8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 9, 2012

BROADWIND ENERGY, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware (State or Other Jurisdiction of
Incorporation) 0-31313 (Commission File Number) 88-0409160 (IRS Employer Identification No.)

47 East Chicago Avenue, Suite 332, Naperville, Illinois 60540

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (630) 637-0315

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On May 9, 2012, Broadwind Energy, Inc. (the “Company”) issued a press release announcing its financial results as of and for the quarter ended March 31, 2012.  The press release is incorporated herein by reference and is attached hereto as Exhibit 99.1.

The information contained in, or incorporated into, this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act regardless of any general incorporation language in such filings.

Item 7.01. Regulation FD Disclosure.

An Investor Presentation dated May 9, 2012 is incorporated herein by reference and attached hereto as Exhibit 99.2.

The information contained in, or incorporated into, this Item 7.01 of this Report, including Exhibit 99.2 attached hereto, is furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act or the Exchange Act regardless of any general incorporation language in such filings.

This Report will not be deemed an admission as to the materiality of any information in this Report that is being disclosed pursuant to Regulation FD.

Please refer to Exhibit 99.2 for a discussion of certain forward-looking statements included therein and the risks and uncertainties related thereto.

Item 9.01.  Financial Statements and Exhibits.

(d)	Exhibits
99.1	Press Release dated May 9, 2012
99.2	Investor Presentation dated May 9, 2012

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BROADWIND ENERGY, INC.
May 9, 2012	By:	/s/ Stephanie K. Kushner
		Stephanie K. Kushner
		Chief Financial Officer

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EXHIBIT INDEX

EXHIBIT NUMBER	DESCRIPTION
99.1	Press Release dated May 9, 2012
99.2	Investor Presentation dated May 9, 2012

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EX-99.1

Exhibit 99.1

Broadwind Energy, Inc. Announces First Quarter 2012 Results

Highlights:

·Q1 sales of $54.4 million, up 25% from the prior year quarter

·Services orders more than double, gearing orders up 12% from the prior year quarter

·Operating expenses declined to 11% of sales from 15% in the prior year quarter

·Adjusted EBITDA increased sharply to $1.4 million from $.2 million in the prior year quarter

·Q1 cash assets total $11.3 million with $7.1 million available on credit line; steel inventories rise to support higher Q2 tower shipments

NAPERVILLE, Ill., May 9, 2012— Broadwind Energy, Inc. (NASDAQ: BWEN) reported sales of $54.4 million for the first quarter of 2012, a 25% increase compared to $43.5 million in the first quarter of 2011.

The Company reported a net loss from continuing operations of $3.9 million or $.03 per share in the first quarter of 2012, compared to a loss of $4.1 million or $.04 per share during the first quarter of 2011. The modest improvement was primarily due to stronger operating results from the Gearing segment and lower operating expenses, largely offset by $.5 million of restructuring costs and lower tower production compared to the prior year first quarter. The Company reported non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation and restructuring) of $1.4 million during the first quarter of 2012, compared to adjusted EBITDA of $.2 million during the first quarter of 2011.

Peter C. Duprey, president and chief executive officer, stated, “Broadwind is off to a good start in 2012, recording solid revenue growth and meeting our objective for positive EBITDA in the first quarter. Our Gearing segment showed significant improvement, both sequentially and year-over-year, as a result of continued diversification into the higher-margin industrial segment, and improved productivity. As we anticipated, tower production was down from the prior year, though volumes are now rising as we build for new customers. We expect utilization in this segment to improve further as we shift a portion of our tower capacity to support our growing non-wind weldments business. Services revenue increased substantially in the quarter, and we continue to reposition this business toward the achievement of positive EBITDA.”

Mr. Duprey concluded, “In summary, Gearing has turned the corner and Services is moving in the right direction. Therefore, our focus for 2012 and 2013 remains to drive operating efficiency while further diversifying our revenue base toward industrial customers and new end-market relationships. Our restructuring program is progressing without disrupting the productivity

improvements that we are making in our plants. At quarter-end, $125 million of additional 2012 sales are in backlog. Given this and our first quarter performance, we remain confident that we are well positioned to deliver on our current year objectives of $215-225 million revenue and $8-10 million of adjusted EBITDA, and to further expand our progress toward profitability.”

Orders and Backlog

The company booked $18 million in new orders during the first quarter. Towers orders were light compared to the prior year due mainly to customers accelerating orders into the fourth quarter of 2011 ahead of the scheduled Production Tax Credit expiration. First quarter Gearing orders totaled $11 million, a 12% increase over the prior year first quarter. Services orders in the first quarter totaled $5 million, more than double the prior year first quarter. At March 31, 2012, backlog totaled $164 million, down from $200 million at year end, partly attributable to the wind-down of a customer’s multi-year framework agreement. In the Gearing segment, 97% of orders received in the current year first quarter were from oil and gas, mining and other industrial customers.

Segment Results

Towers and Weldments

Broadwind Energy fabricates specialty weldments for wind, oil and gas, mining and other industrial applications, specializing in the production of wind turbine towers.

Towers and Weldments segment sales totaled $35.2 million in the first quarter of 2012, compared to $28.2 million in the first quarter of 2011. Revenue increased 25% despite a 19% decrease in the volume of tower sections manufactured in the first quarter of 2012 compared to 2011. The prior year quarter included a heavy mix of fabrication-only tower sections, which have a relatively higher margin on lower reported sales. Growth in weldments revenue also contributed to higher revenue relative to last year’s quarter. Non-GAAP adjusted EBITDA for the first quarter was $2.3 million in 2012, compared to $3.6 million in 2011. Non-GAAP adjusted EBITDA decreased from last year as a result of the decrease in tower volume, and a lower margin sales mix. Towers and Weldments segment operating income for the first quarter of 2012 was $1.0 million, compared to $2.4 million in 2011.

Gearing

Broadwind Energy engineers, builds and remanufactures precision gears and gearing systems for wind, oil and gas and mining applications.

Gearing segment sales totaled $16.0 million in the first quarter of 2012, compared to $13.6 million in the first quarter of 2011. The increase was due primarily to a 73% increase in industrial gearing sales, partially offset by a decrease in wind gearing sales of 39%, compared to the first quarter of 2011. Non-GAAP adjusted EBITDA for the first quarter of 2012 was $1.8 million, compared to $.2 million in the prior year first quarter, with the increase resulting from growth in higher-margin industrial sales volumes and greater operating productivity and efficiencies, including lower scrap expense. The Gearing segment operating loss for the first quarter of 2012 improved to $1.1 million, versus a loss of $2.4 million in 2011, and included $.4 million in restructuring expenses associated with the manufacturing plant consolidation.

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Services

Broadwind Energy specializes in non-routine drivetrain and blade maintenance services. The Company also offers comprehensive installation support and field services to the wind industry.

Revenue from the Services segment was $3.4 million in the first quarter of 2012, compared with $1.8 million in the first quarter of 2011. The increase in revenue was primarily the result of increased field service and blade activity, as well as new revenue derived from the company’s drivetrain service center, which was not operational until late in first-quarter 2011. Non-GAAP adjusted EBITDA for the first quarter was a loss of $.9 million, compared to a loss of $1.1 million in the prior year first quarter, improving as a result of higher volumes, partially offset by increased operating expenses associated with the drivetrain services expansion. Services segment operating loss in the first quarter 2012 was $1.6 million, compared to a loss of $1.4 million in the first quarter of 2011.

Corporate and Other

Corporate and other expenses totaled $2.2 million in the first quarter of 2012, compared to $2.6 million in the first quarter of 2011. The decrease was primarily attributable to lower employee compensation and professional services expenses.

For the company in total, operating expenses declined to $6.2 million, or 11% of revenue, down from $6.6 million, or 15% of revenue in the prior year period.

The future income tax benefits associated with the current period loss are offset by an increase in the valuation allowance; therefore the effective federal tax rate is zero. As of the prior year-end, cumulative federal net operating loss carry-forwards totaled $136 million.

Cash and Liquidity

At March 31, 2012, cash, marketable securities and short-term investments on hand totaled $11.3 million and $2.9 million of the Company’s $10 million credit line was drawn.

During the quarter, operating working capital increased to $16.0 million, or 7.4% of annualized first quarter 2012 sales. The $2.0 million increase from December 31, 2011 was due to a $9.0 million increase in inventory levels primarily related to steel for tower sections, largely offset by a $7.5 million increase in payables to suppliers. The increased steel inventory supports higher tower deliveries scheduled for the second quarter.

During the quarter, debt and capitalized lease obligations decreased by $.7 million to $13.1 million, and the company was in compliance with all covenants.

About Broadwind Energy, Inc.

Broadwind Energy (NASDAQ: BWEN) applies decades of deep industrial expertise to innovate integrated solutions for customers in the energy and infrastructure markets. From gears and gearing systems for wind, oil and gas and mining applications to wind towers, to comprehensive remanufacturing of gearboxes and blades, to operations and maintenance services, and specialty weldments, we have solutions for the energy needs of the future. With facilities throughout the U.S., Broadwind Energy’s talented team of 800 employees is committed to

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helping customers maximize performance of their investments—quicker, easier and smarter. Find out more at www.bwen.com.

Forward-Looking Statements

This news release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995—that is, statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words. These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. The Company’s forward looking statements may include or relate to the Company’s plans to grow its business and its expectations regarding its operations, revenue growth, profitability and the business of its customers; the Company’s expectations regarding its plan to restructure its operations by consolidating its operations; the sufficiency of the Company’s working capital; the Company’s expectations regarding the state of the wind energy market, and the regulatory frameworks affecting the wind energy industry, as well as the Company’s expectations relating to the economic downturn and the potential impact on its business and the business of its customers. For further discussion of risks and uncertainties, individuals should refer to the Company’s SEC filings. The Company undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. All forward-looking statements are qualified in their entirety by this cautionary statement.

CONTACT:

Broadwind — John Segvich, 630.995.7137, john.segvich@bwen.com

LHA — Jody Burfening/Carolyn Capaccio, 212.838.3777, ccapaccio@lhai.com

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

	March 31,			December 31,
	2012			2011
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	10,857		$	13,340
Restricted cash	404			876
Accounts receivable, net of allowance for doubtful accounts of $539 and $438 as of March 31, 2012 and December 31, 2011, respectively	23,199			25,311
Inventories, net	32,368			23,355
Prepaid expenses and other current assets	3,350			4,033
Assets held for sale	8,050			8,052
Total current assets	78,228			74,967
Property and equipment, net	84,760			87,766
Intangible assets, net	8,999			9,214
Other assets	819			944
TOTAL ASSETS	$	172,806		$	172,891
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Lines of credit and notes payable	$	1,586		$	1,566
Current maturities of long-term debt	604			636
Current portions of capital lease obligations	924			965
Accounts payable	24,945			17,358
Accrued liabilities	4,619			5,749
Customer deposits	14,600			17,328
Liabilities held for sale	4,583			4,833
Total current liabilities	51,861			48,435
LONG-TERM LIABILITIES:
Long-term debt, net of current maturities	4,598			4,797
Long-term capital lease obligations, net of current portions	827			975
Other	856			825
Total long-term liabilities	6,281			6,597
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding	—			—
Common stock, $0.001 par value; 150,000,000 shares authorized; 139,854,757 and 139,779,197 shares issued and outstanding as of March 31, 2012 and December 31, 2011, respectively	140			140
Additional paid-in capital	370,788			370,123
Accumulated deficit	(256,264		)	(252,404		)
Total stockholders’ equity	114,664			117,859
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	172,806		$	172,891

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

	Three Months Ended March 31,
	2012			2011
Revenues	$	54,443		$	43,530
Cost of sales	51,822			40,951
Restructuring	389			—
Gross profit	2,232			2,579
OPERATING EXPENSES:
Selling, general and administrative	5,883			6,337
Intangible amortization	215			215
Restructuring	75			—
Total operating expenses	6,173			6,552
Operating loss	(3,941		)	(3,973		)
OTHER (EXPENSE) INCOME, net:
Interest expense, net	(262		)	(273		)
Other, net	363			210
Total other (expense) income, net	101			(63		)
Net loss from continuing operations before provision for income taxes	(3,840		)	(4,036		)
Provision for income taxes	20			17
LOSS FROM CONTINUING OPERATIONS	(3,860		)	(4,053		)
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX	—			(1,127		)
NET LOSS	$	(3,860	)	$	(5,180	)
NET LOSS PER COMMON SHARE - BASIC AND DILUTED:
Loss from continuing operations	$	(0.03	)	$	(0.04	)
Loss from discontinued operations	—			(0.01		)
Net loss	$	(0.03	)	$	(0.05	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and diluted	139,796			107,108

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

	Three Months Ended March 31,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(3,860	)	$	(5,180	)
Loss from discontinued operations	—			1,127
Loss from continuing operations	(3,860		)	(4,053		)
Adjustments to reconcile net cash provided by (used in) operating activities:
Depreciation and amortization expense	3,950			3,501
Stock-based compensation	665			369
Allowance for doubtful accounts	134			163
Common stock issued under defined contribution 401(k) plan	—			149
Loss on disposal of assets	23			82
Changes in operating assets and liabilities:
Accounts receivable	1,988			(1,213		)
Inventories	(9,007		)	984
Prepaid expenses and other current assets	932			(70		)
Accounts payable	7,588			(2,811		)
Accrued liabilities	(1,118		)	(41		)
Customer deposits	(2,729		)	12,247
Other non-current assets and liabilities	35			(136		)
Net cash (used in) provided by operating activities of continued operations	(1,399		)	9,171
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of logistics business	125			761
Purchases of available for sale securities	—			(102		)
Purchases of property and equipment	(715		)	(2,380		)
Proceeds from disposals of property and equipment	6			110
Decrease in restricted cash	472			—
Net cash used in investing activities of continued operations	(112		)	(1,611		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on lines of credit and notes payable	(708		)	(467		)
Principal payments on capital leases	(264		)	(233		)
Net cash used in financing activities of continued operations	(972		)	(700		)
DISCONTINUED OPERATIONS:
Operating cash flows	—			(777		)
Investing cash flows	—			—
Financing cash flows	—			(83		)
Net cash used in discontinued operations	—			(860		)
Add: Cash balance of discontinued operations, beginning of period	—			530
Less: Cash balance of discontinued operations, end of period	—			—
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(2,483		)	6,530
CASH AND CASH EQUIVALENTS, beginning of the period	13,340			15,331
CASH AND CASH EQUIVALENTS, end of the period	$	10,857		$	21,861
Supplemental cash flow information:
Interest paid, net of capitalized interest	$	268		$	254
Income taxes paid	$	6		$	48
Non-cash investing and financing activities:
Issuance of restricted stock grants	$	409		$	146
Common stock issued under defined contribution 401(k) plan	$	—		$	149

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

SELECTED SEGMENT FINANCIAL INFORMATION

(IN THOUSANDS)

	For the Three Months Ended March 31,
	2012			2011
REVENUES:
Towers and Weldments	$	35,169		$	28,170
Gearing	16,032			13,553
Services	3,442			1,828
Corporate and Other	(200		)	(21		)
Total revenues	$	54,443		$	43,530
OPERATING (LOSS) PROFIT:
Towers and Weldments	$	1,005		$	2,420
Gearing	(1,121		)	(2,397		)
Services	(1,623		)	(1,354		)
Corporate and Other	(2,202		)	(2,642		)
Total operating loss	$	(3,941	)	$	(3,973	)

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, the Company’s management believes that certain non-GAAP financial measures may provide users of this financial information with meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain infrequently occurring or non-operational items that impact the overall comparability. See the table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2012 and 2011. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

Consolidated

	Three Months Ended March 31,
	2012			2011
Operating (Loss) Profit	$	(3,941	)	$	(3,973	)
Depreciation	3,441			3,286
Amortization	215			215
Share-based compensation and other stock payments	850			487
Other Income (Expense)	363			210
Restructuring Expense	464			—
Total Adjusted EBITDA (Non-GAAP)	$	1,392		$	225

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Towers and Weldments Segment

	Three Months Ended March 31,
	2012		2011
	(unaudited)
Operating (Loss) Profit	$	1,005	$	2,420
Depreciation	876		879
Share-based compensation and other stock payments	198		142
Other Income (Expense)	187		147
Total Adjusted EBITDA (Non-GAAP)	$	2,266	$	3,588

Gearing Segment

	Three Months Ended March 31,
	2012			2011
	(unaudited)
Operating (Loss) Profit	$	(1,121	)	$	(2,397	)
Depreciation	2,163			2,307
Amortization	215			215
Share-based compensation and other stock payments	157			106
Other Income (Expense)	13			(78		)
Restructuring Expense	407			—
Total Adjusted EBITDA (Non-GAAP)	1,834			153

Services Segment

	Three Months Ended March 31,
	2012			2011
	(unaudited)
Operating (Loss) Profit	$	(1,623	)	$	(1,354	)
Depreciation	385			56
Share-based compensation and other stock payments	92			37
Other Income (Expense)	163			141
Restructuring Expense	46			—
Total Adjusted EBITDA (Non-GAAP)	$	(937	)	$	(1,120	)

Corporate and Other

	Three Months Ended March 31,
	2012			2011
	(unaudited)
Operating (Loss) Profit	$	(2,202	)	$	(2,642	)
Depreciation	17			44
Share-based compensation and other stock payments	403			202
Restructuring Expense	11			—
Total Adjusted EBITDA (Non-GAAP)	$	(1,771	)	$	(2,396	)

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EX-99.2

Exhibit 99.2

May 9, 2012 Investor Teleconference Q1 2012 Results © 2012 Broadwind Energy, Inc. All Rights Reserved.

Industry Data Disclaimer and Forward-Looking Statements Broadwind obtained the industry and market data used throughout this presentation from its own research, internal surveys and studies conducted by third parties, independent industry associations or general publications and other publicly available information. Independent industry publications and surveys generally state that they have obtained information from sources believed to be reliable, but do not guarantee the accuracy and completeness of such information. Forecasts are particularly likely to be inaccurate, especially over long periods of time. We are not aware of any misstatements in the industry data we have presented herein, but estimates involve risks and uncertainties and are subject to change based on various factors beyond Broadwind’s control. This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995—that is, statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “intend”, “expect”, “plan”, “will” or other similar words. These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate and are subject to change based on various factors. Actual results and future events could differ materially from those anticipated in such statements. For further discussion of risks and uncertainties, individuals should refer to Broadwind's filings with the Securities and Exchange Commission. Broadwind undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this presentation. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. All forward-looking statements are qualified in their entirety by this cautionary statement. This document contains non-GAAP financial information. Broadwind’s management believes that certain non-GAAP financial measures may provide users of this financial information meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain infrequently occurring or non-operational items that impact the overall comparability. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. Please see Broadwind’s earnings release dated as of May 9, 2012 for a reconciliation of certain non-GAAP measures presented in this document. 2

Q1 2012 Overview 3 Revenue up 25% over Q1 2011 Gearing up 18%, Services up 88% Adj. EBITDA up sharply from Q1 prior year Gearing has turned the corner Orders grew 12% Adj. EBITDA up significantly — margin is halfway to 20% industry average Towers and Weldments on track with objectives Orders minimal due to acceleration into 2011 due to risk of PTC expiration Strong order growth in Weldments Productivity improving Services making progress Orders doubled from Q1 2011 Adj. EBITDA loss improving Solid start for 2012 $21.7 $43.5 $54.4 $ M $ - 7.2 $ .2 $1.4 $ M Q1 Revenue Growth Q1 EBITDA Growth

Orders & Backlog 4 Orders ($ in millions) Order Backlog Significant Tower orders of $49.6M received in Q4 2011...likely little activity until later in the year Growth in Gearing orders as revenue mix continues to diversify toward industrial Services orders doubled for blade and field services Continue to reduce customer concentrations Tower market has shifted to spot orders from multi-year framework agreements 3 year tower agreement distorts spot order activity. Agreement expires with 190 towers delivered in 2012 and 100 in 2013 Future backlog expected to resemble recast line, which excludes orders scheduled for delivery beyond 6 months Backlog Recast Excluding Deliveries Beyond 6 Months Traditionally Reported Backlog

Towers Addressable Market 5 Tower business started in 2003 Built organically with the new entrants to the US market Business tended to build the larger towers (multi-MW) with more changeovers than competitors Landed 3 new customers in 2011, which greatly expanded the addressable market for the tower business Source: Make Consulting A/S 2012; Analysis Based On 2011 Installations Towers – Addressable Market Customer Base 2003 - 2010 Recent Additions

Restructuring Update 6 Consolidate two gearing facilities Estimated savings of $4.0M per year Reduce corporate office expense Estimated savings of ~$750K per year Sell idle tower facility Estimated savings of $500K per year Reduce other facilities by up to 600K sq. ft. Estimated savings of ~$500K per year Renegotiated Gearing facility lease Completed erection of cranes Moved 20% of the equipment Closed European office Started office build-out in Cicero, Ill. Continue to see interest in the facility, however no formal offers Closed California service location Other reductions in negotiation 40% footprint reduction saves >$5.5M; supports revenue of $400M

2012-2013 Deliverables Key Drivers of Transformation Gearing Complete plant consolidation Winning, and winning back, industrial customers in oil & gas and mining Continue positive customer experience — on-time delivery, high-quality goods Expand offering of industrial gearboxes and remanufacturing services Towers & Weldments Execution with new customers in towers — capture growing demand from US industrial manufacturing renaissance Shift capacity to support strong mining activity — qualifying on new products Sell idle South Dakota tower plant Services Execute with major customers won in 2011 Continued expansion of non-routine drivetrain and blade services business Develop turbine performance programs Profitability and Cash Flow 7

Consolidated Financial Results 8 Q1 2012 sales up 25% over Q1 2011 — gearing, services, steel content in towers Gross profit margin improved 2.9 percentage points from Q4 2011 Improved expense management from 15% to 11% from prior year period Q1 2012 operating income includes $.5M restructuring expense Zero effective tax rate — $136M tax loss carryforward at 12/31/2011 Adj. EBITDA of $1.4M, improved $2.4M from Q4 2011 Q1 2012 Q1 2011 Q4 2011 Revenue-$M 54.4 43.5 55.1 Gross Profit-$M 2.2 2.6 1.0 -% (ex. Restructuring) 4.8% 5.9% 1.8% Operating Expense-$M 6.2 6.6 6.9 -% (ex. Restructuring) 11.2% 15.1% 12.2% Operating Income-$M (3.9) (4.0) (5.9) Adj. EBITDA-$M 1.4 0.2 (1.0) EPS Continuing- $ (0.03) (0.04) (0.04)

Towers and Weldments First Quarter 2012 ($ in Millions) 9 Strategic Focus Section volume down 19% from very strong Q1 2011 43% of Q1 2011 volume was higher-margin “fabrication only” towers Weldment revenue tripled to $1.8M Productivity improved despite producing four different tower models Improve tower production changeover execution to support broader customer base Shift capacity to weldments to manage wind industry policy risk Stringent cost management 2012 2011 MW-Wind 137 190 Revenue-$M 35.2 28.2 Op Income-$M 1.0 2.4 Adj. EBITDA-$M 2.3 3.6 % 6.4% 12.7% Q1 Tower Cost Structure 100% 80% 60% 40% 20% 0% Fixed Overhead Other Variable Labor Material

© 2012 Broadwind Energy, Inc. All Rights Reserved. Gearing First Quarter 2012 .Industrial gearing sales +73%; Wind gearing sales -39% .Adj. EBITDA margin improved 10.3 percentage points through volume growth, higher-margin revenue mix, increased productivity, and lower scrap .Operating loss includes $.4M restructuring expense ($ in Millions) 10 .Growth in non-wind markets .Improve capacity utilization — plant consolidation underway .Leverage gearing expertise in drivetrain services Strategic Focus 20122011Revenue-$M16.0 13.6 Op Income-$M(1.1) (2.4) Adj. EBITDA-$M1.8 0.2 % 11.4%1.1% Q1 3 4 5 6 7 8 9 10 11 12 13 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Gross Revenue $M Gearing Revenue Breakdown Wind Industrial

Services First Quarter 2012 Q1 is seasonally lowest quarter Revenue nearly doubled — higher order rate for all product lines Operating loss includes higher depreciation on drivetrain services investment Adj. EBITDA loss improving, moving in right direction ($ in Millions) 11 Shift focus to non-routine drivetrain and blade services Develop proprietary product offerings Improve margins — refine business model Strategic Focus 2012 2011 Revenue-$M 3.4 1.8 Op Income-$M (1.6) (1.4) Adj. EBITDA-$M (0.9) (1.1) % -27.2% -61.3% Q1

Operating Working Capital 12 Q1 2012 $9.0M inventory build appropriate to tower production schedule, primarily related to steel for tower sections scheduled for Q2 2012 Offset by $7.5M increase in payables to suppliers Working Capital Cents per Dollar

Liquidity 13 $13.1M debt balance includes $2.7M which are either forgivable economic development grants or new markets tax credit financing 2012 debt and capital lease payments: $4.3M ($ in thousands) 3/31/2012 12/31/2011 Lines of credit, notes payable 1,586 1,566 Long-term debt 5,202 5,433 Liabilities held for sale 4,583 4,833 Capital leases 1,751 1,940 Debt and capital lease 13,122 13,772 Cash and related assets 11,261 14,216 Net debt 1,861 (444) Memo: available line of credit 7,083 9,477

Debt vs. TTM EBITDA ($ in millions) 14 Debt and Capital Lease Balance TTM Adjusted EBITDA TTM Adjusted EBITDA Debt and Capital Lease Balance

2012 Financial Outlook Update 15 Reaffirming 2012 outlook: revenue increase on expense decrease ~80% of 2012 sales delivered or in backlog today Q2 outlook: sequential improvements in revenue and EBITDA Operating expense forecast in line with Q1 annualized run rate All quarters projected to have positive adj. EBITDA Q4 risk related to PTC expiration 2010 2011 2012E* Sales-$M 137 186 215-225 Gross Margin 1.4% 3.9% 6.0-7.5% Operating Exp.-$M 30.4 27.6 25-26 Impairment Exp-$M 40.8 0 0 Op Loss-$M (69.2) (20.4) (8) - (10) Adj. EBITDA-$M (9.2) (2.1) 8 - 10 * Excluding restructuring  100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Industrial & Service New Wind Installations 12/31/10 backlog 12/31/11 backlog 2011 Sales 2011 Orders 2012 E Orders 2012 E Sales 2013 E Sales

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