Group 1 - American Superconductor (AMSC) is highlighted as a growth stock, regaining losses and moving above a buy zone on a weekly chart [1] - The stock experienced a significant increase of over 29% in heavy volume following its latest earnings release [1] - The company has seen its Composite Rating rise to 96, indicating strong performance metrics [4] Group 2 - The overall stock market finished mixed after a mild rate cut by the Federal Reserve, with investors appearing relieved [2]

Company Overview - American Superconductor (AMSC) shares increased by 6.6% to close at $64.49, with notable trading volume compared to typical sessions, and a total gain of 25.7% over the past four weeks [1] - AMSC is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year decline of 44.4%, while revenues are projected to be $67.5 million, an increase of 23.9% from the previous year [2] Industry Context - The positive sentiment around AMSC is driven by several factors including increased demand for semiconductor-driven materials, growth in global data centers, expansion of renewable energy, stable traditional energy spending, rising defense budgets, and ongoing grid modernization initiatives [2] - AMSC operates within the Zacks Electronics - Miscellaneous Components industry, which includes other companies like Littelfuse (LFUS), whose shares rose by 2.3% to $266.49, with a 4.5% return over the past month [4] Earnings Estimates - The consensus EPS estimate for AMSC has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Littelfuse's consensus EPS estimate for its upcoming report is $2.75, representing a year-over-year change of 1.5%, and it currently holds a Zacks Rank of 1 (Strong Buy) [5]

Think of the electric grid like the nation's highway system. Power plants are the factories. Big high-voltage lines are the interstates and local lines are neighborhood streets.When traffic gets jammed or a bridge goes out, the whole system slows.The most cost-effective way to harden the grid is first to maximize the use of our existing roads, then address the weak spots, and only after that, build new highways.This matters because for the first time in more than a decade, U.S. power consumption is rising a ...

Group 1 - The focus is on identifying small cap companies with strong fundamentals and growth potential, large cap companies experiencing temporary setbacks, and stable companies with solid dividend yields and growth potential [1] - The analyst has a strong quantitative background with a Ph.D. in Chemical Engineering and an MBA, indicating a robust foundation for conducting market research [1] Group 2 - The article expresses the author's personal opinions and indicates a beneficial long position in the shares of AMSC, suggesting a positive outlook on the company's performance [2] - There is a disclaimer regarding past performance not guaranteeing future results, emphasizing the importance of individual investor assessment [3]

Core Insights - American Superconductor Corporation (AMSC) reported a significant increase in earnings and revenues for the first quarter of fiscal 2025, with earnings per share at 29 cents, surpassing estimates by 141.7% and showing a year-over-year increase of 262.5% from 8 cents [1][11] - Revenues rose by 79.6% year over year to $72.34 million, exceeding the Zacks Consensus Estimate by 11.1%, driven by strong demand in both Grid and Wind segments [2][11] Financial Performance - AMSC's Grid revenues reached $60.1 million, accounting for 83% of total revenues, marking an 85.8% increase year over year [3][11] - Wind segment revenues were $12.3 million, representing 17% of total revenues, up 54.3% year over year [4][11] - Gross profit for the quarter was $24.48 million, improving from $12.23 million in the previous year, with a gross margin of 33.8% [5] - Operating expenses totaled $18.84 million, resulting in an operating income of $5.64 million compared to an operating loss of $3.3 million in the prior year, with an operating margin of 7.8% [6] Geographic Performance - Revenue from the Americas increased by 24.7% year over year to $38.02 million, while the Asia Pacific region saw a remarkable growth of 234% to $30.57 million, and the EMEA region increased by 470.2% to $3.76 million [5][11] Cash Flow and Balance Sheet - AMSC ended the quarter with cash and cash equivalents of $207.89 million, up from $79.5 million in the previous quarter, with no debt [7] - The company generated an operating cash flow of $4.13 million and spent $0.814 million on capital expenditures [7] Future Guidance - AMSC provided guidance for the second quarter of fiscal 2025, projecting revenues between $65 million and $70 million, with the Zacks Consensus Estimate at $65.3 million, indicating a year-over-year rise of 19.88% [8] - The company expects GAAP net income to exceed $2 million (5 cents per share) and non-GAAP net income to exceed $6 million (14 cents per share), while the Zacks Consensus Estimate for earnings is pegged at 12 cents per share, reflecting a year-over-year decline of 55.6% [9]

Financial Data and Key Metrics Changes - Revenue exceeded $70 million for the first quarter, growing by 80% year-over-year, significantly driven by organic growth [6][11] - Net income was over $6 million, marking the fourth consecutive quarter of profitability, with gross margins topping 30% [7][14] - The company closed the quarter with over $210 million in cash, up from $85.4 million at the end of the previous quarter [7][15] Business Line Data and Key Metrics Changes - Grid revenue accounted for over 80% of total revenue, growing over 85% year-over-year [6][11] - Wind business revenue increased nearly 55% from the year-ago quarter, driven by increased ECS shipments [6][12] - The semiconductor sector was a main growth driver, reflecting demand for AI applications and data center infrastructure [8][10] Market Data and Key Metrics Changes - The company reported a twelve-month backlog of over $200 million, up from $160 million in the year-ago quarter [8] - Revenue came from diverse sectors: traditional energy (25%), renewable energy (25%), materials (25%), and military/industrial sectors (25%) [9] - The semiconductor industry is experiencing a major capital expenditure cycle, with expected investments of approximately $160 billion in 2025 [21][22] Company Strategy and Development Direction - The company is focused on scaling the business, diversifying revenue, and driving financial performance, with major tailwinds in core sectors [20][24] - There is a strong emphasis on expanding capacity and exploring acquisition targets to enhance product offerings [25][44] - The company aims to capitalize on international investments, particularly in renewables, with significant growth projected in markets like India [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to sustain revenue levels above $65 million per quarter, with a strong outlook for the second quarter [19][22] - The company is well-positioned to benefit from increasing investments in traditional energy, materials, and military sectors [22][23] - Management highlighted the importance of customer relationships and the ability to meet demand as key factors in their success [7][10] Other Important Information - The company completed a public offering generating total net proceeds of $124.6 million [15] - The gross margin for the quarter was favorably impacted by a strong product mix and pricing increases across product lines [12][14] Q&A Session Summary Question: Confirmation on gross margin and future expectations - Management confirmed that the gross margin was not skewed by one-time items and expressed confidence in maintaining a gross margin above 30% moving forward [31][34] Question: Update on wind business and volume ramp - Management indicated that the wind business is showing strong demand and a potential volume ramp could occur as early as next year [35][36] Question: Capacity expansion considerations - The company is exploring options for capacity expansion, focusing on labor and tooling without significant capital investment [42][44] Question: Geographic expansion and pricing strategies - Management acknowledged the potential for geographic expansion and increased pricing based on the value creation of their offerings [48][50] Question: Semiconductor market success factors - Management highlighted the unique content and proprietary technology as key factors enabling success in the semiconductor market [68][69] Question: Impact of U.S. electrical grid strengthening - Management noted an uptick in inquiries related to grid reliability and efficiency, indicating a growing relevance of their solutions [77][79]

Group 1: Earnings Performance - American Superconductor (AMSC) reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and up from $0.08 per share a year ago, representing an earnings surprise of +141.67% [1] - The company posted revenues of $72.36 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.06%, compared to year-ago revenues of $40.29 million [2] - Over the last four quarters, AMSC has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - AMSC shares have increased approximately 76.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.3% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $65.3 million, and for the current fiscal year, it is $0.54 on revenues of $267.35 million [7] Group 3: Industry Context - The Electronics - Miscellaneous Components industry, to which AMSC belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AMSC's stock performance [5]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents American Superconductor Corporation's unaudited condensed consolidated financial statements and detailed notes for Q1 2025 and Q4 2024 [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time **Condensed Consolidated Balance Sheets (in thousands):** | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Cash and cash equivalents | $207,890 | $79,494 | | Accounts receivable, net | $54,684 | $46,186 | | Inventory, net | $71,602 | $71,169 | | Total current assets | $348,857 | $206,517 | | Total assets | $452,846 | $310,521 | | Total current liabilities | $105,310 | $99,764 | | Total liabilities | $119,730 | $113,407 | | Total stockholders' equity | $333,116 | $197,114 | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section outlines the company's revenues, costs, and profitability over a specific reporting period **Condensed Consolidated Statements of Operations (in thousands, except per share data):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Revenues | $72,358 | $40,290 | | Cost of revenues | $47,869 | $28,065 | | Gross margin | $24,489 | $12,225 | | Operating income (loss) | $5,644 | $(3,291) | | Net income (loss) | $6,724 | $(2,524) | | Basic Net income (loss) per common share | $0.17 | $(0.07) | | Diluted Net income (loss) per common share | $0.17 | $(0.07) | [Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20%28LOSS%29) This section presents the company's total comprehensive income or loss, including net income and other comprehensive income items **Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $6,724 | $(2,524) | | Foreign currency translation (loss) gain | $(187) | $15 | | Total other comprehensive (loss) gain, net of tax | $(187) | $15 | | Comprehensive income (loss) | $6,537 | $(2,509) | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS'%20EQUITY) This section details changes in the company's equity accounts, reflecting transactions with owners and comprehensive income **Changes in Stockholders' Equity (in thousands):** | Item | Balance at March 31, 2025 | Balance at June 30, 2025 | | :-------------------------------- | :------------------------ | :----------------------- | | Common Stock (Par Value) | $399 | $456 | | Additional Paid-in Capital | $1,259,540 | $1,388,948 | | Accumulated Other Comprehensive Income | $1,565 | $1,378 | | Accumulated Deficit | $(1,060,625) | $(1,053,901) | | Total Stockholders' Equity | $197,114 | $333,116 | - Issuance of common stock from equity offering, net of expenses, contributed **$124,577 thousand** to stockholders' equity for the three months ended June 30, 2025[17](index=17&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section reports the cash generated and used by the company across operating, investing, and financing activities **Condensed Consolidated Statements of Cash Flows (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $4,125 | $3,409 | | Net cash used in investing activities | $(735) | $(20) | | Net cash provided by (used in) financing activities | $124,577 | $(142) | | Net increase in cash, cash equivalents and restricted cash | $128,038 | $3,243 | | Cash, cash equivalents and restricted cash at end of period | $213,419 | $95,523 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [Note 1. Nature of the Business and Operations](index=10&type=section&id=1.%20Nature%20of%20the%20Business%20and%20Operations) AMSC provides megawatt-scale power resiliency solutions for grid and Navy applications, with financial statements prepared on a going concern basis - AMSC provides megawatt-scale power resiliency solutions for grid and Navy applications, utilizing proprietary 'smart materials' and 'smart software and controls'[24](index=24&type=chunk) - The unaudited condensed consolidated financial statements are prepared on a going concern basis in accordance with GAAP and SEC instructions to Form 10-Q[25](index=25&type=chunk) [Note 2. Acquisition](index=11&type=section&id=2.%20Acquisition) AMSC acquired NWL for approximately **$61.4 million**, adding **$17.8 million** in revenue and **$2.5 million** in net income to the Grid segment in Q1 2025 - AMSC acquired Megatran Industries, Inc. (NWL) on August 1, 2024, for approximately **$61.4 million**, comprising cash and common stock[27](index=27&type=chunk)[29](index=29&type=chunk) **NWL Acquisition Purchase Price Allocation (in millions):** | Item | Amount | | :-------------------------------- | :----- | | Net tangible assets/(liabilities) | $54.7 | | Net identifiable intangible assets | $2.0 | | Goodwill | $4.7 | | Total purchase consideration | $61.4 | **NWL Contribution to AMSC (Three Months Ended June 30, 2025):** | Item | Amount | | :-------------------------------- | :----- | | Revenue | $17.8 million | | Net income | $2.5 million | [Note 3. Revenue Recognition](index=12&type=section&id=3.%20Revenue%20Recognition) Revenue is primarily recognized at a point in time, disaggregated by product line and region, with key customers Fuji Bridex Pte Ltd (**21%** of total revenue) and Inox Wind Limited (**16%**) - For the three months ended June 30, 2025, **91%** of revenue was recognized at the point in time when control transferred to the customer, compared to **88%** for the same period in 2024[37](index=37&type=chunk) **Disaggregated Revenue by Product Line (in thousands):** | Product Line | Q1 2025 (Grid) | Q1 2025 (Wind) | Q1 2024 (Grid) | Q1 2024 (Wind) | | :-------------------------------- | :------------- | :------------- | :------------- | :------------- | | Equipment and systems | $55,521 | $11,881 | $29,726 | $7,424 | | Services and technology development | $4,566 | $390 | $2,610 | $530 | | **Total** | **$60,087** | **$12,271** | **$32,336** | **$7,954** | **Customers Representing 10% or More of Total Revenues:** | Customer | Segment | Q1 2025 | Q1 2024 | | :-------------------------------- | :------ | :------ | :------ | | Fuji Bridex Pte Ltd | Grid | 21% | <10% | | Inox Wind Limited | Wind | 16% | 18% | - As of June 30, 2025, the Company had outstanding performance obligations of approximately **$215.2 million** to be recognized in the next twelve months and **$88.4 million** over thirteen to sixty months[51](index=51&type=chunk) [Note 4. Stock-Based Compensation](index=16&type=section&id=4.%20Stock-Based%20Compensation) Stock-based compensation expense significantly increased to **$4.5 million** in Q1 2025, with **$31.4 million** in unrecognized costs for unvested restricted stock **Stock-Based Compensation Expense (in thousands):** | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Cost of revenues | $340 | $58 | | Research and development | $687 | $143 | | Selling, general and administrative | $3,499 | $1,028 | | **Total** | **$4,526** | **$1,229** | - The Company issued **880,000 shares** of restricted stock and **39,445 shares** of immediately vested common stock during the three months ended June 30, 2025[53](index=53&type=chunk) - Total unrecognized compensation cost for unvested outstanding restricted stock was **$31.4 million** as of June 30, 2025, to be recognized over approximately **2.1 years**[54](index=54&type=chunk) [Note 5. Computation of Net Income (Loss) per Common Share](index=17&type=section&id=5.%20Computation%20of%20Net%20Income%20%28Loss%29%20per%20Common%20Share) Basic and diluted EPS improved to **$0.17** in Q1 2025 from **$(0.07)** in Q1 2024, with certain anti-dilutive shares excluded **Net Income (Loss) per Common Share (in thousands, except per share data):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $6,724 | $(2,524) | | Shares used in per-share calculation ― basic | 38,875 | 35,676 | | Shares used in per-share calculation ― diluted | 39,742 | 35,676 | | Net income (loss) per share ― basic | $0.17 | $(0.07) | | Net income (loss) per share ― diluted | $0.17 | $(0.07) | - For the three months ended June 30, 2025, **475,329 shares** (primarily performance-based restricted stock where contingency was not met) were excluded from diluted EPS calculation as anti-dilutive[56](index=56&type=chunk) [Note 6. Goodwill and Other Intangibles](index=17&type=section&id=6.%20Goodwill%20and%20Other%20Intangibles) Goodwill from the NWL Acquisition remained at **$4.7 million**, while other intangible assets had a net book value of **$5.6 million** with **$0.3 million** amortization - Goodwill increased by **$4.7 million** during the fiscal year ended March 31, 2025, related to the NWL Acquisition, and remained unchanged for the three months ended June 30, 2025. It is assigned to the Grid business segment[58](index=58&type=chunk) **Intangible Assets (in thousands):** | Item | June 30, 2025 Net Book Value | March 31, 2025 Net Book Value | | :-------------------------------- | :----------------------------- | :---------------------------- | | Backlog | $0 | $0 | | Trade name and trademarks | $1,800 | $1,800 | | Customer relationships | $2,764 | $2,980 | | Core technology and know-how | $1,015 | $1,136 | | **Total Intangible assets** | **$5,579** | **$5,916** | - Intangible amortization expense was **$0.3 million** for the three months ended June 30, 2025, down from **$0.4 million** in the prior year period[60](index=60&type=chunk) [Note 7. Fair Value Measurements](index=19&type=section&id=7.%20Fair%20Value%20Measurements) Financial assets are classified into a three-level fair value hierarchy, with **$175.7 million** in Level 1 cash equivalents and **$1.4 million** in Level 2 short-term instruments - The fair value hierarchy prioritizes inputs into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[67](index=67&type=chunk) **Assets Carried at Fair Value (in thousands):** | Item | June 30, 2025 Total Carrying Value | Level 1 | Level 2 | | :-------------------------------- | :------------------------------- | :------ | :------ | | Cash equivalents | $175,654 | $175,654 | $0 | | Short-term cash instruments | $1,401 | $0 | $1,401 | [Note 8. Accounts Receivable](index=20&type=section&id=8.%20Accounts%20Receivable) Accounts receivable, net, increased to **$54.7 million** as of June 30, 2025, due to higher billed and unbilled receivables **Accounts Receivable (in thousands):** | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Accounts receivable (billed) | $44,601 | $39,810 | | Accounts receivable (unbilled) | $10,083 | $6,376 | | **Accounts receivable** | **$54,684** | **$46,186** | [Note 9. Inventory](index=21&type=section&id=9.%20Inventory) Net inventory remained stable at **$71.6 million**, with **$0.7 million** in write-downs recorded for Q1 2025 **Inventory, net of reserves (in thousands):** | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Raw materials | $37,184 | $35,892 | | Work-in-process | $22,459 | $19,633 | | Finished goods | $6,343 | $9,888 | | Deferred program costs | $5,616 | $5,756 | | **Net inventory** | **$71,602** | **$71,169** | - Inventory write-downs of **$0.7 million** were recorded for the three months ended June 30, 2025, compared to **$0.5 million** in the prior year period[70](index=70&type=chunk) [Note 10. Property, Plant and Equipment](index=22&type=section&id=10.%20Property,%20Plant%20and%20Equipment) Net property, plant and equipment slightly decreased to **$38.5 million**, with **$0.9 million** in depreciation expense for the quarter **Property, Plant and Equipment, net (in thousands):** | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Property, plant and equipment, gross | $89,809 | $88,964 | | Less accumulated depreciation | $(51,288) | $(50,392) | | **Property, plant and equipment, net** | **$38,521** | **$38,572** | - Depreciation expense was **$0.9 million** for the three months ended June 30, 2025, compared to **$0.6 million** in the prior year period[73](index=73&type=chunk) [Note 11. Equity-Method Investments](index=22&type=section&id=11.%20Equity-Method%20Investments) The **50%** equity-method investment in NWL Pacific Inc. Co., LTD increased to **$1.4 million**, with the joint venture reporting **$0.7 million** net income - AMSC has a **50%** ownership in NWL Pacific Inc. Co., LTD, a joint venture in South Korea, accounted for under the equity method[74](index=74&type=chunk)[75](index=75&type=chunk) **NWL Pacific Summarized Financial Information (in thousands, Three Months Ended June 30, 2025):** | Item | Amount | | :-------------------------------- | :----- | | Net Revenue | $2,599 | | Gross Profit | $1,160 | | Income from operation | $657 | | Net income | $745 | [Note 12. Accounts Payable and Accrued Expenses](index=22&type=section&id=12.%20Accounts%20Payable%20and%20Accrued%20Expenses) Accounts payable and accrued expenses increased to **$38.4 million**, driven by higher accounts payable and advanced deposits, with **$0.5 million** in warranty provisions **Accounts Payable and Accrued Expenses (in thousands):** | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Accounts payable | $11,861 | $6,733 | | Advanced deposits | $4,636 | $1,267 | | Accrued compensation | $9,307 | $13,418 | | Accrued product warranty | $3,240 | $3,033 | | **Total** | **$38,401** | **$32,282** | **Product Warranty Activity (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Balance at beginning of period | $3,033 | $2,363 | | Provisions for warranties during the period | $549 | $476 | | Settlements during the period | $(342) | $(297) | | **Balance at end of period** | **$3,240** | **$2,542** | [Note 13. Income Taxes](index=24&type=section&id=13.%20Income%20Taxes) Income tax expense remained **$0.2 million**, with the company evaluating the impact of new tax reform and assessing the potential release of a valuation allowance on deferred tax assets - Income tax expense was **$0.2 million** for both the three months ended June 30, 2025, and 2024[80](index=80&type=chunk) - The company is evaluating the impact of the 'One Big Beautiful Bill' (OBBB) tax reform, signed on July 4, 2025, which includes provisions for R&D deductions and bonus depreciation[81](index=81&type=chunk) - A valuation allowance is maintained on U.S. federal and state deferred tax assets, with an assessment underway in fiscal year 2025 for potential release due to positive earnings trends[83](index=83&type=chunk) [Note 14. Contingent Consideration](index=24&type=section&id=14.%20Contingent%20Consideration) All NEPSI and NWL acquisition contingent consideration was settled by September 30, 2024, resulting in no activity recorded in Q1 2025 - All outstanding contingent consideration under the NEPSI Stock Purchase Agreement was settled by September 30, 2024, including the issuance of **300,000 shares** of common stock[84](index=84&type=chunk)[85](index=85&type=chunk) - The NWL acquisition's contingent consideration was settled by September 30, 2024, with a **$3.3 million** payment[87](index=87&type=chunk) - The company recorded no activity related to contingent consideration in the three months ended June 30, 2025, compared to a loss of **$3.9 million** in the prior year period due to an increase in fair value[89](index=89&type=chunk) [Note 15. Leases](index=26&type=section&id=15.%20Leases) Operating lease right-of-use assets totaled **$4.0 million** and lease liabilities **$3.8 million** as of June 30, 2025, with total lease costs of **$0.5 million** **Supplemental Balance Sheet Information Related to Leases (in thousands):** | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Right-of-use assets – Operating | $4,041 | $3,829 | | Lease liabilities – ST Operating | $854 | $685 | | Lease liabilities – LT Operating | $2,906 | $2,684 | | **Total lease liabilities** | **$3,760** | **$3,369** | **Total Lease Costs (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Operating lease costs – fixed | $416 | $309 | | Operating lease costs – variable | $45 | $45 | | Short-term lease costs | $41 | $38 | | **Total lease costs** | **$502** | **$392** | - The present value of total minimum future lease obligations is **$3.76 million**, with **$0.9 million** due in the remaining fiscal year 2026[93](index=93&type=chunk) [Note 16. Commitments and Contingencies](index=28&type=section&id=16.%20Commitments%20and%20Contingencies) The company records liabilities for probable legal losses and has **$5.5 million** in performance bond commitments secured by restricted cash - The company records a liability for legal matters when a loss is known or considered probable and the amount can be reasonably estimated[94](index=94&type=chunk) **Restricted Cash (in thousands):** | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Restricted cash (current) | $1,349 | $1,613 | | Restricted cash (long-term) | $4,180 | $4,274 | | **Total restricted cash** | **$5,529** | **$5,887** | [Note 17. Business Segments](index=29&type=section&id=17.%20Business%20Segments) AMSC operates in Grid and Wind segments, both showing improved operating income in Q1 2025, driven by power resiliency and wind power solutions - The Grid segment enables electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power, and sells ship protection products to the U.S. Navy[99](index=99&type=chunk)[123](index=123&type=chunk) - The Wind segment supplies advanced power electronics and control systems, licenses wind turbine designs, and provides support services to wind turbine manufacturers[100](index=100&type=chunk)[123](index=123&type=chunk) **Segment Operating Income (in thousands):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Grid | $4,155 | $(237) | | Wind | $1,489 | $866 | | Unallocated corporate expenses | $0 | $(3,920) | | **Total Operating Income (Loss)** | **$5,644** | **$(3,291)** | **Total Assets by Segment (in thousands):** | Segment | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Grid | $221,959 | $211,520 | | Wind | $17,437 | $13,697 | | Corporate assets | $213,450 | $85,304 | | **Total** | **$452,846** | **$310,521** | [Note 18. Recent Accounting Pronouncements](index=32&type=section&id=18.%20Recent%20Accounting%20Pronouncements) The company is evaluating new FASB ASUs on income tax disclosures, codification improvements, and expense disaggregation, effective in future reporting periods - The company is evaluating ASU 2023-09 (Income Taxes), effective for periods beginning after December 15, 2024, which aims to improve income tax disclosures[108](index=108&type=chunk) - The company is evaluating ASU 2024-02 (Codification Improvements), effective for periods beginning after December 15, 2024, which removes references to Concepts Statements[109](index=109&type=chunk) - The company is evaluating ASU 2024-03 (Expense Disaggregation Disclosures), effective for periods beginning after December 15, 2026, which requires more disaggregated expense information[110](index=110&type=chunk) [Note 19. Subsequent Events](index=32&type=section&id=19.%20Subsequent%20Events) No subsequent events were identified or reported through the filing date of the Quarterly Report on Form 10-Q - No subsequent events were identified to report through the filing date of the Form 10-Q[111](index=111&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, condition, and operational results for Q1 2025, covering an executive overview, accounting policies, segment results, liquidity, and recent pronouncements [Executive Overview](index=35&type=section&id=Executive%20Overview) This section provides a high-level summary of the company's business, strategic drivers, and key recent developments - AMSC is a leading system provider of megawatt-scale power resiliency solutions for grid and Navy applications, enhancing performance, protecting fleets, and lowering wind power costs[118](index=118&type=chunk) - Demand for solutions is driven by modernized smart grids, U.S. Navy fleet electrification, and increased renewable energy adoption[119](index=119&type=chunk) - The company's core technologies include PowerModule™ programmable power electronic converters and Amperium® high temperature superconductor (HTS) wires[120](index=120&type=chunk) - On August 1, 2024, AMSC acquired NWL for **$61.4 million**, integrating it into the Grid business segment[125](index=125&type=chunk) - In June 2025, the company completed an equity offering, raising approximately **$124.6 million** in net proceeds[126](index=126&type=chunk) [Critical Accounting Policies and Estimates](index=36&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the significant accounting policies and estimates that require management's judgment and can materially impact financial reporting - The preparation of financial statements requires management to make estimates and judgments that affect reported amounts of assets, liabilities, revenues, and expenses[127](index=127&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing revenues, costs, and profitability across various operational aspects [Revenues](index=36&type=section&id=Revenues) This section details the company's revenue performance, disaggregated by segment, and highlights key drivers of change **Total Revenues (in thousands):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Grid | $60,087 | $32,336 | +86% | | Wind | $12,271 | $7,954 | +54% | | **Total** | **$72,358** | **$40,290** | **+80%** | - The increase in Grid segment revenues was primarily driven by the acquisition of NWL and increased shipments of new energy power systems[128](index=128&type=chunk) - The increase in Wind segment revenues was driven by additional shipments of electrical control systems (ECS)[129](index=129&type=chunk) [Cost of Revenues and Gross Margin](index=37&type=section&id=Cost%20of%20Revenues%20and%20Gross%20Margin) This section analyzes the cost of goods sold and the resulting gross margin, explaining factors influencing profitability **Cost of Revenues and Gross Margin (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Cost of revenues | $47,869 | $28,065 | +71% | | Gross margin | 34% | 30% | +4 ppts | - The increase in gross margin was due to higher revenues, a favorable product mix, and pricing increases across product lines[130](index=130&type=chunk) [Operating Expenses](index=37&type=section&id=Operating%20Expenses) This section details the company's operating expenses, including R&D, SG&A, and other non-revenue related costs **Operating Expenses (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Research and development | $4,304 | $2,286 | +88% | | Selling, general and administrative | $14,204 | $8,898 | +60% | | Amortization of acquisition-related intangibles | $337 | $412 | -18% | | Change in fair value of contingent consideration | $0 | $3,920 | -100% | | **Total Operating Expenses** | **$18,845** | **$15,516** | **+21%** | - Increases in R&D and SG&A expenses were primarily driven by the addition of NWL expenses, higher overall compensation, and additional stock-based compensation[131](index=131&type=chunk)[132](index=132&type=chunk) - The decrease in amortization expense is a result of using the economic consumption method for acquired customer relationship intangible assets[133](index=133&type=chunk) - No contingent consideration activity in Q1 2025 as the liability was settled in the prior fiscal year, compared to a **$3.9 million** loss in Q1 2024[134](index=134&type=chunk) [Operating Income (Loss)](index=38&type=section&id=Operating%20income%20%28loss%29) This section presents the company's operating income or loss, broken down by business segment, reflecting core operational profitability **Operating Income (Loss) by Segment (in thousands):** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Grid | $4,155 | $(237) | | Wind | $1,489 | $866 | | Unallocated corporate expenses | $0 | $(3,920) | | **Total Operating Income (Loss)** | **$5,644** | **$(3,291)** | - Grid segment operating income improved significantly due to higher revenues and gross margins[136](index=136&type=chunk) - Wind segment operating income increased due to higher revenues and gross margins from increased ECS unit sales[137](index=137&type=chunk) [Interest Income, Net](index=38&type=section&id=Interest%20income,%20net) This section reports the net interest income or expense, reflecting the company's financial income from investments and costs of debt **Interest Income, Net (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Interest income, net | $932 | $1,120 | -17% | - The decrease in net interest income was due to lower interest rates[138](index=138&type=chunk) [Other Income (Expense), Net](index=38&type=section&id=Other%20income%20%28expense%29,%20net) This section details other non-operating income and expenses, including gains or losses from foreign currency and joint ventures **Other Income (Expense), Net (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Other income (expense), net | $347 | $(160) | - The improvement was driven by favorable foreign currency fluctuations and a gain from the NWL Pacific joint venture[139](index=139&type=chunk) [Income Taxes](index=38&type=section&id=Income%20Taxes) This section outlines the company's income tax expense for the period **Income Tax Expense (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Income tax expense | $199 | $193 | [Net Income (Loss)](index=39&type=section&id=Net%20income%20%28loss%29) This section presents the company's overall net income or loss, reflecting total profitability after all expenses and taxes **Net Income (Loss) (in thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $6,724 | $(2,524) | - The improvement in net income was primarily driven by increased revenues and gross margins[141](index=141&type=chunk) [Non-GAAP Financial Measure - Non-GAAP Net Income](index=39&type=section&id=Non-GAAP%20Financial%20Measure%20-%20Non-GAAP%20Net%20Income) This section provides a non-GAAP measure of net income, adjusted for specific non-cash or unusual items to offer an alternative view of performance - Non-GAAP net income is defined as net income (loss) before stock-based compensation, amortization of acquisition-related intangibles, change in fair value of contingent consideration, and other non-cash or unusual charges[143](index=143&type=chunk) **Non-GAAP Net Income (in thousands, except per share data):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Non-GAAP net income | $11,587 | $3,037 | | Non-GAAP net income per share - basic | $0.30 | $0.09 | | Non-GAAP net income per share - diluted | $0.29 | $0.08 | - The improvement in non-GAAP net income was due to higher revenues and gross margins[143](index=143&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its short-term and long-term financial obligations and its sources of funding - Primary liquidity sources are internally generated cash, cash and cash equivalents on hand, and access to capital markets[144](index=144&type=chunk) **Cash, Cash Equivalents, and Restricted Cash (in thousands):** | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Cash and cash equivalents | $207,890 | $79,494 | | Restricted cash | $5,529 | $5,887 | | **Total** | **$213,419** | **$85,381** | - In June 2025, the company completed an equity offering, raising approximately **$124.6 million** in net proceeds[146](index=146&type=chunk) **Net Cash Flows (in thousands):** | Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Operating activities | $4,125 | $3,409 | | Investing activities | $(735) | $(20) | | Financing activities | $124,577 | $(142) | - The company believes it has sufficient liquidity for the next twelve months but may seek additional capital, with no assurance of favorable terms[152](index=152&type=chunk) [Legal Proceedings](index=41&type=section&id=Legal%20Proceedings) This section provides an overview of any significant legal and administrative proceedings involving the company - The company records a liability for legal and administrative proceedings when a loss is known or considered probable and the amount can be reasonably estimated[153](index=153&type=chunk) [Recent Accounting Pronouncements](index=41&type=section&id=Recent%20Accounting%20Pronouncements) This section outlines the company's evaluation of recently issued accounting pronouncements and their potential impact on financial reporting - The company is evaluating the impact of ASU 2023-09 (Income Taxes), ASU 2024-02 (Codification Improvements), and ASU 2024-03 (Expense Disaggregation Disclosures)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risks, including interest rate and foreign currency exchange, is discussed, with a **10%** Euro fluctuation deemed immaterial [Cash and Cash Equivalents](index=42&type=section&id=Cash%20and%20cash%20equivalents) This section details the company's market risk exposure related to its cash and cash equivalents, primarily focusing on interest rate risk - Exposure to market risk from short-term cash instruments is limited to interest rate risk and is not material[160](index=160&type=chunk) - Investments in marketable securities prioritize principal preservation, liquidity, and income maximization[160](index=160&type=chunk) [Foreign Currency Exchange Risk](index=42&type=section&id=Foreign%20currency%20exchange%20risk) This section assesses the company's exposure to foreign currency exchange rate fluctuations and their potential impact on financial results - The functional currency of AMSC Austria is the Euro, while other foreign subsidiaries use the U.S. dollar[161](index=161&type=chunk) - A **10%** fluctuation in the functional currency for AMSC Austria would have an immaterial effect on consolidated financial statements[162](index=162&type=chunk) **Foreign Currency Gains (Losses) (in millions):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Foreign currency gains (losses) | $0.1 | $(0.2) | [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated disclosure controls and procedures, concluding they were effective as of June 30, 2025, with no material changes to internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=42&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on management's assessment of the effectiveness of the company's disclosure controls and procedures - Management, with CEO and CFO participation, concluded that disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025[164](index=164&type=chunk) [Changes in Internal Control over Financial Reporting](index=42&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section details any changes in the company's internal control over financial reporting during the reporting period - There were no changes to internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[165](index=165&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) No legal proceedings were reported for the period - No legal proceedings to report[167](index=167&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - No material changes to the risk factors described in the Annual Report on Form 10-K for the fiscal year ended March 31, 2025[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No stock repurchase activity occurred during the three months ended June 30, 2025 - No stock repurchase activity occurred during the three months ended June 30, 2025[168](index=168&type=chunk) [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported for the period - No defaults upon senior securities[169](index=169&type=chunk) [Item 4. Mine Safety Disclosure](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to the company's operations - Not Applicable[169](index=169&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No other information was reported, including no director or officer Rule 10b5-1 trading arrangement activity - No other information to report[169](index=169&type=chunk) - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[169](index=169&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including incentive plans, stock plans, certifications, and XBRL documents - Exhibits include Fiscal 2025 Executive Incentive Plan, Amended and Restated 2007 Director Stock Plan, CEO and CFO certifications (Rule 13a-14(a) and 13a-14(b)), and Inline XBRL documents[170](index=170&type=chunk) [Signature](index=46&type=section&id=Signature) The report was signed by John W. Kosiba, Jr., Senior Vice President, Chief Financial Officer and Treasurer, on July 30, 2025 - The report was signed by John W. Kosiba, Jr., Senior Vice President, Chief Financial Officer and Treasurer, on July 30, 2025[175](index=175&type=chunk)[176](index=176&type=chunk)

[First Quarter Fiscal Year 2025 Financial Results](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202025%20Financial%20Results) [1.1 Financial Highlights](index=1&type=section&id=1.1%20Financial%20Highlights) AMSC achieved significant financial growth in Q1 FY2025, with revenue up 80% YoY to $72.4 million, marking its fourth consecutive profitable quarter with GAAP net income of $6.7 million and non-GAAP net income of $11.6 million, alongside a substantial increase in cash reserves and gross margin exceeding 30% Financial Performance Overview | Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | $72.4 Million | $40.3 Million | +80% | | **GAAP Net Income** | $6.7 Million | ($2.5) Million | Swung to Profit | | **GAAP EPS** | $0.17 | ($0.07) | Swung to Profit | | **Non-GAAP Net Income** | $11.6 Million | $3.0 Million | +287% | | **Non-GAAP EPS** | $0.30 | $0.09 | +233% | | **Gross Margin** | >30% | - | - | Cash Position | Metric | As of June 30, 2025 | As of March 31, 2025 | | :--- | :--- | :--- | | **Cash, Cash Equivalents, and Restricted Cash** | $213.4 Million | $85.4 Million | - Revenue growth was primarily driven by organic growth and the acquisition of NWL, Inc[2](index=2&type=chunk) [1.2 CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) CEO Daniel P. McGahn highlighted accelerated growth and exceptional execution in Q1 FY2025, exceeding expectations, with the company achieving its fourth consecutive profitable quarter, gross margin over 30%, and benefiting from strong semiconductor market demand, particularly in AI and data centers - The company commenced fiscal year 2025 with accelerated growth, demonstrating outstanding performance and execution in the first quarter, exceeding expectations[5](index=5&type=chunk) - Achieved profitability for the fourth consecutive quarter and expanded gross margin to over **30%**[5](index=5&type=chunk) - Strong demand in the semiconductor market, especially for artificial intelligence and data center applications, fueled the company's momentum[5](index=5&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) [2.1 Second Quarter Fiscal Year 2025 Guidance](index=2&type=section&id=2.1%20Second%20Quarter%20Fiscal%20Year%202025%20Guidance) AMSC projects Q2 FY2025 revenue (ending September 30, 2025) to be between $65 million and $70 million, with GAAP net income expected to exceed $2 million and non-GAAP net income projected to exceed $6 million Q2 FY2025 Financial Guidance | Metric | Q2 FY2025 (Forecast) | | :--- | :--- | | **Revenue** | $65.0 Million - $70.0 Million | | **GAAP Net Income** | >$2.0 Million | | **GAAP EPS** | >$0.05 | | **Non-GAAP Net Income** | >$6.0 Million | | **Non-GAAP EPS** | >$0.14 | [Company Information](index=2&type=section&id=Company%20Information) [3.1 About AMSC](index=2&type=section&id=3.1%20About%20AMSC) AMSC is a leading provider of megawatt-scale power resiliency solutions, focusing on power management for grids and naval fleets, offering engineering planning, advanced grid systems, ship protection, and wind turbine electronic controls through its Gridtec™, Marinetec™, and Windtecc™ solutions - AMSC provides megawatt-scale power resiliency solutions designed to optimize grid reliability, efficiency, and performance, while protecting and extending the capabilities and resilience of naval fleets[1](index=1&type=chunk)[9](index=9&type=chunk) - Key solutions include Gridtec™ (grid systems), Marinetec™ (ship protection and power management), and Windtecc™ (wind turbine electronic controls and systems)[9](index=9&type=chunk) - Founded in 1987, the company is headquartered near Boston, Massachusetts, with operations across Asia, Australia, Europe, and North America[9](index=9&type=chunk) [3.2 Trademarks](index=2&type=section&id=3.2%20Trademarks) Trademarks mentioned in this report for AMSC and its related products and solutions include AMSC, American Superconductor, D-VAR, D-VAR VVO, Gridtec, Marinetec, Windtec, Neeltran, NEPSI, NWL, Smarter, Cleaner … Better Energy, and Orchestrate the Rhythm and Harmony of Power on the Grid - Trademarks for AMSC and its related products and solutions include: AMSC, American Superconductor, D-VAR, D-VAR VVO, Gridtec, Marinetec, Windtec, Neeltran, NEPSI, NWL, Smarter, Cleaner … Better Energy, and Orchestrate the Rhythm and Harmony of Power on the Grid[10](index=10&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) [4.1 Forward-Looking Statements](index=3&type=section&id=4.1%20Forward-Looking%20Statements) This press release contains forward-looking statements under Section 21E of the Securities Exchange Act of 1934, covering company objectives, strategy execution, market demand, backlog, and Q2 FY2025 financial expectations, which are inherently uncertain and actual results may differ materially due to various factors - Forward-looking statements encompass the execution of company objectives and strategies, business expansion, revenue diversification, increasing demand for artificial intelligence and data center applications, backlog, and financial expectations for the second quarter of fiscal year 2025[11](index=11&type=chunk) - Significant factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to: insufficient historical profitability, quarterly performance fluctuations, future financing needs, intellectual property infringement, exchange rate changes, internal control deficiencies, uncertainty in backlog sales, business strategy implementation risks, supply chain reliance, government contract risks, IT system security, data privacy, talent attraction and retention, acquisition integration, customer concentration, product quality issues, international operational risks, competition, emerging market dependence, and challenges in commercializing superconducting products[11](index=11&type=chunk)[12](index=12&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [5.1 Statements of Operations](index=5&type=section&id=5.1%20Statements%20of%20Operations) In Q1 FY2025, AMSC's total revenue increased to $72.358 million from $40.290 million in Q1 FY2024, with Gridtec contributing $60.087 million and Windtec $12.271 million, resulting in a gross profit of $24.489 million, operating income of $5.644 million, and a net income of $6.724 million, a significant improvement from a net loss of $2.524 million in the prior year Consolidated Statements of Operations | Metric (USD Thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenue** | 72,358 | 40,290 | | - Grid | 60,087 | 32,336 | | - Wind | 12,271 | 7,954 | | **Cost of Revenues** | 47,869 | 28,065 | | **Gross Profit** | 24,489 | 12,225 | | **Operating Expenses** | 18,845 | 15,516 | | **Operating Income (Loss)** | 5,644 | (3,291) | | **Net Income (Loss)** | 6,724 | (2,524) | | **Net Income (Loss) Per Share - Basic** | 0.17 | (0.07) | | **Net Income (Loss) Per Share - Diluted** | 0.17 | (0.07) | [5.2 Balance Sheets](index=6&type=section&id=5.2%20Balance%20Sheets) As of June 30, 2025, AMSC's total assets reached **$452.8 million**, a significant increase from **$310.5 million** on March 31, 2025, primarily due to a substantial rise in cash and cash equivalents, while total liabilities slightly increased to **$119.7 million**, and total stockholders' equity grew from **$197.1 million** to **$333.1 million** Consolidated Balance Sheets | Metric (USD Thousands) | As of June 30, 2025 | As of March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 207,890 | 79,494 | | Accounts receivable, net | 54,684 | 46,186 | | Inventories, net | 71,602 | 71,169 | | Total current assets | 348,857 | 206,517 | | Total assets | 452,846 | 310,521 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | 105,310 | 99,764 | | Total liabilities | 119,730 | 113,407 | | Total stockholders' equity | 333,116 | 197,114 | | Total liabilities and stockholders' equity | 452,846 | 310,521 | [5.3 Statements of Cash Flows](index=7&type=section&id=5.3%20Statements%20of%20Cash%20Flows) In Q1 FY2025, AMSC generated **$4.125 million** in cash from operating activities and used **$0.735 million** in investing activities, while financing activities saw a significant increase due to **$124.6 million** net proceeds from public equity offerings, leading to a total cash, cash equivalents, and restricted cash of **$213.4 million** at period-end Consolidated Statements of Cash Flows | Metric (USD Thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 4,125 | 3,409 | | **Net cash used in investing activities** | (735) | (20) | | **Net cash provided by (used in) financing activities** | 124,577 | (142) | | **Net increase in cash, cash equivalents and restricted cash** | 128,038 | 3,243 | | **Cash, cash equivalents and restricted cash at end of period** | 213,419 | 95,523 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) [6.1 Reconciliation of GAAP to Non-GAAP Net Income (Actual)](index=8&type=section&id=6.1%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income%20(Actual)) In Q1 FY2025, AMSC's GAAP net income was **$6.724 million**, adjusted to **$11.587 million** non-GAAP net income and **$0.30** non-GAAP EPS by adding back non-cash items like stock-based compensation and acquisition-related intangible asset amortization GAAP to Non-GAAP Net Income Reconciliation (Actual) | Metric (USD Thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net income (loss)** | 6,724 | (2,524) | | Stock-based compensation | 4,526 | 1,229 | | Acquisition-related intangible asset amortization | 337 | 412 | | Change in fair value of contingent consideration | — | 3,920 | | **Non-GAAP net income** | 11,587 | 3,037 | | **Non-GAAP EPS - Basic** | 0.30 | 0.09 | | **Non-GAAP EPS - Diluted** | 0.29 | 0.08 | [6.2 Reconciliation of GAAP to Non-GAAP Net Income (Forecast)](index=8&type=section&id=6.2%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income%20(Forecast)) AMSC forecasts Q2 FY2025 GAAP net income of **$2 million**, with an anticipated non-GAAP net income of **$6 million** and non-GAAP EPS of **$0.14** after adding back stock-based compensation and acquisition-related intangible asset amortization GAAP to Non-GAAP Net Income Reconciliation (Forecast) | Metric (USD Millions) | Three Months Ended September 30, 2025 (Forecast) | | :--- | :--- | | **Net income** | 2.0 | | Stock-based compensation | 3.7 | | Acquisition-related intangible asset amortization | 0.3 | | **Non-GAAP net income** | 6.0 | | **Non-GAAP EPS** | 0.14 | [6.3 Definition and Disclaimer of Non-GAAP Measures](index=9&type=section&id=6.3%20Definition%20and%20Disclaimer%20of%20Non-GAAP%20Measures) Non-GAAP net income is defined as net income excluding stock-based compensation, acquisition-related intangible asset amortization, changes in fair value of contingent consideration, and other non-cash or non-recurring expenses and their tax impacts; these metrics aid management and investors in period-over-period performance comparison but should supplement, not replace, GAAP measures - Non-GAAP net income is defined as net income excluding stock-based compensation, acquisition-related intangible asset amortization, changes in fair value of contingent consideration, other non-cash or non-recurring expenses, and the tax impact of these adjustments[19](index=19&type=chunk) - The company believes non-GAAP net income and non-GAAP EPS assist management and investors in consistent period-over-period performance comparisons by excluding non-cash, non-recurring, or non-core operating expenses[19](index=19&type=chunk) - Non-GAAP measures should be considered supplementary to, not a substitute for or superior to, GAAP financial performance[19](index=19&type=chunk) [Company Contacts](index=9&type=section&id=Company%20Contacts) [7.1 Investor and Media Relations](index=9&type=section&id=7.1%20Investor%20and%20Media%20Relations) AMSC provides contact information for its investor relations and public relations teams to facilitate further information access for stakeholders - Investor Relations contact: Carolyn Capaccio, Phone: (212) 838-3777, Email: amscIR@allianceadvisors.com[20](index=20&type=chunk) - Public Relations contact: Joe Luongo, Phone: (914) 906-5903, Email: jluongo@rooneypartners.com[20](index=20&type=chunk) - AMSC Director of Communications: Nicol Golez, Phone: 978-399-8344, Email: Nicol.Golez@amsc.com[20](index=20&type=chunk)

Core Insights - AMSC reported a significant revenue increase of 80% year-over-year for the first quarter of fiscal 2025, reaching $72.4 million compared to $40.3 million in the same period of fiscal 2024, driven by organic growth and the acquisition of NWL, Inc. [2][5] - The company achieved a net income of $6.7 million, or $0.17 per share, marking a turnaround from a net loss of $2.5 million, or $0.07 per share, in the prior year [3][9] - AMSC's non-GAAP net income for the first quarter was $11.6 million, or $0.30 per share, compared to $3.0 million, or $0.09 per share, in the same period of fiscal 2024 [3][21] - Cash and cash equivalents increased significantly to $213.4 million as of June 30, 2025, up from $85.4 million at the end of the previous quarter [4][19] Business Outlook - For the second quarter ending September 30, 2025, AMSC anticipates revenues in the range of $65.0 million to $70.0 million, with expected net income exceeding $2.0 million, or $0.05 per share [6][22] - The company expects non-GAAP net income for the second quarter to exceed $6.0 million, or $0.14 per share [6][22] Management Commentary - Daniel P. McGahn, Chairman, President, and CEO, highlighted the company's accelerated growth and exceptional execution, noting the strength in the semiconductor market driven by demand for artificial intelligence and data centers [5][9] - The company is confident in its ability to scale the business, diversify revenue streams, and maintain strong financial performance moving forward [5][9] Financial Performance - AMSC's gross margin surpassed 30% in the first quarter, reflecting improved operational efficiency [5][9] - The company reported total operating expenses of $18.8 million, up from $15.5 million in the same period last year, with increased investments in research and development [14][15]