BROADWIND, INC. Segments Disclosure

17. SEGMENT REPORTING

 

The Company is organized into reportable segments based on the nature of the products offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker (“CODM”). The Company’s CODM has been identified as the Chief Executive Officer and President, who reviews operating income by segment in relation to total operating income to make decisions about allocating resources and assessing performance. 

 

The Company’s segments and their product offerings are summarized below:

 

Heavy Fabrications

 

The Company provides large, complex and precision fabrications to customers; historically in a broad range of industrial markets. The Company’s most significant presence is within the U.S. wind energy industry where the Company provides steel towers and repowering adapters primarily to wind turbine manufacturers. The Company streamlined its operations within this segment during the year ended December 31, 2025, selling its industrial fabrication operations in Manitowoc, Wisconsin and consolidating its remaining segment operations to the Company’s production facility in Abilene, Texas. The Abilene facility has an annual wind tower production capacity of up to approximately 220 towers (660 tower sections), sufficient to support turbines generating more than 800 MW of power (assuming a 3 MW tower).  The Company’s Heavy Fabrications operations also manufacture a proprietary mobile, modular pressure reducing system (“PRS”) for the compressed natural gas virtual pipeline market. 

 

Gearing

 

The Company provides gearing, gearboxes and precision machined components to a broad set of customers in diverse markets including; power generation, onshore and offshore O&G fracking and drilling, material handling, wind energy, surface and underground mining, steel, infrastructure, marine, defense, and other industrial markets. The Company has manufactured loose gearing, gearboxes and systems, and provided heat treat services for aftermarket and OEM applications for a century. The Company uses an integrated manufacturing process, which includes machining and finishing processes in addition to gearbox repair in Cicero, Illinois, and heat treatment and gearbox repair in Neville Island, Pennsylvania.

 

Industrial Solutions

 

The Company provides supply chain solutions, light fabrication, inventory management, kitting and assembly services, primarily serving the combined cycle natural gas turbine market. The Company supports the U.S. wind power generation market, by providing tower internals kitting solutions for on-site installations, as OEMs domesticate their supply chain due to lead time and reliability issues. The Company leverages a global supply chain to provide instrumentation & controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes & wiring, and electromechanical devices. The Company also provides packaging solutions and fabricates panels and sub-assemblies to reduce customers’ costs, improve manufacturing velocity and reliability.

 

Corporate and Other

 

“Corporate” includes the assets and SG&A expenses of the Company’s corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results.

 

The accounting policies of the reportable segments are the same as those referenced in Note 1, “Description of Business and Summary of Significant Accounting Policies” of these consolidated financial statements. Summary financial information by reportable segment is as follows:

 

		Heavy Fabrications				Gearing				Industrial Solutions				Corporate				Eliminations				Consolidated
For the Year Ended December 31, 2025
Revenues from external customers		$	101,161				27,302				29,589				—				—			$	158,052
Intersegment revenues			—				66				663				—				(729	)			—
Net revenues			101,161				27,368				30,252				—				(729	)			158,052
Direct materials			59,003				6,334				17,771				—				*				83,108
Direct labor			14,844				5,638				*				—				—				20,482
Indirect labor			10,388				4,586				2,397				—				—				17,371
Variable overhead			*				3,721				2,509				—				—				6,230
AMP credits			(12,112	)			—				—				—				—				(12,112	)
Salaries and benefits			*				*				*				2,021				—				2,021
Share-based compensation			*				*				*				515				—				515
Depreciation and amortization			3,586				2,171				484				69				—				6,310
All other expenses (1)			10,833				8,106				4,522				2,744				(729	)			25,476
Operating income (loss)			14,619				(3,188	)			2,569				(5,349	)			—				8,651
Capital expenditures			2,466				164				807				193				—				3,630
Total assets			33,393				40,752				20,222				44,668				(22,230	)			116,805

 

		Heavy Fabrications				Gearing				Industrial Solutions				Corporate				Eliminations				Consolidated
For the Year Ended December 31, 2024
Revenues from external customers		$	82,657				35,588				24,891				—				—			$	143,136
Intersegment revenues			—				—				1,165				—				(1,165	)			—
Net revenues			82,657				35,588				26,056				—				(1,165	)			143,136
Direct materials			46,398				8,797				14,867				—				*				70,062
Direct labor			11,356				5,797				*				—				—				17,153
Indirect labor			10,575				4,972				1,711				—				—				17,258
Variable overhead			*				4,397				1,861				—				—				6,258
AMP credits			(8,819	)			—				—				—				—				(8,819	)
Salaries and benefits			*				*				*				2,332				—				2,332
Share-based compensation			*				*				*				859				—				859
Depreciation and amortization			3,938				2,183				427				136				—				6,684
All other expenses (1)			12,081				9,580				3,925				2,703				(1,165	)			27,124
Operating income (loss)			7,128				(138	)			3,265				(6,030	)			—				4,225
Capital expenditures			1,617				1,554				397				50				—				3,618
Total assets			43,035				41,406				14,864				48,488				(19,503	)			128,290

 

* Line item not deemed a significant expense for this segment (per analysis of Accounting Standards Update No. 2023-07).

 

 

⁽¹⁾ All other expenses for each reportable segment primarily consist of:

 

         Heavy Fabrications-variable overhead, salaries and benefits, and rent and utilities

         Gearing- salaries and benefits and rent and utilities

         Industrial Solutions-direct labor, salaries and benefits, and rent and utilities

         Corporate-professional expenses

        

The Company generates revenues entirely from transactions completed in the U.S. and its long-lived assets are all located in the U.S. All intercompany revenue is eliminated in consolidation. Transactions between reportable segments are treated consistent with the accounting policies referenced in Note 1, “Description of Business and Summary of Significant Accounting Policies” of these consolidated financial statements. During 2025, one customer accounted for more than 10% of total net revenues. The customer, reported within the Heavy Fabrications segment and Industrial Solutions segment, accounted for revenues of $100,559. During 2024, one customer accounted for more than 10% of total net revenues. The customer, reported within the Heavy Fabrications and Industrial Solutions segment, accounted for revenues of $71,607.