American Superconductor’s Q2 results were met with a strongly positive market response, driven by significant organic growth and robust performance across its core segments. Management attributed the quarter’s outperformance to accelerated project deliveries—particularly in the Materials sector, where a key customer requested expedited shipments—and to a favorable mix in the Grid business. CEO Daniel McGahn noted, “This was our strongest quarter in years, a clear signal that our strategy is delivering consistent positive results.” Gross margins expanded thanks to higher factory utilization and a product mix skewed toward higher-margin solutions, while the Wind business also experienced notable growth from increased equipment shipments.
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American Superconductor (AMSC) Q2 CY2025 Highlights:
- Revenue: $72.36 million vs analyst estimates of $64.97 million (79.6% year-on-year growth, 11.4% beat)
- Adjusted EPS: $0.29 vs analyst estimates of $0.12 (significant beat)
- Adjusted EBITDA: $10.16 million vs analyst estimates of $3.45 million (14% margin, significant beat)
- Revenue Guidance for Q3 CY2025 is $67.5 million at the midpoint, above analyst estimates of $65.3 million
- Adjusted EPS guidance for Q3 CY2025 is $0.14 at the midpoint, above analyst estimates of $0.11
- Operating Margin: 7.8%, up from 1.6% in the same quarter last year
- Market Capitalization: $2.52 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From American Superconductor’s Q2 Earnings Call
- Eric Stine (Craig-Hallum) asked about sustainability of the 30%-plus gross margin. CEO Daniel McGahn and CFO John Kosiba confirmed the margin was driven by mix and volume, not by one-time items, and stated 30% is achievable at current revenue levels.
- Stine (Craig-Hallum) also inquired about growth in the Wind business, particularly regarding Inox. McGahn explained that while a volume ramp is possible, timing depends on customer demand and construction cycles, making forecasts cautious.
- Colin William Rusch (Oppenheimer) questioned capacity expansion plans. McGahn and Kosiba detailed that American Superconductor remains in a labor-constrained phase, with room to increase output before needing major plant expansion.
- Rusch (Oppenheimer) asked about growth levers, including geographic expansion and pricing. McGahn indicated both are being considered, with global opportunities and increased value per project supporting potential price increases.
- Justin Lars Clare (ROTH Capital Partners) sought clarity on higher margins in semiconductors and updates on data center opportunities. McGahn said the margin benefit was partly due to product mix, while data center engagements are in early stages and not expected to impact near-term revenue.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will be watching (1) whether semiconductor and materials orders continue to drive backlog growth, (2) the pace of revenue diversification across traditional energy, renewables, and military markets, and (3) progress on capacity expansion and potential geographic or acquisition-driven initiatives. Execution in data center infrastructure and maintaining margin discipline will also be important indicators of sustained performance.
American Superconductor currently trades at $55.92, up from $43.93 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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