Earnings call transcript: PROREIT tops revenue forecast in Q3 2026

Broadwind Inc. reported Q3 2026 earnings that matched analysts' expectations per-share but fell short on revenue, leading to a sharp drop in its stock price during premarket trading. The company reported an adjusted loss of 4 cents per share, aligned with forecasts, on revenue of $22.3 million, which was below the $29.3 million anticipated by analysts.

Shares dropped 14.93%, closing at $2.535, hovering near the lower end of its 52-week range. While revenue increased 48% year-over-year, it significantly underperformed expectations. Revenue grew from the previous year, and adjusted EBITDA improved by $1.7 million compared to the prior year. Industrial Solutions contributed to the results with record orders of $19.6 million and a backlog of $57 million, marking a record high and ninth consecutive quarter of backlog growth.

Gearing also reported record orders of $9.8 million and a backlog of $37.8 million, signaling a five-quarter growth streak. The company completed its MCM acquisition, expected to be accretive and beneficial for free cash flow. Broadwind expressed optimism about its shift towards a precision manufacturing focus in domestic power generation and critical infrastructure markets.

Despite progress, the quarter showed uneven performance, with revenue missing market forecasts by a wide margin due to factors like demand timing, product mix, or customer schedules. Management noted the business's dependency on lumpy order patterns, particularly in large OEM programs. The company aims to improve margins to low double digits, currently around 13%, and expects net leverage to fall below its long-term target of 2.0x through earnings growth and debt repayment.

Broadwind shares fell to $2.535, about 16% above its 52-week low and 56% below its high, reflecting cautious market sentiment towards revenue growth and margin durability.