American Superconductor (NASDAQ:AMSC) reported record fourth-quarter revenue and sharply higher full-year sales, while management said strong order activity across utility, traditional energy, data center, wind and defense markets is setting up the company for continued growth in fiscal 2026.
Chairman, President and Chief Executive Officer Daniel McGahn said the company closed “a very successful fiscal 2025” with fourth-quarter revenue surpassing $85 million and growing nearly 30% from the year-earlier period. He said the company delivered three record revenue quarters during the fiscal year, including more than $72 million in the first quarter, more than $74 million in the third quarter and more than $85 million in the fourth quarter.
Fourth-Quarter Revenue Rises 30%
Chief Financial Officer John Kosiba said total revenue for the fourth quarter of fiscal 2025 was $86.4 million, up 30% from $66.7 million in the year-ago quarter. Grid business revenue rose 33% to $73.7 million, while wind business revenue increased 15% to $12.7 million.
For the full fiscal year, revenue was $299.2 million, up 34% from $222.8 million in fiscal 2024. Grid revenue increased 34% and represented 84% of total revenue, driven by organic growth and contributions from Comtrafo, which AMSC acquired during the year. Wind revenue also rose 34% and represented 16% of total revenue, reflecting increased shipments of electrical control systems, or ECS, to Inox Wind for 2-megawatt and 3-megawatt class systems.
Gross margin in the fourth quarter was 27.3%, compared with 26.5% a year earlier. Kosiba said cost of goods sold included about $1.5 million of purchase accounting and non-cash adjustments tied to Comtrafo, which reduced fourth-quarter gross margin by about 170 basis points. Full-year gross margin expanded to 30.5% from 27.8% in fiscal 2024.
Fourth-quarter net income was $4.5 million, or $0.10 per share, compared with $1.2 million, or $0.03 per share, in the year-earlier quarter. Non-GAAP net income was $14.1 million, or $0.31 per share, compared with $4.8 million, or $0.13 per share, a year earlier. The quarter included a $5.3 million tax benefit from the release of a valuation allowance on deferred tax assets, as well as a $4.2 million non-cash loss on contingent consideration related to Comtrafo earn-out targets.
For the full year, net income was $133.8 million, or $3.12 per share, compared with $6 million, or $0.16 per share, in fiscal 2024. Non-GAAP net income was $158.1 million, or $3.68 per share, compared with $24 million, or $0.65 per share, in the prior year. Fiscal 2025 results included a $118.4 million tax benefit tied to the release of a valuation allowance on deferred tax assets.
Orders and Backlog Strengthen
AMSC said fourth-quarter orders were nearly $100 million, driven by utility and traditional energy demand. McGahn said the company is supporting rising demand for reliable power in natural gas, coal and large industrial power applications, including sites that use large motors, compressors, drives and other electrical loads that can create power quality issues.
Nearly 10% of fourth-quarter orders came from the data center sector. In response to an analyst question, McGahn clarified that the recent data center orders were direct to data center customers, primarily for power quality equipment used as data centers are constructed. He said larger data centers are creating “a persistent power quality problem” involving voltage management and harmonics, similar to challenges AMSC addresses in semiconductor fabrication facilities.
AMSC ended the year with a 12-month backlog of more than $280 million, up nearly 40% from about $200 million a year earlier. McGahn said the company booked nearly $290 million of new orders in fiscal 2025, with average quarterly orders exceeding $70 million. Total backlog was described during the question-and-answer session as about $375 million.
Comtrafo Acquisition Expands Latin America Opportunity
Management highlighted Comtrafo as a key part of AMSC’s expanded product portfolio and geographic reach. McGahn said the acquisition broadened the company’s transformer offerings and expanded its presence in Brazil and Latin America, creating opportunities in utilities, transmission infrastructure and grid expansion.
Asked about integration progress and qualifying transformer products for the U.S. market, McGahn said the near-term focus is on Brazil, where he sees “a huge opportunity in the utility space and in the industrial space.” He described the company’s strategy as first focusing on Brazil, then expanding the combined product offering across Latin America, including mining and utilities, and later pursuing qualification as a supplier to North American utilities.
Kosiba said AMSC ended fiscal 2025 with $147.6 million in cash, cash equivalents and restricted cash, compared with $85.4 million on March 31, 2025. The company generated $9.3 million in operating cash flow in the fourth quarter and $23.1 million for the full fiscal year.
Defense, Wind and Grid Markets Remain in Focus
AMSC also reported progress in its military business. McGahn said the company completed delivery of another ship protection system for the U.S. Navy San Antonio class platform aboard the USS Richard M. McCool Jr. during fiscal 2025. He said AMSC has delivered four of five ship protection systems for U.S. Navy vessels, including the USS Fort Lauderdale, USS Harrisburg, USS Pittsburgh and USS Richard M. McCool Jr., and expects to begin its first delivery to the Royal Canadian Navy in fiscal 2026.
In wind, McGahn said AMSC secured nearly $50 million in orders for 2-megawatt and 3-megawatt ECS products from Inox Wind during fiscal 2025. About 40% of those systems were shipped during the year, leaving the backlog “in a great position,” he said.
Management also pointed to broader demand from traditional energy, renewable integration, semiconductor manufacturing, data centers, mining and utility projects. McGahn said AMSC is increasingly delivering integrated power systems that include products such as rectifiers, filters, STATCOMs, capacitor banks and transformers designed to work together to improve power quality and project reliability.
First-Quarter Guidance Calls for Revenue Above $85 Million
For the first quarter of fiscal 2026, which ends June 30, 2026, AMSC expects revenue to exceed $85 million. The company forecast net income above $3 million, or $0.07 per share, and non-GAAP net income above $8 million, or $0.17 per share.
Kosiba said the guidance includes about $1.5 million of purchase accounting and non-cash amortization expense related to the Comtrafo acquisition, expected to be recognized in cost of goods sold. He said those charges are expected to taper starting in the second quarter of fiscal 2026, and that once they fall off the amortization schedule, Comtrafo’s gross margin is expected to fall “well within AMSC’s gross margins.”
In closing remarks, McGahn said fiscal 2025 was “a transformational year” for the company, citing revenue growth, gross margin improvement, profitability and an expanded backlog. He said the company’s workforce grew from 569 to 1,195 employees during the year and said AMSC is positioned for growth entering fiscal 2026.
About American Superconductor (NASDAQ:AMSC)
American Superconductor Corporation (NASDAQ:AMSC) is a technology company specializing in power electronics and high-temperature superconductor systems. Founded in 1987 and headquartered in Devens, Massachusetts, AMSC develops hardware and software solutions aimed at improving the efficiency, reliability and stability of electric power systems and renewable energy infrastructure. The company’s engineering expertise spans from the lab scale to full commercial deployment, with a focus on tackling grid integration challenges for utilities and independent power producers.
AMSC’s portfolio includes superconducting wire and cryogenic systems, power grid stabilization devices, and turnkey wind turbine electronics.
