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AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY25 (fiscal quarter ended Sep 30, 2025) revenue was $65.9M, up ~21% YoY; gross margin was 31%, and GAAP EPS was $0.11 while non‑GAAP EPS was $0.20 .
  • Versus S&P Global consensus, revenue modestly missed ($65.9M actual vs $67.2M*), while Primary EPS (non‑GAAP basis) beat ($0.20 actual vs $0.15*) — gross margin >30% for the second consecutive quarter, an upside driver* .
  • Guidance for Q3 FY25: revenue $65–$70M; GAAP net income >$2M ($0.05/share); non‑GAAP net income >$6M ($0.14/share) .
  • Strategic catalysts: strengthening semiconductor/data center power solutions, momentum in traditional energy, and a new U.S. Navy design contract (longer‑dated), with 12‑month backlog “well over $200M” and cash of $218.8M supporting execution .

Values with asterisk (*) are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Revenue +20%+ YoY to $65.9M, fifth consecutive GAAP profitable quarter; non‑GAAP EPS $0.20; gross margin 31% (second straight >30%) .
  • Grid revenue grew 16% YoY and wind revenue +53% YoY; diversified demand across traditional energy, renewables, materials/semis, military/industrial .
  • Strong orders and backlog: averaged >$60M in new orders per quarter over the past four quarters; 12‑month backlog well over $200M, with shrinking lead times viewed as a competitive advantage .

What Went Wrong

  • Revenue slightly below S&P consensus ($65.9M actual vs $67.2M*), indicating modest topline underperformance despite strong mix* .
  • Non‑GAAP net income down YoY vs prior‑year quarter partly due to last year’s non‑cash tax valuation allowance release (timing/one‑off benefits), highlighting tougher comps .
  • Near‑term military ramp skewed to ship systems/port power rather than the newly won (classified) design program; management cautioned against expecting immediate revenue impact from the new Navy design contract .

Values with asterisk (*) are retrieved from S&P Global.

Financial Results

MetricQ4 2025Q1 2026Q2 2026
Revenue ($USD Millions)$66.655 $72.358 $65.862
Gross Margin ($USD Millions)$17.691 $24.489 $20.439
Gross Margin (%)26.5% 33.9% 31.0%
Operating Income ($USD Millions)$1.653 $5.644 $2.965
Total Operating Expenses ($USD Millions)$16.038 $18.845 $17.474
GAAP Net Income ($USD Millions)$1.207 $6.724 $4.750
GAAP Diluted EPS ($)$0.03 $0.17 $0.11
Non‑GAAP Net Income ($USD Millions)$4.767 $11.587 $8.853
Non‑GAAP Diluted EPS ($)$0.12 $0.29 $0.20

Segment breakdown

SegmentQ4 2025 ($M)Q1 2026 ($M)Q2 2026 ($M)
Grid$55.592 $60.087 $54.342
Wind$11.063 $12.271 $11.520
Mix commentaryGrid ~83%, Wind ~17% Grid 83%, Wind 17% Grid 83%, Wind 17%

KPIs

KPIQ4 2025Q1 2026Q2 2026
12‑month backlog>$200M >$200M Well over $200M
New orders$75M $63M+ >$60M avg per quarter over past 4 quarters
Cash, cash eq. + restricted cash ($M)$85.4 $213.4 $218.8
Operating cash flow ($M)$6.3 (Q4) $4.1 (Q1) $6.5 (Q2)

Estimates vs Actuals (S&P Global)

MetricConsensus (Q2 2026)Actual (Q2 2026)Surprise
Revenue ($USD)$67.23M*$65.86M Slight miss (~2%)*
Primary EPS ($)$0.15*$0.20 Beat (non‑GAAP basis)*
EBITDA ($USD)$2.70M*$4.26M*Beat (margin/mix)*

Values with asterisk (*) are retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 2026$65–$70M (guided on 7/30/25) Actual $65.9M In‑range (maintained)
GAAP Net IncomeQ2 2026>$2.0M / >$0.05 per share Actual $4.8M / $0.11 Above
Non‑GAAP Net IncomeQ2 2026>$6.0M / >$0.14 per share Actual $8.9M / $0.20 Above
RevenueQ3 2026—$65–$70M New (set)
GAAP Net IncomeQ3 2026—>$2.0M / >$0.05 per share New (set)
Non‑GAAP Net IncomeQ3 2026—>$6.0M / >$0.14 per share New (set)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2025, Q1 2026)Current Period (Q2 2026)Trend
Semiconductor demand“Acceleration” driving orders; fab content $2–$10M; U.S. reshoring tailwinds Continued strength; materials/semis a key revenue driver; order sizes comparable or larger Accelerating
Data centersEarly inroads; emerging substation solutions; timing 6+ quarters Engaged with utilities/EPCs/developers; compact fast‑to‑deploy offering; hope to announce first delivery soon Building pipeline
MilitarySPS deliveries; Royal Canadian Navy $75M multi‑year contract New U.S. Navy design win (longer‑dated); near‑term ramp from powering ship systems/ports Mixed near‑term; stronger mid‑term
Traditional energyUnique combined offering across upstream/midstream/downstream noted ~25% of Q2 sales from traditional energy projects Stable to improving
Wind (INOX)Stronger backlog; ramp likely in CY/FY 2026; wind ~16% of revenue Wind +53% YoY; ~17% of Q2 revenue Improving
Pricing/mix/marginsPricing increases and favorable mix lifted GM to 34% in Q1 GM 31% on favorable grid mix; two quarters >30% Sustained >30%
Backlog/orders$75M orders in Q4; 12‑mo backlog >$200M >$60M avg new orders per quarter; 12‑mo backlog well over $200M Robust

Management Commentary

  • “We executed another quarter of strong results with revenue of nearly $66 million… Gross margins topped 30% again. We closed the quarter with a strong balance sheet of over $215 million in cash.” — CEO Daniel McGahn .
  • “Grid business unit accounted for 83% of total revenues… gross margin was 31%… non‑GAAP net income of $8.9 million, or $0.20 per share.” — CFO John Kosiba .
  • “Our lead times have been reduced… We see steady growth in demand… 12‑month backlog of well over $200 million.” — CEO Daniel McGahn .
  • “We expect that our revenues will be in the range of $65–$70 million… GAAP net income expected to exceed $2 million… non‑GAAP net income expected to exceed $6 million.” — CFO guidance .

Q&A Highlights

  • Data center strategy: Engaged across utilities/EPCs/developers; focus on speed/lead times and compact solutions to “quiet” noisy grids; combined offering across businesses; order sizes could be large .
  • Semiconductor content/order sizes: Typical fab content $2–$10M; data center projects in similar or larger range; portfolio value enables deeper design‑ins .
  • Military outlook: New U.S. Navy design program is larger than ship protection but longer‑dated; near‑term military ramp from powering ship systems and shipyard construction power .
  • Order cadence and capacity: Shrinking lead times; potential acceleration in materials (semis) and military; operating leverage intact .

Estimates Context

  • Q2 FY25 vs S&P Global consensus: Revenue $65.9M vs $67.2M* (miss); Primary EPS $0.20 vs $0.15* (beat); EBITDA $4.26M vs $2.70M* (beat). Strength in margins/mix offset topline shortfall* .
  • Prior quarter (Q1 FY25) materially beat both revenue and Primary EPS consensus ($72.36M vs $64.97M*; $0.29 vs $0.12*)* .
  • Outlook: Company guides Q3 revenue $65–$70M and GAAP NI >$2M; with two consecutive quarters >30% GM, Street EPS estimates may drift higher if mix/margins sustain .

Values with asterisk (*) are retrieved from S&P Global.

Key Takeaways for Investors

  • Non‑GAAP EPS beat despite small revenue miss; sustained >30% gross margins are becoming a defining feature at the $65–$70M quarterly run‑rate .
  • Semiconductors remain a core growth engine; data center projects are moving from substation concepts toward direct developer/EPC engagements, potentially expanding TAM .
  • Near‑term military revenue ramp is tied to ship systems/port construction power; the new Navy design program adds long‑dated optionality .
  • Backlog (> $200M) and shrinking lead times support visibility and competitive positioning into Q3 and beyond .
  • Cash of $218.8M, alongside positive operating cash flow, provides ample flexibility for capacity expansion and potential acquisitions to deepen offerings .
  • Watch Q3 guide execution and gross margin mix; any data center project win disclosures could be a stock catalyst .
  • Wind business is contributing again (+53% YoY), but grid (83% mix) remains the key profitability driver .

Non‑GAAP definitions: Company excludes stock‑based comp, amortization of acquisition intangibles, change in fair value of contingent consideration, acquisition costs, other non‑cash/unusual charges, and tax effects — see reconciliations in 8‑K press releases .