American Superconductor Corporation (AMSC) Earnings

Management highlights

- Financial Performance & Profitability * Delivered a record Q4 FY2025 revenue of over $85 million, marking three record revenue quarters in FY2025 * Achieved seven consecutive quarters of GAAP profitability and 11 consecutive quarters of non-GAAP profitability * Full-year FY2025 gross margin expanded 270 basis points to 30.5%, up from 27.8% in FY2024 * Ended FY2025 with $147.6 million in total cash, cash equivalents, and restricted cash, up from $85.4 million year-over-year * Grew total workforce from 569 to 1,195 employees, a new record employment level for the firm - Order Growth & Backlog * Q4 orders reached nearly $100 million, with 10% of Q4 orders coming from the data center sector, up from 5% in the prior quarter * Full-year FY2025 total new orders hit nearly $290 million, with average quarterly orders exceeding $70 million (up from ~$60 million in FY2024 after adjusting for a one-time large order) * 12-month backlog grew 40% year-over-year to over $280 million; total backlog across all lead times is approximately $375 million - Strategic & Operational Milestones * Completed the acquisition of Comtrafo, which expanded the firm's transformer product portfolio and geographic reach into Brazil and Latin America, increasing the company's total addressable market by 50% * Completed delivery of the fourth of five planned Ship Protection Systems (SPS) for the U.S. Navy San Antonio-class platform, with the first delivery to the Royal Canadian Navy scheduled for FY2026 * Secured nearly $50 million in 2-megawatt and 3-megawatt ECS orders from INOX in the wind segment, with ~40% of these orders shipped in FY2025, leaving a strong backlog * Shifted to delivering integrated power solutions that combine multiple product types (rectifiers, filters, STATCOMs, transformers) to simplify customer integration and improve project reliability - Market Tailwinds * Strong demand for the firm's power quality and grid solutions across traditional energy, data centers, mining, defense, and renewable energy integration, driven by rising global energy demand, aging infrastructure, and reshoring trends

Guidance

- For the first quarter of fiscal 2026, management expects total revenue to exceed $85 million - Net income is expected to exceed $3 million, or $0.07 per share, and non-GAAP net income is expected to exceed $8 million, or $0.17 per share - Approximately $1.5 million in non-cash purchase accounting and amortization charges related to the Comtrafo acquisition are included in the Q1 FY2026 guidance; these non-cash charges will begin to taper starting in Q2 FY2026, after which Comtrafo's gross margin is expected to align with AMSC's target gross margin range - Management expects SG&A expense will grow as the business scales, but SG&A growth will be lower than revenue growth in FY2026, and the business is currently sized to support substantial revenue growth before requiring major additional SG&A investment

Segment performance

Fourth Quarter Fiscal 2025: Total revenue reached $86.4 million, a 30% increase year-over-year. The Grid segment generated $73.7 million in revenue, up 33% year-over-year, and accounted for 85.3% of total Q4 revenue. The Wind segment generated $12.7 million in revenue, up 15% year-over-year, and accounted for 14.7% of total Q4 revenue. Full Fiscal Year 2025: Total revenue was $299.2 million, a 34% increase year-over-year from $222.8 million in FY2024. The Grid segment grew 34% year-over-year, representing 84% of total full-year revenue. The Wind segment also grew 34% year-over-year, driven by increased 2-megawatt and 3-megawatt ECS shipments to INOX, and represented 16% of total full-year revenue. By end-market, over 50% of full-year sales came from combined traditional and renewable energy projects; materials accounted for over 15%, while military and utility projects each accounted for over 10%.

Risks & headwinds

No specific new material risks or operational failures were discussed during the call. Management referenced that actual results may differ materially from forward-looking statements due to factors detailed in the firm's existing SEC filings, including the Form 10-K for the year ended March 31, 2026.

Analyst Q&A

• Q: The analyst asked if the strong Q4 order step-up was driven by an out-of-the-one-time Comtrafo contribution, or if this represents a sustainable new higher level of order activity. /

  A: Management stated that Comtrafo's contribution is proportional to the business and on track, while most of the order growth comes from broad-based demand across core markets. Traditional energy and fast-growing data center demand are key drivers, and the firm has started FY2026 very strong, with management hoping this new higher order level is sustainable. The company is well-positioned to capitalize on strong industry tailwinds for the problems it solves.

• Q: The analyst asked for clarification on where AMSC participates in the data center value chain, and whether demand is primarily on the utility side or directly at data center facilities. /

  A: Management explained that recent direct data center orders are principally for on-site power quality (voltage and harmonic management) during new construction, similar to the solutions AMSC provides for semiconductor fabs. With the Comtrafo acquisition, AMSC can now also supply transformers directly to data centers, in addition to continuing to serve utilities that need to upgrade grids to support data center clusters, creating a "one-two punch" of demand opportunities.

• Q: The analyst asked about Comtrafo integration progress, near-term headwinds, and the timeline for qualifying Comtrafo transformers for the U.S. North American market. /

  A: Management stated there are no near-term headwinds, and Comtrafo is operating exceptionally well. The near-term focus is on capturing large utility and industrial opportunities in Brazil, then expanding the combined product portfolio across Latin America, before pursuing qualification for the North American market, which will take time. Management is optimistic about future North American opportunities but is prioritizing Latin America expansion first.

• Q: The analyst asked if AMSC has capacity constraints in North America given growing backlog, and how the firm views potential additional acquisitions in FY2026 after the Comtrafo purchase. /

  A: Management explained that U.S. factories are designed to scale primarily through adding labor and shifts, and no major capacity additions are needed currently to handle growing backlog. The firm is still digesting the Comtrafo acquisition after just four months, but has a strong cash position and will evaluate opportunities if they align with strategic goals. The Comtrafo acquisition has already expanded AMSC's total addressable market by 50%.