demand compared to the previous year.

The company informs that it has not experienced any material customer cancellations within its order book, but adds that its plant is operating at reduced capacity utilisation.

As a result, Broadwind estimates that up to USD 2.5 million of its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) will shift from the second half of 2020 to the first half of 2021.

Most of its revenue and EBITDA shift will have an adverse impact on its third-quarter results in 2020, the company said.

“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,” president and CEO Eric Blashford commented.

Broadwind expects to book revenues of around USD 200 million and record a “double digit percent year-over-year growth in Adjusted EBITDA” for the full year 2020, Blashford added.

(USD 1.0 = EUR 0.838)

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