Slide 1: Second Quarter 2024 Conference Call Presentation
Second Quarter 2024 Conference Call Presentation August 13, 2024 Broadwind | Investor Presentation 2023 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This document contains “forward looking statements”—that is, statements related to future, not past, events—as defined in Section 21E of the Securities Exchange Act of 1934, as amended, that reflect our current expectations regarding our future growth, results of operations, fi
Slide 3: 2Q24 Performance Summary
2Q24 PERFORMANCE SUMMARY
Slide 4: Performance Update
PERFORMANCE UPDATE Second Quarter 2024 InvestmentThesis Investment Thesis Building a platform for profitable growth Strategic Progress Points Building a platform for profitable growth As of August 2024 Consistent operational execution. Operational execution Building a profitable precision manufactur
Slide 5: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE Operational excellence delivers solid operating leverage despite softer revenue generation Sustained operational Total Revenue Gross Profit ($MM) ($MM) discipline, productivity $50.8 improvements and price discipline drive consistent $36.5 $8.3 margins amid soft de
Slide 6: Heavy Fabrications Segment
HEAVY FABRICATIONS SEGMENT Second Quarter 2024 Segment Revenue Segment EBITDA Solid operational execution ($MM) ($MM) supports consistent margin $33.9 $5.0 realization despite lower revenues $19.6 $2.8 Consistent margin realization despite lower revenue generation, given transitional pause in wind t
Slide 7: Gearing Segment
GEARING SEGMENT Second Quarter 2024 Segment Revenue Segment EBITDA Operational efficiencies drive ($MM) ($MM) $1.2 improved margins and profitability $11.0 $1.0 $10.5 Orders declined 19% y/y due to softer demand in industrial and steel markets Favorable quoting activity with new 2Q23 2Q24 2Q23 2Q24
Slide 8: Industrial Solutions Segment
EBITDA INDUSTRIAL SOLUTIONS SEGMENT margin rate +1146 bps y/y to Second Quarter 2024 15.5% Segment Revenue Segment EBITDA Continued demand growth ($MM) ($MM) within the natural gas turbine $6.5 $1.0 $6.3 market, building on the market $0.8 recovery evidenced throughout 2022-2023 Continued organic re
Slide 9: Balance Sheet Update
BALANCE SHEET UPDATE Second Quarter 2024 Cash and LOC Availability at Quarter-End Net Debt Outstanding(1) Maintaining stable liquidity ($MM) ($MM) profile sufficient to support $18.4 $23.3 the long-term growth of the $15.2 $22.6 business Capital allocation priorities include debt reduction, organic
Slide 10: Third Quarter 2024 Financial Guidance
THIRD QUARTER 2024 FINANCIAL GUIDANCE As of August 13, 2024 Total Revenue Range Total Adjusted EBITDA Range ($MM) ($MM) Introducing Third Quarter 2024 revenue and Adjusted $38 EBITDA guidance $36 Guidance supported by targeted commercial growth within high-value, $2.5 growth-oriented fabrications ma
Slide 11: Appendix
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Slide 12: Corporate Overview
CORPORATE OVERVIEW We support the world’s energy transition as a leading independent producer of wind towers, gearing, custom fabrications, clean fuel processing systems and supply chain solutions We are one of the leading independent wind tower manufacturers in the United States. Our most significa
Slide 13: Our Business
OUR BUSINESS Building a platform sustained, profitable growth and long-term value creation What we do Why we win Precision manufacturing within wind sector and other diverse end-markets Unique Value Proposition 66% Proven engineering, product development Heavy We provide large complex and precision
Slide 14: Inflation Reduction Act Impact Benefit
INFLATION REDUCTION ACT IMPACT BENEFIT At full utilization, IRA could provide up to ~$30 million in incremental annual gross profit Theoretical IRA Benefit to Broadwind Quantifying potential impact of the 45x advanced manufacturing credit Annual tower production @ 100% utilization(1) 325 towers The
Slide 15: Passage of IRA Supports Multi-Year Investment in Wind
PASSAGE OF IRA SUPPORTS MULTI-YEAR INVESTMENT IN WIND Inflation Reduction Act of 2022 supports multi-decade decarbonization of domestic energy grid United States Onshore Wind Development Forecast(1) (Total GW Installed Annually, Includes Repowering (2024e-2033e) IRA provides transformative, long-ter
Slide 16: Appendix: Balance Sheet
APPENDIX Balance Sheet Broadwind | Investor Presentation 2023 16
Slide 17: Appendix: Income Statement
APPENDIX Income Statement Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 $ 36,452 Revenues…………………………………………………………………………………………………….. $ 50,843 $ 74,068 $ 99,716 Cost of sales………………………………………………………………………………………………………. 30,886 42,510 61,865 84,407 Gross profit………………………………………………………
Slide 18: Appendix: Statement of Cash Flows
APPENDIX Statement of Cash Flows Broadwind | Investor Presentation 2023 18
Slide 19: GAAP to Non-GAAP Reconciliation
APPENDIX GAAP to Non-GAAP Reconciliation Consolidated Three Months Ended June 30, S ix Months Ended June 30, 2024 2023 2024 2023 Net Income……………..…………...……………………………………… $ 482 $ 1,415 $ 1,992 $ 2,184 Interest Expense…………………….……………………………………. 726 751 1,258 1,239 Income Tax Provision…………………………….....…………
Slide 20: Appendix: Segment-Level Data
APPENDIX Segment-Level Data Broadwind | Investor Presentation 2023 20
Slide 21: IR Contact
IR CONTACT Please contact our investor relations team at BWEN@val-adv.com Broadwind | Investor Presentation 2023 21