American Superconductor (NASDAQ:AMSC) reported what management described as an “outstanding” third quarter of fiscal 2025, with revenue above guidance, continued profitability, and a growing backlog supported by demand across multiple end markets. Executives also highlighted early contributions from the company’s Comtrafo acquisition and discussed emerging opportunities in data centers, utilities, and traditional energy infrastructure.
Revenue tops guidance as profitability streak continues
For the quarter ended December 31, 2025, AMSC posted revenue of $74.5 million, up from $61.4 million in the year-ago period. CEO Daniel McGahn said revenue exceeded the company’s guidance range and reflected both organic growth and several weeks of contribution from Comtrafo, which AMSC acquired on December 5, 2025.
Across the first nine months of fiscal 2025, McGahn said revenue reached about $212 million, nearly matching the company’s total revenue for the entire prior fiscal year.
Grid business drives growth; wind improves on shipments
Chief Financial Officer John Kosiba said the Grid business accounted for 85% of total quarterly revenue and the Wind business contributed 15%.
- Grid revenue: $63.2 million, up 21% year over year. Kosiba attributed the increase primarily to organic growth in new energy product lines and the addition of $4.6 million of Comtrafo revenue during the partial period after the December 5 close (about 19 days of activity included in the quarter).
- Wind revenue: $11.3 million, up 25% year over year, driven primarily by additional shipments of electrical control systems.
On margins, Kosiba said gross margin was 31% versus 27% a year ago, marking the third sequential quarter above 30%. He said cost of goods sold included about $400,000 in non-cash adjustments tied to the purchase accounting for the Comtrafo acquisition, and he cited higher revenue and favorable product mix as key drivers of the year-over-year improvement.
Operating expenses increased as well. R&D and SG&A totaled $19.0 million versus $14.6 million a year ago, reflecting acquired operating expenses from Comtrafo and approximately $1.2 million of acquisition-related expenses. Kosiba said about 20% of R&D and SG&A was non-cash during the quarter.
Tax benefit drives reported net income; cash declines after acquisition
AMSC reported GAAP net income of $117.8 million, or $2.68 per share, and non-GAAP net income of $123.5 million, or $2.81 per share. Results included a $113.1 million tax benefit tied to the release of a valuation allowance on deferred tax assets. McGahn characterized the tax benefit as a significant milestone “due in large part to our recent history of sustained profitability and our forecasted future earnings outlook.”
Excluding the tax benefit, Kosiba said net income was $4.7 million (or $0.11 per share) compared with $2.5 million (or $0.07 per share) in the year-ago quarter. Excluding the benefit, non-GAAP net income was $10.5 million (or $0.24 per share) compared with $6.0 million (or $0.16 per share) a year earlier.
AMSC ended the quarter with $147.1 million in cash, cash equivalents, and restricted cash, down from $218.8 million at September 30, 2025. Kosiba said the company paid $88.3 million in cash consideration for Comtrafo during the quarter. Operating cash flow was $3.2 million, and capital expenditures were $0.9 million. Kosiba added that quarterly CapEx could exceed $1 million—and at times a couple million dollars—as AMSC scales production, particularly in power transformer lines “seeing high levels of demand.”
Comtrafo acquisition expands transformer offering and Latin America footprint
Management emphasized strategic benefits from the Comtrafo acquisition. McGahn said the deal strengthens AMSC’s utility position and helps capture opportunities in Brazil and broader Latin American markets. He described Comtrafo as having 30 years of operating history, a manufacturing presence in Brazil, and relationships with utility customers in what he called one of the world’s fastest-growing electricity markets.
McGahn said Comtrafo expands AMSC’s transformer portfolio to include distribution and large power transformers up to 250 MVA, allowing the combined company to serve transmission and grid expansion needs it “could not previously address.” On integration, he said it was still early—citing the short period since closing—and indicated the company did not anticipate another acquisition “right away,” while acknowledging inbound interest and ongoing evaluation of opportunities.
Data center delivery marks milestone; traditional energy seen as persistent
During Q&A, McGahn confirmed the company delivered equipment into a data center construction project during the quarter, representing roughly 5% of revenue. He said AMSC’s technology can help modulate instantaneous voltage changes in areas with weaker grids and highlighted a compact footprint as a potential advantage. He also said the company supported a utility facing challenges linked to data centers, suggesting opportunities both within data center projects and on the utility side of the grid.
However, management cautioned that the company is not positioning itself as a “data center stock,” emphasizing diversification and noting the project had been delivered but was not yet at the stage where AMSC could share operational learnings. McGahn also pointed to long lead times for many products—often nine to 12 months—meaning new wins may influence results a year or more out.
On traditional energy, McGahn described demand as more “persistent” than cyclical, with AMSC supporting energy needs tied to pipelines and processing and the broader energy requirements of moving and refining traditional fuels. He said the company sees opportunities in North America and potentially in Latin America as well.
AMSC also discussed end-market mix for the quarter, with McGahn noting revenue contributions from traditional energy (nearly one-third of shipments), renewables (about one-quarter), military and utility markets (each over 15%), and materials including semiconductors (more than 10%). On military, he said the quarter’s mix was above typical levels but did not point to anything that would change the trajectory of that business over the next several quarters.
For the fourth quarter ending March 31, 2026, Kosiba guided to revenue exceeding $80 million, net income exceeding $3 million (or $0.07 per share), and non-GAAP net income exceeding $8 million (or $0.17 per share). McGahn said the company believes it has the capability to deliver consistent profit and is positioned to capitalize on growing demand for energy and grid stability.
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.
