Broadwind, a diversified precision manufacturer of specialized components and solutions serving global markets, has received approximately $175 million in new tower orders from a global wind turbine manufacturer. Fulfillment of the new order will occur during the full year 2023 and conclude by the end 2024. Ordered tower sections will be produced at both the company’s Abilene and Manitowoc facilities.
“This transformational new tower order is an historic accomplishment for our entire team, one that further establishes Broadwind as the leading precision manufacturer of heavy fabrications advancing the global energy transition,” states Eric Blashford, president and CEO of Broadwind. “This important win will support a balanced production schedule over the next two years, materially increase system-wide facility utilization, and drive improved economies of scale across our organization.”
The order secures significant production capacity over multi-year period. The two-year order secures approximately 50% of optimal tower production capacity across Broadwind’s facilities in 2023 and 2024. This order is anticipated to further optimize plant utilization over the near-to-medium term, and facilitate improved economies of scale, liquidity and financial performance, versus the prior-year period.
“Importantly, this new order will more than double our current total backlog, when compared to the backlog level reported at the end of the third quarter 2022,” continues Blashford. “Further, when adding in the benefit of the advanced manufacturing credit afforded by the IRA, this order will carry a favorable margin profile, one supportive of our strategic focus on profitable growth.”
“We anticipate that our tower order book will continue to fill throughout 2023, as raw materials prices and supply chain conditions further normalize, and development activity gradually improves,” concludes Blashford. “Importantly, while installation activity within the domestic onshore wind market has not yet returned to 2020 levels, orders such as this will position Broadwind to outpace growth within the broader market, particularly as we further consolidate share across leading global customers who value our domestic manufacturing base, skilled labor force and commitment to quality. We look forward to building on the momentum evident across our business, while continuing to drive long-term value creation for our shareholders in the year ahead.”