Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 11, 2026 · Beat 6 of last 7 quarters
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Broadwind's strong order growth and record backlog in both Gearing and Industrial Solutions directly reflect the accelerating demand for natural gas turbines used to power AI data centers and the broader electrification wave. The company's 100% domestic manufacturing footprint and focus on power generation components position it as a key supplier to the AI infrastructure buildout, with management describing a 'sustained multiyear investment cycle' ahead.
Broadwind reported Q2 revenue of $24.3 million, up 67% year-over-year, with adjusted EBITDA swinging to positive $1.6 million from a loss of $1.1 million in the prior year. Gearing revenue grew 24% to $9 million, while Industrial Solutions revenue surged 79% to $13.2 million, a quarterly record. Orders were strong across both segments, with Gearing orders up 138% and Industrial Solutions orders up 24% to a record $17.2 million. The company ended the quarter with over $40 million in liquidity and continued to execute its exit from wind tower manufacturing, with the sale of the Abilene facility completed in April.
Management reiterated that the strategic pivot away from wind tower manufacturing will be complete after Q3 2026, with the remaining wind tower orders fulfilling contractual obligations. They did not reinstate full-year guidance, citing the ongoing wind-down of Abilene operations as the reason. The tone was confident, with management describing a 'sustained multiyear investment cycle' in power generation driven by AI data centers, electrification, and grid modernization. They highlighted strong quoting activity, plans to add engineering and manufacturing resources, and a focus on bolt-on acquisitions in power gen, critical infrastructure, and grid hardening. They expect Industrial Solutions revenue to remain above recent historical levels, though EBITDA margins may normalize from the 19% level achieved in Q2. Gearing margins are expected to improve with continued volume recovery.
“Customer demand was robust during the second quarter, as momentum accelerated across our key verticals.”
on Demand strength
“We believe these represent important growth drivers for this segment We are positioning the business to serve that demand.”
on Natural gas turbine demand
“We are not gonna recreate the wheel. We see our gearing business and our industrial solutions business as core. And so we want to add to those businesses and serve those customers.”
on M&A strategy
You had another quarter of strong orders and started to improve visibility in the balance of 26. But did not reinstate guidance. What else needs to happen here to give you guys enough confidence to reinstate it?
Eric Blashford said that given the ongoing wind down of operations in Abilene, they did not think it was prudent to reinstate guidance yet. The wind down is scheduled to complete in Q3, and that would be the first step before considering reinstating guidance.
Any thoughts you can share on areas capabilities that you might be looking at for potential additions to the platform?
Eric Blashford said they are focused on opportunities that expand precision manufacturing capabilities in power gen, critical infrastructure, grid hardening, and possibly defense and aerospace. They want to add to their core gearing and industrial solutions businesses, not recreate the wheel.
In your backlog that you already have in the bag, is there any component of revenues that are expected from the data center market? And are you seeing any slowdown because of state/regional bans on data centers?
Eric Blashford said they cannot specifically break out AI-driven demand, but noted that their primary customers in power generation cite AI as a primary demand driver. He estimated 30-40% of gearing revenue is in power gen, and a higher percentage of industrial solutions, with AI being significant. He did not mention any slowdown from data center bans.