Latest news with #BWEN
Yahoo
17 hours ago
- Business
- Yahoo
Here's Why Hold Strategy is Apt for Kennametal Stock Right Now
Kennametal Inc. KMT is witnessing several positive trends that hold promise for its long-term growth. This includes an increase in U.S. and international defense spending volumes and digitalization. Also, improved supply chain and increasing original equipment manufacturer build rates in the aerospace market bode well. For fiscal 2025, the company expects revenues from the aerospace & defense markets to increase on a year-over-year company remains focused on strategic partnerships and investing in manufacturing facilities to boost growth. For instance, in May 2025, KMT invested in Toolpath Labs, an emerging leader in AI-powered computer-aided manufacturing (CAM) software. The collaboration will enable Kennametal to expand its suite of digital capabilities and offerings for its manufacturing customers also remains committed to rewarding its shareholders through dividend payments and share buybacks. In the first nine months of fiscal 2025, it distributed dividends worth $46.6 million to its shareholders and bought back shares for $55.1 million. Also. in fiscal 2024, Kennametal distributed dividends worth $63.4 million and repurchased shares worth $65.4 million. In February 2024, KMT's board of directors authorized a repurchase program worth $200 million, which is valid for three years. Since the inception of the program, the company has repurchased 55 million shares. Image Source: Zacks Investment Research In the past month, this Zacks Rank #3 (Hold) company's shares have gained 9.3% compared with the industry's 10.5% the positives, decrease in demand across the transportation end market, owing to lower volumes and project activity, is affecting the Metal Cutting segment's organic revenues (which decreased 4% year over year in the third quarter of fiscal 2025). Also, weakness in the general engineering end market due to lower industrial production, along with lower U.S. land rig count in the energy end market, is ailing the lackluster performance of the Infrastructure segment owing to weakness in the general engineering end market is another concern. There has been a particular softness in the earth works end market due to lower mining activity in the Americas and Asia Pacific regions. The segment's organic revenues declined 2% year over year in the fiscal third quarter. Some better-ranked stocks from the same space are discussed Signal Corporation FSS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks delivered a trailing four-quarter average earnings surprise of 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal's 2025 earnings has increased 1.6%.Broadwind, Inc. BWEN presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 61.1%.In the past 60 days, the consensus estimate for BWEN's 2025 earnings has increased 14.3%.The Gorman-Rupp Company GRC presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 2.4%.The Zacks Consensus Estimate for GRC's 2025 earnings has increased by a penny in the past 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kennametal Inc. (KMT) : Free Stock Analysis Report Gorman-Rupp Company (The) (GRC) : Free Stock Analysis Report Federal Signal Corporation (FSS) : Free Stock Analysis Report Broadwind Energy, Inc. (BWEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
Broadwind Announces Sale of Industrial Fabrication Operations in Manitowoc, Wisconsin
Divestiture of the Manitowoc, WI facility optimizes asset base and improves operating leverage Further diversifies BWEN's business toward higher-margin precision manufacturing segments Significantly enhances liquidity, while reducing net leverage and supporting capital deployment priorities CICERO, Ill., June 04, 2025 (GLOBE NEWSWIRE) -- Broadwind (Nasdaq: BWEN, or the 'Company'), a diversified precision manufacturer of specialized components and equipment serving global markets, today announced that it has entered into a definitive agreement to sell its industrial fabrication operations in Manitowoc, WI for total consideration of not less than $13 million. This transaction is expected to close during the third quarter 2025, subject to the satisfaction of customary closing conditions. 'This transaction represents a meaningful step forward in optimizing our footprint, enhancing balance sheet optionality, and sharpening our strategic focus within stable, higher-margin precision manufacturing verticals,' stated Eric Blashford, President and CEO of Broadwind. 'By consolidating our operations, we expect to materially improve our overall utilization across our remaining operations, while reducing annualized operating costs by approximately $8 million upon closing of the transaction.' 'This transaction supports our continued strategic diversification in precision manufacturing toward other key power generation and infrastructure markets,' said Blashford. 'At the same time, we remain committed to serving our key wind customers while consolidating production into our most competitive facility.' 'At the close of this transaction, our capital allocation strategy will prioritize debt repayment and complementary acquisitions providing diversification into high-value, high growth adjacencies, together with other value-enhancing actions,' stated Blashford. 'We look forward to ensuring a seamless transition of the facility and operations in Manitowoc.' STRATEGIC RATIONALE Optimizes asset base. In 2024, the Manitowoc facility generated approximately $25 million in revenue. The Company expects to transition roughly $8 million of wind-related revenue to its Abilene, TX facility. By moving the remaining wind repowering and pressure reducing systems (PRS) volume from Manitowoc, where margins were approximately 8-9%, the Company anticipates it will materially improve utilization rates and enhance operating leverage. Diversifies toward precision manufacturing in other key power generation and infrastructure end-markets. The Company continues to reduce its exposure to wind by redeploying underutilized assets into non-wind precision manufacturing. Investments in advanced machinery, and quality certifications have positioned Broadwind to support higher volumes in the Gearing and Industrial Solutions segments. On a proforma 2024 basis, revenue would have been approximately $125 million, with 52% from Heavy Fabrications, 28% from Gearing, and 20% from Industrial Solutions. Enhances balance sheet flexibility. As of March 31, 2025, Broadwind had total cash and net debt outstanding of $1.2 million and $16.7 million, respectively. Pro-forma for the closing of the transaction, total cash would have increased to $9.4 million with net debt of $3.7 million. ABOUT BROADWIND Broadwind (Nasdaq: BWEN) is a precision manufacturer of structures, equipment and components for clean tech and other specialized applications. With facilities throughout the U.S., our talented team is committed to helping customers maximize performance of their investments—quicker, easier and smarter. Find out more at NON-GAAP FINANCIAL MEASURES The Company provides non-GAAP adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, share-based compensation and other stock payments, restructuring costs, impairment charges, proxy contest-related expenses and other non-cash gains and losses) as supplemental information regarding the Company's business performance. The Company's management uses this supplemental information when it internally evaluates its performance, reviews financial trends and makes operating and strategic decisions. The Company believes that this non-GAAP financial measure is useful to investors because it provides investors with a better understanding of the Company's past financial performance and future results, which allows investors to evaluate the Company's performance using the same methodology and information as used by the Company's management. The Company's definition of adjusted EBITDA may be different from similar non-GAAP financial measures used by other companies and/or analysts. FORWARD-LOOKING STATEMENTS This release contains 'forward-looking statements'—that is, statements related to future, not past, events—as defined in Section 21E of the Securities Exchange Act of 1934, as amended, (the 'Exchange Act'), that reflect our current expectations regarding our future growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities, as well as assumptions made by, and information currently available to, our management. We have tried to identify forward-looking statements by using words such as 'anticipate,' 'believe,' 'expect,' 'intend,' 'will,' 'should,' 'may,' 'plan' and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements include any statement that does not directly relate to a current or historical fact. Our forward-looking statements may include or relate to our beliefs, expectations, plans and/or assumptions with respect to the following: (i) our expectations and beliefs with respect to our financial guidance; (ii) the impact of global health concerns on the economies and financial markets and the demand for our products; (iii) state, local and federal regulatory frameworks affecting the industries in which we compete, including the wind energy industry, and the related extension, continuation or renewal of federal tax incentives and grants, including the advanced manufacturing tax credits and state renewable portfolio standards as well as new or continuing tariffs on steel or other products imported into the United States; (iv) our customer relationships and our substantial dependency on a few significant customers and our efforts to diversify our customer base and sector focus and leverage relationships across business units; (v) our ability to operate our business efficiently, comply with our debt obligations, manage capital expenditures and costs effectively, and generate cash flow; (vi) the economic and operational stability of our significant customers and suppliers, including their respective supply chains, and the ability to source alternative suppliers as necessary; (vii) our ability to continue to grow our business organically and through acquisitions; (viii) the production, sales, collections, customer deposits and revenues generated by new customer orders and our ability to realize the resulting cash flows; (ix) information technology failures, network disruptions, cybersecurity attacks or breaches in data security; (x) the sufficiency of our liquidity and alternate sources of funding, if necessary; (xi) our ability to realize revenue from customer orders and backlog (including our ability to finalize the terms of the remaining obligations under a supply agreement with a leading global wind turbine manufacturer); (xii) the economy and the potential impact it may have on our business, including our customers; (xiii) the state of the wind energy market and other energy and industrial markets generally, including the availability of tax credits, and the impact of competition and economic volatility in those markets; (xiv) the effects of market disruptions and regular market volatility, including fluctuations in the price of oil, gas and other commodities; (xv) competition from new or existing industry participants including, in particular, increased competition from foreign tower manufacturers; (xvi) the effects of the change of administrations in the U.S. federal government; (xvii) our ability to successfully integrate and operate acquired companies and to identify, negotiate and execute future acquisitions; (xviii) the potential loss of tax benefits if we experience an 'ownership change' under Section 382 of the Internal Revenue Code of 1986, as amended; (xix) the effects of proxy contests and actions of activist stockholders; (xx) the limited trading market for our securities and the volatility of market price for our securities; (xxi) our outstanding indebtedness and its impact on our business activities (including our ability to incur additional debt in the future); and (xxii) the impact of future sales of our common stock or securities convertible into our common stock on our stock price. These statements are based on information currently available to us and are subject to various risks, uncertainties and other factors that could cause our actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities to differ materially from those expressed in, or implied by, these statements including, but not limited to, those set forth under the caption 'Risk Factors' in Part I, Item 1A of our most recently filed Form 10-K. We are under no duty to update any of these statements. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or other factors that could cause our current beliefs, expectations, plans and/or assumptions to change. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. CONTACT: IR CONTACT Stefan Neely or Noel Ryan BWEN@
Yahoo
3 days ago
- Business
- Yahoo
Donaldson Rewards Shareholders With 11.1% Dividend Increase
In a shareholder-friendly move, Donaldson Company, Inc. DCI has announced a hike in its dividend payout. The company increased its quarterly dividend by 11.1% to 30 cents per share (annually: $1.20). The new dividend will be paid out on June 30, 2025, to shareholders of record as of June move underscores DCI's sound financial health as it utilizes free cash flow to enhance its shareholders' returns. This marks Donaldson's 29th consecutive year of annual dividend increase. It has been paying dividends every quarter for the last 69 years. Prior to this, it had hiked its dividend by 8% to 27 cents per share in May cash flows allow Donaldson to effectively deploy capital for making acquisitions, repurchasing shares and paying out dividends. Dividend payments totaled $64.6 million in the first six months of fiscal 2025 (ended January 2025) and $122.8 million in fiscal 2024 (ended July 2024). The company bought back shares worth $81.6 million in the first six months of fiscal 2025 and $162.7 million in fiscal 2024. We believe such disbursements highlight the company's operational strength and commitment to enhancing shareholders' wealth. Donaldson is benefiting from higher volume in the aftermarket business, driven by positive market trends and the impact of expanded market share within the Mobile Solutions segment. Persistent strength in the aerospace and defense business is aiding DCI's Industrial Solutions the year-to-date period, this Zacks Rank #3 (Hold) company's shares have gained 3.3% against the industry's 6.4% decline. Image Source: Zacks Investment Research However, DCI has been dealing with the adverse impacts of high selling, general and administrative expenses. Given the company's diverse presence, forex woes are concerning as well. Some better-ranked companies are discussed below:Crown Holdings, Inc. CCK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks delivered a trailing four-quarter average earnings surprise of 16.3%. In the past 60 days, the Zacks Consensus Estimate for Crown Holdings' 2025 earnings has increased 3.8%.Broadwind, Inc. BWEN presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 61.1%.In the past 60 days, the consensus estimate for BWEN's 2025 earnings has increased 14.3%.Tetra Tech, Inc. TTEK presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 3.8%.The Zacks Consensus Estimate for TTEK's fiscal 2025 earnings has increased 7.3% in the past 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tetra Tech, Inc. (TTEK) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report Donaldson Company, Inc. (DCI) : Free Stock Analysis Report Broadwind Energy, Inc. (BWEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
7 days ago
- Business
- Yahoo
Despite Fast-paced Momentum, Broadwind Energy (BWEN) Is Still a Bargain Stock
Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times. A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. There are several stocks that currently pass through the screen and Broadwind Energy, Inc. (BWEN) is one of them. Here are the key reasons why this stock is a great candidate. A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 9.2%, the stock of this company is certainly well-positioned in this regard. While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. BWEN meets this criterion too, as the stock gained 7.1% over the past 12 weeks. Moreover, the momentum for BWEN is fast paced, as the stock currently has a beta of 1.61. This indicates that the stock moves 61% higher than the market in either direction. Given this price performance, it is no surprise that BWEN has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped BWEN earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, BWEN is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. BWEN is currently trading at 0.27 times its sales. In other words, investors need to pay only 27 cents for each dollar of sales. So, BWEN appears to have plenty of room to run, and that too at a fast pace. In addition to BWEN, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadwind Energy, Inc. (BWEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Is It Worth Investing in Broadwind Energy (BWEN) Based on Wall Street's Bullish Views?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Broadwind Energy, Inc. (BWEN) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Broadwind Energy currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by four brokerage firms. An ABR of 1.00 indicates Strong Buy. Of the four recommendations that derive the current ABR, four are Strong Buy, representing 100% of all recommendations. Check price target & stock forecast for Broadwind Energy here>>>While the ABR calls for buying Broadwind Energy, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Broadwind Energy, the Zacks Consensus Estimate for the current year has increased 23.1% over the past month to $0.08. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Broadwind Energy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Broadwind Energy may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadwind Energy, Inc. (BWEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
