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Dec 30, 2024
AMSC Q3 2025 Earnings Report
American Superconductor Corporation reported a significant increase in revenues and net income for the third quarter of fiscal year 2025, driven by strong performance in both Grid and Wind segments, and a positive impact from the Megatran acquisition.
Key Takeaways
American Superconductor Corporation (AMSC) reported a substantial increase in revenues and net income for the three months ended December 31, 2024. Revenues rose by 56% to $61.4 million, and net income improved significantly to $2.5 million compared to a net loss in the prior year. This growth was primarily attributed to the acquisition of Megatran and increased shipments in both Grid and Wind segments.
Total revenues increased by 56% to $61.4 million for the three months ended December 31, 2024, compared to $39.4 million in the same period last year.
Net income for the quarter was $2.5 million, a significant improvement from a net loss of $1.6 million in the prior year's comparable period.
The Grid business segment's revenues increased by 56% to $52.3 million, largely due to the Megatran acquisition and higher energy power system shipments.
The Wind business segment also saw a 58% increase in revenues, reaching $9.1 million, driven by additional shipments of electrical control systems at increased prices.
AMSC
AMSC
AMSC Revenue by Segment
AMSC Revenue by Geographic Location
Revenue by Segment
Grid Revenue
CapyFin.comWind Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comEMEA Revenue
CapyFin.com Forward Guidance
The Company believes it has sufficient liquidity to fund operations and capital expenditures for the next twelve months, supported by a recent equity raise and potential for additional capital. However, global instabilities and market conditions pose risks to future capital raising and overall liquidity.
Positive Outlook
- Successfully raised $65.2 million net of offering expenses through an equity raise in February 2024.
- Filed a shelf registration statement on Form S-3 allowing for future offerings of up to $250 million of common stock, debt securities, warrants, or units.
- Intends to reduce operating and capital spending to enhance liquidity if required.
- The company's system-level products leverage proprietary 'smart materials' and 'smart software and controls' to provide enhanced resiliency and improved performance of megawatt-scale power flow.
- The company's business segments are well-positioned to meet the growing needs for modernized smart grids and increased renewable energy sources.
Challenges Ahead
- Historically experienced recurring operating losses and negative operating cash flows, with an accumulated deficit of $1,061.8 million as of December 31, 2024.
- Liquidity is highly dependent on the ability to increase revenues, control operating costs, and raise additional capital, with no assurance of favorable terms or success.
- Impact of global sources of instability, such as ongoing wars and financial market instability, may reduce the ability to raise additional capital.
- The company's products face competition, which could limit the ability to acquire or retain customers.
- The success of the REG system and widespread commercial market for products are not guaranteed, which could lower revenue and cash flow.
Revenue & Expenses
Visualization of income flow from segment revenue to net income