AMSC — Second Quarter Fiscal 2026 Earnings Summary

Financial Performance:

• Revenue for the second quarter of fiscal 2026 was $94.0 million, a 43% year-over-year increase compared to $65.9 million in the same period of fiscal 2025.
• Net income for the quarter was $3.0 million ($0.06 per share), down from $4.8 million ($0.11 per share) in the prior year period.
• Non-GAAP net income was $9.1 million ($0.20 per share), compared to $8.9 million ($0.20 per share) in the prior year period.
• Operating cash flow for the quarter was $33 million, more than quadrupling the prior year period.
• Operating cash flow for the first half of fiscal 2026 exceeded $45 million.
• Cash, cash equivalents, and restricted cash totaled $181.9 million as of September 30, 2026, up from $147.6 million as of March 31, 2026.
• Gross margin for the quarter was $26.5 million, compared to $20.4 million in the prior year period.
• Total orders exceeded $95 million, driven by energy markets.
• Deferred revenue increased to $109.6 million (current $96.3 million + long-term $13.3 million) as of September 30, 2026, from $93.3 million (current $77.9 million + long-term $15.4 million) as of March 31, 2026.
• Total assets were $774.7 million as of September 30, 2026, compared to $739.5 million as of March 31, 2026.
• Total liabilities were $192.5 million as of September 30, 2026, compared to $184.0 million as of March 31, 2026.

Guidance and Future Outlook:

• For the third quarter ending December 31, 2026, AMSC expects revenues to exceed $80.0 million.
• Net income for the third quarter is expected to exceed breakeven ($0.00 per share).
• Non-GAAP net income for the third quarter is expected to exceed $7.0 million ($0.15 per share).
• Management expects revenue to average approximately $90 million for each of the first three quarters of fiscal 2026.
• Management anticipates strong demand to continue through the second half of the fiscal year, ending on a high note with significant year-over-year growth for the full fiscal year.
• Guidance assumes no changes in the fair value of contingent consideration and an estimated income tax expense of $0.5 million for the third quarter.

Business Segments and Product Lines:

• Grid segment revenue was $76.7 million for the quarter, up from $54.3 million in the prior year period.
• Wind segment revenue was $17.4 million for the quarter, up from $11.5 million in the prior year period.
• Growth was driven by organic expansion and the acquisition of Comtrafo.
• Power solutions saw excellent traction with orders exceeding $95 million, driven by traditional and renewable energy, as well as demand from materials and utility customers.
• Project deliveries were accelerated by customer requests during the first half of the fiscal year.

Market and Competitive Landscape:

• The company serves traditional and renewable energy markets, materials customers, and utility customers.
• The company provides power control solutions to harmonize complex energy systems and enable customers to scale operations.
• Solutions include advanced grid systems, ship protection, power management, wind energy controls, and industrial process controls.

Risks and Challenges:

• The press release lists numerous forward-looking risks including supply chain shortages, price fluctuations, government contract termination risks, defense spending changes, and foreign military sales restrictions.
• Risks include reliance on a single customer for a significant portion of Wind segment revenues and dependence on manufacturers licensing wind energy designs.
• Potential impacts from natural disasters, pandemics, geopolitical conflicts (specifically U.S., Israel, and Iran), and currency exchange rate fluctuations are noted.
• Risks related to intellectual property, patent licensing, and technological challenges in commercializing superconductor products are highlighted.
• The company notes a history of negative operating cash flows and potential need for additional financing.

Management Commentary and Tone:

• Daniel P. McGahn, Chairman, President, and CEO, stated the company delivered over $90 million in revenue, reflecting continued customer-requested accelerations.
• Management cited momentum, quarter-on-quarter gross margin expansion, and significant operating cash flow as providing flexibility for long-term strategic investments.
• The tone is confident regarding future demand and the ability to end the fiscal year with significant year-over-year growth.

Other Key Points:

• The acquisition of Comtrafo contributed to the year-over-year revenue growth.
• A change in the fair value of contingent consideration resulted in a benefit of $1.3 million in the second quarter and $9.4 million in the first half of fiscal 2026.
• Stock-based compensation expense was $6.5 million for the quarter and $11.8 million for the first half of fiscal 2026.
• The company hosted a conference call on November 5, 2026, to discuss results and outlook.
• The company has operations in Asia, Australia, Brazil, Europe, and North America.