Broadwind (NASDAQ:BWEN, or the "Company"))), a diversified precision manufacturer of specialized components and solutions serving global markets, today announced that on April 30, 2026, the Company's wholly-owned subsidiary, Broadwind Heavy Fabrications, Inc. ("Heavy Fabrications") entered into a definitive agreement with IES Infrastructure, a wholly-owned subsidiary of IES Holdings, Inc. (NASDAQ:IESC), under which Heavy Fabrications has sold its production facility in Abilene, Texas (the "Facility"), including real property, equipment, machinery and other items, to IES Infrastructure for an aggregate purchase price of up to $19.5 million in cash and non-cash consideration in the form of a below market lease, subject to certain purchase price adjustments.

At closing, Heavy Fabrications entered into a short-term lease agreement with IES Infrastructure, pursuant to which Heavy Fabrications will lease the Facility and related assets from IES Infrastructure for nominal rent for a term that is expected to end on September 5, 2026, thereby ensuring an orderly transition of Heavy Fabrications' existing customer orders produced at the Facility. Under the Lease, Heavy Fabrications also granted IES Infrastructure an option to purchase certain other manufacturing equipment for an additional purchase price of $500,000 by the end of the lease term. Heavy Fabrications will retain its modular pressure reducing systems ("PRS") business and is expected to relocate those operations to another location by the end of the lease term. The majority of Heavy Fabrications' approximately 140 employees operating the wind tower manufacturing business at the Facility are expected to become employees of IES Infrastructure at the conclusion of the short-term lease agreement term.

In calendar-year 2025, excluding PRS activity, the wind operations in the Abilene Facility generated total revenue and Adjusted EBITDA of $56.3 million, and $9.7 million, respectively. For a reconciliation of GAAP to non-GAAP metrics, please see the appendix of this release.

TRANSACTION RATIONALE

  • Abilene Facility divestiture is a calculated sequel to the sale of the Manitowoc, Wisconsin facility in 2025, positioning Broadwind to strategically exit wind tower manufacturing. Through the sale of the Manitowoc and Abilene Facilities, Broadwind has exited manufacturing centers historically used for wind tower production. Following these divestitures, Broadwind has reinforced its strategic focus toward higher-value, growth centric power generation and critical infrastructure markets where demand for its gearing and industrial solutions capabilities remain in high demand.
  • Strategic exit from Wind market reduces exposure to regulatory, legislative, and business risk. In recent years, Broadwind's wind-related revenue has been largely concentrated with one large wind OEM customer, while wind project economics have been largely dependent on federal tax incentives that will expire by year-end 2027 under current government policy. Further, Broadwind estimates that significant excess domestic wind tower production capacity remains in the United States, creating the potential for tower price erosion and margin degradation over time. The Company believes that the monetization of the Abilene Facility positions Broadwind to redeploy capital from a high-value, underutilized asset toward new, higher-growth opportunities.
  • Planned expansion of machining and specialty manufacturing capabilities, with a vertical market focus on power generation and critical infrastructure. Broadwind intends to selectively allocate cash proceeds from the sale of the Abilene Facility, in combination with other available liquidity, toward higher-margin, growth-oriented organic and inorganic investments.
  • Acquisition strategy seeks to expand Broadwind's domestic manufacturing footprint in high-value markets and capitalize on almost $300 million in net operating loss carryforwards (NOLs). In future years, the Company expects to generate sufficient taxable income to utilize its significant net operating loss carryforwards, supporting tax-efficient growth. Broadwind intends to target accretive, well-established markets, with a specific focus on Power Generation and Critical Infrastructure as data-center-driven power demand is expected to drive a multi-year secular investment cycle in the power grid.

FINANCIAL GUIDANCE

Given the announced sale of the Abilene Facility, Broadwind has elected to withdraw its full-year 2026 financial guidance issued on March 11, 2026. Accordingly, the Company's previously issued guidance should not be relied upon and is no longer reflective of current expectations.