American Superconductor Corporation (AMSC.US) reported a revenue increase of over 20% in Q2, but it still fell short of expectations. Despite being profitable for five consecutive quarters, its Q3 guidance is mediocre.

After the market closed on November 5th, American Superconductor Corporation (AMSC.US) announced its financial performance for the second quarter of 2025. The financial report showed that the company achieved revenue of approximately $66 million in this quarter, with a year-over-year growth rate of over 20%, slightly lower than the analysts' consensus expectation of $67.85 million by 2.93%. The growth momentum primarily came from internal business expansion and the integration of the acquisition of NWL Corporation. In terms of net profit, calculated according to the Generally Accepted Accounting Principles (GAAP), it was $4.8 million, equivalent to $0.11 per share, a slight decrease from the $4.9 million in the same period in 2024 ($0.13 per share). On a Non-GAAP basis, the net profit was $8.9 million, corresponding to $0.20 per share, adjusted from $10 million in the same period last year ($0.27 per share) - this difference mainly stemmed from the exclusion of acquisition-related costs of NWL Inc., the Non-GAAP data more accurately reflected the company's core operational performance. It is noteworthy that this performance marks the fifth consecutive profitable quarter for American Superconductor Corporation, breaking the streak of losses from 2011 to 2024, and the 2025 fiscal year is expected to be the first profitable year since 2010. Operating cash flow performance was particularly impressive, jumping from $2.1 million in the same period in 2024 to $28.3 million, demonstrating strong cash flow and validating profit quality. The gross profit margin for this quarter exceeded 30%, achieving a gross profit of $20.4 million based on a revenue of $65.9 million, indicating a continued optimization of costs structure as revenue scale expands. Specifically, the grid business contributed $54.34 million in revenue, serving as the main growth engine, while the wind power business contributed $11.52 million. Management has maintained price discipline while achieving revenue growth faster than cost growth, and operational leverage effects have begun to show. Free cash flow for this quarter was $5.4 million, operating cash flow reached $10.6 million, and the balance sheet was further strengthened: cash and cash equivalents increased to $218.8 million, a significant increase from $85.4 million on March 31, 2025, providing solid support for future investments or acquisitions. Daniel P. McGahn, Chairman, President, and CEO of American Superconductor Corporation, stated: "With revenue growth of over 20% year over year, net profit approaching $5 million, five consecutive profitable quarters and a gross profit margin exceeding 30%, this is thanks to the strong growth in orders from the energy and military markets, driven by the flourishing U.S. manufacturing industry and the urgent demand for reliable power supply in key sectors. We are confident in the team's execution and future opportunities." Looking ahead to the third quarter of the 2025 fiscal year, the company expects revenue to be between $65 million and $70 million, with GAAP net profit expected to exceed $2 million ($0.05 per share) and Non-GAAP net profit expected to exceed $6 million ($0.14 per share). Before the financial report was released, American Superconductor Corporation's stock price rose 5.56% to $59.42, reflecting investors' confidence in the company's turnaround from years of losses. However, in after-hours trading, the stock price of American Superconductor Corporation fell by over 20%.