American Superconductor (NASDAQ:AMSC) reported second-quarter fiscal 2026 revenue of $94 million, up from $65.9 million a year earlier, as customers requested faster project deliveries and demand increased across its grid and wind businesses.
The company said revenue exceeded $90 million for a second consecutive quarter, but cautioned that the accelerated deliveries could make the following quarter more challenging. American Superconductor expects third-quarter revenue to exceed $80 million, with net income above break-even and non-GAAP net income exceeding $7 million, or $0.15 per share.
“These past two quarters benefited from accelerated deliveries, which shifted projects from the next quarter,” Chairman, President and CEO Daniel McGahn said on the earnings call. He added that it was uncertain whether further customer pull-ins would occur in the December quarter.
Revenue Growth and Margins
The Grid business accounted for 82% of revenue in the quarter ended September 30, 2026, while Wind represented 18%. Grid revenue increased 41% from a year earlier, driven by organic growth and the contribution from transformer manufacturer Comtrafo, CFO John Kosiba said. Wind revenue rose 51%, helped by additional shipments of electrical control systems.
Gross margin fell to 28% from 31% a year earlier, although it improved by 190 basis points from the preceding quarter. Kosiba attributed the sequential improvement primarily to higher factory utilization at Comtrafo as it ramped up production to meet increased backlog.
Research and development and selling, general and administrative expenses rose to $22 million from $17.1 million, primarily because of the addition of Comtrafo’s operating expenses. Net income declined to $3 million, or $0.06 per share, from $4.8 million, or $0.11 per share, a year earlier. Non-GAAP net income was $9.1 million, or $0.20 per share, compared with $8.9 million, or $0.20 per share.
American Superconductor ended the quarter with $181.9 million in cash, cash equivalents and restricted cash, down from $218.8 million a year earlier. It generated $32.7 million in operating cash flow during the quarter, helped by collections on several large projects. First-half operating cash flow totaled $48.7 million on revenue of $188.1 million.
Orders and Backlog Rise
Second-quarter orders exceeded $95 million, bringing first-half orders to approximately $230 million, more than double the year-earlier period, McGahn said. The company’s 12-month backlog stood at nearly $320 million, up 50% from a year earlier.
About two-thirds of second-quarter orders came from energy customers, with traditional energy representing more than 40% and renewables contributing over 25%. Materials and utility customers each accounted for around 10%.
McGahn said the company had developed a pipeline of approximately $200 million in potential semiconductor projects over the coming several years. Those opportunities are not included in backlog, and their timing remains uncertain. He said some could convert to orders as early as this fiscal year and translate into revenue the following year.
Separately, an existing large semiconductor order is scheduled for delivery in the fiscal fourth quarter after being manufactured in the third. McGahn said the project would represent a significant portion of fourth-quarter revenue, but did not provide its value.
Transformer Expansion and Outlook
During the quarter, American Superconductor completed delivery and commissioning of a Comtrafo 165 MVA power transformer for a utility-scale solar and energy storage project in Texas. McGahn said the company had initially expected Comtrafo deliveries into North America no earlier than 2028, but completed the project in calendar 2026.
McGahn said the company had received a U.S. order for Comtrafo transformers and was pursuing additional projects in North and South America. Large power transformers typically have lead times of about a year, he said.
Asked about margins, Kosiba said some Comtrafo purchase-accounting amortization would fall off after the current quarter, while some would continue through the fiscal year and fall off into 2028. He said the company sees potential for gross margins to expand back into the 30% range.
McGahn also reported increased military quotation activity across ship protection, shipyard power and critical ship systems. He said a potential surge in that business was more likely to be a 2029 event, though it could affect 2028, depending on lead times.
About American Superconductor (NASDAQ:AMSC)
American Superconductor Corporation (NASDAQ:AMSC) develops power-resiliency solutions that help electric utilities, industrial companies, renewable-energy developers and defense organizations improve the reliability, efficiency and performance of electrical systems. The company combines power electronics, software and engineering services to address challenges involving grid stability, power quality and renewable-energy integration.
AMSC’s Gridtec business offers solutions such as voltage-regulation and power-quality systems, grid interconnection technologies, and resilient-grid products designed to support electric transmission and distribution networks.
