American Superconductor Corporation Q1 FY2025 earnings call

• Kicked off fiscal 2025 with accelerated growth, surpassing expectations. - Revenue exceeded $70 million, driven by organic growth. - Fourth consecutive quarter of net income, with over $6 million in net income. - Gross margins topped 30% due to higher revenues and ideal product mix. - Closed the quarter with over $210 million in cash and a strong balance sheet. - Backlog increased to over $300 million, with a 12-month backlog over $200 million. - Materials sector growth fueled by semiconductor capacity expansion for AI applications and data center infrastructure.

For the first quarter of fiscal 2025, AMSC's total revenue exceeded $70 million, growing 80% versus the year-ago period. The Grid business unit accounted for over 80% of total revenues, growing over 85% y-o-y. The Wind business unit posted nearly 55% growth y-o-y. The Materials sector was a key growth driver, driven by semiconductor capacity expansion for AI and data center infrastructure. Revenue contribution: Grid over 80%, Wind ~17%, Materials ~25%, Traditional Energy ~25%, Renewable Energy ~25%, and military/other industrial sectors the remaining portion.

• Expect revenues for the second quarter of fiscal 2025 to be in the range of $65 million to $70 million. - Net income on that revenue is expected to exceed $2 million or $0.05 per share. - Non-GAAP net income is expected to exceed $6 million or $0.14 per share.

Q: On the gross margin number, confirmation of no one-time items and confidence in 30%-plus margins going forward A: Daniel Patrick McGahn notes they've talked about mid-30%s and with the current revenue level and mix, it's possible. John Kosiba adds there were no one-time nonrecurring events, just a strong product and market mix Q: On Wind business and potential volume ramp A: Daniel Patrick McGahn says Inox is in a strong position with growing demand from customers, though potential ramp is expected maybe early next year Q: On capacity expansion and geographic expansion A: Daniel Patrick McGahn mentions looking at expanding capacity via labor and tooling, and John Kosiba adds they're still in labor capacity constraint in plants Q: On data center infrastructure and semiconductor market A: Daniel Patrick McGahn says they're pursuing data center projects with EPCs and EPCs know them well, and in semiconductors, it's due to more valuable and proprietary content enabling a complete solution Q: On U.S. grid strengthening and inquiries A: Daniel Patrick McGahn notes increased inquiries as the grid investment thesis is becoming more relevant due to electricity demand