Broadwind, Inc.

and I'm Tom Ciccone, the company's vice president and chief financial officer.

We issued a press release before the market opened today detailing our second quarter results. I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For discussion of some of the factors, that could cause actual results to differ, please refer to the risk factor section of our latest annual and quarterly filings with the SEC. Additionally, please note that you can find reconciliations of historical non-GAAP financial measures discussed during our call in the press release issued today. As noted in the press release issued this morning, in conjunction with the April sale of our Abilene facility, the results of the heavy fabrication segment excluding pressure reducing systems have been reflected as discontinued operations. Unless otherwise noted, the discussions today will relate to our continuing operations. At the conclusion of our prepared remarks, we'll open the line for questions. With that, I'll turn the call over to Eric.

Thanks, Tom, and welcome everyone to our call today. During the second quarter, we continued a successful strategic pivot toward becoming a pure play precision manufacturing business focused on the domestic power generation and critical infrastructure markets. Customer demand was robust during the second quarter as momentum accelerated across our key verticals. Following our strategic exit from wind tower manufacturing over the last year, Broadwind is operating from a position of increased financial flexibility and strategic focus. Given the strong foundation of our core Gearing and Industrial Solutions segments, we are building a precision manufacturing platform positioned to benefit from what we expect will become a sustained multi-year investment cycle in electricity generation, transmission, and distribution, driven by accelerating load growth from AI data centers, a domestic manufacturing renaissance, a shift toward electrification, alongside the need to replace and modernize an aging grid. We believe our gearing in industrial solutions businesses position us for stronger, more stable growth trajectory than at any point in our history, characterized by attractive margin profiles, greater revenue visibility, and a potential for meaningfully improved earnings quality. Further, we believe our 100% domestic manufacturing footprint, technical expertise, and longstanding customer relationships position us well to capitalize on and Eric Blashford. due to increased sales volume reflective of our recent elevated order levels. As customer demand has strengthened, we further optimize our asset base and human capital, a dynamic that's translated to improved operating leverage and visibility as we look forward to the second half of 2026. On a comparable basis, total backlog for our industrial solutions and gearing segments increased a combined 93% as of June 30th, when compared to the prior year period. We ended the second quarter with a book to bill of 1.5 times. Our capital allocation priorities remain centered on creating long-term shareholder value through a combination of sustained organic growth together with opportunistic investments in complementary products and solutions within our targeted markets. With a strengthened balance sheet and a streamlined operating structure, we are actively evaluating opportunities that seek to scale our precision manufacturing expertise through bolt-on acquisitions that meet our strict investment criteria. We remain constructive on the opportunities we're seeing in the market and will continue to remain patient yet opportunistic acquirers of complementary precision manufacturing assets that meet our parameters around sector focus, profitability, model durability, and valuation. Within the gearing segment, Q2 orders increased by 138% to $16 million, increasing the backlog to nearly $38 million. Demand growth within the gearing segment has been supported by strong customer activity and power generation, including demand associated with data center-related powering requirements, as well as improving activity within upstream oil and gas. Quoting activity remains robust in this segment. Our industrial solutions segment had yet another strong quarter as orders increased 24% year over year to a record $17.2 million, driving backlog to a new record of $47.4 million. Natural gas turbine demand remains strong, supported in part by data center-related power demand and broader global electrification trends. We believe these represent important growth drivers for this segment. We are positioning the business to serve that demand. Operationally, We continue to optimize our processes to increase throughput velocity and capacity. In our gearing division, we are executing a floor space optimization initiative aimed at improving material flow and enhancing operational efficiency. As part of this effort, key machining centers are being reconfigured into cellular manufacturing layouts to streamline production processes. These improvements are expected to reduce wasted motion, increase productivity, and increased throughput in support of the continued strong demand in power generation and critical infrastructure markets. In the industrial solutions segment, we are already seeing the benefits of expanding our North Carolina facility footprint in Q2. The expansion of the warehouse by 30% has enabled us to handle the higher sales volume in a more efficient manner due to its improved layout. This has also opened much-needed processing and Packaging Space to accommodate the continued growth we expect. Gearing revenue increased 24% year-over-year to $9 million, driven by continued growth in power generation demand. Industrial solutions revenue rose 79% to $13.2 million, primarily reflecting higher shipments of natural gas-driven components for both new build and aftermarket applications. In summary, the business continues to perform well Thank you, Eric.