American Superconductor (AMSC) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $54.5 million, a 60% year-over-year increase, driven by organic growth, NWL, Inc., and Megatran acquisitions, with both grid and wind segments expanding.

• Net income reached $4.9 million ($0.13/share) for the quarter, reversing prior year losses, with non-GAAP net income at $10.0 million ($0.27/share), aided by deferred tax benefits from acquisitions.

• Grid business accounted for 86% of revenue, wind 14%; both segments saw significant growth and operating income improvements.

• Ended the quarter with nearly $75 million in cash and equivalents, sufficient liquidity projected for at least twelve months.

• Booked nearly $60 million in new orders, with total backlog exceeding $300 million, supported by strong demand in industrials, renewables, and semiconductors.

Financial highlights

• Revenue rose to $54.5 million from $34 million year-over-year; six-month revenue reached $94.8 million.

• Gross margin improved to 29% (28.7% in Q2 FY24) from 25% in the prior year, reflecting higher revenues and favorable product mix.

• Non-GAAP net income was $10.0 million ($0.27/share) for the quarter, up from near break-even a year ago.

• Net income reached $4.9 million ($0.13/share), compared to a net loss of $2.5 million ($0.09/share) last year.

• Operating cash flow was $12.9 million for the quarter and $16.1 million for six months, exceeding guidance due to milestone payments.

Outlook and guidance

• Q3 revenue expected between $55–$60 million.

• Q3 GAAP net loss not to exceed $1 million ($0.03/share); non-GAAP net income expected to exceed $2 million ($0.05/share).

• Management expects sufficient liquidity for at least the next twelve months, with no significant changes in working capital or capital expenditures anticipated.