American Superconductor Corporation (AMSC) Q2 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The company's earnings call reveals strong financial performance, with a notable 20% YoY revenue growth driven by grid and wind businesses. Despite a slight decrease in net income, the cash position is robust, and gross margins have improved. The Q&A section highlights optimism in military, semiconductor, and data center opportunities, though timelines remain uncertain. Overall, the combination of solid financials, strategic market positioning, and potential growth in key sectors suggests a positive sentiment, likely leading to a stock price increase of 2% to 8%.
Key Financial Performance
Revenue $65.9 million for the second quarter of fiscal 2025, compared to $54.5 million in the year-ago quarter, representing a year-over-year growth of more than 20%. The increase was driven by strong execution across grid and wind businesses.
Grid Business Revenue Accounted for 83% of total revenues, with a 16% increase year-over-year. The growth was primarily driven by organic growth within new energy product lines.
Wind Business Revenue Accounted for 17% of total revenues, with a 53% increase year-over-year. The growth was primarily driven by additional shipments of electrical control systems.
Gross Margin 31% for the second quarter of fiscal 2025, compared to 29% in the year-ago quarter. The increase was due to a favorable product mix, particularly within the Grid business unit.
R&D and SG&A Expenses $17.1 million for the second quarter of fiscal 2025, compared to $13.2 million in the year-ago quarter. The increase was primarily driven by incremental NWL operating expenses and higher stock compensation expense.
Non-GAAP Net Income $8.9 million or $0.20 per share for the second quarter of fiscal 2025, compared to $10 million or $0.27 per share in the year-ago quarter. The decrease was due to the absence of a $5.1 million noncash benefit from the prior year's results.
Net Income $4.8 million or $0.11 per share for the second quarter of fiscal 2025, compared to $4.9 million or $0.13 per share in the year-ago quarter. The decrease was due to the absence of a $5.1 million noncash benefit from the prior year's results.
Cash Position $218.8 million in cash, cash equivalents, and restricted cash at the end of the second quarter of fiscal 2025. Operating cash flow was $6.5 million for the quarter.
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Operating Highlights
New energy product lines: The Grid business unit's revenue growth of 16% was primarily driven by organic growth within new energy product lines.
Electrical control systems: The Wind business unit's revenue growth of 53% was driven by additional shipments of electrical control systems.
Diverse revenue mix: Revenue came from a broad mix of sectors, including traditional energy projects (25%), renewable energy projects (25%), materials projects (over 20%), and military/industrial sectors (remaining portion).
International growth in renewables: Renewables are attracting more than $750 billion in investments, with international growth adding long-term opportunities.
Revenue growth: Second quarter revenue grew more than 20% year-over-year, reaching nearly $66 million.
Profitability: Achieved fifth consecutive quarter of profitability and ninth consecutive quarter of non-GAAP profitability.
Gross margin improvement: Gross margin increased to 31% from 29% in the year-ago quarter, driven by favorable product mix in the Grid business unit.
Cash position: Closed the quarter with over $215 million in cash, cash equivalents, and restricted cash.
Military business expansion: Won a new contract with the U.S. Navy to design a new class of product, signaling an acceleration in the military business.
Diversification: Broadened reach beyond renewables to include traditional energy projects, enhancing business resilience.
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Risk or Challenges
Timing of project deliveries: The company's quarterly results are influenced by the timing of project deliveries, which can lead to fluctuations in revenue. Some quarters benefit from accelerated timing, while others see delays, impacting financial performance.
R&D and SG&A expenses: The company experienced an increase in R&D and SG&A expenses, driven by incremental NWL operating expenses and higher stock compensation. This could pressure profitability if not managed effectively.
Dependence on energy and military markets: A significant portion of revenue is derived from energy (traditional and renewable) and military markets. Any downturn or reduced investment in these sectors could adversely impact the company's financial performance.
Supply chain and lead times: Although lead times have been reduced, any disruptions in the supply chain could affect the company's ability to deliver projects on time, impacting revenue and customer satisfaction.
Economic uncertainties: The company operates in sectors like energy, semiconductors, and military, which are subject to economic fluctuations. A downturn in these sectors could negatively affect demand for the company's products.
Profitability sustainability: While the company has achieved consecutive quarters of profitability, maintaining this trend could be challenging if revenue growth slows or costs increase.
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Guidance & Outlook
Revenue Guidance for Q3 FY2025: Expected revenues in the range of $65 million to $70 million.
Net Income Guidance for Q3 FY2025: Net income is expected to exceed $2 million or $0.05 per share.
Non-GAAP Net Income Guidance for Q3 FY2025: Non-GAAP net income is expected to exceed $6 million or $0.14 per share.
12-Month Backlog: Represents about 9 months of business, with a current backlog of well over $200 million.
Sector-Specific Growth Projections: Energy sector (traditional and renewables) expected to see significant investments in 2025, with over $1 trillion in traditional energy and $750 billion in renewables. Global mining project pipeline exceeds $1 trillion. Investments in semiconductors and global data centers expected to top $650 billion. Defense spending projected to reach nearly $3 trillion.
Military Business Acceleration: Anticipated acceleration in military business revenue in the coming quarters, supported by new contracts and increased activity.
Materials and Data Center Growth: Revenue growth expected from strong activity in materials (e.g., semiconductors) and increasing investments in data center infrastructure.
Diversification and Resilience: Business diversification into traditional energy projects and data centers is expected to strengthen resilience and capitalize on growing demand for energy and grid stability.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What are the company's thoughts on the next step up in revenue given macro tailwinds and expanded offerings?
A:The next step depends on how the cadence comes together at a single point in time. The company sees acceleration in military orders, semiconductor build-out, and data centers. They are optimistic about opportunities, shrinking lead times, and a competitive advantage. However, it is hard to definitively predict when revenue will reach $75 or $80 million and beyond.
Q:Is the company aiming to be spec-ed in for data centers like it is for semiconductor fabs?
A:Yes, the company hopes to achieve this but is unsure of the timeline. They are optimistic about being a trusted supplier for data centers, similar to their role in other industries. They see positive signs and opportunities for growth in this area.
Q:What is the company's competitive advantage in the data center market?
A:The company focuses on addressing noisy, less resilient grids, speed, and compact solutions. Their technology's strength lies in managing noisiness, delivering quickly, and fitting compactly into data center applications. They see potential for large order sizes in this market.
Q:What progress is the company making in non-ship military opportunities, such as port resilience?
A:The company offers three areas: protection (superconductor-enabled technology), powering critical ship systems, and powering ship construction. They see potential acceleration in port and construction-related opportunities and are designed into several ship makers' systems. However, timing for these opportunities is uncertain.
Q:Is the company engaged with utilities or data center developers for the data center opportunity?
A:Yes, the company is engaged with utilities to fortify the grid and with data center developers and EPCs for direct offerings. Their solutions address grid challenges and manage noisiness, similar to their work with semiconductor fabs. They are optimistic about future wins and deliveries in this market.
Q:Are data center order sizes expected to be similar to those in the semiconductor market?
A:Yes, data center projects are expected to range from $2 million to $10 million or larger, similar to semiconductor fabs. The company aims to deliver initial systems before scaling up to larger order sizes.
Q:Did the new U.S. Navy contract for a new class of ship show up in the backlog this quarter?
A:No, the contract is for designing a new class of product, not for protection. The magnitude is greater than ship protection, but development, testing, and qualification will take time. Near-term military growth will come from powering ship systems and construction.
Q:Review of Unclear Management Responses
A:Management avoided providing specific timelines or definitive answers for revenue growth to $75 or $80 million, the timeline for being spec-ed in for data centers, and the exact timing of military and data center opportunities. They also refrained from detailing the new U.S. Navy contract's impact, citing clearance levels and long-term development.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Grid Wind
Grid unit
NWL noncash
NWL stock
Officer today
Results Instructions
Superconductor Form
VP AMSC
benefit result
business Grid
cash result
compensation expense
conference Director
demand end
energy project
expense RD
foothold sector
level grid
line Wind
margin product
market reach
mix Grid
mix demand
mix sector
noncash benefit
portion mix
profitability balance
project energy
project technology
quarter RD
reach technology
result CFO
result level
result mix
result press
sale energy
section American
sector result
solution validation
stock compensation
technology foothold
unit revenue
wind
AMSC Transcript
American Superconductor Corporation (AMSC) Q3 2025 Earnings Call Transcript
Positive2-5
The earnings call presents a positive outlook with strong non-GAAP net income growth, optimistic guidance in data centers, military, and traditional energy segments, and strategic investments like the Comtrafo acquisition. Despite management's lack of specificity on data center growth, the overall sentiment is positive, with potential for increased shareholder returns and business expansion. The Q&A session reinforces this with emphasis on growth opportunities and strategic focus, suggesting a likely positive stock price movement in the short term.
American Superconductor Corporation (AMSC) Q2 2025 Earnings Call Transcript
Positive1-7
The earnings call highlights strong financial performance with revenue growth over 20% YoY and improved gross margins. The company is optimistic about growth opportunities in military, semiconductor, and data center markets, despite not providing specific timelines. The Q&A section reveals positive sentiment towards the company's competitive advantages and potential large order sizes. Although some uncertainty exists regarding future revenue milestones, the overall outlook remains positive, supported by strong financial metrics and strategic market positioning.
American Superconductor Corporation (AMSC) Q2 2026 Earnings Call Transcript
Positive11-6
The company's earnings call reveals strong financial performance, with a notable 20% YoY revenue growth driven by grid and wind businesses. Despite a slight decrease in net income, the cash position is robust, and gross margins have improved. The Q&A section highlights optimism in military, semiconductor, and data center opportunities, though timelines remain uncertain. Overall, the combination of solid financials, strategic market positioning, and potential growth in key sectors suggests a positive sentiment, likely leading to a stock price increase of 2% to 8%.
American Superconductor Corporation (AMSC) Q2 2024 Earnings Call Transcript
Positive9-22
AMSC's record revenue, strong order bookings, and strategic acquisitions indicate robust growth potential. Positive guidance, increased gross margins, and a healthy backlog further support a positive outlook. Despite risks like grid congestion and competition, the company's diverse market opportunities in wind, military, and industrial sectors, coupled with macro tailwinds, suggest a favorable short-term stock price movement.
AMSC Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
