AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC)·Q3 2026 Earnings Summary

AMSC Posts Record Quarter on $113M Tax Benefit; Revenue Beats by 11%

February 5, 2026 · by Fintool AI Agent

American Superconductor Corporation (AMSC) delivered a strong Q3 FY2025, beating revenue estimates by 10.8% with $74.5 million in sales (+21% YoY) . The quarter's headline was a $113.1 million tax benefit from releasing a valuation allowance on deferred tax assets, propelling GAAP net income to a record $117.8 million ($2.68 per share) . The stock initially declined 7.8% during regular trading but rebounded 11% in after-hours following the earnings release.

Did AMSC Beat Earnings?

*Values retrieved from S&P Global

Revenue Beat Drivers:

• Organic growth across Grid and Wind segments
• Partial contribution from Comtrafo acquisition (closed December 5, 2025)
• Grid segment revenue of $63.2M (+21% YoY)
• Wind segment revenue of $11.3M (+25% YoY)

Important Context on EPS: The $2.81 non-GAAP EPS includes a $113.1 million one-time tax benefit from releasing a valuation allowance on deferred tax assets . Excluding this discrete item, underlying non-GAAP EPS was approximately $0.24, still handily beating the $0.15 consensus.

What Did Management Guide?

AMSC raised guidance for Q4 FY2025 (ending March 31, 2026):

Forward Consensus (Q4 2026 and Beyond):

*Values retrieved from S&P Global

The $80M+ guidance represents AMSC's highest quarterly revenue target ever, reflecting confidence in end-market momentum and the full-quarter contribution from Comtrafo.

What Changed From Last Quarter?

Key Developments This Quarter:

1. Record Profitability Milestone: Sixth consecutive quarter of GAAP profitability, tenth of non-GAAP profitability

2. Tax Valuation Allowance Release: The $113.1M tax benefit reflects AMSC's strengthened financial position—management believes the company will generate sufficient future taxable income to utilize deferred tax assets

3. Comtrafo Acquisition Completed: Closed December 5, 2025, contributing partial results to Q3

4. Robust Backlog: 12-month backlog exceeded $250 million, driven by strong market demand

5. Cash Position Strengthened: Cash, equivalents, and restricted cash reached $147.1M vs. $85.4M at fiscal year start

End-Market Revenue Breakdown

The earnings call revealed a diversified revenue mix across multiple end markets :

Data Center Milestone

AMSC delivered its first data center project this quarter—a significant milestone management had been "telegraphing" for several quarters . Key details from the call:

• Revenue contribution: 5% of Q3 revenue ($3.7M)
• Use case: Modulating instantaneous voltage changes for high-compute facilities
• Competitive advantage: Compact footprint for areas with weaker grid infrastructure
• Customer: Existing relationship, also helped a utility serving data centers

"The more that they're loading equipment in for managing thermal load, HVAC, the more that they have higher computing power, and they're worried about very small disruptions, similar to what we do in a semiconductor fab, the more we think we fit."

— Daniel P. McGahn, Chairman & CEO

Management emphasized AMSC is "not a data center stock" but rather a diversified grid solutions company where data centers will be "a part of the business" .

How Is Revenue Trending?

AMSC has delivered accelerating revenue growth as power grid demand intensifies:

Nine-month revenue of $212.7M nearly matches full FY24 revenue, highlighting the company's strong momentum .

What Did Management Say?

"AMSC delivered an outstanding third quarter. We grew revenue by more than 20% year-over-year, and marked our sixth consecutive quarter of profitability and our tenth of non-GAAP profitability. Reflecting our shift to profitability, we also recorded a tax benefit event this quarter. Again, gross margin exceeded 30% and we ended the quarter with over $145 million in cash after completing the acquisition of Comtrafo."

— Daniel P. McGahn, Chairman, President, and CEO

Q&A Highlights

On Traditional Energy (~33% of revenue): Management sees traditional energy as "persistent demand" rather than cyclical. Focus areas include powering pipelines, LNG movement, and oil processing from extraction through refining . Lead times are 9-12 months for many products.

On Cross-Selling Strategy:

"We no longer cross-sell, we just sell. We have combined solutions from the family of acquisitions that we're now presenting... In some cases, they're $10 million projects, some cases they're $25 million projects."

— Daniel P. McGahn

On Brazil/Comtrafo Integration: With only 19 days of Comtrafo in Q3 results, management expects to take time with integration . CFO John Kosiba indicated CapEx may exceed $1M/quarter—and potentially "a couple million dollars"—as they scale up production, particularly power transformers .

On Working Capital: CFO noted working capital investment is supporting growth. If growth remains elevated, working capital investment will continue; if growth tapers to single digits, it could turn favorable .

On Military Opportunities (>15% of revenue): Military contribution was elevated this quarter (typically ~10%). Management sees "persistent and long-term" opportunities for ships and ports but no trajectory change expected in the next 2-4 quarters .

On Large Project Pipeline:

"We have hundreds of millions of opportunity across all the different areas that we have tailwinds in. We have probably a dozen or two projects that are very large—several hundred million of potential business, not just for data centers, but for mines, for semiconductor, for traditional energy."

— Daniel P. McGahn

How Did the Stock React?

The initial decline likely reflected profit-taking after a strong run, but the after-hours rally suggests investors view the underlying results positively despite the one-time tax benefit distorting headline EPS.

52-Week Context:

• 52-week high: $70.49
• 52-week low: $13.98
• Current vs. 50-day average: -11.5% below
• Current vs. 200-day average: -30.7% below

Key Risks Mentioned

Management highlighted several risk factors in the filing :

• Operating History: Not historically profitable; may recur in the future
• Customer Concentration: Significant Wind segment revenue from a single customer
• Government Contracts: Navy contracts subject to audit, modification, or termination
• Supply Chain: Reliance on third-party suppliers for Grid and Wind products
• Integration Risk: May not realize full benefits from acquisitions like Comtrafo
• Backlog Risk: May not convert all backlog to revenue

Forward Catalysts

1. Comtrafo Full-Quarter Contribution — Q4 will be the first full quarter including the acquisition; management sees "tremendous opportunity" in Brazil and Latin America

2. Data Center Pipeline Expansion — Multiple data center operators and builders have approached AMSC for solutions

3. Large Project Pipeline — "Hundreds of millions" in potential business across mines, semiconductors, traditional energy, and data centers

4. Navy Programs — Persistent long-term opportunities for ship protection and port power systems

5. Brazil CapEx Expansion — Potential facility expansion to meet 2-5 year demand outlook

Earnings Call Details

AMSC hosted its Q3 FY2025 earnings call on Thursday, February 5, 2026 at 10:00 AM ET .

• Replay: Available at 1-855-669-9658 (passcode: 1797046)
• Full Transcript: View Transcript

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This analysis incorporates AMSC's 8-K filing (February 4, 2026) and Q3 FY2025 earnings call transcript (February 5, 2026).

Related Links:

• AMSC Company Profile
• AMSC Transcripts
• Prior Quarter: Q2 FY2026