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): August 1, 2013

BROADWIND ENERGY, INC.

(Exact Name of Registrant as Specified in Its Charter)

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

3240 South Central Avenue, Cicero, Illinois 60804

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (708) 780-4800

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 August 1, 2013, Broadwind Energy, Inc. (the “Company”) issued a press release announcing its financial results as of and for the quarter ended June 30, 2013.  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 (this “Report”), 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 August 1, 2013 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

99.1Press Release dated August 1, 2013

99.2Investor Presentation dated August 1, 2013

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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.
August 1, 2013	By:	/s/ Stephanie K. Kushner
		Stephanie K. Kushner
		Chief Financial Officer

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EXHIBIT INDEX

EXHIBITNUMBER	DESCRIPTION
99.1	Press Release dated August 1, 2013
99.2	Investor Presentation dated August 1, 2013

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EX-99.1

Exhibit 99.1

Broadwind Energy Announces Second-Quarter 2013 Results

Highlights:

·New tower orders surged to $52 million; Backlog of $143 million up 4% from prior- year second quarter; $70 million tower order received in July

·Gross profit margin (ex. restructuring) rose to 7.4%, double prior-year second quarter

·Adjusted EBITDA of $2.7 million up significantly from $1.1 million in 2012 due to strong Towers and Weldments segment results

·Sale of idle tower facility for $12 million closed on April 22, 2013

·Strengthened balance sheet as of June 30: Cash and equivalents totaled $17.6 million, operating line of credit undrawn; Debt balance of $3.1 million outstanding

Cicero, Ill., August 1, 2013— Broadwind Energy, Inc. (NASDAQ: BWEN) today reported sales of $51.4 million for the second quarter of 2013, a 9% decrease compared to $56.3 million in the second quarter of 2012. The decline reflected weaker activity in the Gearing and Services segments, partly offset by stronger revenue in the Towers and Weldments segment due in part to a 42% increase in industrial weldments revenue compared to the prior-year second quarter.

The Company reported a net loss from continuing operations of $.2 million or $.01 per share in the second quarter of 2013, compared to a loss of $4.2 million or $.30 per share during the second quarter of 2012. The improvement was due to stronger operating results in the Towers and Weldments segment as well as the gain on the sale of the Company’s idle tower facility during the current-year quarter. The Company reported non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, share-based payments and restructuring costs) of $2.7 million during the second quarter of 2013, compared to $1.1 million during the second quarter of 2012.

Peter C. Duprey, president and chief executive officer, stated, “Our second-quarter results showed the strength of our Towers and Weldments segment in which we booked $52 million of new orders during the period, and announced another $70 million after quarter-end. We have sold out our 2013 capacity, and are now booking orders well into 2014. We expect 2014 production to reach or exceed our design capacity of 500 towers. During the second quarter, we demonstrated a dramatic improvement in productivity and tower through-put compared with last year when we were experiencing production issues associated with manufacturing multiple tower types at the same time. Process improvements that we initiated in 2012 and a generally better mix of towers resulted in strong EBITDA in the quarter.

“Gearing had a challenging quarter and continues to be impacted by weak demand from customers in the mining and natural gas sectors. In addition, Gearing revenues were affected by production issues relating to a greater number of gearboxes versus loose gearing in the mix and delays associated with the first article qualification process for a new customer. These production issues have caused us to review our front-end processes as part of our continuous improvement efforts. We believe we are getting to the root cause of these manufacturing issues and feel confident that the turnaround in Gearing will be significantly underway by the end of the year.

“The Services segment also had a difficult quarter. New turbine installations were at an all-time industry low and wind-farm operators have redeployed staff that ordinarily would be supporting new installations to perform non-routine maintenance activities. As a result of the lower order rate, we have adjusted this segment’s expense structure to be more in line with its current revenue outlook. We believe this situation will improve as we approach the end of the year and construction efforts accelerate.

“Finally we have strengthened our balance sheet by achieving some major milestones, including selling our idle Brandon, South Dakota tower facility for $12 million, paying down additional debt of $6 million and ending the quarter with $18 million of cash.”

Orders and Backlog

The Company booked $59 million in new orders during the second quarter of 2013. Additionally, a $35 million tower order from 2010 was removed from backlog due to a change in the customer’s U.S. wind requirements. As a result, net orders for the second quarter of 2013 were $25 million, a 17% decrease compared to the prior-year second quarter. Towers and Weldments orders, which vary considerably from quarter-to-quarter, totaled $18 million, net of the $35 million cancellation noted above. Second-quarter net Gearing orders totaled $5 million, a 70% decrease from the prior-year second quarter, reflecting continued weakness in orders from natural gas and other industrial customers as well as less demand for wind replacement gearing. Net orders for Services totaled $3 million compared to $5 million in the prior-year quarter, due to weaker demand for field services, as a number of customers have insourced work during a period of low turbine construction activity.

At June 30, 2013, backlog totaled $143 million, up from $137 million at June 30, 2012. Subsequent to quarter-end, the Company announced new tower orders of $87 million, $17 million of which were included in backlog as of June 30, 2013.

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 $37.5 million in the second quarter of 2013, compared to $37.0 million in the second quarter of 2012. Tower section volume in the second quarter of 2013 was down 12% compared to the prior year. The prior-year production consisted of a greater number of lighter, lower-value sections as compared to the current-year second quarter. Additionally, $4.4 million of completed tower sections remained in inventory at quarter-

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end because a customer first article qualification process was not completed as planned. Revenue for these sections will be included in the third-quarter results. Consistent with the Company’s strategic focus on diversifying end markets, industrial weldments sales of $3.2 million increased 42% compared to the prior-year period, more than offsetting the tower shortfall noted above. Non-GAAP adjusted EBITDA for the second quarter was $5.3 million; nearly triple the prior-year second quarter adjusted EBITDA of $1.8 million. The dramatic improvement was the result of improved operating efficiencies and a less variable and more profitable mix of towers. During the second quarter of 2012, productivity suffered due to the production of multiple tower types in that quarter. Towers and Weldments segment operating income for the second quarter of 2013 was $4.1 million, up $3.5 million from the second quarter of 2012 due to the factors described above.

Gearing

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

Gearing segment sales totaled $10.4 million in the second quarter of 2013, compared to $14.1 million in the second quarter of 2012. The 26% decrease was due primarily to lower demand from mining and natural gas customers as well as protracted manufacturing issues with a new line of gearboxes for an industrial customer. Gearing segment non-GAAP adjusted EBITDA for the second quarter of 2013 was a loss of $.1 million, decreasing from $1.3 million in the prior-year second quarter due in part to lower volumes and lower margins, partly offset by reductions in fixed costs and lower compensation, bad debt and other professional expenses. Gearing segment operating loss for the second quarter of 2013 increased to $3.9 million, from $1.6 million in the prior-year second quarter. The increased operating loss was partly attributable to $.7 million of higher restructuring charges and $.5 million of accelerated amortization as well as the factors described above.

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 $4.1 million in the second quarter of 2013, compared with $5.7 million in the second quarter of 2012. The 29% decrease was due in large part to depressed field service activity as a result of very low wind turbine installations across the United States, reflecting the curtailment of development work in late 2012 in response to the uncertainty regarding the production tax credit as mentioned above. This has resulted in wind farm operators insourcing non-routine maintenance projects during this same period. Non-GAAP adjusted EBITDA loss for the second quarter of 2013 was $.6 million, compared with $.5 million in the prior-year second quarter. As a result of the 29% drop in sales, the Company reduced headcount during the quarter and reduced SGA costs compared to the prior-year second quarter. Services segment operating loss of $1.3 million in the second quarter of 2013, increased $.2 million, from a loss of $1.1 million in the second quarter of 2012, reflecting $.1 million of additional restructuring charges in the current-year second quarter as well as the factors described above.

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Corporate and Other

Corporate and other expenses totaled $2.3 million in the second quarter of 2013, compared with $1.9 million in the second quarter of 2012. The increase in expense was primarily attributable to increased employee compensation partly offset by lower legal expense.

Cash and Liquidity

During the quarter, operating working capital decreased $14.0 million to $9.5 million or 5% of annualized second-quarter 2013 sales. The decrease from March 31, 2013 was due primarily to an increase in customer deposits of $13.4 million at June 30, 2013 related to the significant tower orders announced during the quarter.

Cash and equivalents surged to $17.6 million at June 30, 2013, an increase of $16.7 million from March 31, 2013 due primarily to the reduction in working capital noted above. Additionally, as previously announced, the Company completed the sale of its idle Brandon, South Dakota tower facility during the second quarter of 2013, realizing net proceeds of $11.8 million, of which $3.5 million was used to repay the underlying mortgage debt. At June 30, 2013, the Company’s $20 million line of credit was not drawn.

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

Forward-Looking Statements

This release includes various forward-looking statements related to future, not past, events.Statements in this release that are not historical are forward-looking statements. These statements are based on current expectations and we undertake no obligation to update these statements to reflect events or circumstances occurring after this release. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include, but are not limited to: expectations regarding our business, end-markets, relationships with customers and our ability to diversify our customer base; the impact of competition and economic volatility on many of the industries in which we compete; our ability to realize revenue from customer orders and backlog; the impact of regulation on our end-markets, including the wind energy industry in particular; the sufficiency of our liquidity and working-capital; our restructuring plans and the associated cost-savings; our ability to preserve and utilize our tax net operating loss carry-forwards; and other risks and uncertainties described in our filings with the Securities and Exchange Commission.

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BWEN INVESTOR CONTACT: Joni Konstantelos, 708.780.4819 joni.konstantelos@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)

	June 30,			December 31,
	2013			2012
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	17,261		$	516
Short-term investments	606			—
Restricted cash	331			330
Accounts receivable, net of allowance for doubtful accounts of $279 and $453 as of June 30, 2013 and December 31, 2012, respectively	22,877			20,039
Inventories, net	36,810			21,988
Prepaid expenses and other current assets	3,202			3,836
Assets held for sale	2,190			8,042
Total current assets	83,277			54,751
Property and equipment, net	72,972			79,889
Intangible assets, net	6,125			7,454
Other assets	686			816
TOTAL ASSETS	$	163,060		$	142,910
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Lines of credit and notes payable	$	—		$	955
Current maturities of long-term debt	356			352
Current portions of capital lease obligations	1,274			2,217
Accounts payable	28,644			16,377
Accrued liabilities	6,293			6,012
Customer deposits	21,586			4,063
Liabilities held for sale	—			3,860
Total current liabilities	58,153			33,836
LONG-TERM LIABILITIES:
Long-term debt, net of current maturities	2,767			2,956
Long-term capital lease obligations, net of current portions	436			641
Other	2,299			2,169
Total long-term liabilities	5,502			5,766
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; 30,000,000 shares authorized; 14,476,727 and 14,197,792 shares issued and outstanding as of June 30, 2013 and December 31, 2012, respectively	14			14
Additional paid-in capital	374,914			373,605
Accumulated deficit	(275,523		)	(270,311		)
Total stockholders’ equity	99,405			103,308
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	163,060		$	142,910

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues	$	51,363		$	56,311		$	97,027		$	110,754
Cost of sales	47,573			54,236			90,616			106,058
Restructuring	1,206			416			1,661			805
Gross profit	2,584			1,659			4,750			3,891
OPERATING EXPENSES:
Selling, general and administrative	5,145			5,578			10,541			11,461
Intangible amortization	665			215			1,330			430
Restructuring	107			25			708			100
Total operating expenses	5,917			5,818			12,579			11,991
Operating loss	(3,333		)	(4,159		)	(7,829		)	(8,100		)
OTHER (EXPENSE) INCOME, net:
Interest expense, net	(227		)	(238		)	(618		)	(500		)
Other, net	180			247			515			610
Restructuring	3,241			(71		)	2,966			(71		)
Total other (expense) income, net	3,194			(62		)	2,863			39
Net loss from continuing operations before provision for income taxes	(139		)	(4,221		)	(4,966		)	(8,061		)
(Benefit) provision for income taxes	14			10			36			30
LOSS FROM CONTINUING OPERATIONS	(153		)	(4,231		)	(5,002		)	(8,091		)
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX	—			—			(210		)	—
NET LOSS	$	(153	)	$	(4,231	)	$	(5,212	)	$	(8,091	)
NET LOSS PER COMMON SHARE - BASIC AND DILUTED:
Loss from continuing operations	$	(0.01	)	$	(0.30	)	$	(0.35	)	$	(0.58	)
Loss from discontinued operations	—			—			(0.01		)	—
Net loss	$	(0.01	)	$	(0.30	)	$	(0.36	)	$	(0.58	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and diluted	14,422			13,991			14,345			13,985

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

	Six Months Ended June 30,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,212	)	$	(8,091	)
Loss from discontinued operations	210			—
Loss from continuing operations	(5,002		)	(8,091		)
Adjustments to reconcile net cash used in operating activities:
Depreciation and amortization expense	8,033			7,860
Impairment charges	288			—
Stock-based compensation	972			1,289
Allowance for doubtful accounts	(174		)	254
Common stock issued under defined contribution 401(k) plan	337			—
(Gain) loss on disposal of assets	(3,657		)	92
Changes in operating assets and liabilities:
Accounts receivable	(2,664		)	1,246
Inventories	(14,822		)	(15,362		)
Prepaid expenses and other current assets	535			1,526
Accounts payable	11,869			16,817
Accrued liabilities	385			(222		)
Customer deposits	17,523			(8,607		)
Other non-current assets and liabilities	153			832
Net cash provided by (used in) operating activities of continuing operations	13,776			(2,366		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of logistics business and related note receivable	—			175
Purchases of available for sale securities	(606		)	—
Purchases of property and equipment	(2,729		)	(2,165		)
Proceeds from disposals of property and equipment	12,453			87
Decrease in restricted cash	—			646
Net cash provided by (used in) investing activities of continuing operations	9,118			(1,257		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on lines of credit and notes payable	(80,209		)	(1,954		)
Proceeds from lines of credit and notes payable	75,208			—
Proceeds from sale-leaseback transactions	—			1,000
Principal payments on capital leases	(1,148		)	(627		)
Net cash used in financing activities of continuing operations	(6,149		)	(1,581		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	16,745			(5,204		)
CASH AND CASH EQUIVALENTS, beginning of the period	516			13,340
CASH AND CASH EQUIVALENTS, end of the period	$	17,261		$	8,136

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

SELECTED SEGMENT FINANCIAL INFORMATION

(IN THOUSANDS)

	Three Months Ended June 30						Six Months Ended June 30,
	2013			2012			2013			2012
	(unaudited)						(unaudited)
REVENUES:
Towers and Weldments	$	37,507		$	36,995		$	67,536		$	72,164
Gearing	10,445			14,063			21,164			30,096
Services	4,065			5,695			11,549			9,137
Corporate and Other	(654		)	(422		)	(3,222		)	(643		)
Total revenues	$	51,363		$	56,331		$	97,027		$	110,754
OPERATING (LOSS) PROFIT:
Towers and Weldments	$	4,103		$	561		$	6,105		$	1,566
Gearing	(3,882		)	(1,632		)	(6,743		)	(2,753		)
Services	(1,260		)	(1,139		)	(1,962		)	(2,763		)
Corporate and Other	(2,293		)	(1,948		)	(5,229		)	(4,150		)
Total operating loss	$	(3,332	)	$	(4,158	)	$	(7,829	)	$	(8,100	)

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 and six months ended June 30, 2013 and 2012. 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.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(unaudited)						(unaudited)
Operating loss	$	(3,333	)	$	(4,159	)	$	(7,829	)	$	(8,100	)
Depreciation and amortization	3,842			3,739			7,648			7,395
Restructuring	1,313			441			2,369			905
Other income	180			247			515			610
Share-based compensation and other stock payments	702			788			1,325			1,638
Adjusted EBITDA	$	2,704		$	1,056		$	4,028		$	2,448

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Towers and Weldments Segment

	Three Months Ended June 30				Six Months Ended June 30,
	2013		2012		2013		2012
	(unaudited)				(unaudited)
Operating Profit	$	4,103	$	561	$	6,105	$	1,566
Depreciation	949		904		1,901		1,780
Share-based compensation and other stock payments	116		167		245		365
Other Income	115		171		273		358
Restructuring Expense	37		—		115		—
Total Adjusted EBITDA (Non-GAAP)	$	5,320	$	1,803	$	8,639	$	4,069

Gearing Segment

	Three Months Ended June 30						Six Months Ended June 30,
	2013			2012			2013			2012
	(unaudited)						(unaudited)
Operating Loss	$	(3,882	)	$	(1,632	)	$	(6,742	)	$	(2,753	)
Depreciation	1,874			2,165			3,740			4,327
Amortization	665			215			1,330			430
Share-based compensation and other stock payments	131			141			211			298
Other Income (Expense)	—			—			(15		)	13
Restructuring Expense	1,158			441			1,559			848
Total Adjusted EBITDA (Non-GAAP)	$	(54	)	$	1,330		$	83		$	3,163

Services Segment

	Three Months Ended June 30						Six Months Ended June 30,
	2013			2012			2013			2012
	(unaudited)						(unaudited)
Operating Loss	$	(1,260	)	$	(1,139	)	$	(1,962	)	$	(2,763	)
Depreciation	342			439			655			824
Share-based compensation and other stock payments	128			95			168			187
Other Income (Expense)	65			75			256			238
Restructuring Expense	114			—			233			47
Total Adjusted EBITDA (Non-GAAP)	$	(611	)	$	(530	)	$	(650	)	$	(1,467	)

Corporate and Other

	Three Months Ended June 30						Six Months Ended June 30,
	2013			2012			2013			2012
	(unaudited)						(unaudited)
Operating Loss	$	(2,293	)	$	(1,948	)	$	(5,229	)	$	(4,150	)
Depreciation	12			16			23			34
Share-based compensation and other stock payments	326			385			701			788
Other Income (Expense)	—			—			—			—
Restructuring Expense	4			—			460			11
Total Adjusted EBITDA (Non-GAAP)	$	(1,951	)	$	(1,547	)	$	(4,045	)	$	(3,317	)

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EX-99.2

Exhibit 99.2

August 1, 2013 Investor Teleconference Q2 2013 Results © 2013 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 our 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 our control. This presentation includes various forward-looking statements related to future, not past, events. Statements in this presentation that are not historical are forward-looking statements. These statements are based on current expectations and we undertake no obligation to update these statements to reflect events or circumstances occurring after this presentation. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include, but are not limited to: expectations regarding our business, end-markets, relationships with customers and management’s ability to diversify our customer base; the impact of competition and economic volatility on the industries in which we compete; our ability to realize revenue from customer orders and backlog; the impact of regulation on end-markets, including the wind energy industry in particular; the sufficiency of our liquidity and working capital; our restructuring plans and the associated cost savings; the ability to preserve and utilize our tax net operating loss carry-forwards; and other risks and uncertainties described in our filings with the Securities and Exchange Commission. This document contains non-GAAP financial information. We believe that certain non-GAAP financial measures may provide users of this financial information meaningful comparisons between current results and results in prior operating periods. We believe 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 to, our reported results prepared in accordance with GAAP. Please see our earnings release dated as of August 1, 2013 for a reconciliation of certain non-GAAP measures presented in this presentation. 2 © 2013 Broadwind Energy, Inc. All Rights Reserved.

Q2 2013 Overview 3 Business Highlights New orders of $59 million; cancelled $35 million order from 2010 Gross profit margin (ex. restructuring) doubled to 7.4% Adj. EBITDA more than double Q2 2012 Operating working capital dropped to 5% of sales due to receipt of customer deposits to secure 2013/2014 tower production Idle tower facility sale completed, adding $8 million of cash and reducing debt by $3.5 million Market Highlights Wind Energy PTC renewed in January; modified terms effectively last 2-3 years Strong tower outlook for 2013-2014 Oil & Gas Strong growth in oil sector Natural gas sector still weak although pricing has improved by $2.20 / MMBTU from 2012 low point Mining Market remains slow © 2013 Broadwind Energy, Inc. All Rights Reserved.

Orders and Backlog Q2 Orders ($ in millions) Order Backlog New tower orders of $52 million, reduced by $35 million in cancelled orders originally placed in 2010 $70 million in tower orders received after 6/30/13 – 2013 capacity full, filling up 2014 Gearing and Services order activity low Q2 2013 ending backlog down 16% from Q1 2013 93% of total 2013 estimated revenue was booked as of 6/30/13 Backlog approaching $200 million at 7/31/13 4 Q2 12 Q2 13 1H 12 1H 13 Towers/Weldments 11.1 52.1 13.5 132.5 Gearing 15.9 4.8 26.6 16.5 Services 5.3 2.6 10.3 2.2 Gross Orders 32.3 59.5 50.4 151.2 less: tower cancellations -2.2 -34.5 -2.2 -34.5 Net Orders 30.1 25.0 48.2 116.7 © 2013 Broadwind Energy, Inc. All Rights Reserved.

Continued Transformation Progress Broadwind ENERGY Rationalization Thousands Sq. Ft. Reduction toward goal Expense Management SGA as % of Revenue Revenue Growth and Diversification Estimate New Wind Installed Base Industrial and Other 2013 Broadwind Energy, Inc. All Rights Reserved.

Gearing Revenue Transformation 6 History Shifted from industrial to wind, back to industrial over 10-year period 2008-2010: Lost our market focus and most of sales force As wind declined in 2010, began rebuilding relationships with customers in natural gas and mining In 2011 mining and natural gas covered losses in wind By 2012-13, natural gas orders declined and mining softened Some of the shortfall in mining and natural gas was covered by an increase in oil customers Future Complete consolidation to streamline production flow Expand engineering capabilities to provide customers greater value we know gearing technology sometimes better than they do Deliver on-time with high quality Ensure diversified mix Offer more value-added products such as gear housings and service agreements © 2013 Broadwind Energy, Inc. All Rights Reserved.

Continuous Improvement 7 Streamlining Processes Gearing order to shop floor release – recurring products Shop Order Completion – Duration (Days) Low High Current 35 77 Future 1 16 Number of Steps Current 102 Future 32 Number of Handoffs Current 43 Future 10 Comments Questioning every step in process is yielding cycle-time reductions Reducing touch time Streamlining hand-offs between departments Progress Since Program Inception: Cut injury rate in half Reduced injury costs by $.7 million Targeting a 40% drop in injuries in the ‘13-14 policy year (commenced in July) which would lower costs an additional $.3 million EHS Program Progress Building a culture of continuous improvement across the business © 2013 Broadwind Energy, Inc. All Rights Reserved.

Consolidated Financial Results 8 Q2 2013 Comments Sales down 9% from Q2 2012 – weak activity in Gearing and Services segments, partly offset by Towers and Weldments revenue – slippage of $4 million into Q3 Gross margin double Q2 2012 – improved Towers throughput and mix Operating expense increased slightly from Q2 2012 – increased amortization and restructuring expense nearly offset by 8% decrease in SGA Adj. EBITDA of $2.7 million well above Q2 2012 Per share loss of $.01 includes +$.21 from sale of assets 2012 2013 2012 2013 56.3 51.4 Revenue-$M 110.8 97.0 1.7 2.6 Gross Profit-$M 3.9 4.8 3.7% 7.4% -% (ex. Restructuring) 4.2% 6.6% 5.8 5.9 Operating Expense-$M 12.0 12.6 10.3% 11.3% -% (ex. Restructuring) 10.7% 12.2% (4.2) (3.3) Operating Loss-$M (8.1) (7.8) 1.1 2.7 Adj. EBITDA-$M 2.4 4.0 (0.30) (0.01) EPS Continuing- $ (0.58) (0.35) Q2 1H © 2013 Broadwind Energy, Inc. All Rights Reserved.

Profitability Progress 9 Continued progress on pathway to profitability Gross Margin Improvements Less variable mix and production enhancements – Towers Square footage reduction (restructuring) Challenges Rising share of gearboxes – Gearing Soft end markets for Gearing – mining, natural gas Low point for new wind installs – depressed Services revenue Operating Expense Improvements SGA expense has declined over $6 million since 2010 Reductions in legal, bad debt and employee compensation costs Continued focus on expense management 9-10% © 2013 Broadwind Energy, Inc. All Rights Reserved.

Towers and Weldments Second Quarter 2013 10 Strategic Focus Tower section volume decreased 12% compared to Q2 2012 Industrial Weldments revenue increased 42% compared to Q2 2012 Q2 2013 productivity increase from process improvements and more uniform tower types Adj. EBITDA margin improved dramatically due to better productivity and favorable mix Use Continuous Improvement tools to drive increased throughput and efficiency Expanding capacity in our current footprint: >500 towers in 2014 Diversify by growing Industrial Weldments product line Revenue Mix 2012 2013 2012 2013 76 85 Towers-No. 145 158 320 282 Sections-No. 665 556 37.0 37.5 Revenue-$M 72.2 67.5 0.6 4.1 Op Income-$M 1.6 6.1 1.8 5.3 Adj. EBITDA-$M 4.1 8.6 4.9% 14.1% Adj. EBITDA Margin 5.6% 12.8% Q2 1H © 2013 Broadwind Energy, Inc. All Rights Reserved.

Gearing Second Quarter 2013 Revenue affected by production delays related to product mix and by industrial end market softness Adj. EBITDA declined due to lower volumes and margins, partly offset by other spending reductions Plant consolidation spending ~ 56% complete — large machine moves continuing 11 Streamline production flow and order-to-shipment activities Improve capacity utilization — plant consolidation underway Diversify industrial customers Manage strategic shift in product mix Strategic Focus Diversifying Product Mix Gearboxes 5% 2012 2013 2012 2013 14.1 10.5 Revenue-$M 30.1 21.2 (1.6) (3.9) Op Income-$M (2.8) (6.7) 1.3 (0.1) Adj. EBITDA-$M 3.2 0.0 9.5% -0.5% Adj. EBITDA Margin 10.5% 0.4% Q2 1H © 2013 Broadwind Energy, Inc. All Rights Reserved.

Services Revenue down 29% from Q2 2012; new wind installations at all-time industry low, depressing field service activity Aligned cost structure with revenue outlook 12 Diversify revenue base, particularly with industrial customers Further develop proprietary product offerings Launched DriveMAX and BladeMAX campaigns Continue drive toward profitability Strategic Focus Second Quarter 2013 Source: MAKE Consulting 2012 2013 2012 2013 5.7 4.1 Revenue-$M 9.1 11.5 (1.1) (1.3) Op Income-$M (2.8) (2.0) (0.5) (0.6) Adj. EBITDA-$M (1.5) (0.7) -9.3% -15.0% Adj. EBITDA Margin -16.1% -5.6% Q2 1H © 2013 Broadwind Energy, Inc. All Rights Reserved.

Operating Working Capital 13 6/30/13 operating working capital decreased $14 million from 3/31/13 to $9.5 million or 5% of revenue, related to receipt of customer deposits from recent tower orders Inventories up sharply (+$7 million vs. 3/31) to support higher tower build and due to delayed customer sign-off on tower specifications for $4.4 million order Working capital balance should stay low through year-end © 2013 Broadwind Energy, Inc. All Rights Reserved.

Debt and Liquidity 14 Net debt negative – cash increased from customer deposits and sale of Brandon facility Eliminated Brandon mortgage liability with proceeds of sale Debt balance includes $3 million which is either forgivable economic development grants or New Markets Tax Credit financing Line of credit undrawn; expected to remain undrawn through year-end 6/30/2013 $M AloStar line of credit - Long-term debt 0.2 Capital leases 1.7 Subtotal: debt ex. grants 2.0 Grants/tax credits 2.9 Total Debt 4.8 Less: Cash and related assets (17.6) Net Debt (12.8) © 2013 Broadwind Energy, Inc. All Rights Reserved.

2013 Financial Outlook 15 Towers: Greater revenue visibility given improved supply/demand balance Level-loading, fewer tower types increasing throughput, efficiencies and margins Gearing: Revenue and end-market demand down ~ 5% from 2012, with some uncertainty in natural gas Margin stable – restructuring benefits not material until late 2013/2014 Services: Strict cost management to minimize cash utilization FY 2010 FY 2011 FY 2012 2013 E Q3 2012 Q3 2013 Revenue-$M 137.0 186.0 210.7 215-220 55.0 60-62 Gross Profit-$M 1.9 7.2 6.8 2.7 -% (ex. Restructuring) 1.4% 3.9% 4.0% 5.4% Operating Expense-$M 30.4 27.6 24.1 6.2 -% (ex. Restructuring) 22.2% 14.6% 11.1% 10.7% Impairment Exp. -$M 40.8 - Operating Income-$M (69.2) (20.4) (17.3) (3.5) Adj. EBITDA-$M (9.2) (2.1) 5.5 9-10 2.4 > 2.5 EPS (8.01) (1.89) (1.27) (.55-.65) (0.28) (.12-.16) © 2013 Broadwind Energy, Inc. All Rights Reserved.

Restructuring and Other Updates 16 Inception to date Est. Total % Capital Spend $4,054 $5,347 76% Expense $3,829 $5,602 68% Subtotal: Cash Outlay $7,883 $10,949 72% Asset sale gain ($3,586) ($3,586) Non-cash $2,525 $5,373 Grand Total $6,822 $12,736 54% Settlement of shareholder class action litigation 72% of restructuring plan cash outlay has been incurred: © 2013 Broadwind Energy, Inc. All Rights Reserved.

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