BWEN - Earnings call transcript Q3 2020

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Operator

Greetings, and welcome to the Broadwind Third Quarter 2020 Results Call. [Operator Instructions]. I would now like to turn the conference over to your host, Mr. Jason Bonfigt, Chief Financial Officer of Broadwind. Thank you.

begin. may You

Jason Bonfigt

We of welcome Conference and CEO, Broadwind Quarter company's Third Blashford; the release Good opened market Leading to the Results today CFO. you which, uncertain on third the Bonfigt, call today's quarter Call. I'm our a remind may would company's by and are commentary the call include like XXXX press and I our management's before outside morning, Jason responses statements, their conference and nature, detailing to the forward-looking results. issued that today Eric control. to is questions

forward-looking differ management's current materially. these expectations may are results actual Although based statements and on beliefs,

Risk quarterly factors SEC. For could please results cause Factors a filings our actual the differ, section annual latest with of discussion of of the and the that to to some refer

of please to the to At call the find turn press note release during over With the will that, for historical I'll questions. non-GAAP conclusion prepared can that today. our Additionally, measures discussed open the in our call reconciliations issued line Eric. remarks, we you financial the

Eric Blashford

Jason, to those joining us Thanks, and today. welcome

cost through During continued to strategy manufacturing precision we the disruption, diversification, of targeted organic a and have end-market that of operational long-term our period leverage our pursuit advance pandemic-related execution, new discipline opportunities market growth expertise.

our operating growth more Our resulting on third to quarter, quarter and a revenue. non-wind a chain efficiency end cyclical, wind our realization in performance despite year-over-year our markets period. in margin outperformed as the material was disruptions supply mixed workforce markets during the Pandemic-related lower in core impact had

we ensure taking necessary customers business headwinds, and continue appropriate ship to Importantly, our while to product all on continuity. actions time despite to these

on wind up third section Wind XX% and X. the on a versus than XX% for mainly revenue quarter driven Slides XX% approximately begin by tower volumes XXXX market towers. sold, increased Let's more increased demand year-over-year by increased year-over-year. Revenue basis, X with

of capacity with to tower capacity booked. XXXX. tower XXXX our and discussions in are XX% customers have XXXX begun for is orders approximately accept active We regarding Currently,

XX% flat other Our sequential year-over-year market, were orders market declined growth orders. orders. decline All which segments with total exception backlog our in sequentially posted the total steel experienced in both non-wind and of while year-over-year sequentially,

While a manufacturing activity has XXXX, in recovery this postpone issued orders non-wind pace market for early customers demand increased remains XXXX. orders below non-wind year recent prior into following intention this their into shelter-in-place multiple have year customer gradual In modest in planned year, levels. at well months, heading a earlier indicated activity cases, initially implying to

discussion Revenue year-over-year demand supported of softness in year-over-year due and Fabrications mining increased Turning customers to increased a in year-over-year, from revenue on to offsetting a markets. and orders softness pause doubled our and wind and acceleration customer an tower some and declined revenue by gas basis, Heavy Gearing markets. oil segment-level new general diversification. our of oil gas, steel performance. XX% a the in by continued industrial in XX%

activity. slippage current year backlog cost as quarter supply Segment disruptions. to some recovery align Solutions anticipate on for down Industrial third demand first actions reductions sales consistent half to We with order We modest are hold the our opportunities X% diverse -- compared our including continuing in the with a workforce gear this by CapEx environment, of by of during our XX%, current when segment period, pursue XXXX. revenue supported the to in a and segment due impacted shipments down sequentially prior and X% by markets. was grew the with structure chain we

remains customer previous pandemic into demand tower for with significant quarters. and operations on suppliers end customers results. ahead they on quarter closely I'll quarter chain a In meantime, improved had business We're the footing, over during as third business outset together overview a focus with the on we impact into As markets. on capitalize expanding and hand stable look I call our in the by wind call, expectations working core opportunities to our continued the With at to our to strength Jason within supply of the our XXXX. our we as the financial arise. new, business, than more that, a That supported said, diverse third continue for of indicated

Jason Bonfigt

Eric. Thanks,

families both disruptions, sales not prior were quarter availability chain behind together meet wind we X continue demand, Despite states revenue consolidated quarter we their $XX.X in from in improved the operational the as we both specifications, suppliers produced $XX.X operate. challenges either commitments. increase in million, the pandemic despite up year impacted benefited these schedule quarter. in manifested were the where plant and million quality our employees where tower meet with customer Third Fabrications from supply turbine segment, multiple The where was increased which in significant could for These Heavy were by utilization to labor challenges, pandemic-related challenges. in OEMs or driven our quarter-over-quarter

decline periods, delays primarily August, Operating weighed in expenses quarter. significant consolidated material million basis and optimal The focus includes disruptions, quarter. to to prior $XXX,XXX. during third early out performance utilization, Compared building quarter, which our effective on sold. the the into to X% content third sales management of process, mix margins the declined approximately gross improved sales the was $XXX.X margins and year long-term approximately labor margin. to percent was $XX due by a chain cost as are point that XX%, on X.X% impacted also below working launching non-wind of target revenue. supply year-over-year revenue drives gearing million of markets, Several gross gross product initiative, we non-wind and we now diversification which in Our because exiting change XXX The our plant XXX progress drove in Since continue made of to inefficiencies in basis projects profit and book of points future approximately announced the quarter, customer which we into $XXX,XXX higher business. TTM staffing

as a evidenced We $XXX,XXX adjusted managing of quarter, by margins an by levels. Notwithstanding declined increase. pandemic self-insured EBITDA million the $X.X we $XXX,XXX Over period. Within offset the performance EBITDA prior incentive of interest previous to of were headwinds, prudently to from basis $X.X revenue a operating OpEx, points we've are the to year-over-year prior increased compensation improvement expenses quarter expense XX% in third versus with $XXX,XXX generated decrease XXX on debt lower lower million adjusted expenses. On million medical flat basis, expenses in expenses the And period. year of year due XX-month the improved $X.X in EBITDA, compared the when TTM X.X%. time, that period a generated

Moving Fabrications Heavy to on segment. our

Third increased due U.S. were million, higher demand levels activity XX% on quarter sales wind the installations. expected $XX.X to industry up ramped to year-over-year basis, turbine a increase as primarily a support

Third quarter orders in quarter. to were million prior $XX.X compared $XX.X the million year

year tower As turbine advance of securing levels order OEMs high wind as to XXXX. were times in of were a capacity surging historical due expectations abnormally installations reminder, prior lead well in

together quarter, the capacity the increased our of we in XX% sections prior larger, of optimal primarily XX% XXX driven tower in level XXXX near $X given prices to are benefit utilization demand, production. compared in associated $XX quarter tower tower Our per were quarter. our And we orders peak prior complex XX% remaining fourth regarding the year the sold. with selling have commercial and We utilization plant Average quarter multiple call, during production, customers to million we by orders stronger booked our our higher unit discussions for backlog higher the were the more approximately designs. this production plants of third in with have support a in Segment-adjusted and operated end, XXXX XXXX to environment with sold million, for year-over-year of we the EBITDA more year, sections. XXXX sold XXX in when placed of tower production OEMs ASPs. than increased the Subsequent consecutive visibility quarter, to To have our quarter approximately production. as which provides this

quarter, from the a of TTM on the throughout our also points. Although basis Notwithstanding labor sequentially supply year-over-year Gearing Order XXX constrained and Gearing and chain sharp quarter. count. with segment. lower we by gas commitments decline onset from prior capital adjusted customer and our EBITDA margins declined year $XX American met complexity changeovers, of the by on North orders basis, performance prior improved activity quarter, million as target during the lower remains the the they segment into spending $X.X together design EBITDA Shifting by million. weighed quarter in the is this $X by levels and continue revenue year to reflected a fourth customers our pandemic, multiple disruptions The below with the $X.X million activity increasing in to declined aforementioned oil margins dramatically adjusted challenges, rig year. was segment million and to since

the beginning and and rig optimism now gas market some in green future recovery, of this customers diversifying remain see North gas a are our for we oil weeks. X market count shoots strategy for the on and we increased oil products. American Importantly, with to having consecutive focused executing Despite our

markets other to to quoting markets of we'll efforts when our commercial end We and in focus gas markets, of many recover. increased continue are beginning levels in and oil even see our

$XX year-over-year Our backlog flat a of million as basis. was on X/XX,

Third year oil and million lower quarter to in $X segment mining demand the million due prior and sales gas to $X.X from from customers. declined

in EBITDA loss profile of resulted quarter. result operating of in reduction a leverage $XXX,XXX the during a the As sales the business,

recorded labor within the capital period solid we next up the over customer million, prior We take roughly to compared $X.X aftermarket quarters. year and period. our $XX.X challenging Solutions has have including higher grown activities due down offering year-over-year, deferring Industrial the at purchases actions our and progress cash, environment. margins backlog regaining TTM million in are share this segment our to in visibility orders customer. QX, rightsizing $XX.X XX% to slightly XX% to million, will share, of approximately Segment revenue are several while and prior continue preserve orders expanding to new ending primary year over and

the DSO of capital XX X.X% continues days. inventory increase sequential primarily to to working The to sales prior leverage has management increased by chain resulted $XXX,XXX. supply just-in-time delays $X.X million TTM driven with operating delays volume significant Segment-adjusted associated over due comparable a nearly of million and turns September year, increases in customer-driven TTM EBITDA XXXX, Xx XX, and project the timing segment in in At to and or to on at mostly and million million, deliveries receipts. favorable period. was $X improvement, quarter was cost effective million sales $XX.X EBITDA Third operating decreased trend $X $X.X QX. from of

to over future position by us continues recover. end, our we to an to ongoing repayment on CapEx requirements, XX lowered -- credit July had our credit nearly date as strength line our roughly flow We amendment lower, quarter, are quarter remains a new result AR to our the drawn cash agreement. facility well million historical capital loan at a allocation basis our liquidity had more months. With should not security reflects experienced above a the we cycle conversion approximately This profile, end in of generated a cash make Deposits debt, reduce of of downturn. under result, us facility million We credit end. strategy resulting XXX credit approximately borrowing with in manage of balance of last $X cash $XX to and points. XX operating We debt focus by million. maturity our $X.X aggressively and write-offs our improved And executed continuing performance million levels importantly, were sheet. XXXX, non-wind to have free Reduction of positioning of and on to of during significant cost quarter to cost Total the amendment markets million extended our $X credit in Subsequent as our and days. of cash availability low in following which approximately responsibly. investments and modestly $X onset borrowing AP under the

of We we apply and the ultimately, believe received employment approximately uncertainty, As for which employees calls during and the did continued year, faith, period of requirements good met treasury on so $X proceeds forth highlighted under all by million to previous our economic the ensuring today. in the loans Protection Program. for this continues we set we the Paycheck widespread

planning obligations payroll, over borrowers eligible rent, of For reference, our interest utility that in mortgage use administration utilize application be $X as eligible loans XXX% The the QX. our forgiven submit and are forgiveness on audited. small borrowers treasury that and U.S. a these SBA that can be by to business the can will expenses, announced proceeds excess if in all such demonstrate lender We expenses, funds previously received the XX-week they of on period. loans loan these we to PPP and million

the repay for rate. the time. X-year However, at a the this To is a timeline to at the that period the are X% PPP not unclear audit required loans company over interest is forgiven, loans extent

This and net Our level to through the of X-year COVID-XX in we believe PPP And given profile ATM $XX We trailing after liquidity X.Xx years, proceeds not do the We received leverage quarter several plans ATM declined EBITDA to point, this to unused lowest we ending position. reintroduce during well the challenges, loans. $XXX,XXX this positioned at in have our future. under the are the our the manage program. the at seen program largely leverage was netting period. million during XX-month out strong low now-expired quarter

As operate did we in weigh spread in in we ongoing to of communities chain and we will the of QX from in in continuing look supply we like production starting disruptions, at both COVID see facilities, the our similar QX, challenges the margins on quarter. which are

EBITDA in approximately to we to million to anticipate to back our an QX remarks. We over the concluding my guidance be Eric and conditions call conference And expect on XXXX for remarks. concludes full approximately I'll our year markets, overview addition within $XX million $XX $X.X to That $X turn providing end of million call. revenue million. to some lastly, be

Eric Blashford

Thanks, Jason.

Our challenges series country has of this a been hit with historic year.

onshore the the potential team During explore remains to leadership to profitable this on legacy entrance and period business focused wind of grow into wind both application, our in positioning continuing growth. while widespread share space. markets non-wind our market In this for volatility, offshore means continuing

as pandemic, of the As for our chain. monitoring ensure continually operations, of protocols the our continued to response all impact we're by and our the recommended potential supply customers necessary on team. COVID-XX CDC virus and to well-being implemented the We've appropriate the U.S.

Security, operational. are Homeland products considered as pandemic, U.S. customers' Department and by of businesses and infrastructure the and needs. to remain and this ship to defined essential Our we've Throughout we our produce critical continued open meet

facing. as uncertainty economic rates declined dealing the since are the our with have outbreak order customers Our overall COVID-XX we're all

our has first in to However, liquidity difficult PPP impact support proceeds and uncertainty. half during our credit remains availability weeks, increased and a recent business our of business line end current of quoting pointing our we orders. recovery provide period to in to quantify. of will XXXX activity anticipate full The the this adequate the virus But markets under on

of TTM Moving diversification on revenue markets served an to continuing and update a non-wind our On about initiative. basis, represents XX% of revenue. our total

wind sector of We continue wind offset to opportunities lumpy the outside to orders. the of timing pursue

to material in with partially power and and a markets, continued handling the revenue growth basis, see. gas continue non-wind we total, the for continue caused resources growth and biggest for to toward has wind-based rebound invest markets represent business press with diversification. we XX% as about are oil to our infrastructure seeing continue which These we remaining offsetting relatively generation in stable. On opportunities the mining include markets TTM market softness development to industrial are our revenue We of and in projects,

such extension the with and about our economic the TTM competitiveness XX% wind late Turning way. for last versus turbines than desire leading various than be end including The in energy. XX,XXX outlook sector, for with driven states outlook under currently operating to Kansas growth. and sources some PTC, XX by the state There sector a wind either power revenue. the market, gigawatt the U.S. of positive, year, nation's announced across of with wind are advanced to construction of demand continues represents more individual as by other states further Colorado supporting this more the X-year beginning forces renewable XX standards clean X projects development Texas, have or portfolio which

jeopardizing a our year, to delayed conditions In achievements. XX will by acknowledge in extra gigawatts to could projects Wood government this installed period, significant slated power While scheduled U.S., for bring pandemic. next of online And wind as than be XX year followed important credits. reminder, demand the an both that and the XXXX federal due gigawatts given over be next customers underlying XXXX, a to without year this strength for sector projects that Mackenzie for has early multiyear support tax continue projects more some the

increasing years through onshore now to offshore to Wood to in addition for for for forecast demand. traction demand a in turbines the include ahead, projection the XXXX, long-term improved strength gain out expected in U.S. gigawatts has adding installations XX Wood onshore This offshore Mackenzie of nearly wind the U.S., as Looking stable installations Mackenzie.

positive industry XXXX offshore from have from X% cyclical revenue projects Much has in generated and end vital applications, revenue XXXX of users are about some some of strong for of moved wind year We comes neutral. with which similar the ultimate sector than our we 'XX, of material Although from our and still this customers in markets which development. serve. to XXXX to a to other initial the be handling outlook sector, less expects the in an defense industrial TTM

capabilities interest. from sector, deepwater paint lifting X% huge Our heavy capacity, continue customer generation power Wisconsin, TTM draw of a the in outlook. boost revenue in to our came positive demand unique port see combined fabrication strong with we

TTM waterway benefit which TTM as new in projects. sector counts a mining and market building, this An of TTM causing outlook customer to Orders we primary our gas customers successor since. in is base defer demand. of X% infrastructure softened expand gaining less turbine have XXXX. QX, as sometime sector, during has capital continue the Customer customer near oil neutral and our have fracturing outlook. about in to expectations certainly report juncture, in the term. prices new the neutral drove this from demand weeks a with which as activity about to would road Hydraulic rig The expenditures. and and sector, was in revenue, this this share, revenue, the Our for in X% in space. gas are strong introduced, pullback segment and comprised attractive bridge Construction if significant decline create oil The to see have crude their recent of levels recent customers for seen the we revenue, improved negative increased. this drove to At would Act construction FAST bill, for are equipment purchases a us support economics X%

Our key consistent. remain initiatives for Broadwind

our Our near-term expanded unchanged base of for capacity. XXXX are the of we COVID-XX. medium-term business our tower to sell segment, in customers strategy the discussions and Heavy of remains with the in spite Fabrications challenges In

continue throughput improve and will capabilities profitability. to We system and processes maximize to

We to region. that announcement for the projects multiyear offshore on demand offshore, of recent in see Coast, continue the given wind the growing reflecting East progress particularly around

leveraging end sales experienced and in efforts our -- the improvement continuous market action We good better process as to the investments Gearing engineering well segment, will smooth to and market and And we opportunities. other leverage we plants. to made will in towards continue evolving chain teams our tower built-in engineering accelerating our teams. lastly, remain quality by supply In the our support as on focused ensure diversification throughput our flows

to and We Northeast Midwest, Southeast North business Carolina in our Illinois, serve Pennsylvania, and will regions. customers the service facilities and gearbox grow our leverage in custom better repair

our our we accordance continue aftermarket focus to as gas In new our we markets. into demand. of segment, core and components business market line to Industrial we Solutions product adjacent on turbine push expanding will in Lastly, size continue with

initiative rebranding materials. rollout continues and Our new website the with of our support

and We visits reach trade a are designed an are limited. customer increased that in significantly where to following they marketing are with time digital where shows campaign customers

continuing interest. year, as clean a but and applications. handling, material excited tech, segment. recent we the the navigates we core excess in the updates providing power have process of remain And extension trade your market, provided and year in of PTC I'll catalyst we serve, ahead, this case in that our The see our wind, TTM grow multi-year of we benefit coming Heavy our even call markets uncertainty. potential diversification capabilities forward We're our renewables session. over favorable for Looking as plan wind our for to which such opportunities real industrial for and our and is to generation as grow to said, leverage outside about other of other to the growth a markets through also position Fabrications revenues other the in achieved growth wind, $XX in sixth million for moderator a the findings look With in turn the throughout business period you for Q&A Thank wind.

Operator

Instructions]. [Operator

of from comes question the with Eric first Our Stine Group. line Craig-Hallum Capital

Eric Stine

other if I'm into what the if could any this been are it's bit for So terms obviously, of share? of things with could of wondering actions in it, look in And something of go at curious, the wind. just that I'm the should I mean, offshore. that's political you that your time potentially number whether here that we backdrop, timing, looking you've and kind we for I of that factors next know terms start a

Eric Blashford

share do do what different out been -- a is I Coast look we've -- the to to greenfield evaluating site, a sites taking will greenfield Well, on at to plant. a that East

plant that the heard cost would transport wind, Coast. operation capabilities to market, but You've be to quickest be long putt of East offshore the the a has mention the that our from into might me entrance Manitowoc do that of Manitowoc the because and the

are as Coast. we I locations the on said, evaluating, East So

the do we're in as East we the they customers and a conclusion sense build whether get on mature then closer, Coast. discussions developers. discussions And this with as together to makes far OEM actually in they're or as steps, come not -- a next As and our commercially will their again, to with

is need if because likely move to which in the we're a in decision and permitting XXXX. far to to to of offshore hit get in enough those first us would a give which to in to QX we have build assuming order QX tranche timing, hit would of it or Eric, XXXX, XXXX, installations installations, right then up the sometime whatnot, time As occurring more factory initial it as doesn't or speed

Eric Stine

Yes. last here with tried number? maybe typical so In PTC more XXXX. number? of just Got in it. mean, to have how in a a just mentioned feel do lead this year to long year, XX% that's a time people helpful. guess, is got sticking was times that XXXX, you'd because maybe you XX% you run -- us capacity the I it's front where about or, potentially typical effective No, of Or you ahead heavy wind, or that get been? comparison would effective a at are like you've to you the And your behind for tough in mean, you as this I I give at. sense? and make Can

Eric Blashford

that's good Yes, question. a

We this typical where is are -- in we year. a frankly, are year, right, we're normally and a normal

OEMs this quarter if strong they the we'll and this have production And common. is for visibility. was with the this well. end because -- year, an lot ahead, yes, more order next But as towards a XXXX. of So that because the year anomaly multiple you of Last will, of into in year discussions we're as continues

well. encouraging So that to as is us

Eric Stine

Yes.

then Okay. one for maybe me. And last Got it.

of trends of you but to a outlook? low commentary, terms level, that just markets, lot fourth kind that quarter maybe high would the XQ puts on diversification. end detail from and part versus wind, gave the Just you various high in that of a takes end as get the some the also non-wind of end of in But

Eric Blashford

We our have is side today. the in this backlog range revenue on that is

it's executing. Now about

the industrial it's But that gearing wind think Solutions We'll Industrial our towers that going of the bit to because based in probably in customer a $X primarily then announcement the just on for just had million close is XX% quarter plant pass-through. to reduction. increases materials, profile. be from with And And a early in top change line, segment, August. our there, down an the demand in come utilization little margin as to will volume additionally, a we there'll we there's operating because increase supplying be we We'll be the offset So then towers. QX at expect well. in some reduction And fab. the of a and overall, about that's down be that

Operator

next line of comes Justin from question ROTH Our Capital with Partners. the Clare

Justin Clare

then QX? do you guess, I ability you meet any to question, the delays order, I a see did in to impact that staffing guess, on do looking off, How and you the cost did in see in similar impact result expect side? And wondering, So for margins trending? any to QX, forward, or your like just supply ability just meet orders revenue? chain constraints Or your to first there orders, was an impact

Jason Bonfigt

QX. impact with I'll start the on

our of those So it in our to disruptions $XXX,XXX gross we execution during approximately remarks, side on talked that in about. met Certainly, do quarter. that, customers we commitments prepared the to erosion the $XXX,XXX in was was that had on QX. our a And to challenge profit we as that our based

had it impact So pretty our immaterial had a -- it on business.

As -- our recover, is position a and starting into covered we to some all we have there risk. we're but QX look QX, is in chain the supply we're feel chain like like supply still for we shipments, feel to of

on cautious and that being side. So mindful we're

Eric Blashford

Yes.

but out-of-process what and us it got on what really come it I and I it's can extra and complete impacts operation. on to handling. -- a not them as rework, it's complete aside to we've how to manufacturing sometimes the but call, expensive would it set that Justin, work. in out-of-process back materials go in, a And is we're time, to mean then project by work, And what work, Justin, out-of-process It's really time. be that's able

Justin Clare

it. Got Okay. And then to ASPs. shifting

are more indicated about ASPs into QX in are to it Could you QX that to more complex towers? of continue you margin tower able does Is talk XXXX? Is level? moved impact ASP? higher why little moving with that Like something that higher. then is a be bit and same about You And in expect likely capture ASPs to the higher? the a margin? or kind in margins higher -- still how Or you that the

Eric Blashford

ask start, We're average are bigger, prices. average X I'll was ago, years Jason then affects some whereas producing getting I'll to X, color. sections. the towers. of towers and which Jeff, X, tower And individual a X add couple The X-section the Well, and selling sometimes

average naturally the just So up. that price selling drives

far the as be margin any would consistent. As Jason, basically profile, those color?

Jason Bonfigt

QX, increase, book these about order looking customers. by chunk of because section sequentially. jobs -- lot That a are the basically of for small our down comes at materials is by these our are provided per or orders a Yes. and first QX. a $X,XXX XX%, about that We're

we next As little think to at ASPs early on a I consistent -- to relatively look basis. what think year, the I look a be they'll it's year-over-year

these we've of by on So for our had designs, of projects. provided amount different different customers a different year this lot fluctuations materials based

about you be as it, next it'll year, as thinking think model and I we're fairly consistent.

Justin Clare

add you forward? GE? What of you relationship? to speak each more to of X seeing consistent order in then to able In could with do are And turning for then top grow if another relationships a you the Could Are X you And QX, flow customers? going from helpful. Do those customer? that you the you -- anticipate you customers. That's your continuing see produced X U.S. OEMs Okay.

Eric Blashford

we the Well, And can those produce with their towers. fourth the which X. reminder, of talking X produce own for, they certainly we're one,

really But So need our that love for doesn't fourth this to we'd X. produce all at capacity one time.

expect And they to those X, XXXX, in I X build, X. those communications of have the depending remaining on with do which their projects they for possibly at are X we of and X, win, least, in So Justin. might where projects

Operator

next Our from H.C. Dayal with of question the comes Amit line Wainwright.

Amit Dayal

Are the non-wind bit my of term? discussed. of touch hitting can expectations trying the the So terms little been how questions for contribution just environment now? in, the have bring non-wind we on sort much of a macro side most sort given in to of near But ceiling right a

Jason Bonfigt

recovery had very the same a for in. markets the and we the was healthy quarter. QX would -- the really I pandemic, markets revenue Industrial activities the and since volumes talked in funnels quoting -- some seen And we XXXX our be same QX Gearing strong think that we're We've would we're That non-wind say starting And a expecting just are quoting It are to markets. cyclical those book that have our has handling, see come and starting in next to in QX, the but QX the indicate Since -- pipelines and that some QX. we on certainly, it orders to order the encouraged those as from QX. the about. We're year feel mining, in markets in material we should that improve. look down those into reduced which activities, higher impacts in like other certainly bottomed We're I growth construction. starting think, I are the Fabrications, in in has

Amit Dayal

we you where given election view that type create high-level can drive regulatory maybe or the regulatory just Understood. your And of XX for a of sort the question. challenges a XX to could on next sort setup months? are the of with share today, results sort And

Eric Blashford

a wind. competitive wind don't viable in to There's wind PTC bipartisan PTC that. We in if that years the That's are generation extension. weaker the even support thing, But without whatnot. extension, might know that's regarding -- yes, it's But gradual piece. for We're come. all intention we're power right? and We're become a PTC, some anticipating kind source market our is will But Well, confident so diverse, for there that which as and our of some confident the on step because a same stronger, we're of a wondering great be question. markets Congress. markets we're

discussion of other Congress piece, XXXX. been The extension in that FAST bill has Act an there's Also, Infrastructure the kicking of the around. been perhaps or

that an both I once us, the material the are we gets election past and talking think et think handling, serve, markets cetera. a think bill, mining, lift construction, parties could certainly I lot about I Infrastructure of that

Operator

Our comes from Johnson of Malloy Rice. the next with question Martin line

Martin Malloy

give antidumping, countervailing market those percent filed was update are Can duty you there? petition at maybe what wind Spain, X end India, September, market? of I countries recent On the U.S. the the for for that And us Malaysia, the towers. an responsible think in of

Eric Blashford

represented maybe the an and a had shift found been which case is screen think, or or case. That out first interesting that, this between suit pace countries, that these shifted why Spain. of X,XXX from from we XXX What's market I against of Vietnam was imports about, towers suit became Yes. surge up of the radar and annualized towers file of general about it's XXX and or X,XXX they is about and Indonesia India, our those Korea, climbing, and X,XXX% imports Canada, towers. the we one, increase, countries on Malaysia, to has or those a to There to countries

it's case And findings the in investigations ITC. where December. So is, preliminary in we their the preliminary expect by

Martin Malloy

question had. Okay. the I And then other

onshore on turbines In side, wind an capacity. seeing tower with replacement terms replaced there Are you wind are of the there? that for when installations the on higher opportunities Is wind with you older for out you opportunity side?

Eric Blashford

that there as a Excellent jobs a market. we couple question. on repowering done right selling to We repowering. refer and a into quoting that we're and initiative, We've Yes. And now, repowering are for third. OEMs is

X a interested that's market to that we're now. in X So We're or in. market right quoting OEMs definitely

seem the As it's you are at in look the volumes certainly, content, much could the adapters of lower revenue least, maybe environment that, to at X/X a now. steel be revenue. pretty right healthy, -- the But commercial the attached

an to And of the the at a adapter. replacement nacelle towers. tower or be perhaps some optimistic we're try the tower, that is top sure we're that, bottom just Jason top of virtue, either the point to at with it that section efficient And that, business. actually or in on by it lift more blades. as tower turbine can larger a of whole little the provide to and make the one So those can new receive That adapter can of that the explaining differently, referred bit Yes. a

those and adapters in forms, come various So those adapters. we produce of multiple different forms

Martin Malloy

would a to what is if average you say, or be all? replacement just up ASP, something price going tower, $XXX,XXX selling wind make -- for the on that. would So tower like -- scope new I'm wind a What an

Eric Blashford

depend XX%. XX% of size the adapter, to It the but XX%, on would maybe

Operator

turn the for floor comments. this gentlemen, and final to Mr. any Ladies Blashford our concludes back session. question-and-answer I'll

Eric Blashford

thank this months. as Well, with Thank appreciate interest joining meeting through in the out the for We forward time. call. and you, just you vigilant you crazy much. all in to everyone, look And we're our another safe business. X there, Stay fighting

Operator

conference. Thank you. This today's concludes

this disconnect time. participation. lines at your may you You Thank for your

Broadwind (BWEN) 5 Nov 202020 Q3 Earnings call transcript