BROADWIND, INC.

(Dollars are presented in thousands, except share, per share and per employee data or unless otherwise stated)

NOTE1 — BASIS OF PRESENTATION

The unaudited condensed consolidated financial statements presented herein include the accounts of Broadwind, Inc. (the “Company”) and its wholly-owned subsidiaries Broadwind Heavy Fabrications, Inc. (“Broadwind Heavy Fabrications”), Brad Foote Gear Works, Inc. (“Brad Foote”) and Broadwind Industrial Solutions, LLC (“Broadwind Industrial Solutions”). All intercompany transactions and balances have been eliminated. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form10-Q and Article10 of Regulation S-X. Accordingly, the financial statements donot include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included.

Operating results for thethree andsix months ended* June 30, 2025* arenot necessarily indicative of the results that* maybe expected for thetwelve* months ending* December 31, 2025,or any other interim period, which maydiffer materially due to, among other things, the risk factors set forth in our Annual Report on Form10*-K for the year ended* December 31, 2024* and in Part II, Item1A of this Quarterly Report on Form10-Q.

The* December 31, 2024* condensed consolidated balance sheet was derived from audited financial statements, but doesnot include all disclosures required by GAAP. This financial information should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form10-K for the year ended* December 31, 2024*.

There have beenno material changes in the Company’s significant accounting policies during thesix months ended* June 30, 2025* as compared to the significant accounting policies described in the Company’s Annual Report on Form10-K for the year ended* December 31, 2024*.

Company Description

Through its subsidiaries, the Company is a precision manufacturer of structures, equipment and components for clean technology and other specialized applications. The Company provides technologically advanced high value products to customers with complex systems and stringent quality standards that operate in energy, mining and infrastructure sectors, primarily in the United States of America (the “U.S.”). The Company’s capabilities include, but arenot limited to, the following: heavy fabrications, welding, metal rolling, coatings, gear cutting and shaping, gearbox manufacturing and repair, heat treatment, precision machining, assembly, engineering and packaging solutions. The Company’s most significant presence is within the U.S. wind energy industry, which accounted for 52% and 40% of the Company’s revenue during thefirst six months of2025 and2024, respectively.

Liquidity

The Company typically meets its short term liquidity needs through cash generated from operations, its available cash balances, the2022 Credit Facility (as defined below), equipment financing, access to the public and private debt and/or equity markets, and has the option to raise capital from the sale of the Company’s securities under the Company’s registration statement on Form S-3 (as discussed below), and proceeds from any sales of Advanced Manufacturing Production tax credits (“AMP credits”) (discussed in Note6 “AMP Credits” of these condensed consolidated financial statements).

See Note9, “Debt and Credit Agreements,” of these condensed consolidated financial statements for a description of the2022 Credit Facility and the Company’s other debt.

Debt and finance lease obligations at* June 30, 2025* totaled $31,423, which includes current outstanding debt and finance leases totaling $21,328. The Company’s outstanding debt includes $7,037** *outstanding from the senior secured term loan under the2022 Credit Facility. During thesix months ended June 30, 2025,the Company borrowed on the revolving line of credit and repaid a portion of such borrowings during the period. The Company had $17,634 drawn on the revolving line of credit as of June 30, 2025.*The Company’s revolving line of credit balance, if any, is included in the “Line of credit and current maturities of long-term debt” line item in the Company’s condensed consolidated balance sheet.

On* September 22, 2023,the Company filed a shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (the “SEC”) on October 12, 2023 (the “Form S-3”), replacing a prior shelf registration statement which expired on October 12, 2023.The Form S-3 will expire on October 12, 2026.This shelf registration statement, which includes a base prospectus, allows the Company to offer any combination of securities described in the prospectus inone* or more offerings. Unless otherwise specified in the prospectus supplement accompanying the base prospectus, the Company would use the net proceeds from the sale of any securities offered pursuant to the shelf registration statement for general corporate purposes.

On* September 12, 2022,the Company entered into a Sales Agreement (the “Sales Agreement”) with Roth Capital Partners, LLC and HC Wainwright & Co., LLC (collectively, the “Agents”). Pursuant to the terms of the Sales Agreement, the Company maysell from time to time through the Agents shares of the Company’s common stock, par value $0.001 per share with an aggregate sales price of up to $12,000. The Company will pay a commission to the Agents of 2.75% of the gross proceeds of the sale of the shares sold under the Sales Agreement and reimburse the Agents for the expenses incident to the performance of their obligations under the Sales Agreement.No shares of the Company’s common stock were issued under the Sales Agreement during the year ended December**31,* 2024 or during thesix months ended* June 30, 2025.As of June 30, 2025,shares of the Company’s common stock having a value of approximately $11,667 remained available for issuance under the Sales Agreement. Any additional shares offered and sold under the Sales Agreement are to be issued pursuant to the Form S-3 and a424*(b) prospectus supplement.

5

The Company also utilizes supply chain financing arrangements as a component of its funding for working capital, which accelerates receivable collections and helps to better manage cash flow. Under these agreements, the Company has agreed to sell certain of its accounts receivable balances to banking institutions who have agreed to advance amounts equal to the net accounts receivable balances due, less a discount as set forth in the respective agreements. The balances under these agreements are accounted for as sales of accounts receivable, as they are sold without recourse. Cash proceeds from these agreements are reflected as operating activities included in the change in accounts receivable in the Company’s consolidated statements of cash flows. Fees incurred in connection with the agreements are recorded as interest expense by the Company.

During thethree andsix months ended* June 30, 2025,the Company sold account receivables totaling $13,111 and $21,952, respectively,* related to supply chain financing arrangements, of which customers’ financial institutions applied discount fees totaling $299 and $498, respectively. During thethree andsix months ended June 30, 2024,the Company sold account receivables totaling $13,234 and $20,039, respectively, related to supply chain financing arrangements, of which customers’ financial institutions applied discount fees totaling $352 **and $516, respectively.

The Company anticipates that current cash resources, amounts available under the2022 Credit Facility, sales of shares under the Sales Agreement, cash to be generated from operations and equipment financing, access to the public and private debt and/or equity markets, any potential proceeds from the sale of further Company securities under the Form S-3, and proceeds from sales of AMP credits will be adequate to meet the Company’s liquidity needs for at least the nexttwelve months.

If assumptions regarding the Company’s production, sales and subsequent collections from certain of the Company’s large customers, the Company’s ability to finalize the terms of the remaining obligations under a supply agreement with a leading global wind turbine manufacturer, as well as receipt of customer deposits and revenues generated from new customer orders, are materially inconsistent with management’s expectations, the Company* may*in the future encounter cash flow and liquidity issues, which could have a material adverse impact on the Company.

If the Company’s operational performance deteriorates, the Company* maybe unable to comply with existing financial covenants, and could lose access to the2022* Credit Facility. This could limit the Company’s operational flexibility, require a delay in making planned investments and/or require us to seek additional equity or debt financing. Any attempt to raise equity through the public markets could have a negative effect on the Company’s stock price, making an equity raise more difficult or more dilutive. Any additional equity financing or equity-linked financing, if available, will be dilutive to stockholders, and additional debt financing, if available, would likely require new financial covenants or impose other operating and financial restrictions on the Company and could be on less favorable terms than the2022 Credit Facility. While management believes that the Company will continue to have sufficient cash available to operate its businesses and to meet the Company’s financial obligations and debt covenants, there can beno assurances that the Company’s operations will generate sufficient cash, or that credit facilities or equity or equity-linked financings will be available in an amount sufficient to enable the Company to meet these financial obligations.

Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation in the condensed consolidated financial statements and the notes to the condensed consolidated financial statements.

Management’s Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reported period. Significant estimates, among others, include inventory reserves, warranty reserves, impairment of long-lived assets, allowance for credit losses, health insurance reserves, and valuation allowances on deferred taxes. Although these estimates are based upon management’s best knowledge of current events and actions that the Company* may*undertake in the future, actual results could differ from these estimates.

NOTE2 — REVENUES

Revenues are recognized when the promised goods or services are transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The following table presents the Company’s revenues disaggregated by revenue source for thethree andsix months ended* June 30, 2025and2024*:

6

Revenue within the Company’s Gearing and Industrial Solutions segments, as well as industrial fabrication product line revenues within the Heavy Fabrications segment, are generally recognized at a point in time, typically when the promised goods or services are physically transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. The Company measures revenue based on the consideration specified in the purchase order and revenue is recognized when the performance obligations are satisfied. If applicable, the transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation.

For substantially all wind sales within the Company’s Heavy Fabrications segment as well as certain sales within our Gearing segment, products are sold under terms included in bill and hold sales arrangements that result in different timing for revenue recognition. The Company recognizes revenue under these arrangements only when there is a substantive reason for the agreement, the ordered goods are identified separately as belonging to the customer andnot available to fill other orders, the goods are currently ready for physical transfer to the customer, and the Company doesnot have the ability to use the product or to direct it to another customer. Assuming these required revenue recognition criteria are met, revenue is recognized upon completion of product manufacture and customer acceptance. During thethree andsix months ended* June 30, 2025,the Company recognized $221* *and $436, respectively, of revenue within the Gearing segment under terms included in bill and hold sales arrangements. During thethree andsix months ended June 30, 2024,*the Company didnot recognize any revenue within the Gearing segment under terms included in bill and hold sales arrangements.

During thesix months ended* June 30,2025 and2024, the Company recognized a portion of revenue within the Heavy Fabrications segment over time, as the products hadno alternative use to the Company and the Company had an enforceable right to payment, including profit, upon termination of the contracts. Because the projects are labor intensive, the Company uses labor hours as the input measure of progress for the applicable contracts. Within the Heavy Fabrications segment, the Company recognized revenue for contracts that meet over time criteria of $2,665* and $3,662 for thethree andsix months ended June 30, 2025,respectively. Within the Heavy Fabrications segment, the Company recognized revenue for contracts that meet over time criteria of $2,067 and $2,347 for thethree andsix months ended June 30, 2024,respectively. Contract assets are recorded when performance obligations are satisfied but the Company isnot yet entitled to payment. Contract assets represent the Company’s rights to consideration for work completed butnot billed at the end of the period.

The Company generally expenses sales commissions when incurred. These costs are recorded within selling, general and administrative expenses. Customer deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in the Company’s statement of operations.

The Company doesnot disclose the value of the unsatisfied performance obligations for contracts with an original expected length ofone year or less.

NOTE3 — NET INCOME PER SHARE

The following table presents a reconciliation of basic and diluted income per share for thethree andsix months ended* June 30, 2025and2024*, as follows:

(1) Restricted stock units granted and outstanding of 897,948 as of June 30, 2025, are excluded from the computation of diluted earnings due to the anti-dilutive effect as a result of the Company’s net loss for the three and six months ended June 30, 2025.

NOTE4 — ASSETS HELD FOR SALE

On* June 4, 2025,the Company entered into a definitive agreement (the “Manitowoc Purchase Agreement”) with Wisconsin Heavy Fabrication, LLC (the “Buyer”) to sell certain assets used in its industrial fabrication operations in Manitowoc, Wisconsin including specified contracts, equipment, machinery and other personal property, and permits for an aggregate purchase price of up to $13,800 in cash, subject to certain purchase price adjustments. The transaction is expected to close during thethird* quarter of2025, subject to the satisfaction of customary closing conditions.

Since the sale is probable within a year and the Company has met all other held for sale accounting criteria, the related assets are reflected as held for sale as of* June 30, 2025.The transaction doesnot* reflect a strategic shift that will have a major effect on operations and financial results, and therefore, didnot qualify for presentation as a discontinued operation. As the transaction is likely to close withinone year, the assets are included in the current assets section of the Company’s condensed consolidated balance sheets as of* June 30, 2025.The results of the industrial fabrication operations in Manitowoc are included within the Heavy Fabrications segment. Assets classified as held for sale consist of the Manitowoc property and equipment and have been recognized at the lower of the carrying value and fair value less costs to sell, which was the carrying value. Depreciation of these assets ceased as of June 4, 2025.*

NOTE5 — INVENTORIES

The components of inventories as of* June 30, 2025* and* December 31, 2024* are summarized as follows:

7

​

NOTE6 — AMP CREDITS

During thethree andsix months ended* June 30, 2025,the Company recognized gross AMP credits totaling $3,132* and $5,904, respectively, within the Heavy Fabrications segment. During thethree andsix months ended June 30, 2024,the Company recognized gross AMP credits totaling $1,848 and $3,720, respectively, within the Heavy Fabrications segment. These AMP credits were introduced as part of the Inflation Reduction Act (“IRA”), which was enacted on August 16, 2022.The IRA includes advanced manufacturing tax credits for manufacturers of eligible components, including wind components. Manufacturers of wind components qualify for the AMP credits based on the total rated capacity, expressed on a per watt basis, of the completed wind turbine for which such component is designed. The credit applies to each component produced and sold in the U.S. beginning in2023 through2032. The One Big Beautiful Bill Act (the “OBBBA”), enacted on* July 4, 2025,eliminates the credit for components produced and sold after2027.* Wind towers within the Company’s Heavy Fabrications segment are eligible for credits of $0.03 per watt for each wind tower produced. In calculating the eligible credit, the Company relied on the megawatt rating provided by the customers. Manufacturers who qualify for the AMP credits can apply to the Internal Revenue Service for cash refunds of the AMP credits, sell the AMP credits tothird parties for cash, or apply the AMP credits against taxable income. The Company recognized the AMP credits as a reduction to cost of sales in the Company’s condensed consolidated statements of operations for thethree andsix months ended* June 30, 2025and June 30, 2024.The assets related to the AMP credits are recognized as current assets in the “AMP credit receivable” line item in the Company’s condensed consolidated balance sheets as of June 30, 2025and December**31,* 2024.

During thesix months ended* June 30, 2025,the Company recognized gross AMP credits totaling $5,904* and recognized a 6.5% discount on the credits totaling $384, which was recognized in cost of sales. The Company also incurred other miscellaneous administrative costs related to the credits in the amount of $52, which have been recorded as cost of sales. Additionally, costs totaling $10 are included in the “Prepaid expenses and other current assets” line item of the Company’s condensed consolidated financial statements at June 30, 2025.

During thesix months ended* June 30, 2024,the Company recognized gross AMP credits totaling $3,720 and recognized a 6.5% discount on the credits totaling $242, which was recognized in cost of sales. The Company also incurred other miscellaneous administrative costs related to the credits in the amount of $65, which have been recorded as cost of sales. Additionally, costs totaling $28 are included in the “Prepaid expenses and other current assets” line item of the Company’s condensed consolidated financial statements at June 30, 2024.*

NOTE7 — INTANGIBLE ASSETS

Intangible assets represent the fair value assigned to definite-lived assets such as trade names and customer relationships as part of the Company’s acquisition of Brad Foote completed in2007 as well as the noncompetition agreements, trade names and customer relationships that were part of the Company’s acquisition of Red Wolf Company, LLC completed in2017. Intangible assets are amortized on a straight-line basis over their estimated useful lives, with a remaining life range from** **1 to 2 years.

As of* June 30, 2025* and* December 31, 2024*, the cost basis, accumulated amortization and net book value of intangible assets were as follows:

​

As of* June 30, 2025*, estimated future amortization expense was as follows:

​

​

NOTE8 — ACCRUED LIABILITIES

Accrued liabilities as of* June 30, 2025* and* December 31, 2024* consisted of the following:

8

NOTE9 — DEBT AND CREDIT AGREEMENTS

The Company’s outstanding debt balances as of* June 30, 2025* and* December 31, 2024* consisted of the following:

Credit Facility

On* August 4, 2022,the Company entered into a credit agreement (the“2022* Credit Agreement”) with Wells Fargo Bank, National Association, as lender (“Wells Fargo”), which replaced its prior credit facility and provided the Company and its subsidiaries with a $35,000 senior secured revolving credit facility (which* maybe further increased by up to an additional $10,000 upon the request of the Company and at the sole discretion of Wells Fargo) and a $7,578 senior secured term loan (collectively, the“2022* Credit Facility”). The proceeds of the2022 Credit Facility are available for general corporate purposes, including strategic growth opportunities. Net deferred financing costs related to the2022 Credit Facility which primarily relate to the revolving credit loan, were $217 at* June 30, 2025,which is net of accumulated amortization of $303. Net deferred financing costs at December 31, 2024were $269, which is net of accumulated amortization of $251. These costs are included in the “Other assets” line item of the Company’s condensed consolidated financial statements at June 30, 2025and December 31, 2024.*

On* February 8, 2023,the Company executed AmendmentNo.* 1 to Credit Agreement and Limited Waiver which waived the Company’sfourth quarter minimum EBITDA (as defined in the2022 Credit Agreement) requirement for the period ended* December 31, 2023,amended the Fixed Charge Coverage Ratio (as defined in the2022* Credit Agreement) requirements for thetwelve-month period ending* January 31, 2024through and including June 30, 2024and eachtwelve*-month period thereafter, and amended the minimum EBITDA requirements applicable to thetwelve-month periods ending* March 31, 2023,** June 30, 2023,** September 30, 2023,and December 31, 2023.*

On* December 19, 2024,the Company executed AmendmentNo.* 2 to Credit Agreement, which (1) increased the outstanding principal amount of the term loan to $7,578 and restarted the 84-month amortization period, and (2) amended the Fixed Charge Coverage Ratio (as defined in the2022 Credit Agreement) from 1.1:1.0 to 1.0:1.0 for eachtwelve-month period ending* January 31, 2024through and including December 31, 2025.*Proceeds from the increased amount of the term loan were used to repay the Company’s indebtedness under its existing revolving line of credit with Wells Fargo and related fees and expenses, thereby allowing for increased availability under the existing revolving line of credit.

The2022 Credit Agreement, as amended, contains customary covenants limiting the Company’s and its subsidiaries’ ability to, among other things, incur liens, make investments, incur indebtedness, merge or consolidate with others or dispose of assets, change the nature of its business, and enter into transactions with affiliates. The initial term of the revolving credit facility matures* August 4, 2027.The term loan also matures on August 4, 2027,*with monthly payments based on an 84-month amortization.

As of* June 30, 2025*, there was $24,671** of outstanding indebtedness under the2022 Credit Facility, with the ability to borrow an additional $13,831. As of June 30, 2025,the Company was in compliance with all financial covenants under the2022 Credit Facility. As of* June 30, 2025,the effective interest rate of the senior secured revolving credit facility was 6.65% and the senior secured term loan was* 6.90%. As of December*31,* 2024, the effective interest rate of the senior secured revolving credit facility was 6.71% and the effective rate of the senior secured term loan was 6.96%.

The Company intends to use a portion of the proceeds from the sale of its operations in Manitowoc, Wisconsin, described in Note4 “Assets Held for Sale”, to repay approximately $1,600 on the outstanding senior secured term loan.

Other

In addition, the Company had outstanding notes payable for capital expenditures in the amount of $1,434** and $1,618 as of June 30, 2025 and* December 31, 2024*, respectively, with $383** and $371 included in the “Line of credit and current maturities of long-term debt” line item of the Company’s condensed consolidated financial statements as of June 30, 2025 and* December 31, 2024*, respectively. The notes payable have monthly payments that range from $1 to $20** and an interest rate of approximately 7%. The equipment purchased is utilized as collateral for the notes payable. The outstanding notes payable have maturity dates that range from *** September2028* to *** June**2029.*

NOTE10 — LEASES

The Company leases certain facilities and equipment. The leases are accounted for under Accounting Standard Update2016-02, Leases (“Topic842”), and the Company elected to apply each available practical expedient. The discount rates used for the leases are based on an interest rate yield curve developed for the leases in the Company’s lease portfolio.

The Company has elected to apply the short-term lease exception to all leases ofone year or less. During thesix months ended* June 30, 2025* and2024, the Company had** additional operating leases that resulted in right-of-use assets obtained in exchange for lease obligations in the amount of $0 and $29, respectively. During thesix months ended June 30, 2025 and2024, the Company had additional finance leases associated with property, plant, and equipment of $0 and $880, respectively.

Some of the Company’s facility leases include options to renew. The exercise of the renewal options is typically at the Company’s discretion. The Company regularly evaluates the renewal options and includes them in the lease term when the Company is reasonably certain to exercise them.

As part of the Manitowoc Purchase Agreement described in Note4 “Assets Held for Sale”, the Company entered into a lease termination agreement with the landlord of the Manitowoc facility and paid a termination fee of $98. In conjunction with the lease termination, the Company reduced the operating lease right-of-use assets and related operating lease obligations to zero. Additionally, the Company recognized a gain in the amount of $238, which represents the difference between the operating lease right-of-use assets of $3,903 and the operating lease obligations of $4,141. The gain, related termination fee, and related closing costs incurred through* June 30, 2025are included in the “Selling, general, and administrative” line item of the Company’s condensed consolidated statements of operations as of June 30, 2025.*

As part of the Manitowoc Purchase Agreement, the Buyer entered into a new lease agreement with the landlord for the Manitowoc facility and the Company entered into a sublease with the Buyer. The term of the sublease commenced on* June 4, 2025,and expires on the earlier of (i) midnight on August 31, 2025, (ii) the date that the Company vacates the facility, or (iii) the termination of the Manitowoc Purchase Agreement. As the term of the sublease is less thanone* year, the Company has elected tonot record the related operating lease right-of-use assets and operating lease liabilities on the Company’s condensed consolidated balance sheets as of* June 30, 2025*and has elected to expense such costs.

In the event that the Buyer’s lease is terminated prior to the closing of the sale, the Company’s leases will be automatically reinstated as of the termination date and the sublease will be terminated as of the termination date. The Company believes that there is low likelihood for the Buyer’s lease to be terminated prior to the closing of the sale.

9

Quantitative information regarding the Company’s leases is as follows:

​

As of* June 30, 2025*, future minimum lease payments under finance leases and operating leases were as follows:

​

​

NOTE11 — FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, which include cash, accounts receivable, accounts payable and customer deposits, approximate their respective fair values due to the relatively short-term nature of these instruments. Based upon interest rates currently available to the Company for debt with similar terms, the carrying value of the Company’s long-term debt is approximately equal to its fair value.

10

The Company is required to provide disclosure and categorize assets and liabilities measured at fair value intoone ofthree different levels depending on the assumptions (i.e., inputs) used in the valuation. Level1 provides the most reliable measure of fair value while Level3 generally requires significant management judgment. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. Financial instruments are assessed quarterly to determine the appropriate classification within the fair value hierarchy. Transfers between fair value classifications are made based upon the nature and type of the observable inputs. The fair value hierarchy is defined as follows:

Level1 — Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

Level2 — Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that arenot active for which significant inputs are observable, either directly or indirectly.

Level3 — Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date.

NOTE12 — INCOME TAXES

Effective tax rates differ from federal statutory income tax rates primarily due to changes in the Company’s valuation allowance, permanent differences and provisions for state and local income taxes. As of* June 30, 2025*, the Company has a full valuation allowance recorded against deferred tax assets. During thesix months ended* June 30, 2025*, the Company recorded a provision for income taxes of $69, compared to a provision for income taxes of $92** during thesix months ended June 30, 2024. On* August 16, 2022,Congress enacted the IRA which includes advanced manufacturing tax credits for manufacturers of eligible components, including wind components produced and sold in the U.S. beginning in2023* through2032. The OBBBA, enacted on* July 4, 2025,eliminates the credit for components produced and sold after2027.*** **These credits will haveno impact on income tax expense.

The Company files income tax returns in U.S. federal and state jurisdictions. As of* June 30, 2025*, open tax years in federal and some state jurisdictions date back to1996 due to the taxing authorities’ ability to adjust operating loss carryforwards. As of* December 31, 2024*, the Company had federal and unapportioned state net operating loss (“NOL”) carryforwards of $295,198 of which $227,781 will generally begin to expire in2026. The majority of the NOL carryforwards will expire in various years from2028 through2037. NOLs generated after* January 1, 2018willnot* expire.

Since the Company hasno unrecognized tax benefits, they willnot have an impact on the condensed consolidated financial statements as a result of the expiration of the applicable statues of limitations within the nexttwelve months. In addition, Section382 of the Internal Revenue Code of1986, as amended (the “IRC”), generally imposes an annual limitation on the amount of NOL carryforwards and associated built-in losses that* maybe used to offset taxable income when a corporation has undergone certain changes in stock ownership. The Company’s ability to utilize NOL carryforwards and built-in losses maybe limited, under Section382* of the IRC or otherwise, by the Company’s issuance of common stock or by other changes in stock ownership. Upon completion of the Company’s analysis of Section382 of the IRC in2010, the Company determined that aggregate changes in stock ownership triggered an annual limitation on NOL carryforwards and built-in losses available for utilization, thereby currently limiting annual NOL usage to $14,284 per year. Further limitations* may*occur, depending on additional future changes in stock ownership. To the extent the Company’s use of NOL carryforwards and associated built-in losses is significantly limited in the future, the Company’s income could be subject to U.S. corporate income tax earlier than it would be if the Company were able to use NOL carryforwards and built-in losses without such limitation, which could result in lower profits and the loss of benefits from these attributes.

In* February 2013,the Company adopted a Stockholder Rights Plan, which was approved by the Company’s stockholders and extended in2016,* 2019, 2022, and2025 for additionalthree-year periods (as amended, the “Rights Plan”), designed to preserve the Company’s substantial tax assets associated with NOL carryforwards under Section382 of the IRC.

The Rights Plan is intended to act as a deterrent to any person or group, together with its affiliates and associates, becoming the beneficial owner of 4.9% or more of the Company’s common stock and thereby triggering a further limitation of the Company’s available NOL carryforwards. In connection with the adoption of the Rights Plan, the Board declared a non-taxable dividend ofone preferred share purchase right (a “Right”) for each outstanding share of the Company’s common stock to the Company’s stockholders of record as of the close of business on* February22,* 2013. Each Right entitles its holder to purchase from the Companyone one-thousandth of a share of the Company’s Series A Junior Participating Preferred Stock at an exercise price of $7.70 per Right, subject to adjustment. As a result of the Rights Plan, any person or group that acquires beneficial ownership of 4.9% or more of the Company’s common stock without the approval of the Board would be subject to significant dilution in the ownership interest of that person or group. Stockholders who owned 4.9% or more of the outstanding shares of the Company’s common stock as of* February12,* 2013 willnot trigger the preferred share purchase rights unless they acquire additional shares after that date.

As of* June 30, 2025*, the Company hadno unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense. The Company hadno accrued interest and penalties as of* June 30, 2025*.

11

NOTE13 — SHARE-BASED COMPENSATION

​

There wasno stock option activity during thesix months ended* June 30, 2025* and* June 30, 2024andno stock options were outstanding as of June 30, 2025* or* June 30, 2024.*

The following table summarizes the Company’s restricted stock unit and performance award activity during thesix months ended* June 30, 2025*:

Under certain situations, shares are withheld from issuance to cover taxes for the vesting of restricted stock units and performance awards. For thesix months ended* June 30, 2025and2024,*** 169,390 **and 46,668 shares, respectively, were withheld to cover tax obligations.

The following table summarizes share-based compensation expense included in the Company’s condensed consolidated statements of operations for thesix months ended* June 30, 2025and2024*, as follows:

NOTE14 — LEGAL PROCEEDINGS AND OTHER MATTERS

Legal Proceedings

The Company is party to a variety of legal proceedings that arise in the normal course of its business. On an ongoing basis, the Company is often the subject of, or party to, various legal claims by other parties against the Company, by the Company against other parties, or involving the Company, which arise in the normal course of its business. While the results of these legal proceedings or claims cannot be predicted with certainty, management believes that the final outcome of these proceedings or claims willnot have a material adverse effect, individually or in the aggregate, on the Company’s results of operations, financial condition or cash flows. Due to the inherent uncertainty of litigation, there can beno assurance that the resolution of any particular claim or proceeding wouldnot have a material adverse effect on the Company’s results of operations, financial condition or cash flows. It is possible that ifone or more of such matters were decided against the Company, the effects could be materially adverse to the Company, including to its results of operations in the period in which the Company would be required to record or adjust the related liability and to the Company’s financial condition and cash flows in the periods the Company would be required to pay such liability.

12

NOTE15 — RECENT ACCOUNTING PRONOUNCEMENTS

The Company reviews new accounting standards as issued. Although some of the accounting standards issued or effective in the current fiscal year* maybe applicable to it, the Company believes thatnone* of the new standards have a significant impact on its condensed consolidated financial statements.

In* November 2023,the Financial Accounting Standards Board issued Accounting Standards UpdateNo.* 2023-07, “Segment Reporting (Topic280): Improvements to Reportable Segment Disclosures”, which requires additional disclosure of significant segment expenses on an annual and interim basis. This guidance will be applied retrospectively and will be effective for the annual periods beginning the year ended* December 31, 2024,and for interim periods beginning January 1, 2025.The Company adopted this guidance for the year ended December 31, 2024.Refer to Note16* “Segment Reporting” of these condensed consolidated financial statements for the additional disclosures applied on a retrospective basis.

In* December 2023,the Financial Accounting Standards Board issued Accounting Standards UpdateNo.* 2023-09, “Income Taxes (Topic740): Improvements to Income Tax Disclosures,” which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This guidance will be effective for the annual periods beginning the year ended* December 31, 2025.The Company doesnot* expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements.

In* November 2024,the Financial Accounting Standards Board issued Accounting Standards UpdateNo.* 2024-03,“Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic220-40): Disaggregation of Incomes Statement Expenses,” which serves to improve the disclosures about a public business entity’s expenses by requiring more detailed information about the types of expenses in commonly presented expense captions. This guidance will be effective for annual periods beginning after* December 15, 2026.*The Company is currently evaluating the impact that the updated guidance will have on its consolidated financial statements.

NOTE16— SEGMENT REPORTING

The Company is organized into reporting segments based on the nature of the products offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker (“CODM”). The Company’s CODM has been identified as the Chief Executive Officer and President, who reviews operating income by segment in relation to total operating income to make decisions about allocating resources and assessing performance.

The Company’s segments and their product and service offerings are summarized below:

Heavy Fabrications

The Company provides large, complex and precision fabrications to customers in a broad range of industrial markets. The Company’s most significant presence is within the U.S. wind energy industry, although it has diversified into other industrial markets in order to improve capacity utilization, reduce customer concentrations, and reduce exposure to uncertainty related to governmental policies currently impacting the U.S. wind energy industry. Within the U.S. wind energy industry, the Company provides steel towers and repowering adapters primarily to wind turbine manufacturers. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic wind energy and equipment manufacturing hubs. Thetwo facilities have a combined annual tower production capacity of up to approximately 550 towers (1,650 tower sections), sufficient to support turbines generating more than 1.7 GW of power. The Company has expanded its production capabilities and leveraged manufacturing competencies, including welding, lifting capacity and stringent quality practices, into aftermarket and original equipment manufacturer (“OEM”) components utilized in surface and underground mining, construction, material handling, oil and gas (“O&G”) and other infrastructure markets. The Company has designed and manufactures a mobile, modular pressure reducing system for the compressed natural gas virtual pipeline market. The Company manufactures components for buckets, shovels, car bodies, drill masts and other products that support mining and construction markets. In other industrial markets, the Company provides crane components, pressure vessels, frames and other structures.

Gearing

The Company provides gearing, gearboxes and precision machined components to a broad set of customers in diverse markets including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, defense, and other industrial markets. The Company has manufactured loose gearing, gearboxes and systems, and provided heat treat services for aftermarket and OEM applications for a century. The Company uses an integrated manufacturing process, which includes machining and finishing processes in addition to gearbox repair in Cicero, Illinois, and heat treatment and gearbox repair in Neville Island, Pennsylvania.

Industrial Solutions

The Company provides supply chain solutions, light fabrication, inventory management and kitting and assembly services, primarily serving the combined cycle natural gas turbine market. The Company has recently expanded into the U.S. wind power generation market, by providing tower internals kitting solutions for on-site installations, as OEMs domesticate their supply chain due to lead time and reliability issues. The Company leverages a global supply chain to provide instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, and electromechanical devices. The Company also provides packaging solutions and fabricates panels and sub-assemblies to reduce customers’ costs and improve manufacturing velocity and reliability.

13

Corporate

“Corporate” includes the assets and selling, general and administrative expenses of the Company’s corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results.

The accounting policies of the reportable segments are the same as those referenced in Note1, “Basis of Presentation” of these condensed consolidated financial statements. Summary financial information by reportable segment for thethree andsix months ended* June 30, 2025and2024* is as follows:

• Line itemnot deemed a significant expense for this segment (per analysis of Accounting Standards UpdateNo. 2023-07).

(1) All other expenses for each reportable segment primarily consist of:

14

Heavy Fabrications-variable overhead, salaries and benefits, and rent and utilities

** ** ** ** ** ** Gearing-salaries and benefits and rent

Industrial Solutions-direct labor, salaries and benefits, and rent and utilities

Corporate-professional expenses

NOTE17 — COMMITMENTS AND CONTINGENCIES

Environmental Compliance and Remediation Liabilities

The Company’s operations and products are subject to a variety of environmental laws and regulations in the jurisdictions in which the Company operates and sells products governing, among other things, air emissions, wastewater discharges, the use, handling and disposal of hazardous materials, soil and groundwater contamination, employee health and safety, and product content, performance and packaging. Certain environmental laws* mayimpose the entire cost or a portion of the cost of investigating and cleaning up a contaminated site, regardless of fault, upon anyone* or more of a number of parties, including the current or previous owners or operators of the site. These environmental laws also impose liability on any person who arranges for the disposal or treatment of hazardous substances at a contaminated site. Third parties* may*also make claims against owners or operators of sites and users of disposal sites for personal injuries and property damage associated with releases of hazardous substances from those sites.

Allowance for Credit Losses

Beginning* January 1, 2023,*the Company assessed and recorded an allowance for credit losses using the current expected credit loss model. The adjustment for credit losses to management’s current estimate is recorded in net income as credit loss expense. All credit losses were on trade receivables and/or contract assets arising from the Company’s contracts with customers.

15

The Company monitors its collections and write-off experience to assess whether ornot adjustments to its allowance estimates are necessary. Changes in trends in any of the factors that the Company believes* mayimpact the collectability of its accounts receivable, or modifications to its credit standards, collection practices and other related policies mayimpact the Company’s allowance for credit losses and its financial results. The activity in the accounts receivable allowance liability for thesix* months ended* June 30, 2025and2024* consisted of the following:

Collateral

In select instances, the Company has pledged specific inventory and machinery and equipment assets to serve as collateral on related payable or financing obligations.

Liquidated Damages

In certain customer contracts, the Company has agreed to pay liquidated damages in the event of qualifying delivery or production delays. These damages are typically limited to a specific percentage of the value of the product in question and/or are dependent on actual losses sustained by the customer. The Company doesnot believe that this potential exposure will have a material adverse effect on the Company’s consolidated financial position or results of operations. There wasno reserve for liquidated damages at* June 30, 2025* and* December 31, 2024.*

16