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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 Delivers Strong Q2 FY2025 Results with Revenue Growth and Improved Profitability

AMSC reported revenues of $65.9 million for the second quarter of fiscal 2025, representing a 21% increase compared to $54.5 million in the year-ago quarter. The company's Grid business unit accounted for 83% of total revenues, while the Wind business unit contributed 17%. Gross margin for the quarter was 31%, up from 29% in the year-ago quarter, primarily due to a favorable product mix within the Grid business unit. Non-GAAP net income was $8.9 million, or $0.20 per share, compared to $10 million, or $0.27 per share, in the year-ago quarter. Notably, the actual EPS came out at $0.24, beating estimates of $0.15.

Publication Date: Nov -12

📋 Highlights
  • Revenue Growth:: Q2 revenue reached $65.9M, up 20.5% YoY from $54.5M, driven by 16% Grid business growth (83% of total revenue) and 50%+ Wind business growth (17% of revenue).
  • Non-GAAP Profitability:: Non-GAAP net income was $8.9M ($0.20/share), compared to $10M ($0.27/share) in Q2 FY2024, with a 31% gross margin (up from 29% YoY).
  • Backlog & Order Strength:: Closed Q2 with a 12-month backlog exceeding $200M and $60M+ in new orders per quarter over the past 4 quarters.
  • U.S. Navy Contract:: Secured a design contract for a new ship class, expanding into military applications with potential for larger future orders.
  • Data Center Opportunity:: Positioned to address power variability in data centers, with potential orders similar to semiconductor market sizes ($2M–$10M), leveraging fast delivery and supply chain advantages.

Business Segment Performance

The Grid business unit delivered strong growth, with revenues increasing by 16% compared to the year-ago quarter, driven by organic growth within new energy product lines. The Wind business unit also posted impressive growth, with revenues increasing by over 50%. The company's diverse mix of revenue streams, with about 1/4 from traditional energy projects, another 1/4 from renewable energy projects, and over 1/5 from materials projects, including semiconductors, reflects the growing demand across its end markets.

Outlook and Guidance

AMSC expects revenue to be in the range of $65 million to $70 million for the third quarter of fiscal 2025, with non-GAAP net income exceeding $6 million or $0.14 per share. The company's guidance suggests continued momentum, with a strong pipeline of opportunities and a 12-month backlog of over $200 million. As Daniel McGahn mentioned, "We have sustained an average quarterly revenue above $65 million for the past 3 quarters, and we're bullish with our expectation that this trend could continue next quarter."

Valuation and Growth Prospects

With a P/E Ratio of 100.85 and an EV/EBITDA of 83.32, the market appears to be pricing in significant growth expectations. Analysts estimate revenue growth of 27.9% for the next year, which may justify the current valuation to some extent. However, it is essential to monitor the company's ability to deliver on its growth prospects and maintain its profitability. The ROE of 5.69% and ROIC of 2.95% indicate that the company is generating returns, albeit modest, on its equity and invested capital.

3. NewsRoom

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Heights Capital Just Ditched Its $12.5 Million AMSC Stake. Here's What That Might Mean.

Nov -19

Source: fool.com

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American Superconductor: Back To Earth After Runaway Momentum

Nov -08

Source: seekingalpha.com

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Why American Superconductor Stock Crashed This Week

Nov -06

Source: fool.com

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Why American Superconductor Stock Just Crashed

Nov -06

Source: fool.com

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American Superconductor Corporation (AMSC) Q2 2026 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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American Superconductor Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Nov -06

Source: zacks.com

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American Superconductor Falls 20% Following FY26 Q2 Earnings

Nov -05

Source: 247wallst.com

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AMSC Reports Second Quarter Fiscal Year 2025 Financial Results and Business Outlook

Nov -05

Source: globenewswire.com

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: 6.1/10

Value: 6.7

Growth: 5.4

Quality: 5.8

Yield: 7.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Omega Flex

A-Score: 4.7/10

Value: 4.4

Growth: 3.2

Quality: 8.2

Yield: 6.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Xometry

A-Score: 4.6/10

Value: 6.6

Growth: 6.3

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
American Superconductor

A-Score: 4.1/10

Value: 0.2

Growth: 7.2

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

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Helios Technologies

A-Score: 3.8/10

Value: 3.0

Growth: 4.0

Quality: 5.8

Yield: 1.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Hurco

A-Score: 3.6/10

Value: 8.8

Growth: 1.4

Quality: 3.4

Yield: 1.0

Momentum: 2.0

Volatility: 4.7

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

32.47$

Current Price

32.47$

Potential

-0.00%

Expected Cash-Flows