Broadwind suffers 37% y/y drop in wind tower sales in Q3

US precision manufacturer Broadwind’s (NASDAQ:BWEN) third-quarter showing was hit by a 37% year-over-year fall in sales of wind tower sections as wind farm developers postponed investments ahead of a proposed extension of the Production Tax Credit (PTC) and due to higher raw materials costs.

“Our third quarter results reflect a near-term pause in wind tower demand, offset by an acceleration in customer activity across our energy and industrial end-markets,” president and chief executive Eric Blashford said on Wednesday. The company expects a positive inflection in onshore tower demand from late 2022 and into 2023.

In the third quarter of 2021, it booked a net loss of USD 2.1 million (EUR 1.8m), compared to a net loss of USD 1 million a year ago, as revenues declined 26% to USD 40.4 million.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to USD 401,000 from USD 1.3 million. For the fourth quarter, Broadwind projects adjusted EBITDA loss of USD 1 million to USD 1.5 million.

In the nine-month period, net profit increased to USD 6.9 million, including Paycheck Protection Programme loan forgiveness, from USD 480,000 in the first nine months of 2020, while revenues dropped to USD 119.6 million from USD 158.2 million.

“We are excited by the prospects for growth as we look ahead toward 2022, supported by a recovery in our core onshore wind markets, together with sustained momentum across our non-wind verticals,” said the CEO.

(USD 1 = EUR 0.865)

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