Sign in
AS

AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 2026 delivered an outsized beat: revenue $72.36M (+79.6% YoY) and non-GAAP EPS $0.29–$0.30 versus S&P Global consensus $64.97M and $0.12; GAAP diluted EPS was $0.17 and gross margin reached ~34%, driven by strong grid mix and semiconductor demand . S&P Global values marked with * (disclaimer below).
  • Guidance for Q2 2026: revenue $65–$70M and non-GAAP EPS ≥$0.14; management characterized Q1 as a “near perfect quarter” and said Q2 guidance is stronger than the Q1 guide, but the EPS guide is slightly below S&P consensus ($0.153*) . S&P Global values marked with * (disclaimer below).
  • Cash and equivalents jumped to $213.4M after a June equity raise, positioning AMSC for capacity additions and potential acquisitions; operating cash flow was $4.1M for the quarter .
  • Catalysts: accelerating orders and backlog in semiconductors/data centers, continued momentum in traditional energy, and a robust M&A pipeline; watch margin sustainability as mix-normalization could moderate gross margin from this quarter’s high level .

What Went Well and What Went Wrong

What Went Well

  • Revenue surged to $72.36M (+80% YoY), with Grid contributing ~$60.09M and Wind ~$12.27M; non-GAAP EPS reached ~$0.29–$0.30 and GAAP diluted EPS was $0.17, reflecting strong execution and scale benefits .
  • Gross margin approached ~34%, with management citing “ideal” product/market mix, pricing actions, and high factory utilization; CEO: “In many ways, it was a near perfect quarter” .
  • Balance sheet strength: quarter-end cash, cash equivalents, and restricted cash of $213.4M, supported by ~$124.6M net proceeds from a June offering, enhancing strategic flexibility .

What Went Wrong

  • Mix tailwind caution: CFO noted elevated margin was driven by favorable mix and higher-content shipments in semiconductors; while no “one-time” accounting items, the team acknowledged some anomaly-like elements in mix that may not repeat .
  • Working capital dynamics: accounts receivable rose and operating cash flow was modest ($4.1M) relative to revenue growth, reflecting timing of collections and project-driven working capital needs .
  • EPS guidance for Q2 (non-GAAP ≥$0.14) is slightly below S&P consensus ($0.153*), suggesting conservative near-term profitability versus Street expectations despite strong demand signals . S&P Global values marked with * (disclaimer below).

Financial Results

MetricQ3 FY2024 (Dec 31, 2024)Q4 FY2024 (Mar 31, 2025)Q1 FY2025 / Q1 2026 (Jun 30, 2025)
Revenue ($USD Millions)$61.40 $66.66 $72.36
GAAP Diluted EPS ($)$0.06 $0.03 $0.17
Non-GAAP EPS ($)$0.16 $0.12–$0.13 $0.29–$0.30
Gross Margin ($USD Millions)$16.33 $17.69 $24.49
Gross Margin (%)——~34%

Segment revenue breakdown:

SegmentQ3 FY2024Q4 FY2024Q1 FY2025 / Q1 2026
Grid Revenue ($USD Millions)$52.31 $55.59 $60.09
Wind Revenue ($USD Millions)$9.10 $11.06 $12.27

KPIs:

KPIQ4 FY2024Q1 FY2025 / Q1 2026
Operating Cash Flow ($USD Millions)$6.30 $4.13
Cash & Equivalents + Restricted Cash ($USD Millions)$85.38 $213.42
Orders Booked ($USD Millions)$75 (quarter) >$63 (quarter)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q2 FY2025 / Q2 2026—$65.0–$70.0 New (sequential view: above prior Q1 guide)
GAAP Net Income ($USD Millions)Q2 FY2025 / Q2 2026—≥$2.0 New
GAAP EPS ($)Q2 FY2025 / Q2 2026—≥$0.05 New
Non-GAAP Net Income ($USD Millions)Q2 FY2025 / Q2 2026—≥$6.0 New
Non-GAAP EPS ($)Q2 FY2025 / Q2 2026—≥$0.14 New
Reference point (for context)Q1 FY2025 guideRevenue $64–$68; GAAP NI ≥$1; non-GAAP NI ≥$4; non-GAAP EPS ≥$0.10 —Q2 guide stronger than Q1 guide

Note: No explicit guidance provided in the documents for margins, OpEx, OI&E, tax rate, dividends .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY2024)Previous Mentions (Q4 FY2024)Current Period (Q1 FY2025 / Q1 2026)Trend
AI/data center tailwindsNot explicitly highlighted in release; focus on bookings/backlog strength Momentum, new orders $75M; broadening offerings Clear growth driver; semi capacity expansion tied to AI/data centers Increasing importance
Semiconductor/materialsYoY growth; NWL contribution noted Continued growth; sequential revenue increase Key growth driver; high-content shipments; more orders ahead Strengthening
Backlog/ordersRobust bookings/backlog Year-end orders near $320M 12‑month backlog >$200M; total >$300M; Q1 orders >$63M Elevated
Pricing/mix——Pricing increases across product lines; ideal mix lifted margins Positive impact
Capacity & utilization——High utilization on one shift; labor additions before second shift; potential expansions Tightening capacity
Wind/INOX trajectory——On cusp of historic ramp potentially early next year; supportive but not main driver Improving outlook
Traditional energy & defense——Strong outlook in oil & gas; multiple defense “shots on goal” (ships, systems, shipyards) Strengthening
Data center grid solutions——Early inroads; substations likely nearer-term; inside-the-facility longer-dated Early-stage exploration
M&A pipeline——Active discussions; disciplined approach to expanding grid/military offerings Active

Management Commentary

  • CEO: “Revenue exceeded $70,000,000 for the first quarter… growing by 80% versus the year ago period… Grid revenue led the way… Wind… up nearly 55%… Gross margins topped 30%… a near perfect quarter” .
  • CFO: “Gross margin… was 34%… impacted by increased revenues, favorable product/project/market mix… pricing increases… and high levels of factory utilization” .
  • CEO: “The semiconductor industry is in the midst of a major capital expenditure cycle, and we are seeing the benefits… we see more semiconductor orders on the horizon” .
  • CEO: “We have sustained an average quarterly revenue above $65,000,000 for the past three quarters… we are bullish about our expectations that this trend could continue next quarter” .

Q&A Highlights

  • Gross margin sustainability: CFO affirmed no “one-time” accounting items; margins benefited from ideal mix and utilization. Management sees ~30%+ gross margin as achievable at ~$70M revenue, albeit mix-dependent .
  • Wind/INOX ramp: CEO reiterated potential historic ramp as early as next year, driven by customer demand and project construction timelines; supportive but not the core growth driver .
  • Capacity planning: Company remains on single shifts with high utilization; will add labor and tooling before moving to second shifts; considering strategic expansion and M&A leverage .
  • Data centers opportunity: Near-term fit at substations; inside-the-facility opportunities are longer-dated (six quarters+); engagement with EPCs and end-customers underway .
  • Organic growth: CEO indicated demonstrated 20–35% organic growth is possible depending on markets; focused on proprietary solutions and deep customer relationships .

Estimates Context

  • Q1 2026 vs Street: Revenue $72.36M vs $64.97M*; normalized/non-GAAP EPS $0.29–$0.30 vs $0.12*; strong beat on both . S&P Global values marked with * (disclaimer below).
  • Q2 2026 guidance vs Street: Revenue $65–$70M vs $67.23M*; non-GAAP EPS ≥$0.14 vs $0.153*; revenue in line, EPS guide slightly conservative . S&P Global values marked with * (disclaimer below).

S&P Global disclaimer: Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • The quarter demonstrated scalable operating leverage: outsized revenue growth, ~34% gross margin, and non-GAAP EPS nearly 3x Street, driven by grid strength and semiconductor orders; monitor mix normalization risk .
  • Near-term setup: Q2 revenue guidance aligns with Street and implies sustained ~$65–$70M quarterly run-rate, though EPS guide is slightly below consensus; consider implications for estimate revisions .
  • Strategic flexibility increased with >$213M cash and recent equity raise, enabling capacity additions and M&A to expand offerings in grid and defense .
  • Structural demand tailwinds (AI/data centers, traditional energy, renewables/India, defense) support multi-sector order momentum and backlog durability .
  • Watch execution on capacity ramp (labor/tooling, shift additions) to sustain delivery acceleration while preserving margins .
  • Wind/INOX could add upside in 2026, but core narrative remains grid and materials/semiconductor; diversification tempers single-customer wind risk .
  • Potential stock catalysts: additional semi orders/backlog updates, margin/price discipline confirmation, data center wins, and accretive M&A announcements .