Broadwind, Inc. (NASDAQ:BWEN) Q3 2023 Results Conference Call November 13, 2023 12:00 PM ET

Company Participants

Eric Blashford - CEO

Tom Ciccone - VP, CFO

Conference Call Participants

Amit Dayal - H.C. Wainwright

Martin Malloy - Johnson Rice

Eric Stine - Craig-Hallum

Justin Clare - ROTH MKM

Operator

Greetings, and welcome to Broadwind's Third Quarter 2023 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Tom Ciccone. Thank you. You may begin.

Tom Ciccone

Good morning, and welcome to the Broadwind third quarter 2023 results conference call. Leading the call today is our CEO, Eric Blashford; and I'm Tom Ciccone, Broadwind's Vice President and Chief Financial Officer. We issued a press release before the market opened today detailing our third 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. We delivered a strong third quarter performance, yielding significant year-over-year increases in revenue, net income, margin realization and adjusted EBITDA. We generated double-digit revenue growth year-over-year in all segments, with our largest segment, Heavy Fabrications realizing 25% revenue growth due to improved demand for wind tower sections, augmented by shipments of our new high-flow natural gas pressure reduction systems, or PRSs.

Our results benefited from a combination of improved operating leverage, price discipline, a higher value sales mix and improved process efficiencies, including early benefits from our recent investments in coatings automation and well prep technology. These actions, plus the benefit provided by the IRA's advanced manufacturing tax credit, resulted in adjusted EBITDA of more than 13%, an improvement of over 900 basis points versus Q3 2022.