American Superconductor (AMSC.US) reported its Q2 2025 financial results after the market close on November 5 (Eastern Time). The company posted revenue of approximately $66 million, a year-over-year increase exceeding 20%, though falling short of the consensus estimate of $67.85 million by 2.93%. Growth was primarily driven by organic business expansion and the integration of NWL Inc.
On a GAAP basis, net income stood at $4.8 million, or $0.11 per share, slightly lower than the $4.9 million ($0.13 per share) recorded in Q2 2024. Non-GAAP net income reached $8.9 million, or $0.20 per share, compared to $10 million ($0.27 per share) in the prior-year period. The discrepancy primarily stemmed from adjustments related to NWL Inc. acquisition costs, with Non-GAAP figures better reflecting core operational performance.
Notably, this marks American Superconductor’s fifth consecutive profitable quarter, breaking a streak of losses from 2011 to 2024. FY2025 could become its first profitable year since 2010. Operating cash flow surged to $28.3 million from $2.1 million in Q2 2024, underscoring robust earnings quality. Gross margin exceeded 30%, with $20.4 million in gross profit on $65.9 million revenue, demonstrating continued cost optimization.
By segment, the grid business contributed $54.34 million in revenue, serving as the primary growth driver, while the wind segment added $11.52 million. Management maintained pricing discipline while achieving revenue growth outpacing cost increases, signaling early operational leverage. Free cash flow was $5.4 million, with operating cash flow at $10.6 million. The balance sheet strengthened further, with cash and equivalents rising to $218.8 million from $85.4 million as of March 31, 2025, providing a solid foundation for future investments or acquisitions.
Daniel P. McGahn, Chairman, President, and CEO, stated: “Q2 revenue grew over 20% YoY, with nearly $5 million in net income—our fifth straight profitable quarter and gross margin above 30%. This reflects strong demand in energy and defense markets, fueled by U.S. manufacturing growth and urgent needs for reliable power. We’re confident in our team’s execution and future opportunities.”
For Q3 2025, the company expects revenue between $65 million and $70 million, with GAAP net income projected above $2 million ($0.05 per share) and Non-GAAP net income exceeding $6 million ($0.14 per share). Ahead of the earnings release, AMSC shares closed up 5.56% at $59.42, reflecting investor optimism about its turnaround. However, shares dropped over 20% in after-hours trading.