AMSC Q1 Earnings Call Highlights Record Orders and Strong Backlog

AMSC Order Book Deepens Revenue Visibility

Daniel McGahn, chairman, president and CEO, said 12-month backlog exceeded $300 million and total backlog topped $400 million, giving management stronger visibility into fiscal 2026.

Even excluding a $25 million utility order tied to a mine expansion, McGahn mentioned that new orders surpassed $100 million. That compared with an average of roughly $70 million per quarter in the prior fiscal year.

McGahn said that average lead times remain about nine months. Larger, longer-cycle projects could extend the companywide lead-time profile, while orders booked today generally affect financials three to six quarters later.

American Superconductor Expands Project Scope

McGahn described the $25 million North American utility award as the largest individual mining-project order in AMSC's history, with delivery expected in fiscal 2027.

The turnkey package combines modular STATCOM technology, capacitor banks, shunt reactors, a 138-kV transformer, switchgear and protection and control equipment. McGahn expects a single-product sale to have been worth roughly $4-$5 million.

A Craig-Hallum analyst asked whether such awards could become routine. McGahn stated that it is too early to establish a cadence and he does not expect them to represent most of the business, but broader scope can raise content per project.

AMSC Sees Margin Recovery After Q1 Pressure

John Kosiba, CFO, senior vice president and treasurer, said that first-quarter gross margin was 26.3%. About $1.5 million of Comtrafo purchase-accounting adjustments reduced margin by roughly 160 basis points.

Kosiba also cited added direct labor in Brazil and unfavorable product mix. He said the company does not expect a similar mix in the second quarter and is building labor capacity to support bookings.

Revenues reached $94.1 million, up 30% year over year, beating the Zacks Consensus Estimate of $86.5 million. Non-GAAP earnings of $0.16 per share missed the consensus mark of $0.20 per share. Operating cash flow reached $16 million.

American Superconductor Sets a Cautious Q2 Bar

Kosiba guided second-quarter fiscal 2026 revenues above $85 million. GAAP net income is expected to exceed $1 million, or $0.02 per share, while non-GAAP net income is expected to top $8 million, or $0.17 per share.

McGahn said that first-quarter revenues benefited from customers requesting earlier deliveries, pulling business forward and making the second-quarter setup more challenging.

He said that averaging the first-quarter result with the second-quarter guide gives a level that current backlog supports, while customer timing can shift project revenue between periods.

AMSC Maps Data Center and Comtrafo Growth

A ROTH Capital Partners analyst asked about data-center orders and backlog conversion. McGahn responded that the quarter contained no data-center order, although AMSC is bidding on multiple opportunities and could see acceleration in that market as soon as this year.

An Oppenheimer analyst asked about Comtrafo expansion and cross-selling. McGahn said that the first year remains focused on Brazil, with broader Latin American opportunities targeted in the second year and North American transformer opportunities still viewed as a third-year objective.

A Clear Street analyst asked about acquisition timing. McGahn said that AMSC should continue integrating Comtrafo before another deal, while remaining willing to act if a target adds another useful piece to its power-solution portfolio.

American Superconductor Keeps Growth Focus

McGahn closed with an optimistic emphasis on materials, semiconductors, traditional energy and utility demand. He also pointed to capacity expansion in Brazil as important to supporting the order pipeline.

Management remains focused on converting backlog, widening project scope and targeting gross-margin improvement in the second half of fiscal 2026.

AMSC's Zacks Signals Remain Mixed

AMSC carries a Zacks Rank #3 (Hold). Its Value Score of D, Growth Score of F, Momentum Score of F and VGM Score of F are weak marks under the Style Score framework, where A and B are preferred, and higher grades indicate better expected performance.

A Hold rank does not carry the stronger near-term signal associated with Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks, and the current Style Scores do not add support. The Zacks Rank can change as earnings estimates are revised after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here.

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