AMSC Q1 Revenue Jumps 80%
Key Points
Revenue (GAAP) surged 79.7% year over year to $72.4 million, exceeding the $64.9 million consensus estimate.
Non-GAAP EPS rose to $0.29, crushing the $0.12 estimate and up sharply from $0.08 last year.
Grid segment sales climbed 85.9% to $60,087,000, marking its dominant share of company results.
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American Superconductor (NASDAQ:AMSC), an energy technology company focused on advanced grid and renewable solutions, delivered earnings on July 30, 2025. The big headline: revenue hit $72.4 million, up from $40.3 million a year ago, and handily topping analyst expectations of $64.9 million (GAAP). Non-GAAP earnings per share reached $0.29, more than twice the estimate of $0.12 (non-GAAP). Net income (GAAP) reached $6.7 million, swinging from a loss a year ago. The grid segment led the charge, as demand soared from U.S. customers in grid modernization, semiconductors, and defense. Overall, it was a strong start to the year, with management noting a fourth straight quarter of profitability (GAAP) and a marked expansion in both revenue and margin.
| Metric | Q1 FY25(Ended June 30, 2025) | Q1 Estimate | Q1 FY24(Ended June 30, 2024) | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.29 | $0.12 | $0.08 | 262.5 % |
| Revenue (GAAP) | $72.4 million | $64.9 million | $40.3 million | 79.9 % |
| Revenue – Grid segment | $60.1 million | $32.3 million | 86.0 % | |
| Revenue – Wind segment | $12.3 million | $7.95 million | 53.8 % | |
| Gross Margin | 33.9 % | 30.4 % | 3.5 pp | |
| Net Income (GAAP) | $6.7 million | ($2.5 million) | $9.2 million |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2024 earnings report.
Company Overview and Areas of Focus
American Superconductor develops high-temperature superconductor (HTS) wire, advanced power electronics, and sophisticated grid systems for customers across the energy, industrial, and defense sectors. Its core products include Amperium superconductor wire, PowerModule converters, and Ship Protection Systems for naval applications. The company’s business segments, Grid and Wind, target the global shift toward grid modernization, renewable energy integration, and the growing need for reliable, resilient power delivery.
Recent business strategy centers on leveraging proprietary technology to serve new and diversified markets. Key growth areas involve solutions for data centers, semiconductor plants, and expanding defense power systems. Mergers, such as the integration of NWL into the Grid business, have allowed the company to cross-sell a wider portfolio. Intellectual property, technical leadership, and partnerships position the company to capitalize on industry shifts toward electrification and resilient infrastructure.
Quarter Highlights: Financial and Operational Trends
Revenue (GAAP) outpaced expectations, increasing 79.7% to $72.4 million compared with $40.3 million for the same period of fiscal 2024, beating consensus by $7.5 million or 11.55%. The Grid segment accounted for the bulk of growth, rising 85.9% year-over-year on a GAAP basis. Management cited accelerating bookings and a healthy backlog, particularly in industrial, semiconductor, and defense sectors. Ship Protection Systems, a defense product family for naval security, saw continued adoption with a breakthrough order from the Royal Canadian Navy.
Profitability followed suit, as GAAP net income swung from a $2.5 million loss in the prior-year quarter to $6.7 million. Non-GAAP net income more than tripled, reflecting not only higher sales but expanded margins and operating leverage. Gross margin climbed 3.5 points year over year in FY2024.
The Wind segment, though a smaller part of overall results, posted a 54.3% increase to $12,271,000 compared to $7,954,000 a year ago. This segment centers on electrical control systems (ECS) for wind turbines, primarily serving Indian wind manufacturer Inox. Visibility remains concentrated, with backlog converted rapidly to revenue, requiring ongoing sales to sustain the recent growth rate.
Material one-time events included a $124.6 million equity raise, which boosted cash and equivalents to $213.4 million, up from $85.4 million as of March 31, 2025. Inventory levels rose in tandem with higher sales. There was no dividend paid or declared for the period.
Products and Market Positioning
American Superconductor's key technology families each serve different markets. Amperium superconductor wire is used mainly in power grid and military ship systems to improve efficiency and reduce weight. The PowerModule product line offers converters that support system resiliency and efficiency in the grid. Ship Protection Systems enhance naval stealth and survivability by reducing magnetic signatures, a critical need for modern fleets. The Grid segment integrates these products into solutions for electric utilities, large industrial facilities, data centers, and renewable power operators.
The company’s approach to customer solutions has shifted from cross-selling individual products to bundling its full portfolio in integrated offerings. For example, a semiconductor fab may now purchase a complete suite of grid and power quality products for major new-builds. Management commented, “we're not cross-selling anymore. We're just selling. We're selling the whole portfolio to everybody.” This has driven larger order sizes and deeper customer relationships, especially in the semiconductor market.
Looking Ahead: Guidance and Investor Focus
For the next quarter (ending September 30, 2025), management forecasts revenue between $65 million and $70 million. GAAP net income should surpass $2.0 million, with non-GAAP net income expected to exceed $6.0 million, reflecting a lower sequential run-rate compared to this quarter’s record results. Non-GAAP EPS is projected at $0.14.
Looking further ahead, investors should watch for trends in grid modernization, semiconductor and data center demand, and the rollout of defense contracts, including international naval orders. American Superconductor’s strong cash position and continued investment in research and manufacturing support ongoing growth, but sequential volatility is possible as operating expenses and sector dynamics shift. There was no forward guidance for dividends, and the company does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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