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1. Company Snapshot

1.a. Company Description

American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide.The company operates in two segments, Grid and Wind.The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand; and engineering planning services.


It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; resilient electric grid systems, resilient electric grid systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market.This segment also offers ship protection systems, which reduce a naval ship's magnetic signature; and in board power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems.The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand.


It supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers.This segment's design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher.The company was incorporated in 1987 and is headquartered in Ayer, Massachusetts.

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1.b. Last Insights on AMSC

American Superconductor's recent performance was driven by a significant 80% year-over-year revenue growth to over $70 million in Q1 FY2025, with net income exceeding $6 million and non-GAAP net income over $11 million. The company's gross margin surpassed 30%. The NWL acquisition and growing momentum in Wind and Grid segments likely contributed to the strong results. AMSC's solutions are poised to benefit from increasing demand in the semiconductor sector, traditional energy resurgence, and repeat customers. Its products also address the growing need for power solutions driven by AI data centers.

1.c. Company Highlights

2. AMSC Surpasses Expectations with Strong Q3 FY2025 Earnings

American Superconductor Corporation (AMSC) reported a robust third-quarter fiscal 2025, with revenue reaching $74.5 million, a 20% year-over-year increase driven by organic growth and the acquisition of Comtrafo, which contributed $4.6 million in revenue. The company's grid revenue accounted for 85% of total revenue, growing over 20% year-over-year, while the Wind business unit revenue increased 25% to $11.3 million. Gross margin was 31%, marking the third consecutive quarter above 30%. Net income was $117.8 million, or $2.68 per share, with a significant tax benefit of $113.1 million. Non-GAAP net income was $123.5 million, or $2.81 per share, significantly surpassing estimates. The actual EPS came out at $2.75, far exceeding the estimated $0.15.

Publication Date: Mar -01

📋 Highlights
  • Revenue Growth:: Q3 FY2025 revenue rose 20% YoY to $74.5M, driven by 20%+ growth in grid segment (85% of total) and 25% Wind unit growth to $11.3M.
  • Comtrafo Acquisition Impact:: Acquisition contributed $4.6M in revenue, enhancing grid offerings in Brazil/Latin America and expanding transformer capabilities.
  • Profitability & Margins:: Gross margin hit 31% for the third consecutive quarter; net income surged to $117.8M ($2.68 EPS), with non-GAAP net income at $123.5M ($2.81 EPS).
  • Data Center Expansion:: Delivered a $3.7M data center project (5% of Q3 revenue) and sees long-term opportunities in data center, mining, and chemicals markets.
  • Future Guidance:: Q4 FY2025 revenue expected >$80M, with net income >$3M ($0.07 EPS) and non-GAAP net income >$8M ($0.17 EPS), reflecting robust demand and capacity utilization.

Business Segment Performance

The acquisition of Comtrafo has strengthened AMSC's utility position, particularly in Brazil and Latin America, and expanded its transformer offering. The company delivered a solution to a data center project, representing about 5% of revenue in the quarter, and sees opportunities in data center construction and utility support. The traditional energy business, which accounted for about a third of the quarter's revenue, is viewed as more insulated from oil price swings due to its focus on persistent demand for energy infrastructure.

Growth Prospects and Guidance

AMSC guided for revenue to exceed $80 million in the fourth quarter of fiscal 2025, indicating continued strong growth momentum. The company has a diverse pipeline of large orders and is optimistic about its growth prospects, driven by demand with lead times of 9-12 months for many products. Labor remains a challenge, and the company may need to expand capacity, particularly in Brazil, to meet growing demand.

Valuation and Outlook

With a P/E Ratio of 10.98 and an ROE of 37.04%, the market has already priced in significant growth expectations. Analysts estimate next year's revenue growth at 21.4%. Given the company's strong pipeline and growth prospects, it remains to be seen whether AMSC can continue to surpass expectations and justify its current valuation multiples.

3. NewsRoom

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SG Americas Securities LLC Raises Stock Holdings in American Superconductor Corporation $AMSC

Apr -05

Source: defenseworld.net

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American Superconductor: A Small-Cap Opportunity Before The Crowd

Mar -25

Source: seekingalpha.com

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Critical Analysis: Yaskawa Electric (OTCMKTS:YASKY) & American Superconductor (NASDAQ:AMSC)

Mar -21

Source: defenseworld.net

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Algert Global LLC Increases Holdings in American Superconductor Corporation $AMSC

Mar -15

Source: defenseworld.net

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How Low Can American Superconductor Stock Go?

Mar -09

Source: forbes.com

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Should You Chase The Momentum In AMSC Stock?

Feb -19

Source: forbes.com

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Merit Financial Group LLC Has $1.89 Million Holdings in American Superconductor Corporation $AMSC

Feb -18

Source: defenseworld.net

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Principal Financial Group Inc. Invests $2.34 Million in American Superconductor Corporation $AMSC

Feb -17

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.44%)

6. Segments

Grid

Expected Growth: 8.2%

American Superconductor Corporation's Grid segment growth of 8.2% is driven by increasing adoption of renewable energy sources, rising demand for grid resilience and reliability, and growing need for energy storage solutions. Additionally, the company's strategic partnerships and expanding presence in key markets such as wind and solar power also contribute to this growth.

Wind

Expected Growth: 10.55%

Wind energy segment growth driven by increasing global demand for renewable energy, government incentives, and declining turbine costs. American Superconductor Corporation benefits from its leadership in wind turbine electrical control systems, strong relationships with major turbine manufacturers, and growing demand for high-performance turbines.

7. Detailed Products

Grid

American Superconductor Corporation's Grid segment provides solutions for the electric grid, including grid-scale inverters, grid management systems, and grid monitoring systems.

Wind

The Wind segment offers wind turbine systems and components, including electrical control systems, power electronics, and wind turbine converters.

Marine

The Marine segment provides solutions for the marine industry, including propulsion systems, power systems, and vessel automation systems.

Grid Scale Inverters

American Superconductor Corporation's Grid Scale Inverters are designed for utility-scale solar and wind power plants, providing high-efficiency power conversion and grid support.

PowerModule PM1000

The PowerModule PM1000 is a high-power, high-reliability power conversion module for industrial and renewable energy applications.

8. American Superconductor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for American Superconductor Corporation is medium due to the availability of alternative energy storage solutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of American Superconductor Corporation's products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers for raw materials and components, but the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the industry, leading to a competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.63%
Debt Cost 13.82%
Equity Weight 96.37%
Equity Cost 13.82%
WACC 13.82%
Leverage 3.77%

11. Quality Control: American Superconductor Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Luxfer

A-Score: 5.4/10

Value: 5.8

Growth: 5.3

Quality: 5.6

Yield: 7.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Omega Flex

A-Score: 4.6/10

Value: 3.5

Growth: 3.2

Quality: 8.1

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Xometry

A-Score: 4.4/10

Value: 6.4

Growth: 6.3

Quality: 2.8

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Helios Technologies

A-Score: 3.8/10

Value: 3.2

Growth: 4.0

Quality: 5.5

Yield: 1.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Hurco

A-Score: 3.7/10

Value: 9.2

Growth: 1.3

Quality: 3.3

Yield: 1.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
American Superconductor

A-Score: 3.4/10

Value: 0.8

Growth: 7.2

Quality: 5.9

Yield: 0.0

Momentum: 5.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.45$

Current Price

39.45$

Potential

-0.00%

Expected Cash-Flows