Investing

Broadwind Shares Soar After Receiving $175 Million in New Tower Orders

Greg Morcroft

Published: January 12, 2023 3:34 am

Last Updated: January 12, 2023 12:35 pm

Broadwind (US:BWEN) shares almost doubled on Wednesday after the precision manufacturer of structures, equipment and components for specialized applications said it’s getting  $175 million worth of new tower orders from a wind turbine manufacturer.

Broadwind shares traded in the early afternoon up $2.20, or 98%, to $4.49.

The order, the largest one Broadwind has ever received from this customer, will be fulfilled throughout 2023 and 2024. The towers will be made in both the Abilene and Manitowoc facilities. It’s part of Broadwind’s ongoing strategy to increase business with current customers while expanding into new markets and relationships. This specific order secures a significant amount of production capacity for a couple of years, and it’s expected to improve the utilization of their plants, cost efficiency, and financial performance.

The order comes with added financial benefits, such as a tax credit from the Inflation Reduction Act (IRA) passed in 2022. The IRA gives tax credits to industries important to the transition from fossil fuels to renewable energy.

This order significantly increases the amount of work Broadwind has on hand compared to the end of the 3rd quarter of 2022, and it’s expected to improve the company’s profitability. Eric Blashford, the CEO of Broadwind, said, “This order will balance out our production schedule for the next two years, increase the utilization of our facilities, and improve how we operate overall.”

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This article originally appeared on Fintel