American Superconductor NASDAQ: AMSC reported first-quarter fiscal 2026 revenue of $94.1 million, up 30% from $72.4 million a year earlier, as growth in its Grid and Wind business units pushed quarterly sales above $90 million for the first time.
Chairman, President and Chief Executive Officer Daniel McGahn said the company entered the fiscal year focused on growth, citing strong bookings, a 12-month backlog exceeding $300 million and total backlog above $400 million. The company ended the quarter with more than $150 million in cash, cash equivalents and restricted cash.
“Our revenue results for the first quarter surpassed expectations,” McGahn said. He cautioned, however, that the stronger-than-expected first quarter included accelerated deliveries requested by customers, making the second-quarter revenue comparison more challenging.
Grid and Wind Revenue Both Increased
Grid revenue accounted for 81% of total first-quarter sales and rose 27% year over year, driven primarily by the contribution from Comtrafo, the Brazilian transformer manufacturer acquired by AMSC. Wind represented 19% of revenue and increased 45% from the prior-year period, reflecting higher shipments of electrical control systems.
McGahn said quarterly revenue was diversified across AMSC’s end markets. Renewable-energy projects represented roughly 30% of revenue, while traditional energy, materials including semiconductors, and utility projects each accounted for about 20%. Military projects represented nearly 10%.
The company said total orders during the quarter exceeded $130 million. Even excluding its largest recently announced order, AMSC booked more than $100 million in new orders, above its approximate $70 million quarterly average in the prior fiscal year.
Mining Project Order Expands Scope
A key booking was a $25 million order from a North American utility supporting a large mine expansion. McGahn described the contract as the company’s largest individual order for a mining project and said delivery of the turnkey solution is expected during fiscal 2027.
The project combines AMSC’s modular STATCOM technology, metal-enclosed capacitor banks, shunt reactors, a 138-kilovolt power transformer, switchgear, and protection and control equipment. The company will also handle design, engineering, installation and commissioning.
McGahn said selling a single-product solution for a comparable project could have generated roughly $4 million to $5 million in revenue. By offering an integrated system, AMSC said it can reduce project complexity, simplify execution and potentially help customers avoid future grid upgrades.
During the question-and-answer session, McGahn said the company does not expect such large turnkey projects to become routine, though it has additional opportunities in its pipeline. He said AMSC’s core approach will continue to include projects involving capacitor banks, filters, STATCOM systems and power supplies, while larger integrated projects can serve as an additional growth accelerator when customers seek that scope of work.
Profitability, Margins and Cash Flow
AMSC recorded GAAP net income of $9.5 million, or $0.21 per share, compared with $6.7 million, or $0.17 per share, in the prior-year quarter. Non-GAAP net income was $7.6 million, or $0.17 per share, down from $11.6 million, or $0.30 per share, a year earlier.
First-quarter GAAP and non-GAAP results included an $8.1 million adjustment to contingent consideration. Chief Financial Officer John Kosiba said the adjustment was not taxable but affected interim tax-expense recognition, resulting in a $2 million non-cash tax expense during the quarter.
Gross margin was 26.3%. Kosiba said cost of goods sold included approximately $1.5 million in Comtrafo-related purchase-accounting and non-cash adjustments, reducing gross margin by approximately 160 basis points. Margins were also affected by hiring additional direct labor in Brazil ahead of expected growth and by an unfavorable product mix, which management said it does not expect to recur in the second quarter.
Research and development and selling, general and administrative expenses totaled $22.5 million, compared with $18.5 million a year earlier. About 23% of those expenses were non-cash, according to the company.
AMSC generated $16 million in operating cash flow, supported by milestone collections on projects and initial payments from recent orders. Cash, cash equivalents and restricted cash rose to $153.1 million as of June 30 from $147.6 million at the end of fiscal 2025.
Brazil Capacity and Second-Quarter Outlook
As part of the Comtrafo acquisition agreement, AMSC acquired a third Brazilian factory during the quarter for approximately $7.4 million. Kosiba said the company invested about $10 million total in capital expenditures during the period, including the facility and related build-out, and does not anticipate additional building-related capital spending this fiscal year.
McGahn said future Brazil capital expenditures would be focused on tooling and capacity expansion as demand warrants. He said the company’s immediate priority remains growing Comtrafo’s position in Brazil, while cross-selling opportunities in Latin America may begin to contribute in the second year following the acquisition. North American transformer opportunities could develop later, he added.
For the fiscal second quarter ending Sept. 30, AMSC expects revenue to exceed $85 million. The company forecast GAAP net income above $1 million, or $0.02 per share, and non-GAAP net income above $8 million, or $0.17 per share.
Management said it sees demand tailwinds in materials markets, including mining and semiconductors, as well as traditional energy, utilities and potential data-center projects. McGahn said data-center opportunities are being evaluated and bid, but no data-center order was included in the quarter’s order bookings.
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.
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