Broadwind, Inc. (NASDAQ:BWEN) Q3 2024 Earnings Conference Call November 13, 2024 11:00 AM ET

Company Participants

Thomas Ciccone - VP and CFO
Eric Blashford - President and CEO

Conference Call Participants

Eric Stine - Craig-Hallum Capital Group LLC
Amit Dayal - H.C. Wainwright

Operator

Greetings, and welcome to Broadwind's Third Quarter 2024 Conference -- 2024 Results Conference Call. All this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

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

Thomas Ciccone

Good morning, and welcome to the Broadwind Third 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 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. Broadwind delivered a solid Q3, highlighted by near double-digit EBITDA margin and our seventh consecutive profitable quarter despite reduced revenue. Offsetting a transitional pause in new wind tower demand, third quarter results benefited from a higher value sales mix, improved execution and targeted cost reduction actions.

We booked $23 million in orders in the third quarter a 45% increase from the year ago period, driven by increased demand across all reporting segments. Heavy Fabrication saw increased demand for the adapters used to repower wind turbines and for our pressure reduction systems, partially offset by decreased orders in the industrial and mining sectors.

Gearing orders increased 46% year-over-year due to increased demand from the power generation and infrastructure markets. Orders from our Industrial Solutions segment increased 52% year-over-year due to strength in the global gas turbine market.