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AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2024 (quarter ended Dec 31, 2024) delivered record revenue of $61.4M, up ~56% YoY, with GAAP net income of $2.5M ($0.06 diluted EPS) and non-GAAP net income of $6.0M ($0.16 diluted EPS); gross margin dollars rose to $16.3M as mix and utilization improved .
  • Management guided Q4 FY2024 revenue to $59–$63M, GAAP net loss not to exceed $1.0M (≤$0.03/sh), and non-GAAP net income >$2.5M (>$0.07/sh) .
  • Orders of >$57M in Q3 put 12‑month backlog above $200M and total backlog above $300M, with grid at ~85% of revenue and wind ~15% (notably Inox Wind ECS orders) .
  • Estimate comparisons vs Wall Street consensus could not be retrieved from S&P Global at this time (rate limit). As a proxy, Q3 revenue exceeded the company’s prior guidance range ($55–$60M) issued in Oct (Q2), a positive surprise vs internal guidance .

What Went Well and What Went Wrong

What Went Well

  • Record revenue and profitability: “best quarterly results in years,” second consecutive GAAP profitable quarter; revenue >$60M (+56% YoY) and net income >$2M with $5.9M operating cash flow .
  • Demand and backlog strength: >$57M of new orders in Q3; 12‑month backlog >$200M and total backlog >$300M, driven by diversified bookings across renewables, industrials, utilities, and military .
  • Mix and scale benefits: Gross margin reached 27% vs 25% YoY on higher revenue and favorable product mix; grid revenue +56% YoY and wind revenue +58% YoY .

What Went Wrong

  • OpEx step-up: R&D and SG&A rose to $14.6M vs $10.0M YoY, largely from NWL acquisition expenses (though ~19% were non-cash) .
  • GAAP EPS still modest and guidance implies a small GAAP loss in Q4 FY2024 (≤$1.0M), suggesting continuing non-cash charges (stock comp, amortization) remain a headwind to GAAP profitability .
  • Wind customer concentration persists (Inox), with delivery pacing tied to customer payment schedules; management emphasized “batch to batch” order cadence—an investor concern on visibility .

Financial Results

Consolidated Results vs Prior Quarters (USD)

MetricQ1 FY2024 (Jun-24)Q2 FY2024 (Sep-24)Q3 FY2024 (Dec-24)
Revenue ($M)$40.290 $54.471 $61.403
GAAP Diluted EPS ($)$(0.07) $0.13 $0.06
Non-GAAP Diluted EPS ($)$0.08 $0.27 $0.16
Gross Margin ($M)$12.225 $15.613 $16.326

Notes: Management cited gross margin of 27% in Q3 FY2024 vs 25% in the year-ago quarter .

Segment Revenue (USD)

SegmentQ1 FY2024 (Jun-24)Q2 FY2024 (Sep-24)Q3 FY2024 (Dec-24)
Grid Revenue ($M)$32.336 $46.936 $52.306
Wind Revenue ($M)$7.954 $7.535 $9.097

Key KPIs

KPIQ1 FY2024Q2 FY2024Q3 FY2024
Cash, Cash Equivalents & Restricted Cash (end of period) ($M)$95.523 $74.786 $80.040
Operating Cash Flow (quarter) ($M)$3.409 —$5.9
New Orders (quarter) ($M)—~60 (booked during quarter) >$57
12-Month Backlog$160M (end Q1) >$200M (end Q2) >$200M (end Q3)
Total Backlog$250M (end Q1) >$300M (end Q2) >$300M (end Q3)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q3 FY2024$55–$60 (10/30/24) Actual: $61.4 Above high end of guidance
Revenue ($M)Q4 FY2024—$59–$63 New
GAAP Net Income (Loss)Q4 FY2024—Loss not to exceed $1.0M (≤$0.03/sh) New
Non-GAAP Net IncomeQ4 FY2024—>$2.5M (>$0.07/sh) New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 FY2024 and Q2 FY2024)Current Period (Q3 FY2024)Trend
Backlog and bookingsQ1: 12‑mo backlog $160M; total $250M; strong order intake incl. allied navy SPS, Inox ECS . Q2: nearly $60M orders; 12‑mo backlog >$200M; total >$300M .>$57M orders; 12‑mo backlog >$200M; total >$300M; pipeline growth rate > company growth rate .Strengthening; pipeline broadening
Grid demand/industrial projectsQ2: new energy power systems orders stronger; NWL acquisition contribution noted .~85% of revenue from grid; U.S.-centric mix; industrial opportunities (mining, chemicals, pipelines); capacity leverage intact .Positive, U.S. skew
Wind (Inox Wind)Q1: third 3MW ECS order from Inox . Q2: ECS shipments contributing to growth .~$15M ECS orders; expect batch-to-batch cadence tied to customer payments .Improving but paced
Data centers / AI-driven loadNot explicitly highlighted in Q1; Q2 implied demand for grid solutions .Multiple utility projects to support data center load (capacitance, power quality, capacity) in pipeline; timing >1 year .Emerging growth vector
Semiconductors / CHIPS ActNot explicit in Q1/Q2 PRs.Several large semi orders “in crosshairs,” fully financed projects; AI/data centers driving semi capacity .Building pipeline
M&A integrationQ2: NWL acquisition contributing; integration underway .Integration “working,” broader combined offering; disciplined approach to future M&A .Positive leverage
Gross marginQ1: “expanded gross margin” (no % disclosed) . Q2: margin dollars up with scale .27% vs 25% YoY on mix/utilization .Improving YoY

Management Commentary

  • CEO tone on performance: “AMSC delivered the best quarterly results in years… revenue growth of 56%… net income exceeded $2 million” .
  • Bookings/backlog: “We received over $57 million of new orders… This puts our 12‑month backlog above $200 million and total backlog above $300 million” .
  • Strategic positioning and demand drivers: “Over 85% of our grid revenue this quarter came from the United States… electricity needs driven in part by artificial intelligence and data centers” .
  • Capacity and operating leverage: “We may need to… think about capacity expansion, but that cost… is relatively miniscule compared to the cash balance… doesn’t mean we need to expand fixed cost at the rate… of revenue” .
  • Wind customer dynamic: “We’re going to see… more of a batch to batch [ordering] to meet [Inox’s] demand… pace… predicated on Inox’s customers’ ability to pay them” .

Q&A Highlights

  • Pipeline depth: Management emphasized the pipeline is growing faster than the company, with larger project sizes and greater content per project due to cross-selling from acquisitions .
  • Wind cadence/visibility: Orders from Inox to continue in smaller, frequent batches tied to end-customer payments; supports ongoing wind revenue growth but with pacing sensitivity .
  • Capacity and capex: Operating leverage remains favorable; potential capacity expansion would be modest relative to cash, implying limited fixed-cost creep near term .
  • Inorganic growth: Ongoing evaluation of targets with focus on “right people, product, profit leverage” at the right price; NWL integration progressing well .
  • New vectors: Utilities approaching AMSC for grid upgrades to support data centers (power quality/capacitance/capacity), and multiple large semiconductor projects advancing; lead times >1 year for data center-driven projects .

Estimates Context

  • S&P Global consensus estimates (EPS and revenue) were unavailable due to rate limits at query time; as a result, we cannot provide a beat/miss vs Wall Street for Q3 FY2024. However, Q3 revenue of $61.4M exceeded the company’s prior guidance range of $55–$60M set on Oct 30, 2024, signaling an internal guidance beat .
  • Where applicable, incorporate consensus once accessible (particularly for Q4 FY2024 and FY2025 trajectories) to recalibrate expectations.

Key Takeaways for Investors

  • Revenue scale inflecting: three consecutive quarters at ~$40M → $54M → $61M, with grid at ~85% and wind re-accelerating; non-GAAP profitability improving despite higher OpEx from acquisitions .
  • Backlog durability: orders >$57M in Q3 and 12‑month/total backlog >$200M/>$300M provide visibility into near-to-medium term revenues .
  • Secular catalysts: rising grid investment needs (AI/data centers) and CHIPS Act-driven semiconductor capacity expansions create multi-year project pipeline optionality .
  • Capital efficiency: Management targeting operating leverage; potential capacity adds manageable vs cash; suggests limited dilution/financing risk near term .
  • Wind risk balanced by cadence: Inox batch orders support growth but rely on end-customer payment cycles—monitor order timing and conversion .
  • Near-term setup: Q4 guide implies sustained ~$60M revenue and >$0.07 non-GAAP EPS despite GAAP loss cap—watch for execution against guide and incremental bookings as stock catalysts .
  • Medium-term thesis: Diversified grid/industrial portfolio and integration synergies from acquisitions (e.g., NWL) underpin growth runway and margin expansion potential .

Citations:

  • Q3 FY2024 8-K and Exhibit 99.1 press release and financials: .
  • Q3 FY2024 press release (duplicative exhibits): .
  • Q3 FY2024 earnings call transcript: .
  • Q2 FY2024 8-K press release & financials: .
  • Q1 FY2024 8-K press release & financials: .