AMSC - Earnings call transcript Q2 2025 | American Superconductor Corporation

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Operator

Good day, and welcome to AMSC Second Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Nicol Golez, AMSC's Director of Communications. Please go ahead.

Nicol Golez

Thank you, Keith. Good morning, everyone, and welcome to American Superconductor Corporation's second quarter of fiscal year 2024 conference call. AMSC's Communications. Golez, Nicol am Director of I Superconductor On Chairman, and President I quarter am of and John the XXXX release Daniel market McGahn, joined by closed. Treasurer. American Officer and Financial after Senior fiscal President, today's its second Vice earnings for call, Kosiba, Chief issued yesterday Chief the year Executive Officer;

statements website SEC also filings, For with financial release Investor of materially forward-looking company's the will can The are Daniel? to a company's the net page not performance. the is results these future available those performance who guarantees by expressed in financial due including the press company be risk events, of Officer, future the have factors and actual McGahn. reconciliation update company's forward-looking on Executive over income, any through I to refer today's that, website. earnings accessed these The to found not financial now the obligation results or statements, implied respect detailed call seen call, Tables may at differ company's management in to anticipated results. These non-GAAP will the Chief measures statements. Also, which adjusted press disclaims contains or be to measure. can The release. With the Chairman, earnings Daniel forward-looking release, a copy in www.amsc.com. President of statements from GAAP to of non-GAAP the turn

Daniel McGahn

the company meeting Thanks, have hoped of milestones see. many excited have I you and to this call Nicol, morning, some today. We're everybody. good really We're really would know

the XX, enthusiastic end our detailed fiscal guidance update sharing today quarter, provide will ended Kosiba then business. about XX, a which our for really few September which second a XXXX. we where we're fiscal begin an quarter, December on and are and of results provide the by XXXX, John for will financial remarks third review providing So today. I'll really,

ended guidance open September up revenue came we'll from comments, the analysts. Today, for our we're to over high at NWL the our wind with new quarter. XX% in questions booked grew system addition of the than that talk quarter grew not from the strong we the ending year end acquisition of remainder Grid energy versus energy grew our organically, revenue nearly of $XX the of revenue Following of NWL. for also does line We shipments. had million of Total second new nearly by power million from NWL. The ago acquisition the the was grew. period. new without wind Grid of again, about million reporting $XX range $XX the updated driven which and and second grid When today, orders our power include coming year energy and orders Both the XX% in cash. We the systems quarter new business, assume demonstrated. came period. that power with stronger by I previously nearly ago in

for total about came XX% XX-month $XXX energy XX% a $XXX backlog with of at and semiconductors, the contributions ended represent orders, of than mining. some and utilities, renewables accounted XX% renewables, and strong quarter million remaining other million. applications. mining, We from a over of utilities backlog more new industrials, Our about semiconductors orders Industrials total the systems by followed from power and

more the depending is the newly about backlog upon strong. at products times or about potentially XX XX lead starting products months. Other We for see project. to months very acquired Our really X take

forecast results net quarter exceeded second Our non-GAAP recent record quarter and revenue with a our of consecutive fifth income.

demonstrated and our leverage this company is operating stronger very to and we is cash-generative believe business the generate much milestone of in now built a This revenue tremendous cash we're have generate accomplishment. these through our is proud levels. a to ability cash. Our at operating into the position growth, ability and improved We

encouraged these by momentum. with results pleased are our We orders and

I'll second for the end third XXXX, Now over of turn our and XX, review the quarter December for call fiscal guidance the John? provide XXXX quarter fiscal of to to which financial results John will XXXX. Kosiba

John Kosiba

ago Thanks, generated good quarter in revenues morning, Daniel, $XX fiscal the of of for the everyone. XXXX $XX.X and AMSC million second million to compared year quarter.

XX% unit quarter the of business was primarily accounted driven additional new for The period. increase by in the Our driven total of revenues year control unit versus the versus primarily was increase acquisition and XX%. business ago power XX% increased electrical revenue accounted The by Grid the revenue business Wind XX% in shipments unit shipments for energy same revenues increased Grid our systems. Wind second revenues, business systems. increased while of quarter. unit NWL of in by

margin P&L product was favorable a second compared Looking XX% the due positive across revenues, XX% was of more higher at lines. impacts detail, increases the in gross to in margin to mix for increase of the product gross XXXX the fiscal year ago The quarter price and quarter. our in

and second the non-GAAP $X.XX a or were $XX.X as with onetime $X.X X% acquisition-related generated or in quarter. year operating million income expenses the year in in of per SG&A share fiscal quarter compared for $X.XX noncash. We the income $XXX,XXX per of quarter. $X.X of ago ago expenses quarter quarter. R&D net and million quarter the XXXX million inherited in non-GAAP net operating XXXX the fiscal the compared of than SG&A share on the less of of costs of second NWL the primarily expenses as fiscal increase by Approximately to expenses. R&D in moving driven This Now to well is XXXX were second

from fiscal of a share. $X.XX the reduction the income non-GAAP allowance acquisition liability $X.XX was $X.X year expense This net quarter the tax release due million net of of a compares to million loss NWL. a the income or was the of the in in quarter. This XXXX in recording Our to in share $X.X net deferred and net the per or ago income million per both was valuation quarter. Included of second noncash $X.X

consideration NWL due expense to in NEPSI do the we and million second consideration XX, related acquisition NEPSI our in anticipate NWL. We were obligations of a exceeded the was for million and of income release under $XX.X in consideration our press which the cash fiscal quarter retired That a night total flow million. operating to generated contingent the issued of of $XX.X included NWL $XX.X included in cash see any our the equivalents milestone Additionally the cash, last flow guidance ended June quarter and acquisitions. This and not which range net further recent was reconciliation quarter of contingent Cash our Please payment that of consideration for acquisitions. compares related cash contingent $X.X NWL, second results. We received XXXX. grid the for consideration XXXX restricted with to of concluded with GAAP acquisition in cash, non-GAAP large the financial to Included schedule. SPA the a in quarter second $XX.X million XXXX million. cash was ahead on quarter in fiscal of

believe our we strong our operating generated Grid milestone, the and segments. the NWL to that and already We cash be acquisition of balance our strength we through to strengthens results both of further operating sheet flow continue positive across addition Wind In debt-free.

third the financial of Now turning fiscal quarter XXXX. to for guidance

range will expect of $XX We revenues be $XX the million in our to million. that

not is $X net that $X.XX is on to per loss revenue net million exceed per or million Our and share exceed expected income our $X.XX expected to or $X share. non-GAAP

milestone and our transitions phase the to maturity, any not focus company guide on mechanisms shift billing orders, we will anticipate of the of demand new business. to to profitability our capital our metrics. we significant Due nature changes on next the working revenue and As do for the

time business been expenditure expands. our about requirements time to asked the from capital I've Lastly, as

rate believe As with capital historical is current most of sufficiently reminder, the of our supports a light business operating our needs. capital expenditures requirements. We minimal that expenditure run assembly

As our expansions. upgrades requirements or as near-term plant a time, could see areas our our in those such scenarios ERP in over possible of to Neither business software need capital plans. scales increase are we

requirements, plan expenditure provide levels over increased reach turn back guidance to call we when I the to Daniel. that, appropriate. With As of I'll capital

Daniel McGahn

second remarkable a sense to you significant to John. strong showed discuss of we where reported like delivered quarter had of a orders. flow income. we and was net intend quarter. I'd We another operational of We and greater strong outstanding a come and generated give This exceptionally cash quarter. results few lay an operating to from historical We We revenue. positive for we've years where Thanks, go. higher groundwork the

to nearly XXXX from now at $XX past million grew revenue to year XXXX recent revenue revenue it's that fiscal years we've total is rate, XX% means back X years to our in quarter. $XX not we later. means quarters When annual $XX annual year X halfway this for year Our X We're that doubled we so is to X XXXX million. fiscal the XXXX we're XXXX the only the under at over doubling annual looking over XXXX, level. of years. and nearly first million quarterly. reported revenue $XXX compound It's over million. This close past history growth annually, in This fiscal the from years forward our XXXX Fast revenue through time per was XX% and over and

we growth. macro see significant for requirements tailwinds In power addition, driving our

industrial of manufacturing. domestic from industrial industrial space, the fact, existing production the and in In demand of we upgrading reshoring see

grid acquired industrial to. This not newly penetration. access further resiliency resides NWL customers us immediate in broad a have provides paramount. expansion did products serve customers market in market. the expand renewable side is factory. customer largely help substation renewable to We industrial increased the Our space, at our we access the renewables the connectivity range the electrification and In maintaining of for level at

products address of electric and opportunities as also grid. changing utilities We landscape the our see for services the

sites under Industry of the of semiconductor states. existing These more across Multiple the announced of include research electronics facilities Act. According in are have billion as driven companies chip The and the semiconductor investments equipment in across across The CHIPS we've construction dozens $XXX now billions private CHIPS by projects companies to $XX in utilities facilities, transportation from led and power and semiconductor centers manufacturing. To-date, projects unprecedented billion new Semiconductor this ecosystem of manufacturing multiple benefit We funding already seen about materials the Association, set nearly bringing in or innovation. we electrification that the new XX talking agreements to see signed demand domestic over from as back invest growing plants. Equally, has power generation in to states to for the are more. and energized even and propose CHIPS has Act. agreements. They're Act investments the AI manufacturing, proposed Science more seeing power Act well nuclear allocated in part as funding in and mining the have power data supply announced U.S. the expansion semiconductor and and well CHIPS used as and

new We drives Just announced is of York commission by This Michigan. the in states. Increased well for handful and last significant Idaho, materials, investments a government construction million a fab going chemicals other see and $XXX to into New as as semiconductor week, facility Arizona, equipment. Texas great a of suppliers America. investment investments

As focused plans for a in size. uniquely well-positioned remain announced complexity wafers, able believe to including demand. in essential market factories result, products produce to scale materials address or to chips, is and facilities companies without are power that began chemicals, be execution the these where equipment increased must capacity. Industrial XXXX. ways and AMSC's manufacturers on several used We their to year adding domestic manufacturing that of invest and fiscal supply to we strong support specialty materials add gases This

macro We position momentum opportunities and from results. We non-GAAP growing and customers X generated have is balance robust growth, our believe We end sheet strong new profitability that income operating us cash positive cash quarters. net orders the the significant financial and driven flow tailwinds. by flow consistently and over to business of large positioned nicely a generation. benefit past continued for new addition believe market the We've and solid and

months and only said notion of possible and getting now generating already a our a net changes million $XX NWL, the that scale few coupled income. of The it continued of exceeded was us it position happened. financial has ago in this have addition with for our diversified our We potentially quarter of a growth. business strong to and We strong performance, place should revenue

growth. in We ship have continue drive that momentum businesses hopefully policies our and tailwinds U.S. to Wind company's several by will and our generated

Antonio combatant fine with Navy Canadian as working to well constructed supplier We of XXXX. We're the that our designed Navy's protection expanding proprietary diligently SPS are at Canadian business. world-class who's We first system. We the opportunities, surface U.S. to SPS on the San mine contracted have for see business, product ship today next we're total U.S. our Canadian Urban contracts our of platform sea working deliver to be military LPD the do in system for and provide Shipbuilding, we're our as really countermeasure into. Class most to a in grateful X the especially

near-term investments Inox online We turbine, is truly at book Our gigawatts in order driver order be years. position and more in to wind expanded translate AMSC. soon. This India, for Wind with us. with more will be growth in more for business you its a see X-megawatt into coming that over hope largest Wind, semiconductors expanding new their exciting us able good And is Inox class partner X can an us, start capacity talk domestic believe about to of expect the here is in wind coming book I chips. to a the may wind growing reporting for an which we time the

to help quarter fiscal to Our more the of and and look power reliable, technologies XXXX. the Keith effective need third forward questions you take delivery. I reporting efficient our world's will future-facing following of the desire from again energy analysts. harmonize our for with completion now for clean decarbonization

Operator

And Eric from question Stine Craig-Hallum. comes [Operator Instructions] with the first

Eric Stine

little touched I a was sticking fiscal were million just here, When Wind, with gigawatt. revenues your a over backlog on just you to X 'XX, Wind I think backlog at maybe close over Inox's I So back and look $XX think Inox's gigawatts. in

started So curious, be to reasons to any there orders the potentially why can't I in there more is quite just about near your dramatically Wind and optimistic see larger? Obviously, reason you I'm mean, need business orders are term. be is business a just that X this you're that mean, getting But for the -- megawatts with look, kind think way could of this supply right it really I lot the larger. and to be about

Daniel McGahn

some Eric. analysis, that's I great think

it. you kind think of I nailed

what to that's hope. think I people are going

what think money. the do we're follow trying I is to

I well think timely. paying, looks supplier. We the been think stay they're us. poised And to we it's business that tuned. as want for that partner a very I They've said remarks, if customer patient ramp, their they're to It the for customer like great to start. starts is sure make been a just We've about and doing in growth.

to more this relatively think soon. report I we on have

Eric Stine

Got it.

showed surprised you've new market then had the And what -- great. for in That's results on Okay. maybe impressions, deal? versus you up made just months. some it for acquisition, that just I X it or your expectations have maybe guess you when But the curious, feedback, early things

Daniel McGahn

that I company, today lot team. entire a the industrial substantial some knew over in chips. the and do mean we well-run have the our longer across We with product run customers. presents -- longer product it about in there. And quarters, military see lines. across combined what business, that doesn't great think opportunities a we things And the should are, operation. near-term, of on with a a we it what part side coming. Those team we They really military things positive right? helping think a but the the do help won't extends drive surprises from many talk in see chips more we make great really across to in term, we that's It's again the in that military didn't part Wind hear and things here coming years. but now we're and coming I in It see the in our cycle, doing was be really the business many going we they're we effort have business us by think I a great think see are because But things lines. relatively of semiconductor We the driven the to really of the that. I for renewables But think the future in over really

lot But to so time with well. I and more very that months very X far, X we're pleased we've we It We're what operating take them. There's some we what digest think we happy -- months. think with will So and in accomplished team executing see. in. very only the we're is those know a

Eric Stine

And that didn't you, mean, doors has your to the weren't to those -- have or which fact, customers, new are your how's are those access offering, -- they opening, in I the I been mean, been reaction accessing? a seeing customers now there new obviously, from

Daniel McGahn

Yes. I been guess it's in. X only months

say, I'd coming of what give to to fodder example saw. see So what for an you to food the I'd show we love able what quarters here's in we be you tell out than coming you rather see. we

like our approach that at group. that kind under-promise, think investors I we're of of over-deliver our least kind

we there semiconductor. you there me offerings. at And are than what separate I pretty think be I'm these that show where think strongly hinting talking more can areas combined I more with are in it I'm about But proof. let

Operator

the Colin next from question with And comes Rusch Oppenheimer.

Colin Rusch

bit a around of power you're it quality talk winning? been this has little some space been within has IP of where you management density power and and of Can the around performance. Some kind about the of

get better you're why? to So from and I just sense winning where want a

Daniel McGahn

Yes.

if get less of superconductors include the this, complicated you IP heart into things you and we in the and I can think smaller. make

easily. retrofit expansion we on can of can focus We replace fab, a fit easy. existing can To relatively an into a or So we easier. an things equipment areas more do that's

to premium a probably We deliver priced things work around find them management. to and doing an win cost to And that really, that IP work do why of ways. it of thermal premium, delivery, a for of value more lot kind on controls. are is but because -- we customer become a coin. The we those that at nature both to is, it's lot what proprietary heart of the time really types So us with want of we sure we advantage. And of to then do those on can want We make things system-level permitting, easier proprietary the more just invest continue it we all than to sides are on to And it's other the technology. win.

Colin Rusch

should grid little then shifts are from business, with That's talk super you now coupled mix the see bit margins bit helpful. how bit about and as we growth, can bigger as you how you within a just of a a some little And about little quarter-to-quarter? mix think shift

Daniel McGahn

Yes.

at at we're the levels think variability I potential right with in the exactly at really exactly that revenue gross very product -- margin level business are depending some margins in being outlier right the systems ship scale. the and presenting, quite significant not mix. In general, we're the now is all business similar the the outlier revenue there because upon only

revenue coming lot of current today think a than but I in certainly the it at it maybe Canada, quarters contribute the that scale. does of future will nicely that more with will addition the fix problem, help fully, with not

I kinds these and of kind been margins of expected. revenue we've where So of this see level be to

better I continue grow if I margin do additional my know think, do margins comment you leverage get to we with these to revenues at want how is further that. on that, to scale. improve and John, mission

John Kosiba

you're Dan. think I right,

margins Back last days, a old As within projects today. have products we of margin or any scale, revenue could had we But scales say that you strong gross up projects. the get the for have substantially more generate than X most volatility in and issues. This should or X very the X the mix us. less impact quarter, mix do we more X

the But you'll example I was projects over will of just really in smoothed shrink So the and more time performance have a -- an good company mix. gets see a we think as volatility it that good out.

Operator

from question with ROTH And the comes Justin next Capital Partners. Clare

Justin Clare

if us ramp last I ramping? 'XX. I terms So you you been Navy revenue follow us when the expecting help contract But there? you could just question on sometime think from business. in of wanted in start on update had to will the fiscal up think the Canadian the the Can we understand here

Daniel McGahn

at delivering, right. before it million, year, basically, in starts Yes. the we us. I $XX contracted it are you But probably system. No, next and have quarters. I I presented There right you assumptions further specifically, we basically and linearize by once said said 'XX. that that's deliver systems What of take basically I it think time, through is for we of don't to the of delivering assume you years We're is went you think the I the have to $XX in I the which in the remind that. what Justin, front think start exactly can is was me the contract. 'XX, million think to second what first number and right the half of probably in

the market your -- and models. So in

I is execute we go to have think on those things. do what now

the change feel now, contract is is we customers if development So are those may that those the challenge themselves, seem it. there we there where in Canadian be present programs timetables with things, that do, the the mine that is good And to are have is the intact. really both with about our it. pushing timetables. there But are project to development countermeasure challenge The challenges in what we

did we to bear. months when that ago those So few feel we as as that a announced will strongly come we timetables

Justin Clare

Got it. it. Appreciate Okay.

little characterize contract business, through uplift in up. ramp And year, areas. so it of just next an to add a the revenue you if opportunity this Navy fair seems for it's different in we And those a it? way Wind's that margin for thinking then Is see this have like possible bit, that both you

Daniel McGahn

and a think we about It think as scales, It some becomes I mix, service, that when the expansion of be the it to I project. about there'll which competition to the project specific some about it mix. about be gross we have talk more tried of project he tried help think I did, type. more relates does opportunities. it to margin of We of potential. there relates is scale I say is to do to overall John's than comes sensitive revenue And think it more cleanly, product. But say to as get I customer

Justin Clare

it. Got

wanted high-temperature to grid Was see is ask, Okay. wondering challenging here. problem key you're congestion address this becoming that address Could opportunities are superconducting it exploring? for an a to there bring market seems is challenges? And something wire can Is your challenge? Or if that then other transmission? that you increasingly you like these look Transmission at constraint. solutions the you using could potential to

Daniel McGahn

think superconductor doing year I impact or on a solution we're probably a is more away to what have any financially.

So Yes, is of Utilities to able really more. more trend. to focus we're be I with the is new trying think lot we're what I supply think more NWL a are industrial. on in going what do do we investment. to to energy. there's challenged them be macro And going to

be to what in systematic it that for comfortable utility. a drive? or centers those think new power are disruption the bringing position problems. either in of grid we that's And to So to next for a be is has the AI what very being that way those customer you is trying and think it's to on solve allow think we're energy able in we or interesting reclassification to really in invest online plants traditional demand going to the able sources, data years the over industrial semiconductor great the where evolve grid going side, like grid This a another we're problems to to solve situation. The back drive,

times, rising all tide lifts this said boats. a few I've a So

now means the markets situation. and wonderful those. business rising and happen with to forward. We're which advantage in boat our try to and of are be many a now about we're move efforts is these our efforts tide starting lifted for really take well-positioned development talked sales will Our our market we've Things to in as years

Operator

And conference any this for turn would over to session. McGahn the comments. concludes closing Dan back our I question-and-answer to like

Daniel McGahn

Thanks, in that sure -- be getting from a really on is million. to as delivered ago only to a really the getting Keith. revenue extremely NWL. energy don't a strong to few business and to the lost us quarter. income what $X operating addition think hopefully cash the flow, right, $XX up sets almost is second we've come significant is net million. greater for been, We happy acquisition growth we than in future. We of well $XXX million. we million the And million slightly quarter. backlog were we remarkable I and make north driven backlog are quarters reported million as We growing a getting that think understand XX-month $XX $XXX This anybody. want and total booked orders. of to These record the in nearly $XX to delivered of $XXX I million, a of $XX We few new recent $XX NWL nearly doing well about by going organic have We want We million. million new over of you generated

balance cash million. a have $XX of We nearly

more into these well a drive that that of about really investment hope what something see me to in Let those where can the for coming to we we be coming wind past from There's able our we I people the you significant the talk over you of has to as in domestically. years. We who semiconductor in growth do mentioned can lot challenge are looking are where talk growth about year. want you, grow? happened take us that and going And to point as of at we a future. advantage and that macro quarters and where tailwinds see it. go starting we're targeting significant coming for the So We're growth, times,

right? past to guidance the to getting grow. excited about, is talks I now that a And of ago, approaching just through of platform quarters chance XX%, talking over continue that is and go situation. want about the months' really we And right? This to for a hear accelerated to again the and about you, to remember market ago million is see to guys A position. Thank from the were couple we're we the about So year great to million, million, look excited in were and all in company on Thank only I then really nice that we're was got about $XX We're broke things. can John comment years, million it. few you. we revenues with things we $XX first to but time it to be and we at a support think feel where XX%. This X your the years $XX the you previous your really But and don't in can few guiding election we'll a a you positive. forward really want to you those and talking all, great attention, time. like I this non-GAAP $XX eventually I that.

Operator

Thank conference today's attending you. concluded. for has Thank now presentation. you The

You disconnect lines. may your now

American Superconductor (AMSC) 31 Oct 242025 Q2 Earnings call transcript