American Superconductor Corporation Reports 56% Revenue Growth to $61.4 Million

American Superconductor Corporation (AMSC) reported significant financial improvements in its latest quarterly results, with total revenues reaching $61.4 million for the three months ended December 31, 2024, a 56% increase from $39.4 million in the same period last year. For the nine months ended December 31, 2024, revenues rose 51% to $156.2 million compared to $103.6 million in the prior year. The growth was primarily driven by the acquisition of Megatran Industries, which contributed to a substantial increase in the Grid business segment, accounting for 85% of total revenues.

The company's gross margin improved to 27% for the three months ended December 31, 2024, up from 25% in the same period last year, reflecting a favorable product mix and increased pricing across its offerings. Operating income for the quarter was $1.3 million, a turnaround from a loss of $1.4 million in the previous year. Net income for the quarter was $2.5 million, compared to a net loss of $1.6 million in the same quarter of 2023. This positive shift in profitability was attributed to higher revenues and improved gross margins, alongside a release of a partial valuation allowance against deferred tax liabilities.

In terms of strategic developments, AMSC completed the acquisition of Megatran on August 1, 2024, for a total consideration of $61.4 million, which included cash and stock. This acquisition is expected to enhance AMSC's capabilities in providing engineered power conversion solutions for industrial and military applications. The integration of Megatran is reflected in the increased revenues and operational metrics reported for the Grid segment.

Operationally, AMSC's customer base and engagement metrics have shown positive trends. The company reported an increase in accounts receivable, which rose to $44.1 million from $26.3 million, indicating higher sales volume. Additionally, inventory levels increased significantly to $74.6 million, up from $41.9 million, reflecting the company's efforts to meet growing demand. The total employee headcount also rose, aligning with the company's expansion efforts following the Megatran acquisition.

Looking ahead, AMSC remains cautiously optimistic about its financial outlook. The company has filed a shelf registration statement allowing it to raise up to $250 million in capital, which will provide flexibility to fund future growth initiatives. However, AMSC acknowledges potential risks from macroeconomic conditions, including geopolitical tensions and supply chain disruptions, which could impact its operations and financial performance. The company plans to continue monitoring its expenses and may adjust its capital spending to enhance liquidity as needed.