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AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2024 revenue was $66.7M, up ~60% YoY, with GAAP diluted EPS of $0.03 and non-GAAP diluted EPS of $0.12; both revenue and EPS exceeded Wall Street consensus for the quarter. Management guided Q1 FY2025 revenue to $64–68M and non-GAAP EPS to >$0.10, and “first-time” guidance to GAAP net income, signaling continued profitability momentum .
  • Mix was broad: Grid revenue rose 62% YoY to $55.6M and Wind rose 42% YoY to $11.1M; gross margin was 27% (vs 25% YoY), sustaining margin expansion from earlier quarters .
  • Orders accelerated: Q4 bookings were $75M, total FY2024 orders were nearly $320M, and 12‑month backlog ended above $200M; cash rose to $85.4M with $6.3M operating cash flow in Q4 .
  • The beat/momentum catalysts: semiconductor-fab power-quality orders ramping; data-center substation projects emerging; defense scaling with a ~$75M Royal Canadian Navy SPS contract, plus 3 U.S. Navy SPS systems delivered—management emphasized durable tailwinds across materials, traditional energy, utilities, and defense .

What Went Well and What Went Wrong

What Went Well

  • Broad-based strength and sequential growth: “We outperformed expectations… reached a recent record level of revenue,” with third consecutive GAAP profitability and seventh consecutive quarter of positive operating cash flow .
  • Orders and backlog step-up: “Fourth quarter orders grew to $75 million… total year-end orders… nearly $320 million… 12-month backlog of over $200 million (vs $140 million a year ago)”—a clear demand acceleration led by semiconductors and traditional energy projects .
  • Strategic wins: Breakthrough allied Navy SPS order (~$75M) and three U.S. Navy SPS deliveries; cross-portfolio selling now positioned as integrated AMSC solutions rather than disparate products, improving win rates and content per project .

What Went Wrong

  • Opex increased with scale: R&D+SG&A totaled $15.6M in Q4 (up from $10.3M YoY) and $54.5M for FY2024 (vs $39.6M FY2023), reflecting growth and acquisitions; management noted ~17% non-cash in Q4 and ~14% non-cash for the year .
  • Continued dependency pockets: Wind segment revenue tied largely to a single customer (Inox); management is using shorter-order pacing to match Inox’s ramp and cash-cycle variability, which keeps wind backlog lighter and requires responsiveness .
  • Macro and execution risks flagged: Company’s forward-looking statement highlights exposure to U.S. government funding cycles, supply chain dynamics, FX, and grid-permitting/policy uncertainties even as near-term reshoring and tariff context is a tailwind .

Financial Results

MetricQ2 FY2024Q3 FY2024Q4 FY2024
Revenue ($USD Millions)$54.5 $61.4 $66.7
GAAP Diluted EPS ($)$0.13 $0.06 $0.03
Non-GAAP Diluted EPS ($)$0.27 $0.16 $0.12
Gross Margin (%)28.7% (derived from $15.6M/$54.5M) 27% 27%

Consensus vs Actual

MetricQ2 FY2024Q3 FY2024Q4 FY2024
Revenue Consensus Mean ($USD Millions)$51.3*$56.7*$60.3*
Revenue Actual ($USD Millions)$54.5 $61.4 $66.7
EPS Normalized Consensus Mean ($)$0.043*$0.067*$0.097*
EPS Normalized Actual ($)$0.27 $0.16 $0.12

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

Segment Breakdown (Revenue)

Segment ($USD Millions)Q2 FY2024Q3 FY2024Q4 FY2024
Grid$46.9 $52.3 $55.6
Wind$7.5 $9.1 $11.1
Total$54.5 $61.4 $66.7

Key KPIs

KPIQ2 FY2024Q3 FY2024Q4 FY2024
New Orders ($USD Millions)≈$60.0 $57+ $75.0
12-Month Backlog ($USD Millions)>$200 >$200 >$200
Cash, Cash Equivalents & Restricted Cash ($USD Millions)$74.8 $80.0 $85.4
Operating Cash Flow ($USD Millions)≈$13.0 $5.9 $6.3

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 FY2024$59–63M Actual: $66.7M Beat (raised above range)
GAAP Net IncomeQ4 FY2024Net loss ≤$1.0M (≤$0.03/sh) Actual: +$1.2M ($0.03/sh) Improved (loss to profit)
Non-GAAP Net IncomeQ4 FY2024>$2.5M (~$0.07/sh) Actual: $4.8M ($0.12/sh) Beat (raised)
RevenueQ1 FY2025N/A$64–68M New guidance
GAAP Net IncomeQ1 FY2025N/A>$1.0M (~$0.03/sh) New guidance
Non-GAAP Net IncomeQ1 FY2025N/A>$4.0M (~$0.10/sh) New guidance

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
Semiconductor-fab demandDeep pipeline; CHIPS Act projects fully financed; several large orders near-term Orders accelerated; triple-digit potential; fab orders $2–10M each (rising to $10–15M per fab) Accelerating
Data centers (AI power demand)Exploring substation-level solutions; early pipeline “Direct demand” for substation power quality; beginning to win and deliver; pipeline building Strengthening
Tariffs/reshoringUS grid exposure >85% in Q3; positive policy rhetoric Tariffs/reshoring “helping” cadence; 70–75% revenue US-based; hedge vs trade policy risk Tailwind
Supply chain/costFlexible/dynamic sourcing; pricing resets with customers Continued flexibility; incremental margin improvements with scale Stable/Improving
Defense (SPS)Multi-prong military offering; expanding pipeline ~$75M Royal Canadian Navy SPS; 3 SPS delivered to US Navy; fourth delivery imminent Scaling
Wind/InoxSmaller, frequent orders; backlog light due to fast conversion Demand led by 3MW ECS ramp; wind at ~10–11% of mix in Q4 Improving

Management Commentary

  • “AMSC delivered its strongest reported performance in years… revenue surpassing the $65 million mark… third consecutive quarter of profitability… seventh consecutive quarter of generating operating cash flow.” — Daniel McGahn .
  • “Fourth quarter orders grew to $75 million… total year-end orders… nearly $320 million… 12‑month backlog of over $200 million.” — Daniel McGahn .
  • “We are strengthening substation power quality to support the demand from data centers… we can directly add that into capital projects… new and a big part of our future pipeline.” — Daniel McGahn .
  • “We secured a multi-year, multi-unit contract worth about $75 million with Irving Shipbuilding… expanded SPS internationally with a breakthrough contract from the Royal Canadian Navy.” — Daniel McGahn .
  • “We’re not cross-selling anymore. We’re just selling… one system solution for a semiconductor fab… broader, integrated offering is driving wins.” — Daniel McGahn .

Q&A Highlights

  • Order mix and pipeline: Semiconductor demand inflection drove the jump from a ~$60M to $75M quarterly order run-rate; projects are real, funded, and under construction .
  • Wind approach: Shift from large long-term contracts to shorter, fast-converting batches aligned with Inox’s ramp and cash cycles; wind backlog lighter but conversion rapid .
  • Integrated portfolio: AMSC now sells unified solutions (e.g., fab power-quality systems) rather than component brands, increasing content and value per project .
  • Margins/scale: Similar architectures and scale purchasing enable cost efficiency; gross margin expansion is incremental with higher utilization and favorable mix .
  • Tariffs: Near-term tariffs/reshoring pressures are a net positive for domestic orders and cadence .
  • Navy SPS performance: “Differentiated solution… works as well or better than advertised,” boosting credibility and allied opportunities .

Estimates Context

  • AMSC beat consensus revenue and normalized EPS for the last three quarters, with the most pronounced beat in Q4 FY2024 (actual $66.7M vs $60.3M est.; $0.12 vs $0.097 est.), and guided to continued profitability for Q1 FY2025 .
  • Estimate revisions likely move higher given semiconductor order acceleration, data center substation wins, and a stronger-than-expected Q4 margin profile (27%) alongside guidance to GAAP profitability .

Consensus vs Actual

MetricQ2 FY2024Q3 FY2024Q4 FY2024
Revenue Consensus Mean ($USD Millions)$51.3*$56.7*$60.3*
Revenue Actual ($USD Millions)$54.5 $61.4 $66.7
EPS Normalized Consensus Mean ($)$0.043*$0.067*$0.097*
EPS Normalized Actual ($)$0.27 $0.16 $0.12

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

Key Takeaways for Investors

  • Momentum beats: Q4 revenue/EPS above consensus, with guidance to continued profitability; semiconductor and traditional energy demand are near-term drivers of orders and revenue .
  • Structural shift in sales model: Integrated AMSC solutions lift content per project and win rates, particularly for semiconductor fabs and data center infrastructure .
  • Defense scaling: ~$75M allied SPS contract and multiple U.S. deliveries de-risk defense pipeline and diversify cash flows .
  • Margin sustainability: Gross margin held at 27% in Q4 (and Q3), with upside from mix and utilization as bookings accelerate; watch for incremental improvement as scale builds .
  • Cash and backlog strength: $85.4M cash and >$200M 12‑month backlog provide visibility; operating cash flow remains positive .
  • Trading implications: Narrative tailwinds (semiconductor/data center/defense) plus guidance to profitability can support multiple expansion; monitor order cadence and mix to gauge sustained margin trajectory .
  • Medium-term thesis: AMSC’s diversified exposure (materials, traditional energy, utilities, defense, wind) and integrated platform may deliver compounding revenue with improving margins; risks remain tied to policy/funding cycles and execution across growth segments .
Notes on non-GAAP:
Reconciliations show adjustments for stock-based compensation, amortization of acquisition-related intangibles, and contingent consideration changes; Q4 FY2024 non-GAAP diluted EPS was $0.12 vs GAAP $0.03 **[880807_0001437749-25-017983_ex_774528.htm:9]** **[880807_0001437749-25-017983_ex_774528.htm:6]**.