American Superconductor (AMSC) - 2026 Q1 - Quarterly Results

First Quarter Fiscal Year 2025 Financial Results 1.1 Financial Highlights 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] 1.2 CEO Commentary 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] - Achieved profitability for the fourth consecutive quarter and expanded gross margin to over 30%[5] - Strong demand in the semiconductor market, especially for artificial intelligence and data center applications, fueled the company's momentum[5] Business Outlook 2.1 Second Quarter Fiscal Year 2025 Guidance 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 3.1 About AMSC 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][9] - Key solutions include Gridtec™ (grid systems), Marinetec™ (ship protection and power management), and Windtecc™ (wind turbine electronic controls and systems)[9] - Founded in 1987, the company is headquartered near Boston, Massachusetts, with operations across Asia, Australia, Europe, and North America[9] 3.2 Trademarks 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] Forward-Looking Statements and Risk Factors 4.1 Forward-Looking Statements 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] - 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][12] Unaudited Condensed Consolidated Financial Statements 5.1 Statements of Operations 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 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 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 6.1 Reconciliation of GAAP to Non-GAAP Net Income (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) 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 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] - 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] - Non-GAAP measures should be considered supplementary to, not a substitute for or superior to, GAAP financial performance[19] Company Contacts 7.1 Investor and Media Relations 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] - Public Relations contact: Joe Luongo, Phone: (914) 906-5903, Email: jluongo@rooneypartners.com[20] - AMSC Director of Communications: Nicol Golez, Phone: 978-399-8344, Email: Nicol.Golez@amsc.com[20]