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): April 30, 2014

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 April 30, 2014, Broadwind Energy, Inc. (the “Company”) issued a press release announcing its financial results as of and for the quarter ended March 31, 2014.  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 April 30, 2014 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

EXHIBITNUMBER	DESCRIPTION
99.1	Press Release dated April 30, 2014
99.2	Investor Presentation dated April 30, 2014

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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.
April 30, 2014	By:	/s/ Stephanie K. Kushner
		Stephanie K. Kushner
		Chief Financial Officer

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EXHIBIT INDEX

EXHIBITNUMBER	DESCRIPTION
99.1	Press Release dated April 30, 2014
99.2	Investor Presentation dated April 30, 2014

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EX-99.1

Exhibit 99.1

Broadwind Energy Announces Q1 2014 Results

Q1 Highlights:

·Sales of $58.8 million, up 29% from Q1 2013

·Gross profit margin (ex. restructuring) of 9.1%, up 330 bp from Q1 2013

·Adjusted EBITDA of $2.8 million, more than double Q1 2013

·EPS loss of $.07, significantly ahead of Q1 2013 and Q1 2014 guidance

·Cash assets declined as expected, to $11.5 million; operating line of credit undrawn; debt and capital lease balance dropped below $5 million

Cicero, Ill., April 30, 2014 — Broadwind Energy, Inc. (NASDAQ: BWEN) reported sales of $58.8 million for the first quarter of 2014, a 29% increase compared to $45.5 million in the first quarter of 2013. The increase reflects the continued strength in the Company’s Towers and Weldments segment, partly offset by weaker results in the Gearing and Services segments.

The Company reported a net loss from continuing operations of $1.0 million or $.07 per share in the first quarter of 2014, compared to a loss of $4.5 million or $.32 per share in the first quarter of 2013. The $.25 per share improvement was due to stronger results in the Towers and Weldments segment and lower corporate expenses, partly offset by weaker results in the Services segment. The Company reported non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, share-based payments and restructuring costs) of $2.8 million in the first quarter of 2014, compared to $1.3 million in the first quarter of 2013. The progress reflects the 50% increase in tower volume in the current-year first quarter, partly offset by weaker results in the other business segments.

Peter C. Duprey, president and chief executive officer, stated, “We are off to a solid start in 2014. Our first-quarter results reflect substantial improvement over the prior year, with revenue up a significant 29%, gross margin up 330 basis points, and an EPS improvement of $.25 over last year’s first quarter. Our Towers and Weldments segment recorded another solid quarter, improving tremendously as we produce efficiently against the past two quarters’ strong order flow. Gearing and Services faced some challenges during the quarter with low volumes and production inefficiencies as well as some unforeseen weather-related expenses, although Gearing orders did show a 61% improvement sequentially. Our Continuous Improvement projects are proceeding as planned, and we are seeing progress from those initiatives.”

Mr. Duprey concluded, “Overall, I am pleased with our first-quarter results, which were better than our guidance and set us up nicely to achieve our financial objectives for 2014. Our restructuring plan is paying off in increased operating leverage, and we are working hard to continue this progress by making the Gearing business competitive and profitable for the long-

term. In Services, our new general manager is in place and we are focused on leveraging our robust in-field service capabilities in wind and beyond. In all, we remain on track to achieve profitability in 2014.”

Orders and Backlog

The Company booked $15.8 million in net new orders in the first quarter of 2014, down from $91.9 million in the prior-year first quarter when orders surged following the renewal of the federal Production Tax Credit. Towers and Weldments orders, which vary considerably from quarter to quarter, totaled $3.9 million and consisted of industrial weldment orders primarily for one large customer. This order pattern was expected, following the massive order inflow experienced in the second half of 2013. First quarter Gearing orders totaled $8.3 million, down 29% from the prior-year first quarter and up 61% sequentially. Services orders totaled $3.6 million, up sharply from the prior-year first quarter which included the cancellation of a large drivetrain assembly project with an industrial customer.

At March 31, 2014, total backlog was $267.5 million, up 58% from the prior-year first quarter.

Segment Results

Towers and Weldments

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

Towers and Weldments segment sales totaled $48.3 million in the first quarter of 2014, compared to $29.9 million in the first quarter of 2013. The significant increase was due to a 50% increase in tower volume compared to the prior-year first quarter, reflecting the near curtailment of production due to the lapse of the federal Production Tax Credit at the end of 2012 and subsequent renewal in early 2013. Towers and Weldments operating income for the first quarter of 2014 was $5.6 million (12% of sales), up $3.5 million from the first quarter of 2013. The significant improvement was the result of higher volumes, material sourcing improvements, and a higher margin mix of towers compared to the first quarter of 2013. Partly offsetting this was an increase in manufacturing overhead due, in part, to ramping up the production infrastructure in industrial weldments to support the growth of this product line, and higher professional fees linked to the 2013 year-end accounting investigation. Non-GAAP adjusted EBITDA for the segment totaled $6.7 million in the current-year period, up sharply from $3.5 million in the same period last year due to the factors described above and lower non-cash charges in the current-year period.

Gearing

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

Gearing sales totaled $8.8 million in the first quarter of 2014, compared to $10.7 million in the first quarter of 2013. The decrease was due primarily to lower shipments to steel and other industrial customers caused primarily by manufacturing inefficiencies. Despite the 18% decrease in revenue, Gearing segment operating loss for the first quarter of 2014 was $3.0 million, a slight improvement compared to the first quarter of 2013. The small improvement was

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due primarily to lower depreciation and amortization expense and lower restructuring charges, nearly offset by less favorable production mix as well as $0.2 million of weather-related utility costs in Q1 2014. Non-GAAP adjusted EBITDA for the first quarter of 2014 was a loss of $.8 million, compared to a slightly positive non-GAAP adjusted EBITDA in the prior-year first quarter, due to the factors described above.

Services

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

Revenue from the Services segment was $2.4 million in the first quarter of 2014, compared to $7.5 million in the first quarter of 2013. The decrease was related to the completion of a large drivetrain assembly project in the prior-year first quarter, partly offset by higher demand for blade repair work in the current-year first quarter. Services operating loss for the first quarter of 2014 was $1.3 million, compared to $.7 million in the prior-year first quarter, due primarily to lower volume, partly offset by cost savings resulting from a reduction in manufacturing space and other cost management efforts. Non-GAAP adjusted EBITDA loss totaled $0.9 million in the first quarter of 2014, compared to near break-even in the first quarter of 2013, due to the factors described above and lower non-cash charges, primarily restructuring, in the current-year period.

Corporate and Other

Corporate and other expenses totaled $2.3 million in the first quarter of 2014, compared to $3.0 million in the first quarter of 2013. The decrease was due primarily to lower restructuring and insurance expense in the current-year first quarter.

Future income tax benefits associated with the 2013 loss were offset by an increase in the valuation allowance; therefore, the effective federal tax rate is zero. As of December 31, 2013, cumulative federal net operating loss carry-forwards totaled $167 million.

Cash and Liquidity

During the quarter, operating working capital (accounts receivable and inventory, net of accounts payable and customer deposits) increased $14.3 million to $19.6 million or 8% of annualized first-quarter 2014 sales due to the ramp up in production for 2014.

Cash assets declined to $11.5 million at March 31, 2014, a decrease of $14.3 million from December 31, 2013. At March 31, 2014, the Company’s $20 million line of credit was undrawn.

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, steel, 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.

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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 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, including those contained in Part I, Item 1A “Risk Factors” of our Annual Reports on Form 10-K.

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

LHA CONTACT: 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,
	2014			2013
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	9,601		$	24,936
Short-term investments	1,795			1,143
Restricted cash	83			83
Accounts receivable, net of allowance for doubtful accounts of $59 and $17 as of March 31, 2014 and December 31, 2013, respectively	23,640			18,735
Inventories, net	39,123			37,143
Prepaid expenses and other current assets	1,925			2,325
Assets held for sale	1,582			1,970
Total current assets	77,749			86,335
Property and equipment, net	67,797			69,077
Intangible assets, net	5,792			5,903
Other assets	2,278			2,379
TOTAL ASSETS	$	153,616		$	163,694
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Lines of credit and notes payable	$	—		$	—
Current maturities of long-term debt	179			201
Current portions of capital lease obligations	946			933
Accounts payable	24,424			27,537
Accrued liabilities	7,327			8,115
Customer deposits	18,727			22,993
Liabilities held for sale	361			749
Total current liabilities	51,964			60,528
LONG-TERM LIABILITIES:
Long-term debt, net of current maturities	2,612			2,755
Long-term capital lease obligations, net of current portions	952			1,193
Other	3,415			3,888
Total long-term liabilities	6,979			7,836
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; 14,696,157 and 14,627,990 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	15			15
Additional paid-in capital	376,511			376,125
Accumulated deficit	(281,853		)	(280,810		)
Total stockholders’ equity	94,673			95,330
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	153,616		$	163,694

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Three Months Ended March 31,
	2014			2013
Revenues	$	58,800		$	45,506
Cost of sales	53,438			42,881
Restructuring	269			455
Gross profit	5,093			2,170
OPERATING EXPENSES:
Selling, general and administrative	5,917			5,388
Intangible amortization	111			665
Restructuring	60			601
Total operating expenses	6,088			6,654
Operating loss	(995		)	(4,484		)
OTHER (EXPENSE) INCOME, net:
Interest expense, net	(160		)	(391		)
Other, net	136			335
Gain on sale of assets and restructuring	—			13
Total other (expense) income, net	(24		)	(43		)
Net loss from continuing operations before provision for income taxes	(1,019		)	(4,527		)
Provision for income taxes	24			22
LOSS FROM CONTINUING OPERATIONS	(1,043		)	(4,549		)
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX	—			(210		)
NET LOSS	$	(1,043	)	$	(4,759	)
NET LOSS PER COMMON SHARE - BASIC AND DILUTED:
Loss from continuing operations	$	(0.07	)	$	(0.32	)
Loss from discontinued operations	—			(0.01		)
Net loss	$	(0.07	)	$	(0.33	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and diluted	14,659			14,267

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 (IN THOUSANDS)

(UNAUDITED)

	Three Months Ended March 31,
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,043	)	$	(4,759	)
Adjustments to reconcile net cash used in operating activities:
Depreciation and amortization expense	3,114			3,986
Impairment charges	—			—
Change in fair value of interest rate swap agreements	—			—
Deferred income taxes	—			—
Stock-based compensation	223			427
Allowance for doubtful accounts	42			(154		)
Common stock issued under defined contribution 401(k) plan	163			138
Loss on disposal of assets	5			15
Changes in operating assets and liabilities:
Accounts receivable	(4,947		)	(6,156		)
Inventories	(1,980		)	(8,058		)
Prepaid expenses and other current assets	457			(503		)
Accounts payable	(2,672		)	7,852
Accrued liabilities	(788		)	(69		)
Customer deposits	(4,266		)	4,149
Other non-current assets and liabilities	(425		)	82
Net cash used in operating activities	(12,117		)	(2,840		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of logistics business and related note receivable	—			—
Purchases of available for sale securities	(2,543		)	—
Sales and maturities of available for sale securities	1,890
Purchases of property and equipment	(2,200		)	(1,375		)
Proceeds from disposals of property and equipment	45			4
(Increase) decrease in restricted cash	—			—
Net cash used in investing activities	(2,808		)	(1,371		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of stock	—			—
Payments on lines of credit and notes payable	(164		)	(44,606		)
Proceeds from lines of credit and notes payable	—			49,408
Proceeds from sale-leaseback transactions	—			—
Payments for debt issuance costs	—			—
Principal payments on capital leases	(246		)	(570		)
Net cash (used in) provided by financing activities	(410		)	4,232
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(15,335		)	21
CASH AND CASH EQUIVALENTS, beginning of the period	24,936			516
CASH AND CASH EQUIVALENTS, end of the period	$	9,601		$	537
Supplemental cash flow information:
Interest paid	$	143		$	334
Income taxes paid	$	2		$	13
Non-cash investing and financing activities:
Issuance of restricted stock grants	$	138		$	317

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BROADWIND ENERGY, INC. AND SUBSIDIARIES

SELECTED SEGMENT FINANCIAL INFORMATION

(IN THOUSANDS)

	Three Months Ended March 31,
	2014			2013
	(unaudited)
REVENUES:
Towers and Weldments	$	48,294		$	29,871
Gearing	8,774			10,720
Services	2,438			7,484
Corporate and Other	(706		)	(2,569		)
Total revenues	$	58,800		$	45,506
OPERATING (LOSS) PROFIT:
Towers and Weldments	$	5,612		$	2,154
Gearing	(2,966		)	(2,977		)
Services	(1,339		)	(702		)
Corporate and Other	(2,302		)	(2,959		)
Total operating loss	$	(995	)	$	(4,484	)

BROADWIND ENERGY, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(IN THOUSANDS)

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, 2014 and 2013. 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
	March 31,
Consolidated	2014			2013
	(unaudited)
Operating loss	$	(995	)	$	(4,484	)
Depreciation and amortization	3,114			3,806
Share-based compensation and other stock payments	223			624
Other income	136			335
Restructuring	329			1,056
Total Adjusted EBITDA (Non-GAAP)	$	2,807		$	1,337

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	Three Months Ended March 31,
Towers and Weldments Segment	2014		2013
	(unaudited)
Operating Profit	$	5,612	$	2,154
Depreciation	985		951
Share-based compensation and other stock payments	43		129
Other Income	2		159
Restructuring Expense	18		78
Total Adjusted EBITDA (Non-GAAP)	$	6,660	$	3,471

	Three Months Ended March 31,
Gearing Segment	2014			2013
	(unaudited)
Operating Loss	$	(2,966	)	$	(2,977	)
Depreciation	1,690			1,866
Amortization	111			665
Share-based compensation and other stock payments	59			80
Other Income (Expense)	2			(15		)
Restructuring Expense	311			401
Total Adjusted EBITDA (Non-GAAP)	$	(793	)	$	20

	Three Months Ended March 31,
Services Segment	2014			2013
	(unaudited)
Operating Loss	$	(1,339	)	$	(702	)
Depreciation	313			313
Share-based compensation and other stock payments	15			40
Other Income (Expense)	133			191
Restructuring Expense				119
Total Adjusted EBITDA (Non-GAAP)	$	(878	)	$	(39	)

	Three Months Ended March 31,
Corporate and Other	2014			2013
	(unaudited)
Operating Loss	$	(2,302	)	$	(2,959	)
Depreciation	15			11
Share-based compensation and other stock payments	105			375
Restructuring Expense	—			458
Total Adjusted EBITDA (Non-GAAP)	$	(2,182	)	$	(2,115	)

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EX-99.2

Exhibit 99.2

Broadwind Energy, Inc. Q1 2014 Investor Call Presentation April 30, 2014 © 2014 Broadwind Energy, Inc. All Rights Reserved.

Industry 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 our 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, including those contained in Part I, Item A “Risk Factors” of our Annual Reports on Form 10-K. This presentation 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 April 30, 2014 for a reconciliation of certain non-GAAP measures presented in this presentation. 2 © 2014 Broadwind Energy, Inc. All rights reserved. 4/30/2014

Q1 2014 Highlights Business Highlights Revenue of $58.8M, up 29% from Q1 2013 Gross profit margin* of 9.1%, up 330 bp from Q1 2013 Operating loss reduced to $1.0M, from $4.5M in Q1 2013 EPS loss of $.07, improvement of $.25 per share from Q1 2013 Adj. EBITDA of $2.8M, more than double Q1 2013 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 3 * Excluding Restructuring

Orders and Backlog 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 4 Orders – $M Pause in wind tower orders following surge in 2013; industrial weldment orders of $3.9M, primarily for 1 large customer Gearing orders down due to absence of large wind replacement gearing order in Q1 2013, partly offset by increased industrial orders Services ahead of Q1 2013, which included cancellation of a large drivetrain assembly project Order Backlog – $M Q1 2014 ending backlog of $267M Q1 2014 backlog up 58% from Q1 2013 ~90% of 2014 revenue shipped or in backlog at 3/31/14 Q1 2013 Q1 2014 Towers 80.5 3.9 Gears 11.7 8.3 Services (0.3) 3.6 Total 91.9 15.8

U.S. Wind Market Forecast – Long Term Bull Case PTC phase-out Natural gas prices increase to $6-7/MMBtu by 2018 3% reduction in levelized cost of wind energy Wind in RPS compliance increases 10.2 pp Electricity demand CAGR = 1.5%/year 65 GW of coal capacity retired 4 GW of wind capacity installed offshore Broadwind established as a strong player – despite PTC political uncertainty Bear Case PTC not renewed Natural gas prices $4-5/MMBtu through 2020 1% reduction in levelized cost of wind energy Wind in RPS compliance decreases 8.5 pp Electricity demand CAGR = 0.8%/year 35 GW of coal capacity retired 1.3 GW of wind capacity installed offshore 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 5 Source: MAKE Consulting March 11, 2014

Natural Gas Driven Infrastructure 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 6 $110B investment by chemical manufacturers and refineries 79 identified projects underway Large infrastructure components with a high % of industrial weldment work Broadwind developing relationships with EPC firms Investing in infrastructure to support weldments product line Nitrogen separation Liquid separation

Gearing Update 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 7 What Went Well Improved productivity by 7 pp from year-end Defect rate lower by 2 pp Gear manufacturer M&A activity generating some new opportunities with new customers Inventory reduced $3.0M from prior year Opportunities for Improvement On-time delivery slightly worse from year-end Qualification orders from new sales reps taking longer with new customers Labor negotiations underway Equipment downtime higher than previous quarter

Consolidated Financial Results 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 8 Q1 2014 Comments Sales up 29% from Q1 2013 – Towers and Weldments up 62% over prior year, partly offset by challenges in Gearing and Services Gross margin (ex. restructuring) up 330 bp from Q1 2013 – improved tower throughput and mix, higher volume Operating expense down $.6 million from Q1 2013; lower insurance, intangible amortization, sales and marketing, partly offset by higher professional fees Operating loss reduced to $1.0M from $4.5M, driven by Towers and Weldments segment Per share loss of $.07 significantly ahead of Q1 2013 $M, except per share data 2013 2014 Revenue-$M 45.5 $ 58.8 $ Gross Profit-$M 2.2 5.1 -% (ex. Restructuring) 5.8% 9.1% Operating Expense-$M 6.7 6.1 -% (ex. Restructuring) 13.3% 10.2% Operating Loss-$M (4.5) (1.0) Net Income (loss), Continuing-$M (4.5) (1.0) Adj. EBITDA-$M 1.3 2.8 EPS, Continuing (0.32) (0.07) Q1

Towers and Weldments 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 9 First Quarter 2014 Highlights Tower volume increased 50% compared to weak Q1 2013 Short-term reduction in industrial weldment revenue from large mining customer Q1 2014 productivity increase from process improvements and simplified mix $700K in professional fees related to 2013 accounting investigation booked in current quarter Operating profit more than doubled due to higher volumes, improved sourcing and favorable mix Q1 2013 2014 Towers 72 108 Sections 284 352 Revenue-$M 29.9 48.3 Towers 26.0 46.7 Weldments 3.9 1.6 EBITDA-$M 3.5 6.7 Op. Income-$M 2.2 5.6 Op. Margin 7.2% 11.6%

Gearing 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 10 First Quarter 2014 Highlights Revenue affected by operational inefficiencies EBITDA down due to lower volumes Operating loss flat despite 18% reduction in revenue; lower non-cash charges and restructuring and focus on expense management Plant consolidation ~ 95% complete; 4 key machines remaining to be moved 16 new customers placed qualifying orders totaling $450K Sales force staff up 50% from 2013 level 2013 2014 Revenue-$M 10.7 8.8 EBITDA-$M 0.0 (0.8) Op. Loss-$M (3.0) (3.0) Op. Margin -27.8% -33.8% Q1

Services 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 11 First Quarter 2014 Highlights Industry recovering – quoting activity up; orders up 51% from Q4 2013 Revenue down 67% from Q1 2013 – lower industrial drivetrain assembly work, partly offset by higher demand for blade repair work Operating loss worse due to lower revenue, partly offset by reductions in manufacturing space and other cost-containment efforts Q1 2013 2014 Revenue-$M 7.5 2.4 EBITDA-$M (0.0) (0.9) Op. Loss-$M (0.7) (1.3) Op. Margin -9.4% -54.9%

Operating Working Capital 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 12 3/31/14 operating working capital increased $14M from 12/31/13 to $19.6M 8% of annualized Q1 2014 sales Similar level of working capital projected throughout 2014; supply chain lengthening and deposits decreasing *Operating Working Capital = Trade Receivables + Inventories – Trade Payables – Customer Deposits

Debt and Liquidity 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 13 Net debt negative Debt and capital leases less than $5M More than half of outstanding debt is low or 0% interest rates from New Markets Tax Credit and other grant financing $20M credit line remained undrawn at 3/31/14 3/31/2014 $M AloStar line of credit - Long-term debt - Capital leases 1.9 Subtotal: debt ex. grants 1.9 Grants/tax credits 2.8 Total Debt 4.7 Less: Cash and related assets 11.5 Net Debt (6.8)

2014 Financial Outlook 4/30/2014 © 2014 Broadwind Energy, Inc. All rights reserved. 14 2014 EPS Walk Q1 and Q4 are typically the weakest quarters 2014 revenue growth mainly from Towers Projecting to cross into profitability in Q2: first time in company history FY 2010 FY 2011 FY 2012 FY 2013 2014 E Q2 14 Q2 13 Revenue-$M 137.0 186.0 210.7 215.7 260-270 > 70 52.9 Gross Profit-$M 1.9 7.2 6.8 12.3 3.4 -% (ex. Restructuring) 1.4% 3.9% 4.0% 8.0% > 10% > 10% 8.7% Operating Expense-$M 30.4 27.6 24.1 25.6 5.9 -% (ex. Restructuring) 22.2% 14.6% 11.1% 11.3% < 10% < 10% 10.9% Impairment Exp. -$M 40.8 0 Operating Profit (Loss)-$M (69.2) (20.4) (17.3) (13.2) positive 1.5-2.5 (2.5) Adj. EBITDA-$M (9.2) (2.1) 5.5 10.3 > 16 5.0-6.0 3.5 EPS, Continuing - $ (6.56) (1.79) (1.27) (0.72) positive .10-.15 0.03

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