Key Highlights

  • American Superconductor (NASDAQ:AMSC) reported fiscal second-quarter 2027 Revenue of USD 94.0 million, up 43% from USD 65.9 million, with Grid revenue up 41% to USD 76.7 million.
  • Net income was USD 3.0 million, or USD 0.06 per diluted share, against USD 4.8 million, or USD 0.11, a year earlier, as income tax expense rose to USD 3.4 million from USD 0.1 million.
  • Gross Margin narrowed to 28% from 31%, and the Grid segment posted an operating loss of USD 0.2 million, while Wind Operating Income rose to USD 4.2 million.
  • Six-month Operating Cash Flow was USD 48.7 million against USD 10.6 million, and cash, equivalents and restricted cash ended at USD 181.9 million.

Comtrafo Lifts Revenue but Squeezes Grid Margins

American Superconductor (NASDAQ:AMSC) filed its Quarterly Report for the quarter ended September 30, 2026 on November 4, 2026. This is the second quarter of its fiscal 2027, which began on April 1, 2026. The company supplies grid, power electronics and ship protection systems and licenses wind turbine designs. Revenue of USD 94.0 million rose 43%, driven in Grid by the Comtrafo transformer Business acquired in December 2025 plus organic growth, and in Wind, where revenue rose 51% to USD 17.4 million, by more electrical control system shipments. Grid made up 82% of the total. Gross margin was USD 26.5 million, or 28%, with the filing blaming less favorable product mix and Comtrafo purchase accounting items.

Why Higher Operating Income Still Produced Lower Net Income

Operating income rose to USD 5.4 million from USD 3.0 million, helped by a USD 1.3 million gain from lower contingent consideration for the Comtrafo earnout. Yet selling, general and administrative expense rose 36% to USD 18.3 million, interest income, net, fell to USD 1.4 million from USD 2.3 million, and income tax expense climbed to USD 3.4 million. Research and Development expense was flat at USD 3.8 million. Pretax income was USD 6.4 million, so the effective tax rate was about 53% (calculated). Six-month Net Income was USD 12.5 million, or USD 0.27 per diluted share, against USD 11.5 million, or USD 0.27, including a USD 9.4 million contingent consideration gain.

Cash Build, Comtrafo Earnout and Customer Concentration

American Superconductor (NASDAQ:AMSC) generated USD 48.7 million of operating cash in six months, aided by a USD 16.4 million deferred revenue inflow, and spent USD 14.4 million on property and equipment. The Comtrafo deal included 300 million Brazilian real in cash, 2,417,142 shares and a potential earnout of up to 382.5 million real tied to EBITDA over three years. The share count outstanding was 48.5 million as of October 30, 2026. Risks in the filing include reliance on a single Wind customer, government contract funding, Supply shortages, Middle East conflict effects and a history of losses. The extract provides no formal guidance.

Where Things Stand

American Superconductor (NASDAQ:AMSC) saw Earnings Per Share fall to USD 0.06 even though revenue jumped 43%, because gross margin narrowed, selling and administrative costs rose with Comtrafo and the tax charge grew sharply. Operating income actually improved to USD 5.4 million, aided by a contingent consideration gain, and cash generation was strong. Next markers are whether Grid returns to an operating profit, how Comtrafo purchase accounting fades from gross margin and how the earnout accrual moves with Comtrafo's EBITDA forecast.