Broadwind, Inc. (NASDAQ:BWEN) Q2 2022 Earnings Conference Call August 9, 2022 11:00 AM ET

Company Participants

Tom Ciccone - Vice President & Principal Accounting Officer

Eric Blashford - Chief Executive Officer

Conference Call Participants

Justin Clare - ROTH Capital

Sameer Joshi - H.C. Wainwright

Eric Stine - Craig-Hallum Capital Group

Operator

Greetings. Welcome to Broadwind's Second Quarter 2022 Results Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to Tom Ciccone, Chief Accounting Officer. Thank you. You may begin.

Tom Ciccone

Good morning and welcome to the Broadwind second quarter 2022 results conference call. Leading the call today is our CEO, Eric Blashford; and I'm Tom Ciccone, the company's Vice President and Principal Accounting Officer.

We issued a press release before the market opened today detailing our second quarter results. I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of our latest annual and quarterly filings with the SEC. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during our call in the press release issued today. At the conclusion of our prepared remarks, we will open the line for questions.

With that, I'll turn the call over to Eric.

Eric Blashford

Thanks, Tom and welcome to those joining us today. During the second quarter, we generated strong year-over-year revenue growth within our Gearing and Industrial Solutions segments. While non-wind orders increased more than 60% in the second quarter when compared to the year ago period. Once again, our non-wind business proved to be an important offset to a continued pause in wind tower demand as the market attempts to manage true policy uncertainty, such as that around the proposed extension to the federal production tax credit, or PTC, together with the still elevated raw material costs such as steel play.

At this time, we believe the wind market will begin to recover in 2023 and are encouraged by the recent congressional efforts to pass the proposed Inflation Reduction Act, or IRA that includes several major renewable energy provisions, most notably an extension of the PTC on projects beginning construction before January 1, 2025. Operationally, labor remains a challenge but we're seeing improved recruitment levels in several of our markets. We continue to closely manage the impacts of cost inflation and have adjusted our quoting models to reflect rising costs. We're effectively managing our cash and expect to have liquidity remain at current levels by year-end calendar 2022.