Broadwind, Inc. (NASDAQ:BWEN) Q2 2024 Earnings Conference Call August 13, 2024 11:00 AM ET

Company Participants

Thomas Ciccone - Vice President and Chief Financial Officer
Eric Blashford - President and Chief Executive Officer

Conference Call Participants

Justin Clare - ROTH Capital Partners
Amit Dayal - H.C. Wainwright
Eric Stine - Craig-Hallum Capital Group LLC
Martin Malloy - Johnson Rice & Company

Operator

Greetings, and welcome to Broadwind Second Quarter 2024 Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded.

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

Thomas Ciccone

Good morning, and welcome to the Broadwind second quarter 2024 results conference call. Leading the call today is our CEO, Eric Blashford, and I'm Tom Ciccone, the Company's Vice President and Chief Financial 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. Broadwind delivered a solid Q2, highlighted by double-digit EBITDA margin, consistent with prior year results despite reduced revenue. Offsetting a transitional pause in new wind tower demand, second quarter results benefited from a higher value sales mix, improved execution and targeted cost reduction actions. We booked $18 million of orders in the second quarter, a year-over-year decline as we saw reduced demand across all segments.

Heavy fabrication saw reduced demand for our pressure reduction systems partially offset by increased orders from the wind repowering market. Gearing orders were reduced year-over-year largely due to decreased demand from the industrial and steel sectors, while orders from our Industrial Solutions segment softened compared to the unusually strong aftermarket orders seen last year.