American Superconductor Corporation Reports 60% Revenue Growth, Net Income Turnaround in Q3 2024

American Superconductor Corporation (AMSC) reported significant financial improvements for the three and six months ended September 30, 2024, compared to the same periods in 2023. Revenues surged by 60% to $54.5 million for the third quarter and by 47% to $94.8 million for the first half of the fiscal year. The increase was primarily driven by the acquisition of Megatran Industries, which contributed $14.3 million in revenue and $2.1 million in net income during the quarter.

The Grid segment, which focuses on power transmission solutions, saw revenues rise 65% to $46.9 million for the third quarter, while the Wind segment reported a modest increase to $7.5 million. Operating income for the Grid segment turned positive at $2.3 million, compared to a loss of $0.7 million in the prior year. The Wind segment also improved, reporting an operating income of $516,000.

Despite the revenue growth, total operating expenses increased, with costs rising 49% to $16.4 million for the third quarter. This included a 61% increase in research and development expenses, reflecting AMSC's commitment to innovation. The company reported an operating loss of $753,000 for the third quarter, a notable improvement from a loss of $2.4 million in the same period last year.

AMSC achieved a net income of $4.9 million for the third quarter, a turnaround from a net loss of $2.5 million in 2023. For the first half of the fiscal year, net income was $2.4 million, compared to a loss of $7.9 million in the previous year. Basic net income per share for the third quarter was $0.13, up from a loss of $0.09 per share in 2023.

The company’s balance sheet showed total assets increasing to $298.4 million as of September 30, 2024, up from $232.8 million at the end of March 2024. Cash and cash equivalents decreased to $72.1 million, down from $90.5 million, while total stockholders' equity rose to $187.0 million from $144.6 million.

AMSC's strategic developments included the acquisition of Megatran for $61.4 million, which was finalized on August 1, 2024. The company also raised approximately $65.2 million through a public offering of 6.2 million shares at $11.25 per share in February 2024. The acquisition and capital raise are expected to support AMSC's growth initiatives and operational needs amid ongoing inflationary pressures and supply chain challenges.