American Superconductor Corporation Q2 FY2025 earnings call

• Revenue of nearly $66 million in the second quarter, third consecutive quarter at this level, with 20% YOY growth. - Grid business grew over 15% YOY, Wind business over 50% YOY. - Fifth consecutive quarter of profitability and ninth consecutive quarter of non-GAAP profitability. - Gross margins topped 30% again. - Strong balance sheet with over $215 million in cash. - Diverse revenue mix: ~25% from traditional energy, ~25% from renewables, over 20% from materials projects, remaining from military and other industrial sectors. - Strong order demand across energy and military markets, with nearly 65% of orders from traditional energy and renewables, 15% from military, and rest from materials and other markets. - 12-month backlog of well over $200 million. - Won a new contract with the U.S. Navy for a new class of product design.

In the second quarter of Fiscal 2025, American Superconductor recorded revenue of $65.9 million, a year-over-year increase of over 20%. The Grid business unit accounted for 83% of total revenues, with revenue growing over 15% YOY. The Wind business unit accounted for 17% of total revenues, with revenue increasing by 53% YOY. Gross margin for the second quarter was 31%, up from 29% in the year-ago quarter. The company ended the quarter with over $218.8 million in cash, cash equivalents, and restricted cash.

• Expect third quarter revenues to be in the range of $65 million to $70 million. - Net income expected to exceed $2 million or $0.05 per share. - Non-GAAP net income expected to exceed $6 million or $0.14 per share.

Q: Thoughts on next steps and acceleration, especially in military and data center?

A: Acceleration in military expected, including new Navy contract for design, and data center opportunity with utilities and developers, with hope to be a trusted supplier.

Q: Competitive advantage in data center given form factors and expertise?

A: Compact form factors, ability to deal with high voltage and noisy power, DC to DC architectures, and being a known and trusted supplier.

Q: Data center opportunity details, engagement with utilities and developers?

A: Engaged with utilities for grid fortification, direct offering to data center construction with EPCs, dealing with grid noisiness and power flow transients.

Q: Semiconductor and data center order sizes, military contract impact?

A: Semiconductor orders range $2M to $10M, data center orders similar or larger; Navy contract is for design of new class, not immediate revenue driver but long-term opportunity.