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American Superconductor (AMSC) 7 Aug 24 2025 Q1 Earnings call transcript

AInvestThursday, Aug 8, 2024 1:53 pm ET
1min read

In the first quarter of fiscal year 2024, American Superconductor Corporation (AMSC) showcased a remarkable performance, demonstrating a thriving business and a solid financial foundation. During their recent earnings call, AMSC executives, including Daniel McGahn, Chairman, President and CEO, and John Kosiba, Senior Vice President, Chief Financial Officer and Treasurer, provided insights into the company's financial health, strategic initiatives, and future prospects.

Financial Highlights and Strategic Initiatives

AMSC reported total revenue of $40 million for the first quarter of fiscal year 2024, exceeding expectations with a 30% year-over-year growth. This success was driven by strong new energy power system shipments, with grid revenue accounting for 80% of the total revenue and wind revenue growing by 75% from the previous year. The company's focus on business diversification, financial growth, and expanded scale is evident in these results.

A notable achievement was the record $75 million order from the Royal Canadian Navy for ship protection systems, underscoring AMSC's strength in the naval sector. Furthermore, the acquisition of NWL, a New Jersey-based company specializing in polysupplies and transformers for industrial and military customers, is expected to significantly contribute to AMSC's financial performance and market reach.

Strategic Acquisition of NWL

The acquisition of NWL aligns with AMSC's strategic priorities to accelerate profitable growth and expand market share. With a strong history of financial performance and a solid backlog, NWL is expected to complement AMSC's existing product offerings, particularly in the industrial and military sectors. AMSC's strategic expansion into military power systems is set to be expedited, as NWL's expertise and customer base provide a valuable entry point into these markets.

Financial Guidance and Outlook

Looking ahead, AMSC expects to maintain its strong momentum, with revenue projected to be in the range of $38 million to $42 million for the second quarter of fiscal year 2024. The acquisition of NWL is expected to contribute positively to AMSC's financial performance, with an immediate impact on consolidated revenue and operating cash flow. The company's focus on sustainable profitability is evident in its solid financial performance, with consistent non-GAAP net income and positive operating cash flow over the past four quarters.

Conclusion

AMSC's first quarter of fiscal year 2024 has set a strong foundation for the company's future growth, with a focus on business diversification, strategic acquisitions, and financial strength. The record orders, impressive financial results, and the acquisition of NWL demonstrate AMSC's strategic vision and execution capabilities. With a strong order book, a solid financial position, and a clear growth strategy, AMSC is well-positioned to capitalize on the opportunities in the industrial and military sectors, and continue its path towards sustainable profitability.

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