American Superconductor Corp 10-Q for FY2027 Q2
American Superconductor Corp (AMSC)
About this 10-Q
American Superconductor Corp filed this 10-Q on November 4, 2026, covering the quarter ended September 30, 2026 (FY2027 Q2).
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $94.04M
- up 42.8% from $65.86M a year earlier
- Net income
- $3M
- down 36.9% from net income of $4.75M a year earlier
- Diluted EPS
- $0.06
- down 45.5% from $0.11 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
| | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended
| | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from _____ to _____.
Commission File Number:
American Superconductor Corporation
(Exact name of registrant as specified in its charter)
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| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| | Accelerated filer ☐ |
| Non-accelerated filer ☐ | Smaller reporting company |
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| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Shares outstanding of the Registrant’s common stock:
| Class | Outstanding as of October 30, 2026 | |
| Common Stock, par value $0.01 per share |
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AMERICAN SUPERCONDUCTOR CORPORATION
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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AMERICAN SUPERCONDUCTOR CORPORATION
PART I — FINANCIAL INFORMATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| September 30, 2026 | March 31, 2026 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable, net | ||||||||
| Inventory, net | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Restricted cash | ||||||||
| Total current assets | ||||||||
| Property, plant and equipment, net | ||||||||
| Intangibles, net | ||||||||
| Right-of-use assets | ||||||||
| Goodwill | ||||||||
| Restricted cash | ||||||||
| Deferred tax assets, long-term portion | ||||||||
| Equity-method investments | ||||||||
| Other assets | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | $ | ||||||
| Lease liability, current portion | ||||||||
| Contingent consideration, current portion | ||||||||
| Deferred revenue, current portion | ||||||||
| Total current liabilities | ||||||||
| Deferred revenue, long-term portion | ||||||||
| Lease liability, long-term portion | ||||||||
| Contingent consideration, long-term portion | ||||||||
| Other liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and Contingencies (Note 16) | ||||||||
| Stockholders' equity: | ||||||||
| Common stock, $ par value, shares authorized; and shares issued and and shares outstanding at September 30, 2026 and March 31, 2026, respectively | ||||||||
| Additional paid-in capital | ||||||||
| Treasury stock, at cost, at September 30, 2026 and March 31, 2026 | ( | ) | ( | ) | ||||
| Accumulated other comprehensive income | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total stockholders' equity | ||||||||
| Total liabilities and stockholders' equity | $ | $ | ||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
AMERICAN SUPERCONDUCTOR CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | $ | $ | $ | $ | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Gross margin | ||||||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | ||||||||||||||||
| Selling, general and administrative | ||||||||||||||||
| Amortization of acquisition-related intangibles | ||||||||||||||||
| Change in fair value of contingent consideration | ( | ) | ( | ) | ||||||||||||
| Total operating expenses | ||||||||||||||||
| Operating income | ||||||||||||||||
| Interest income, net | ||||||||||||||||
| Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income before income tax expense | ||||||||||||||||
| Income tax expense | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Net income per share of common stock | ||||||||||||||||
| Basic | $ | $ | $ | $ | ||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||
| Weighted average number of shares of common stock outstanding | ||||||||||||||||
| Basic | ||||||||||||||||
| Diluted | ||||||||||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
AMERICAN SUPERCONDUCTOR CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Other comprehensive income, net of tax: | ||||||||||||||||
| Foreign currency translation gain (loss) | ( | ) | ( | ) | ( | ) | ||||||||||
| Total other comprehensive gain (loss), net of tax | ( | ) | ( | ) | ( | ) | ||||||||||
| Comprehensive income | $ | $ | $ | $ | ||||||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
AMERICAN SUPERCONDUCTOR CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE Three and Six Months Ended September 30, 2026 AND 2025
(In thousands)
| Common Stock | Additional | Accumulated Other | Total | |||||||||||||||||||||||||
| Number of Shares | Par Value | Paid-in Capital | Treasury Stock | Comprehensive Income (Loss) | Accumulated Deficit | Stockholders' Equity | ||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Issuance of common stock – restricted shares, net of forfeited shares | ( | ) | ||||||||||||||||||||||||||
| Stock-based compensation expense | — | |||||||||||||||||||||||||||
| Issuance of common stock for 401(k) match | ||||||||||||||||||||||||||||
| Cumulative translation adjustment | — | |||||||||||||||||||||||||||
| Net income | — | |||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Issuance of common stock – restricted shares, net of forfeited shares | ( | ) | ||||||||||||||||||||||||||
| Issuance of common stock – ESPP | ||||||||||||||||||||||||||||
| Stock-based compensation expense | - | |||||||||||||||||||||||||||
| Issuance of common stock for 401(k) match | ||||||||||||||||||||||||||||
| Cumulative translation adjustment | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Net income | - | |||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Common Stock | Additional | Accumulated Other | Total | |||||||||||||||||||||||||
| Number of Shares | Par Value | Paid-in Capital | Treasury Stock | Comprehensive Income (Loss) | Accumulated Deficit | Stockholders' Equity | ||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Issuance of common stock – restricted shares, net of forfeited shares | ( | ) | ||||||||||||||||||||||||||
| Stock-based compensation expense | — | |||||||||||||||||||||||||||
| Issuance of common stock for 401(k) match | ||||||||||||||||||||||||||||
| Issuance of common stock - equity offering, net of offering expenses | ||||||||||||||||||||||||||||
| Cumulative translation adjustment | — | ( | ) | ( | ) | |||||||||||||||||||||||
| Net income | — | |||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Exercise of stock options | ||||||||||||||||||||||||||||
| Issuance of common stock – restricted shares, net of forfeited shares | ||||||||||||||||||||||||||||
| Issuance of common stock – ESPP | ||||||||||||||||||||||||||||
| Stock-based compensation expense | — | |||||||||||||||||||||||||||
| Issuance of common stock for 401(k) match | ||||||||||||||||||||||||||||
| Cumulative translation adjustment | — | ( | ) | ( | ) | |||||||||||||||||||||||
| Net income | — | |||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
AMERICAN SUPERCONDUCTOR CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Six Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | $ | ||||||
| Adjustments to reconcile net income to net cash provided by operations: | ||||||||
| Depreciation and amortization | ||||||||
| Stock-based compensation expense | ||||||||
| Provision for excess and obsolete inventory | ||||||||
| Amortization of operating lease right-of-use assets | ||||||||
| Deferred income taxes | ||||||||
| Earnings from equity method investments | ( | ) | ( | ) | ||||
| Change in fair value of contingent consideration | ( | ) | ||||||
| Other non-cash items | ||||||||
| Changes in operating asset and liability accounts: | ||||||||
| Accounts receivable | ||||||||
| Inventory | ( | ) | ||||||
| Prepaid expenses and other assets | ( | ) | ||||||
| Operating leases | ( | ) | ( | ) | ||||
| Accounts payable and accrued expenses | ( | ) | ||||||
| Deferred revenue | ( | ) | ||||||
| Net cash provided by operating activities | ||||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | ( | ) | ( | ) | ||||
| Change in other assets | ( | ) | ||||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of employee stock options and ESPP | ||||||||
| Proceeds from public equity offering, net of offering expenses | ||||||||
| Net cash provided by financing activities | ||||||||
| Effect of exchange rate changes on cash | ( | ) | ||||||
| Net increase in cash, cash equivalents and restricted cash | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | ||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | $ | ||||||
| Supplemental schedule of cash flow information: | ||||||||
| Cash paid for income taxes, net of refunds | $ | $ | ||||||
| Non-cash investing and financing activities | ||||||||
| Right-of-use assets obtained in exchange for new lease obligations | $ | $ | ||||||
| Issuance of common stock to settle 401k match liabilities | $ | $ | ||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
AMERICAN SUPERCONDUCTOR CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Nature of the Business and Operations
Nature of the Business and Operations
American Superconductor Corporation (together with its subsidiaries, “AMSC®” or the “Company”) was founded on April 9, 1987. The Company is a leading provider of power control solutions that harmonize an increasingly complex energy system and enable customers to scale their operations without added complexity or size. The Company’s system level products leverage its proprietary “smart materials” and “smart software and controls” to provide enhanced resiliency and improved performance of megawatt-scale power flow.
These unaudited condensed consolidated financial statements of the Company have been prepared on a going concern basis in accordance with United States generally accepted accounting principles (“GAAP”) and the Securities and Exchange Commission’s (“SEC”) instructions to Form 10-Q. All significant intercompany accounts and transactions are eliminated in consolidation. Investments in entities in which we do not have a controlling interest are accounted for under the equity method of accounting. The going concern basis of presentation assumes that the Company will continue operations and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to those instructions. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The unaudited condensed consolidated financial statements, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results for the interim periods ended September 30, 2026 and 2025 and the financial position at September 30, 2026; however, these results are not necessarily indicative of results which may be expected for the full year. The interim condensed consolidated financial statements, and notes thereto, should be read in conjunction with the audited consolidated financial statements for the year ended March 31, 2026, and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026 filed with the SEC on May 27, 2026.
2. Acquisition
Acquisition of Comtrafo
On December 5, 2025 (the "Comtrafo Acquisition Date"), the Company entered into a Stock Exchange Agreement (the “Stock Exchange Agreement”) with the selling stockholders named therein. Pursuant to the terms of the Stock Exchange Agreement and concurrently with entering into such agreement, the Company acquired all of the issued and outstanding shares of capital stock of Comtrafo Indústria de Transformadores Elétricos S.A. ("Comtrafo") (the "Comtrafo Acquisition"). Additionally, the Company has agreed to pay the selling stockholders of Comtrafo an additional amount up to
The Comtrafo Acquisition has been accounted for under the purchase method of accounting in accordance with ASC 805, Business Combinations. The Company allocated the purchase price on a preliminary basis using the information available as of December 5, 2025 to the assets acquired and liabilities assumed at their estimated fair values as of the date of acquisition. Due to the timing of the completion of the acquisition, the purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, and revisions of provisional estimates of fair values of deferred taxes, contingent consideration and intangible asset balances. Changes to the purchase price allocation could be significant. The purchase price allocation will be finalized within the measurement period of up to one year from the acquisition. The excess of the purchase price paid by the Company over the estimated fair value of net assets acquired has been recorded as goodwill.
The total purchase price of approximately $
| Cash payments | $ | |||
| Issuance of shares of Company’s common stock | ||||
| Contingent consideration | ||||
| Total consideration | $ |
At the Comtrafo Acquisition Date, in addition to the $
The following table summarizes the allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed and related deferred income taxes in connection with the Comtrafo Acquisition as of the Comtrafo Acquisition Date: (in millions)
| Cash and cash equivalents | $ | |||
| Restricted cash | ||||
| Prepaid expenses and other current assets | ||||
| Accounts receivable | ||||
| Inventory | ||||
| Property, plant and equipment | ||||
| Deferred tax asset | ||||
| Accounts payable and accrued expenses | ( | ) | ||
| Debt, current and long-term | ( | ) | ||
| Deferred revenue | ( | ) | ||
| Net tangible assets/(liabilities) | ||||
| Backlog | ||||
| Customer relationships | ||||
| Net identifiable intangible assets/(liabilities) | ||||
| Goodwill | ||||
| Total purchase consideration | $ |
The fair value of the financial assets acquired includes receivables with a fair value of $
Inventory includes a $
As part of the Comtrafo Acquisition, the Company identified three debt agreements that Comtrafo had entered into prior to the Comtrafo Acquisition Date. The debt agreements totaling $
Backlog of $
Customer relationships of $
Goodwill represents the value associated with the acquired workforce and expected synergies related to the business combination of the two companies. Goodwill resulting from the Comtrafo Acquisition was assigned to the Company's Grid segment. Goodwill recognized in the Comtrafo Acquisition is not deductible for tax purposes. The $
Unaudited Pro Forma Operating Results
The unaudited pro forma condensed consolidated statement of operations for the three and six months ended September 30, 2025 presented as if the Comtrafo Acquisition had occurred on April 1, 2025, is as follows:
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||
| 2025 | 2025 | |||||||
| Net Revenue | $ | $ | ||||||
| Operating income | ||||||||
| Net income | $ | $ | ||||||
| Net income per common share | ||||||||
| Basic | $ | $ | ||||||
| Diluted | $ | $ | ||||||
| Shares - basic | ||||||||
| Shares - diluted | ||||||||
The pro forma amounts include the historical operating results of the Company and Comtrafo with appropriate adjustments that give effect to acquisition related costs, income taxes, intangible amortization resulting from the Comtrafo Acquisition and certain conforming accounting policies of the Company. The pro forma amounts are not necessarily indicative of the operating results that would have occurred if the Comtrafo Acquisition and related transactions had been completed at the beginning of the applicable period presented. In addition, the pro forma amounts are not necessarily indicative of operating results in future periods.
Comtrafo contributed $
3. Revenue Recognition
The Company’s revenues in its Grid segment are derived primarily through enabling the transmission and distribution of power, providing planning services that allow it to identify power grid needs and risks, and developing ship protection systems for the U.S. Navy. The Company’s revenues in its Wind segment are derived primarily through supplying advanced power electronics and control systems, licensing its highly engineered wind turbine designs, and providing extensive customer support services to wind turbine manufacturers. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification (“ASC”) 606. For its customer contracts, the Company identifies the performance obligations, determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) control of goods or services is transferred to the customer. For the three and six months ended September 30, 2026,
In the Company's product sales, each contract with a customer summarizes each product sold to a customer, which typically represents distinct performance obligations. A contract's transaction price is allocated to each distinct performance obligation using the respective standalone selling price which is determined primarily using the cost plus expected margin approach and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s product sales transfer control to the customer in line with the contracted delivery terms and revenue is recorded at the point in time when title and risk transfer to the customer, which is primarily upon delivery, as the Company has determined that this is the point in time that control transfers to the customer. For both the three and six months ended September 30, 2026,
Included in the Company's performance of services, there are several different types of transactions and each begins with a contract with a customer that summarizes each product sold to a customer, which typically represents distinct performance obligations. Included in the business segment line there are technology development transactions that are primarily for activities that have no alternative use and for which a profit can be expected throughout the life of the contract. In these cases, the revenue is recognized over time, but in the instances where the profit cannot be assured throughout the entire contract then the revenue is recognized at a point in time. Each contract's transaction price is allocated to each distinct performance obligation using the respective standalone selling price which is determined primarily using the cost plus expected margin approach. The ongoing service transactions are for service contracts that provide benefit to the customer simultaneously as the Company performs its obligations, and therefore this revenue is recognized ratably over time throughout the effective period of these contracts. The transaction prices on these contracts are allocated based on an adjusted market approach which is re-assessed annually for reasonableness. The field service transactions include contracts for delivery of goods and completion of services made at the customer's requests, which are not deemed satisfied until the work has been completed and/or the requested goods have been delivered, so all of this revenue is recognized at the point in time when the control changes, and at allocated prices based on the adjusted market approach driven by standard price lists. The royalty transactions are related to certain contract terms on transactions in the Company's equipment and systems product line based on activity as specified in the contracts. The transaction prices of these agreements are calculated based on an adjusted market approach as specified in the contract. The Company reports royalty revenue for usage-based royalties when the sales have occurred. In circumstances when collectability is not assured and a contract does not exist under ASC 606, revenue is deferred until a non-refundable payment has been received for substantially all the amount that is due and there are no further remaining performance obligations.
The Company's service contracts can include a purchase order from a customer for specific goods in which each item is a distinct performance obligation satisfied at a point in time at which control of the goods is transferred to the customer. This transfer occurs based on the contracted delivery terms or when the requested service work has been completed. The transaction price for these goods is allocated based on the adjusted market approach considering similar transactions under similar circumstances. Service contracts are also derived from ongoing maintenance contracts and extended service-type warranty contracts. In these transactions, the Company is contracted to provide an ongoing service over a specified period of time. As the customer is consuming the benefits as the service is being provided, the revenue is recognized over time ratably.
The Company’s policy is not to accept volume discounts, product returns, or rebates and allowances within its contracts. In the event a contract was approved with any of these terms, it would be evaluated for variable consideration, estimated and recorded as a reduction of revenue in the same period the related product revenue was recorded.
The Company provides assurance-type warranties on all product sales for a term of typically to years, and extended service-type warranties are available for purchase at the customer's option for an additional term ranging up to additional years. The Company accrues for the estimated warranty costs for assurance warranties at the time of sale based on historical warranty experience plus any known or expected changes in warranty exposure. For all extended service-type warranties, the Company recognizes the revenue ratably over time during the effective period of the services.
Infrequently, the Company receives requests from customers to hold product being purchased from it for a valid business purpose. The Company recognizes revenues for such arrangements provided the transactions meets, at a minimum, the following criteria: the reason for the bill-and-hold arrangement must be substantive; the product must be identified separately as belonging to the customer; the product must be then currently ready for physical transfer to the customer; the entity cannot have the ability to use the product or direct it to another customer. Revenue for the three and six months ended September 30, 2026 included $
The Company records revenue net of sales tax, value added tax, excise tax and other taxes collected concurrent with revenue-producing activities. The Company has elected to recognize the cost for freight and shipping when control over the products sold passes to customers and revenue is recognized. The Company has elected to recognize incremental costs of obtaining a contract as expense when incurred except in contracts where the amortization period would exceed twelve months. As of September 30, 2026 and March 31, 2026, the Company's capitalized incremental contract costs were not material. The Company has elected not to adjust the promised amount of consideration for the effects of a significant financing component if the period of financing is twelve months or less. The Company has elected to recognize revenue based on the as invoiced practical expedient if there is a right to consideration from a customer in an amount that corresponds directly with the value of the Company's performance.
The Company’s contracts with customers do not typically include extended payment terms and may include milestone billing over the life of the contract. Payment terms vary by contract type and type of customer and generally range from to days from delivery.
The following tables disaggregate the Company’s revenue by shipment destination (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||
| Reportable | September 30, | September 30, | |||||||||||||||
| Segment | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Region: | |||||||||||||||||
| North America | Grid | ||||||||||||||||
| South America | Grid | ||||||||||||||||
| Asia Pacific | Grid | ||||||||||||||||
| EMEA | Grid | ||||||||||||||||
| Total | Grid | $ | $ | $ | $ | ||||||||||||
| Region: | |||||||||||||||||
| North America | Wind | ||||||||||||||||
| Asia Pacific | Wind | ||||||||||||||||
| EMEA | Wind | ||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||
As of September 30, 2026 and 2025, the Company’s contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations. The Company's accounts receivable balance is made up entirely of customer contract related balances. Changes in the Company’s contract assets, which are included in “Unbilled accounts receivable” and “Deferred program costs” (see Note 8, “Accounts Receivable” and Note 9, “Inventory” for a reconciliation to the condensed consolidated balance sheets) and “Contract liabilities”, which are included in the current portion and long-term portion of “Deferred revenue” in the Company’s condensed consolidated balance sheets, are as follows (in thousands):
| Unbilled Accounts Receivable | Deferred Program Costs | Contract Liabilities | ||||||||||
| Beginning balance as of March 31, 2026 | $ | $ | $ | |||||||||
| Increases for costs incurred to fulfill performance obligations | — | — | ||||||||||
| Increase (decrease) due to customer billings | ( | ) | — | |||||||||
| Decrease due to cost recognition on completed performance obligations | — | ( | ) | — | ||||||||
| Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations | — | ( | ) | |||||||||
| Other changes and FX impact | ( | ) | ( | ) | ||||||||
| Ending balance as of September 30, 2026 | $ | $ | $ | |||||||||
| Unbilled Accounts Receivable | Deferred Program Costs | Contract Liabilities | ||||||||||
| Beginning balance as of March 31, 2025 | $ | $ | $ | |||||||||
| Increases for costs incurred to fulfill performance obligations | — | — | ||||||||||
| Increase (decrease) due to customer billings | ( | ) | — | |||||||||
| Decrease due to cost recognition on completed performance obligations | — | ( | ) | — | ||||||||
| Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations | — | ( | ) | |||||||||
| Other changes and FX impact | ||||||||||||
| Ending balance as of September 30, 2025 | $ | $ | $ | |||||||||
The Company’s remaining performance obligations represent the unrecognized revenue value of the Company’s contractual commitments. The Company’s performance obligations may vary significantly each reporting period based on the timing of major new contractual commitments. As of September 30, 2026, the Company had outstanding performance obligations on existing contracts under ASC 606 to be recognized in the next months of approximately $
The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and six months ended September 30, 2026 and 2025:
| Three Months Ended | Six Months Ended | ||||||||||||||||
| Reportable | September 30, | September 30, | |||||||||||||||
| Segment | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Inox Wind Limited | Wind | % | % | % | % | ||||||||||||
| Anovion LLC | Grid | % |
| ||||||||||||||
| Fuji Bridex Pte Ltd | Grid |
| % | ||||||||||||||
4. Stock-Based Compensation
The Company accounts for its stock-based compensation at fair value. The following table summarizes stock-based compensation expense by financial statement line item for the three and six months ended September 30, 2026 and 2025 (in thousands):
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Cost of revenues | $ | $ | $ | $ | ||||||||||||
| Research and development | ||||||||||||||||
| Selling, general and administrative | ||||||||||||||||
| Total | ||||||||||||||||
The Company issued
The Company granted
The weighted average assumptions used in the Black Scholes valuation model for stock options granted during the six months ended September 30, 2025 are as follows:
| Six Months Ended September 30, | ||||
| 2025 | ||||
| Expected volatility | % | |||
| Risk-free interest rate | % | |||
| Expected life (years) | ||||
| Dividend yield |
| |||
5. Computation of Net Income per Share of Common Stock
Basic net income per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net income by the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares include the effect of restricted stock, exercise of stock options and warrants and contingently issuable shares. Stock options and warrants that are out-of-the-money with exercise prices greater than the average market price of the underlying common shares and shares of performance-based restricted stock where the contingency was not met are excluded from the computation of diluted EPS as the effect of their inclusion would be anti-dilutive. For the three months ended September 30, 2026,
The following table reconciles the numerators and denominators of the earnings per share calculation for the three and six months ended September 30, 2026 and 2025 (in thousands, except per share data):
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Numerator: | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Denominator: | ||||||||||||||||
| Weighted-average shares of common stock outstanding | ||||||||||||||||
| Weighted-average shares subject to repurchase | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Shares used in per-share calculation ― basic | ||||||||||||||||
| Shares used in per-share calculation ― diluted | ||||||||||||||||
| Net income per share ― basic | $ | $ | $ | $ | ||||||||||||
| Net income per share ― diluted | $ | $ | $ | $ | ||||||||||||
6. Goodwill and Other Intangibles
Goodwill
The guidance under ASC 805-30, Business Combinations, provides for the recognition of goodwill on the acquisition date measured as the excess of the aggregate consideration transferred over the net of the acquisition date amounts of net assets acquired and liabilities assumed. The Company's goodwill balance relates to the Comtrafo Acquisition in fiscal 2025, the NWL acquisition in fiscal 2024, the Neeltran acquisition in fiscal 2021, the NEPSI acquisition in fiscal 2020, and Infinia Technology Corporation acquisition in fiscal 2017 and is reported in the Grid business segment.
Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. Goodwill is not amortized but reviewed for impairment. Goodwill is reviewed annually on February 28 and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable. Changes in the Company’s goodwill are as follows (in thousands):
| Goodwill | ||||
| March 31, 2025 | $ | |||
| Balance acquired – Comtrafo | ||||
| Measurement period adjustment | ||||
| FX impact | ||||
| March 31, 2026 | $ | |||
| FX impact | ||||
| September 30, 2026 | $ | |||
The Company did identify any triggers to assess impairment in the three and six months ended September 30, 2026 or 2025.
Other Intangibles
Intangible assets at September 30, 2026 and March 31, 2026 consisted of the following (in thousands):
| September 30, 2026 | March 31, 2026 | |||||||||||||||||||||||||||
| Gross Amount | Accumulated Amortization | Net Book Value | Gross Amount | Accumulated Amortization | Net Book Value | Estimated Useful Life | ||||||||||||||||||||||
| Backlog | ( | ) | ( | ) | ||||||||||||||||||||||||
| Trade name and trademarks | — | — | Indefinite | |||||||||||||||||||||||||
| Customer relationships | ( | ) | ( | ) | ||||||||||||||||||||||||
| Core technology and know-how | ( | ) | ( | ) | ||||||||||||||||||||||||
| Intangible assets | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $
Expected future amortization expense related to intangible assets is as follows (in thousands):
| Years ending March 31, | Total | |||
| 2027 (remaining) | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| 2031 | ||||
| Thereafter | ||||
| Total | $ | |||
The Company's intangible assets relate entirely to the Grid segment operations and are physically located in the United States and Brazil. The following table summarizes the Company’s intangibles by geography (in thousands):
| September 30, 2026 | March 31, 2026 | |||||||
| U.S. | $ | $ | ||||||
| Brazil | ||||||||
| Total | $ | $ | ||||||
7. Fair Value Measurements
A valuation hierarchy for disclosure of the inputs to valuation used to measure fair value has been established. This hierarchy prioritizes the inputs into three broad levels as follows:
| Level 1 | - | Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
|
|
|
|
| Level 2 | - | Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). |
|
|
|
|
| Level 3 | - | Unobservable inputs that reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data. |
The Company provides a gross presentation of activity within Level 3 measurement roll-forward and details of transfers in and out of Level 1 and 2 measurements. A change in the hierarchy of an investment from its current level is reflected in the period during which the pricing methodology of such investment changes. Disclosure of the transfer of securities from Level 1 to Level 2 or Level 3 is made in the event that the related security is significant to total cash and investments. The Company did not have any transfers of assets and liabilities from Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the six months ended September 30, 2026.
A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
Valuation Techniques
Cash Equivalents
Cash equivalents consist of highly liquid instruments with maturities of three months or less that are regarded as high quality, low risk investments and are measured using such inputs as quoted prices, and are classified within Level 1 of the valuation hierarchy. Cash equivalents consist principally of money market accounts.
Short-term Cash Instruments
Short-term cash instruments consist of highly liquid instruments with maturities of three months or less that are regarded as high quality, low risk investments and are measured using such inputs as quoted prices in markets that are not active, and are classified within Level 2 of the valuation hierarchy. Short-term cash instruments consist principally of certificates of deposits.
Contingent Consideration
Contingent consideration relates to the earnout payment set forth in the Stock Exchange Agreement governing the acquisition of Comtrafo that provides the selling stockholders may receive an additional sum of cash upon the achievement of certain specified EBITDA objectives during the three years following the Comtrafo Acquisition Date. See Note 14, “Contingent Consideration” for further discussion. The Company relied on a Monte Carlo method to determine the fair value of the contingent consideration on the closing of the acquisition of Comtrafo and continues to revalue the fair value of the contingent consideration using the same method at each subsequent balance sheet date until the contingencies are resolved and the cash to be paid is determined, with the change in fair value recorded in the current period operating income (loss). For the period ended September 30, 2026, the change in fair value for the three and six months ended September 30, 2026 were decreases of $
The following table provides the assets and liabilities carried at fair value on a recurring basis, measured as of September 30, 2026 and March 31, 2026 (in thousands):
| Total Carrying Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
| September 30, 2026: | ||||||||||||||||
| Assets: | ||||||||||||||||
| Cash equivalents | $ | $ | $ | $ | ||||||||||||
| Short-term cash instruments | $ | $ | $ | $ | ||||||||||||
| Current liabilities: | ||||||||||||||||
| Contingent consideration | $ | $ | $ | $ | ||||||||||||
| Long-term liabilities: | ||||||||||||||||
| Contingent consideration | $ | $ | $ | $ | ||||||||||||
| Total Carrying Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
| March 31, 2026 | ||||||||||||||||
| Assets: | ||||||||||||||||
| Cash equivalents | $ | $ | $ | $ | ||||||||||||
| Short-term cash instruments | $ | $ | $ | $ | ||||||||||||
| Current liabilities: | ||||||||||||||||
| Contingent consideration | $ | $ | $ | $ | ||||||||||||
| Long-term liabilities: | ||||||||||||||||
| Contingent consideration | $ | $ | $ | $ | ||||||||||||
The table below reflects the activity for the Company's contingent consideration derivative liability measured at fair value on a recurring basis (in thousands):
| Comtrafo Acquisition Contingent Consideration | ||||
| Balance at March 31, 2025 | $ | |||
| Issuance of contingent consideration | ||||
| Change in fair value | ||||
| FX Impact | ||||
| Balance at March 31, 2026 | $ | |||
| Change in fair value | ( | ) | ||
| FX Impact | ||||
| Balance at September 30, 2026 | $ | |||
8. Accounts Receivable
Accounts receivable at September 30, 2026 and March 31, 2026 consisted of the following (in thousands):
| September 30, 2026 | March 31, 2026 | |||||||
| Accounts receivable (billed) | $ | $ | ||||||
| Accounts receivable (unbilled) | ||||||||
| Accounts receivable | $ | $ | ||||||
9. Inventory
Inventory, net of reserves, at September 30, 2026 and March 31, 2026 consisted of the following (in thousands):
| September 30, 2026 | March 31, 2026 | |||||||
| Raw materials | $ | $ | ||||||
| Work-in-process | ||||||||
| Finished goods | ||||||||
| Deferred program costs | ||||||||
| Net inventory | $ | $ | ||||||
The Company recorded inventory write-downs of $
Deferred program costs as of September 30, 2026 and March 31, 2026 primarily represent costs incurred on programs where the Company needs to complete performance obligations before the related revenue and costs will be recognized.
10. Property, Plant and Equipment
The cost and accumulated depreciation of property, plant and equipment at September 30, 2026 and March 31, 2026 are as follows (in thousands):
| September 30, 2026 | March 31, 2026 | |||||||
| Land | $ | $ | ||||||
| Construction in progress – equipment | ||||||||
| Buildings | ||||||||
| Equipment and software | ||||||||
| Furniture and fixtures | ||||||||
| Leasehold improvements | ||||||||
| Property, plant and equipment, gross | ||||||||
| Less accumulated depreciation | ( | ) | ( | ) | ||||
| Property, plant and equipment, net | $ | $ | ||||||
Depreciation expense was $
11. Equity-Method Investments
Investment in NWL Pacific Inc. Co., LTD
The Company has a
The Company treats the equity investment in the condensed consolidated financial statements under the equity method. Equity method investments are equity securities in entities the Company does not control but over which it has the ability to exercise significant influence. These investments are accounted for under the equity method of accounting in accordance with ASC 323, Investments — Equity Method and Joint Ventures. Equity method investments are measured at cost minus impairment, if any, plus or minus the Company’s share of an investee’s income or loss, less distributions received. As of September 30, 2026 the Company did not have material accounts receivable nor accounts payable balances with NWL Pacific. The Company's investment in NWL Pacific was $
The table below presents the summarized financial information for periods presented post-acquisition, as provided to the Company by the investee, for the unconsolidated company (in thousands):
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net revenue | $ | $ | $ | $ | ||||||||||||
| Gross profit | ||||||||||||||||
| Income from operation | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
12. Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses at September 30, 2026 and March 31, 2026 consisted of the following (in thousands):
| September 30, 2026 | March 31, 2026 | |||||||
| Accounts payable | $ | $ | ||||||
| Accrued inventories in-transit | ||||||||
| Accrued other miscellaneous expenses | ||||||||
| Advanced deposits | ||||||||
| Accrued compensation | ||||||||
| Income taxes payable | ||||||||
| Accrued product warranty | ||||||||
| Accrued commissions | ||||||||
| Total | $ | $ | ||||||
The Company generally provides a to year warranty on its products, commencing upon delivery or installation where applicable. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience.
Product warranty activity was as follows (in thousands):
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | ||||||||||||
| Provisions for warranties during the period | ||||||||||||||||
| Settlements during the period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Balance at end of period | $ | $ | $ | $ | ||||||||||||
13. Income Taxes
The Company recorded income tax expense of $
The Company's effective tax rate was
On a quarterly basis, the Company reassesses the valuation allowance on deferred income tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets. A tax valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized. In the period in which it becomes more likely than not that some or all of the deferred tax assets will be realized, the valuation allowance will be adjusted. As of September 30, 2026, the Company maintains a valuation allowance against certain deferred tax assets in the U.S. and Poland.
Accounting for income taxes requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company re-evaluates these uncertain tax positions on a quarterly basis. The evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Any changes in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision. The Company did identify any uncertain tax positions in the six months ended September 30, 2026 and did have any gross unrecognized tax benefits as of September 30, 2026.
14. Contingent Consideration
Comtrafo Contingent Consideration
On December 5, 2025, the Company entered into the Stock Exchange Agreement with the selling stockholders named therein. Pursuant to the terms of the Stock Exchange Agreement, the Company has agreed to pay the selling stockholders of the Comtrafo Acquisition an additional amount in cash upon the achievement of specified EBITDA objectives during the three years following the Comtrafo Acquisition Date. The Company evaluated the Comtrafo Acquisition earnout payment set forth in the Comtrafo Stock Exchange Agreement (See Note 2, "Acquisition" for further details), which will require settlement in cash, and determined the contingent consideration qualified for liability classification. As a result, for each period, the fair value of the contingent consideration will be remeasured, and the resulting gain or loss will be recognized until the cash amount is fixed.
Following is a summary of the key assumptions used in a Monte Carlo simulation to calculate the fair value of contingent consideration related to the Comtrafo Acquisition:
| September 30, | June 30, | |||||||
| Fiscal Year 26 | 2026 | 2026 | ||||||
| EBITDA Risk Premium (continuous) | % | % | ||||||
| EBITDA Volatility | % | % | ||||||
| Credit Spread (semiannual) | % | % | ||||||
| EBITDA discount rate | % | % | ||||||
| Payment delay (days) | ||||||||
| Fair value (millions) | $ | $ | ||||||
| March 31, | December 31, | December 05, | ||||||||||
| Fiscal Year 25 | 2026 | 2025 | 2025 | |||||||||
| EBITDA Risk Premium (continuous) | % | % | % | |||||||||
| EBITDA Volatility | % | % | % | |||||||||
| Credit Spread (semiannual) | % | % | % | |||||||||
| EBITDA discount rate | % | % | % | |||||||||
| Payment delay (days) | ||||||||||||
| Fair value (millions) | $ | $ | $ | |||||||||
The Company performed an analysis on the change in fair value through September 30, 2026 and recorded a gain from the change in fair value of the contingent consideration for the three and six months ended September 30, 2026 of $
15. Leases
Operating Leases
All significant lease arrangements are recognized at lease commencement. Operating lease right–of-use assets and lease liabilities are recognized at commencement. The operating lease right-of-use asset includes any lease payments related to initial direct cost and prepayments and excludes any lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company enters into a variety of operating lease agreements through the normal course of its business, but primarily real estate leases to support its operations. The real estate lease agreements generally provide for fixed minimum rental payments and the payment of real estate taxes and insurance. Many of these real estate leases have one or more renewal options that allow the Company, at its discretion, to renew the lease for varying periods up to years or to terminate the lease. Only renewal options or termination rights that the Company believed were likely to be exercised were included in the lease calculations.
The Company also enters into leases for vehicles, IT equipment and service agreements, and other leases related to its manufacturing operations that are also included in the right-of-use assets and lease liability accounts if they are for a term of longer than twelve months. However, many of these leases are either short-term in nature or immaterial. The Company has made the policy election to exclude short-term leases from the condensed consolidated balance sheets.
Supplemental balance sheet information related to leases at September 30, 2026, and March 31, 2026 are as follows (in thousands):
| September 30, 2026 | March 31, 2026 | |||||||
| Leases: | ||||||||
| Right-of-use assets – Operating | ||||||||
| Total right-of-use assets | $ | |||||||
| Lease liabilities – ST Operating | ||||||||
| Lease liabilities – LT Operating | ||||||||
| Total lease liabilities | $ | $ | ||||||
| Weighted-average remaining lease term | ||||||||
| Weighted-average discount rate | % | % | ||||||
The costs related to the Company's operating leases for the three and six months ended September 30, 2026 and 2025 are as follows (in thousands):
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Operating Leases: | ||||||||||||||||
| Operating lease costs – fixed | $ | $ | $ | $ | ||||||||||||
| Operating lease costs – variable | ||||||||||||||||
| Short-term lease costs | ||||||||||||||||
| Total lease costs | $ | $ | $ | $ | ||||||||||||
The Company’s estimated minimum future lease obligations under the Company's leases are as follows (in thousands):
| Leases | ||||
| Year ending March 31, | ||||
| 2027 (remaining) | $ | |||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| 2031 | ||||
| Thereafter | ||||
| Total minimum lease payments | ||||
| Less: interest | ( | ) | ||
| Present value of lease liabilities | $ | |||
16. Commitments and Contingencies
Legal Contingencies
From time to time, the Company is involved in legal and administrative proceedings and claims of various types. The Company records a liability in its condensed consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary to make the condensed consolidated financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its condensed consolidated financial statements.
Other
The Company enters into long-term construction contracts with customers that require the Company to obtain performance bonds. The Company is required to deposit an amount equivalent to some or all the face amount of the performance bonds into an escrow account until the termination of the bond. When the performance conditions are met, amounts deposited as collateral for the performance bonds are returned to the Company. In addition, the Company has various contractual arrangements in which minimum quantities of goods or services have been committed to be purchased on an annual basis.
As of September 30, 2026, the Company had $
AMSC Brazil, through Comtrafo, purchased additional real estate within the twelve months following the Comtrafo Acquisition Date for
17. Business Segments
The Company reports its financial results in reportable business segments: Grid and Wind. In accordance with ASC 280, Segment Reporting, the Company has identified operating segments. The Company's operating segments reflect the way in which internally-reported financial information is used to make decisions and allocate resources.
Through the Company’s power grid offerings, the Grid business segment enables electric utilities, industrial facilities, and renewable energy project developers to connect, transmit and distribute smarter, cleaner and better power through its transmission planning services, power electronics, and superconductor-based systems. The sales process is enabled by transmission planning services that allow it to identify power grid congestion, poor power quality and other risks, which helps the Company determine how its solutions can improve network performance. These services often lead to sales of grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems. The Company also sells ship protection products to the U.S. Navy through its Grid business segment.
Through the Company’s wind power offerings, the Wind business segment enables manufacturers to field highly competitive wind turbines through its advanced power electronics and control system products, engineered designs, and support services. The Company supplies advanced power electronics and control systems, licenses its highly engineered wind turbine designs, and provides extensive customer support services to wind turbine manufacturers. The Company’s design portfolio includes a broad range of drive trains and power ratings of 2 megawatts ("MWs") and higher. The Company provides a broad range of power electronics and software-based control systems that are highly integrated and designed for optimized performance, efficiency, and grid compatibility.
AMSC’s Chief Executive Officer Daniel McGahn is the chief operating decision maker. The chief operating decision maker uses segment operating income (loss) to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for segment operating income (loss) when making decisions about allocating capital and personnel to the segments. The chief operating decision maker also uses segment operating income or loss to assess the performance for each segment by comparing the results and return on assets of each segment with one another and in the compensation of certain employees.
The following tables (i) summarize total sales by segment and (ii) reconcile each segment's sales to their respective segment operating income, including segment operating expenses, for each of the three and six months ended September 30, 2026, and 2025 (in thousands):
| Three Months Ended September 30, 2026 | Six Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||
| Grid | Wind | Unallocated | Total | Grid | Wind | Unallocated | Total | |||||||||||||||||||||||||
| Segment operating income: | ||||||||||||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Less (a) | ||||||||||||||||||||||||||||||||
| Segment other operating expenses (b) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Segment operating income (loss) | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(b) Segment other operating expense includes cost of sales, research and development expense, selling general, and administrative expense, amortization of acquisition related intangibles, and gain (loss) on contingent consideration.
| Three Months Ended September 30, 2025 | Six Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||
| Grid | Wind | Unallocated | Total | Grid | Wind | Unallocated | Total | |||||||||||||||||||||||||
| Segment operating income: | ||||||||||||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Less (a) | ||||||||||||||||||||||||||||||||
| Segment other operating expenses (b) | ||||||||||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(b) Segment other operating expense includes cost of sales, research and development expense, selling general, and administrative expense, amortization of acquisition related intangibles, and gain/loss on contingent consideration.
Unallocated corporate expenses included a net gain on contingent consideration of $
The reconciliation of segment operating income to consolidated income before income taxes for the three and six months ended September 30, 2026, and 2025 is as follows (in thousands):
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Operating income: | $ | $ | $ | $ | ||||||||||||
| Interest income, net | ||||||||||||||||
| Other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income before income tax expense | $ | $ | $ | $ | ||||||||||||
Depreciation and amortization expense by segment for the three and six months ended September 30, 2026, and 2025 is as follows (in thousands):
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Grid | $ | $ | $ | $ | ||||||||||||
| Wind | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
The accounting policies of the business segments are the same as those for the consolidated Company. The Company’s business segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measures are segment revenues and segment operating income (loss). The disaggregated financial results of the segments reflect allocation of certain functional expense categories consistent with the basis and manner in which Company management internally disaggregates financial information for the purpose of assisting in making internal operating decisions. In addition, certain corporate expenses which the Company does not believe are specifically attributable or allocable to either of the two business segments have been excluded from the segment operating income (loss).
Total assets for the two business segments as of September 30, 2026 and March 31, 2026, are as follows (in thousands):
| September 30, 2026 | March 31, 2026 | |||||||
| Grid | $ | $ | ||||||
| Wind | ||||||||
| Corporate assets | ||||||||
| Total | $ | $ | ||||||
18. Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. The amendments in ASU 2024-03 address investor requests for more disclosure of disaggregated financial reporting information about expenses presented in the income statement. Following the release of ASU 2024-03 in November 2024, the effective date will be annual reporting periods beginning after December 15, 2026. The Company is evaluating the impact on its consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software. The amendments in ASU 2025-06 remove all references to software development project stages and requires entities to start capitalizing software costs when both of the following occur: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. Following the release of ASU 2025-06 in September 2025, the effective date will be annual reporting periods beginning after December 15, 2027. The company is evaluating the impact on its consolidated financial statements.
19. Subsequent Events
The Company has performed an evaluation of subsequent events through the time of filing this Quarterly Report on Form 10-Q with the SEC and has determined that there are no such events to report.
AMERICAN SUPERCONDUCTOR CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
| ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
American Superconductor®, AMSC®, Comtrafo™, Neeltran®, NEPSI™, NWL®, to the next power™, think inside the box™, Smarter, Cleaner...Better Energy™, orchestrate the rhythm and harmony of power on the grid™, Amperium®, D-VAR®, PowerModule™, D-VAR VVO®, PQ-IVR®, SeaTitan®, Gridtec™, Mairnetec™, Windtec™, actiVAR®, armorVAR™, SafetyLOCK™ are trademarks or registered trademarks of American Superconductor Corporation or our subsidiaries. We reserve all of our rights with respect to our trademarks or registered trademarks regardless of whether they are so designated in this Quarterly Report on Form 10-Q by an ® or ™ symbol. All other brand names, product names, trademarks or service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective holders.
Executive Overview
Guided by a belief in the power of next, we are a leading provider of power control solutions that apply innovation and creativity to address today’s challenges and enable a more resilient and sustainable energy future. Driven by our purpose “to power progress,” we integrate future-facing technologies to balance the growing global demand for power with the need for reliable, and efficient power delivery. Our advanced grid systems, engineering services, power electronics, software controls, and superconductor-based solutions help the traditional and renewable energy sectors, electric utilities, the materials and mining sector, industrial facilities, and other critical infrastructure operators optimize network reliability, improve power quality, alleviate grid constraints, and scale operations without added complexity or size.
We also deliver ship protection and power management solutions that enhance fleet efficiency, survivability, and operational readiness for the U.S. Navy and allied fleets. In the wind power market, we provide advanced electrical control systems, engineering, and support services that help manufacturers lower the cost of wind energy and improve turbine performance. Beyond these markets, we provide industrial process, environmental and emission control capabilities that support operational efficiency across the broader energy infrastructure. Across our businesses, our solutions are helping optimize power networks, strengthen naval capabilities, and support gigawatts of renewable energy generation worldwide as governments and industries continue investing in more resilient, secure, and sustainable power systems.
We operate our business under two market-facing business segments: Grid and Wind. We believe this market centric structure enables us to more effectively anticipate and meet the needs of power generators, power utilities, industrial manufacturers, the military and renewable energy companies.
| • |
Grid. Our Grid business segment enables electric utilities, industrial facilities, and traditional and renewable energy project developers to connect, transmit, transform and distribute power with exceptional efficiency, reliability, security and affordability. We provide transmission planning services that allow us to identify power grid congestion, poor power quality, and other risks, which help us determine how our solutions can improve network performance. These services often lead to sales of our grid interconnection solutions for wind farms and solar power plants, power quality systems and transmission and distribution cable systems. We also sell critical shipyard infrastructure power solutions, ship power supplies and ship protection products to U.S. and allied Navies through our Grid business segment. |
| • |
Wind. Our Wind business segment enables manufacturers to field wind turbines with exceptional power output, reliability and affordability. We supply advanced power electronics and control systems, license our highly engineered wind turbine designs, and provide extensive customer support services to wind turbine manufacturers. Our design portfolio includes a broad range of drivetrains and power ratings of 2 megawatts ("MWs") and higher. We provide a broad range of power electronics and software-based control systems that are highly integrated and designed for optimized performance, efficiency, and grid compatibility. |
Our fiscal year begins on April 1 and ends on March 31. When we refer to a particular fiscal year, we are referring to the fiscal year that began on April 1 of that same year. For example, fiscal 2026 refers to the fiscal year that began on April 1, 2026. Other fiscal years follow similarly.
Changes in macroeconomic conditions arising from various reasons, such as the ongoing wars between Russia and Ukraine, and in the Middle East, tariffs, trade restrictions and resulting trade conflicts, labor force availability, sourcing, material delays and global supply chain disruptions, could have a material adverse effect on our business, financial condition and results of operations.
On December 5, 2025 (the "Comtrafo Acquisition Date"), we entered into a Stock Exchange Agreement (the "Stock Exchange Agreement") with the selling stockholders named therein (the "Stockholders"). Pursuant to the terms of the Stock Exchange Agreement, Mardin Participações Ltda., an entity incorporated in Brazil (“AMSC Brazil”) and our wholly-owned subsidiary, directly or indirectly, purchased all of the issued and outstanding shares of Comtrafo Indústria de Transformadores Elétricos S.A. ("Comtrafo") (collectively, the "Comtrafo Acquisition") for (a) (i) 300 million Brazilian Real in cash; and (b) 2,417,142 restricted shares of our common stock, $0.01 par value per share (the "AMSC Shares") that were paid and issued, respectively, at closing. In addition, pursuant to certain additional real property agreements, AMSC Brazil through Comtrafo purchased certain real estate assets and transportation assets of Comtrafo for 155.6 million Brazilian Real and 13.4 million Brazilian Real, respectively, in cash. Additionally, AMSC Brazil has agreed to pay the Stockholders up to an additional 382.5 million Brazilian Real in cash (the "Earnout") upon the achievement of specified earnings before interest, taxes, depreciation, and amortization ("EBITDA") objectives during the three years following the closing. Comtrafo is a Brazil-based manufacturer of large power and distribution transformers primarily for utility customers and also for industrial customers.
Critical Accounting Policies and Estimates
The preparation of the unaudited condensed consolidated financial statements requires that we make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ under different assumptions or conditions. Our critical accounting policies and estimates have not materially changed from those disclosed in our Form 10-K for the fiscal year ended March 31, 2026.
Results of Operations
Three and six months ended September 30, 2026, compared to the three and six months ended September 30, 2025
Revenues
Total revenues increased 43% to $94.0 million for the three months ended September 30, 2026 and total revenues increased 36% to $188.1 million for the six months ended September 30, 2026 compared to $65.9 million and $138.2 million for the three and six months ended September 30, 2025, respectively. Our revenues are summarized as follows (in thousands):
| Three Months Ended September 30, |
Six Months Ended September 30, |
|||||||||||||||
| 2026 |
2025 |
2026 |
2025 |
|||||||||||||
| Revenues: |
||||||||||||||||
| Grid |
$ | 76,667 | $ | 54,342 | $ | 152,990 | $ | 114,429 | ||||||||
| Wind |
17,371 | 11,520 | 35,120 | 23,791 | ||||||||||||
| Total |
$ | 94,038 | $ | 65,862 | $ | 188,111 | $ | 138,220 | ||||||||
Our Grid business segment accounted for 82% of total revenues for both the three and six months ended September 30, 2026, compared to 83% for both the three and six months ended September 30, 2025. Our Grid business segment revenues increased 41% to $76.7 million in the three months ended September 30, 2026, from $54.3 million in the three months ended September 30, 2025. Our Grid business segment revenues increased 34% to $153.0 million in the six months ended September 30, 2026, from $114.4 million in the six months ended September 30, 2025. The increase in the Grid business segment revenues in the three and six months ended September 30, 2026, compared to the three and six months ended September 30, 2025, was driven by the addition of Comtrafo revenues along with organic revenue growth.
Our Wind business segment accounted for 18% of total revenues for both the three and six months ended September 30, 2026, compared to 17% for both the three and six months ended September 30, 2025. Our Wind business segment revenues increased 51% to $17.4 million in the three months ended September 30, 2026, from $11.5 million in the three months ended September 30, 2025. Our Wind business segment revenues increased 48% to $35.1 million in the six months ended September 30, 2026, from $23.8 million in the six months ended September 30, 2025. The increase in the Wind business segment revenues in the three and six months ended September 30, 2026, compared to the three and six months ended September 30, 2025, was driven by additional shipments of electrical control systems ("ECS").
Cost of Revenues and Gross Margin
Cost of revenues increased by 49% to $67.5 million for the three months ended September 30, 2026, compared to $45.4 million for the three months ended September 30, 2025. Cost of revenues increased by 47% to $136.9 million for the six months ended September 30, 2026, compared to $93.3 million for the six months ended September 30, 2025. Gross margin was 28% and 27% for the three and six months ended September 30, 2026, respectively, compared to 31% and 33% for the three and six months ended September 30, 2025, respectively. Cost of revenues includes total amortization expense of $0.5 million and $1.0 million in the three and six months ended September 30, 2026, respectively, as a result of Comtrafo acquired backlog intangible assets. In addition, $0.7 million related to a fair value adjustment for the step-up basis assigned to acquired inventory to properly reflect the fair value in purchase accounting was charged to cost of revenues in the six months ended September 30, 2026. The decrease in gross margins in the three and six months ended September 30, 2026 was due to a less favorable product mix and the impact of Comtrafo purchase accounting items.
Operating Expenses
Research and development
Research and development ("R&D") expense increased 1% in the three months ended September 30, 2026, to $3.8 million from $3.7 million in the three months ended September 30, 2025. R&D expenses decreased 4% in the six months ended September 30, 2026, to $7.7 million from $8.0 million in the six months ended September 30, 2025. The increase in the three months ended September 30, 2026 was driven primarily by additional stock based compensation. The decrease in the six months ended September 30, 2026 was driven primarily by lower total compensation expense.
Selling, general, and administrative
Selling, general and administrative ("SG&A") expenses increased 36% in the three months ended September 30, 2026, to $18.3 million from $13.4 million in the three months ended September 30, 2025. SG&A expenses increased 34% in the six months ended September 30, 2026 to $36.9 million from $27.6 million in the six months ended September 30, 2025. The increase in SG&A expense in the three and six months ended September 30, 2026 was driven primarily by the addition of Comtrafo expenses, higher total compensation expense, and additional stock-based compensation expense.
Amortization of acquisition-related intangibles
We recorded amortization expense related to our core technology and know-how and customer relationships of $0.5 million in the three months ended September 30, 2026, and $0.3 million in the three months ended September 30, 2025. We recorded amortization expense related to our core technology and know-how and customer relationships of $0.9 million in the six months ended September 30, 2026, and $0.7 million in the six months ended September 30, 2025. The increase in amortization expense in the three and six months ended September 30, 2026 was a result of additional amortization related to the Comtrafo acquisition, as well as ongoing activity from NEPSI and Neeltran, which are using the economic consumption method as the basis to amortize the acquired customer relationships intangible assets.
Change in fair value of contingent consideration
The change in fair value of our contingent consideration for the earnout payment on the acquisition of Comtrafo resulted in a gain of $1.3 million and $9.4 million from changes in fair value of the contingent consideration driven by changes in the forecast in the three and six months ended September 30, 2026, respectively. There was no activity in the three or six months ended September 30, 2025 related to the change in fair value of contingent consideration.
Operating income (loss)
Our operating income (loss) is summarized as follows (in thousands):
| Three Months Ended September 30, |
Six Months Ended September 30, |
|||||||||||||||
| 2026 |
2025 |
2026 |
2025 |
|||||||||||||
| Operating income (loss): |
||||||||||||||||
| Grid |
$ | (159 | ) | $ | 1,278 | $ | (2,325 | ) | $ | 5,435 | ||||||
| Wind |
4,187 | 1,687 | 8,069 | 3,175 | ||||||||||||
| Unallocated corporate expenses |
1,332 | — | 9,447 | — | ||||||||||||
| Total |
$ | 5,360 | $ | 2,965 | $ | 15,191 | $ | 8,610 | ||||||||
Our Grid business segment generated operating losses of $0.2 million and $2.3 million in the three and six months ended September 30, 2026, respectively, compared to operating income of $1.3 million and $5.4 million in the three and six months ended September 30, 2025, respectively. The decrease in the Grid business segment operating income in the three and six months ended September 30, 2026 was due to lower gross margins and Comtrafo purchase accounting expense.
Our Wind business segment generated operating income of $4.2 million and $8.1 million in the three and six months ended September 30, 2026, compared to operating income of $1.7 million and $3.2 million in the three and six months ended September 30, 2025, respectively. The increase in the Wind business segment operating income in the three and six months ended September 30, 2026 was due to higher revenues and gross margins from increased sales of ECS units.
Interest income, net was $1.4 million and $3.0 million in the three and six months ended September 30, 2026, respectively, compared to $2.3 million and $3.2 million in the three and six months ended September 30, 2025, respectively. The decrease in interest income, net, in the three and six months ended September 30, 2026 was due to lower cash balances in the current year.
Other expense, net
Other expense, net, was $0.4 million and $1.0 million in the three and six months ended September 30, 2026, respectively, compared to other expense, net of $0.4 million and less than $0.1 million in the three and six months ended September 30, 2025, respectively. The increase in other expense, net, during the three and six months ended September 30, 2026, was driven by unfavorable fluctuations in foreign currencies.
Income Taxes
Income tax expense was $3.4 million and $4.7 million in the three and six months ended September 30, 2026, respectively, compared to income tax expense of $0.1 million and $0.3 million in the three and six months ended September 30, 2025, respectively. The increase in our income tax expense was primarily due to the existence of a valuation allowance against our net U.S. deferred tax assets in the prior year, a majority of which was released during the three months ended December 31, 2025, and taxes in foreign operations in the current year.
Net income
Net income was $3.0 million and $12.5 million in the three and six months ended September 30, 2026, respectively, compared to $4.8 million and $11.5 million in the three and six months ended September 30, 2025, respectively. The decrease in net income for the three months ended September 30, 2026 was driven primarily by additional tax expense. The increase in net income for the six months ended September 30, 2026 was driven primarily by the change in fair value of contingent consideration.
Non-GAAP Financial Measure - Non-GAAP Net Income
Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measures included in this Quarterly Report on Form 10-Q, however, should be considered in addition to, and not as a substitute for or superior to the comparable measures prepared in accordance with GAAP.
We define non-GAAP net income as net income before stock-based compensation, amortization of acquisition-related intangibles, change in fair value of contingent consideration, and other non-cash or unusual charges. We believe non-GAAP net income assists management and investors in comparing our performance across reporting periods on a consistent basis by excluding these non-cash charges and other items that we do not believe are indicative of our core operating performance. In addition, we use non-GAAP net income as a factor to evaluate the effectiveness of our business strategies. A reconciliation of GAAP to non-GAAP net income is set forth in the table below (in thousands, except per share data):
| Three Months Ended September 30, |
Six Months Ended September 30, |
|||||||||||||||
| 2026 |
2025 |
2026 |
2025 |
|||||||||||||
| Net income |
$ | 2,999 | $ | 4,750 | $ | 12,489 | $ | 11,474 | ||||||||
| Stock-based compensation |
6,517 | 3,766 | 11,781 | 8,292 | ||||||||||||
| Amortization of acquisition-related intangibles |
965 | 337 | 1,941 | 674 | ||||||||||||
| Change in fair value of contingent consideration |
(1,332 | ) | — | (9,447 | ) | — | ||||||||||
| Non-GAAP net income |
$ | 9,148 | $ | 8,853 | $ | 16,764 | $ | 20,440 | ||||||||
| Non-GAAP net income per share - basic |
$ | 0.20 | $ | 0.20 | $ | 0.36 | $ | 0.50 | ||||||||
| Non-GAAP net income per share - diluted |
$ | 0.19 | $ | 0.20 | $ | 0.36 | $ | 0.49 | ||||||||
| Weighted average shares outstanding - basic |
46,522 | 43,242 | 46,260 | 41,070 | ||||||||||||
| Weighted average shares outstanding - diluted |
47,033 | 44,210 | 47,058 | 41,988 | ||||||||||||
We generated non-GAAP net income of $9.1 million and $16.8 million, or $0.20 and $0.36 per share, for the three and six months ended September 30, 2026, respectively, compared to a non-GAAP net income of $8.9 million and $20.4 million, or $0.20 and $0.50 per share, for the three and six months ended September 30, 2025, respectively. For the three months ended September 30, 2026, the increase in Non-GAAP net income was primarily driven by higher revenues and operating income. For the six months ended September 30, 2026, the decrease in Non-GAAP net income was a result of lower gross margins.
Liquidity and Capital Resources
The Company’s primary sources of liquidity are internally generated cash provided by operating activities, our cash and cash equivalents on hand, along with access to capital markets, including through our currently effective Registration Statements on Form S-3. We believe that these sources of liquidity are sufficient to meet both our short-term and reasonably foreseeable long-term requirements and obligations. As of September 30, 2026, we had cash, cash equivalents and restricted cash of $181.9 million, compared to $147.6 million as of March 31, 2026, an increase of $34.3 million. As of September 30, 2026, we had $24.0 million in cash, cash equivalents, and restricted cash in foreign bank accounts. Our cash, cash equivalents, and restricted cash are summarized as follows (in thousands):
| September 30, 2026 |
March 31, 2026 |
|||||||
| Cash and cash equivalents |
$ | 169,916 | $ | 140,693 | ||||
| Restricted cash |
11,987 | 6,860 | ||||||
| Total cash, cash equivalents, and restricted cash |
$ | 181,903 | $ | 147,553 | ||||
For the six months ended September 30, 2026, net cash provided by operating activities was $48.7 million, compared to $10.6 million for the six months ended September 30, 2025. The increase in cash flows provided by operating activities in the six months ended September 30, 2026 was due primarily to changes in deferred revenue, inventory, prepaid expenses and other current assets, and changes in fair value consideration relating to contingent consideration.
For the six months ended September 30, 2026, net cash used in investing activities was $14.5 million, compared to $2.1 million for the six months ended September 30, 2025. The increase in net cash used in investing activities was primarily due to cash paid for the purchase of property, plant and equipment in the current year.
For the six months ended September 30, 2026, net cash provided by financing activities was $0.2 million. For the six months ended September 30, 2025, net cash provided by financing activities was $124.8 million. The decrease in net cash provided by financing activities was due primarily to the equity raise in June 2025.
As of September 30, 2026, we had $4.7 million of restricted cash included in long-term assets and $7.3 million of restricted cash included in current assets. At March 31, 2026, we had $3.3 million of restricted cash included in long-term assets and $3.5 million of restricted cash in current assets. These amounts included in restricted cash primarily represent collateral deposits to secure surety bonds and letters of credit for various customer contracts. These deposits are held in interest bearing accounts.
We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the condensed consolidated balance sheet as of September 30, 2026, while others are considered future commitments. We have various contractual arrangements, under which we have committed to purchase certain minimum quantities of goods or services on an annual basis. For information regarding our other contractual obligations, refer to Note 3, "Revenue Recognition," Note 14, "Contingent Consideration," Note 15, "Leases" and Note 16, "Commitments and Contingencies" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Other than the contingent consideration owed to the former Comtrafo stockholders there have been no material changes to our contractual obligations from those disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.
We believe we have sufficient available liquidity to fund our operations and capital expenditures for at least the next twelve months and into the future. We may seek to raise additional capital, which could be in the form of loans, convertible debt or equity, to fund our operating requirements and capital expenditures. There can be no assurance that we will be able to raise additional capital on favorable terms or at all or execute on any other means of improving our liquidity as described above. Additionally, the impact of global sources of instability, including the ongoing conflicts between Russia and Ukraine and in the Middle East, tariffs, trade restrictions and resulting trade conflicts, instability of financial institutions and political instability in the United States, on the global financial markets may reduce our ability to raise additional capital, if necessary, which could negatively impact our liquidity.
Legal Proceedings
From time to time, we are involved in legal and administrative proceedings and claims of various types. We record a liability in our condensed consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. We review these estimates each accounting period as additional information is known and adjust the loss provision when appropriate. If a matter is both probable to result in liability and the amounts of loss can be reasonably estimated, we estimate and disclose the possible loss or range of loss to the extent necessary to make the condensed consolidated financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in our condensed consolidated financial statements.
Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. The amendments in ASU 2024-03 address investor requests for more disclosure of disaggregated financial reporting information about expenses presented in the income statement. Following the release of ASU 2024-03 in November 2024, the effective date will be annual reporting periods beginning after December 15, 2026. We are evaluating the impact on our consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software. The amendments in ASU 2025-06 remove all references to software development project stages and requires entities to start capitalizing software costs when both of the following occur: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. Following the release of ASU 2025-06 in September 2025, the effective date will be annual reporting periods beginning after December 15, 2027. We are evaluating the impact on our consolidated financial statements.
We do not believe that, outside of those disclosed here, there are any other recently issued accounting pronouncements that will have a material impact on our condensed consolidated financial statements.
| QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
We face exposure to financial market risks, including adverse movements in foreign currency exchange rates and changes in interest rates. These exposures may change over time as our business practices evolve and could have a material adverse impact on our financial results.
Cash and cash equivalents
Our exposure to market risk through financial instruments, such as short-term cash instruments with maturities of three months or less, is limited to interest rate risk and is not material. Our investments in marketable securities consist primarily of money market accounts and short-term certificates of deposit and are designed, in order of priority, to preserve principal, provide liquidity, and maximize income. Interest rates are variable and fluctuate with current market conditions. We do not believe that a 10% change in interest rates would have a material impact on our financial position or results of operations.
Foreign currency exchange risk
The functional currency of each of our foreign subsidiaries is the U.S. dollar, except for AMSC Austria (Euro), AMSC Brazil and Comtrafo (Real), for which the local currencies are the functional currency. The assets and liabilities of AMSC Austria, AMSC Brazil and Comtrafo are translated into U.S. dollars at the exchange rate in effect at the balance sheet date and income and expense items are translated at average rates for the period. Cumulative translation adjustments are excluded from net income and shown as a separate component of stockholders’ equity.
We face exposure to movements in foreign currency exchange rates whenever we, or any of our subsidiaries, enter into transactions with third parties that are denominated in currencies other than our functional currency. Intercompany transactions between entities that use different functional currencies also expose us to foreign currency risk. Gross margins of products we manufacture in the U.S and sell in currencies other than the U.S. dollar are also affected by foreign currency exchange rate movements. In addition, a portion of our earnings is generated by our foreign subsidiaries, whose functional currencies are other than the U.S. dollar, and our revenues and earnings could be materially impacted by movements in foreign currency exchange rates upon the translation of the earnings of such subsidiaries into the U.S. dollar. If the functional currency for AMSC Austria, AMSC Brazil, or Comtrafo were to fluctuate by 10% the net effect would be immaterial to our consolidated financial statements.
Foreign currency gains (losses) are included in net income and were a loss of $0.6 million and $1.3 million for the three and six months ended September 30, 2026, respectively, and a gain of $0.3 million for both the three and six months ended September 30, 2025.
| CONTROLS AND PROCEDURES |
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2026. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at the reasonable level as of September 30, 2026.
Material Weakness
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. During the fourth quarter of fiscal 2025, in connection with the preparation of our financial statements for our Annual Report on Form 10-K for the year ended March 31, 2026, management identified the following material weakness: We did not maintain effective internal controls over the preparation and review of the initial purchase accounting and the continuing fair value accounting associated with the Comtrafo Acquisition to ensure the accurate and timely reporting of our financial results related to this acquisition. Specifically, errors went undetected in amounts initially recorded to the opening balance sheet due to controls not operating at the appropriate level of precision during management's review process which could have led to a reasonable possibility of material misstatement to account balances or disclosures.
During the first and second quarters of fiscal 2026, our management, with the oversight of our audit committee, initiated steps to remediate the underlying causes of the material weakness, which have been primarily through the development and implementation of new levels of precision of management review controls around business acquisitions. In the three and six months ended September 30, 2026, management has performed additional levels of review around areas of significant judgement and material balances.
During the second quarter of fiscal 2026, management implemented new procedures, policies, and processes, including revising the precision level of management review controls and additional level of review procedures around significant areas of judgements and material balances in order to remediate the material weakness. During this same quarter, we completed our testing of the operating effectiveness of the implemented controls and found them to be effective. As a result, we have concluded that the material weakness has been remediated as of September 30, 2026.
Changes in Internal Control over Financial Reporting
Other than the changes related to our material weakness remediation efforts and new procedures associated with business combinations, initial purchase accounting and continuing fair value accounting specifically as described above, there were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
| LEGAL PROCEEDINGS |
None
| RISK FACTORS |
There have been no material changes to the risk factors described in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026, filed with the SEC on May 27, 2026.
| UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
The Company’s stock repurchase activity during the three months ended September 30, 2026 was as follows:
| Month |
Total Number |
Average |
Total Number of |
Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (in millions) |
||||||||||||
| July 1, 2026 - July 31, 2026 | — | — | — | — | ||||||||||||
| August 1, 2026 - August 31, 2026 | — | — | — | — | ||||||||||||
| September 1, 2026 - September 30, 2026 | — | — | — | — | ||||||||||||
| Total |
— | — | — | — | ||||||||||||
(a) During the three months ended September 30, 2026, we did not purchase shares in connection with our stock-based compensation plans.
| DEFAULTS UPON SENIOR SECURITIES |
None
| MINE SAFETY DISCLOSURES |
Not Applicable
| OTHER INFORMATION |
(a) None
(b) None
(c) During the three months ended September 30, 2026, director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
| ITEM 6. |
EXHIBITS |
EXHIBIT INDEX
| Incorporated by Reference | ||||||||||||
| Exhibit Number |
|
Exhibit Description |
|
Form |
|
File No. |
|
Exhibit |
|
Filing Date |
|
Filed/Furnished Herewith |
| 10.1 | * | |||||||||||
| 31.1 |
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* |
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| 31.2 |
|
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* |
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| 32.1 |
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** |
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| 32.2 |
|
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** |
|
| 101.INS |
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
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* |
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|
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| 101.SCH |
|
Inline XBRL Taxonomy Extension Schema Document. |
|
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* |
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|
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| 101.CAL |
|
Inline XBRL Taxonomy Calculation Linkbase Document. |
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|
* |
|
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| 101.DEF |
|
Inline XBRL Taxonomy Definition Linkbase Document. |
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* |
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| 101.LAB |
|
Inline XBRL Taxonomy Label Linkbase Document. |
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* |
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| 101.PRE |
|
Inline XBRL Taxonomy Presentation Linkbase Document. |
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* |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||||||
_________________________
| * |
Filed herewith |
| ** |
Furnished herewith |
Attached as Exhibits 101 to this report are the following formatted in inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of September 30, 2026 and March 31, 2026, (ii) Statements of Operations for the three and six months ended September 30, 2026, and 2025, (iii) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended September 30, 2026, and 2025, (iv) Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended September 30, 2026, and 2025, (v) Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2026, and 2025 and (vi) Notes to Condensed Consolidated Financial Statements.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
AMERICAN SUPERCONDUCTOR CORPORATION |
|
|
|
|
|
|
|
|
|
By: |
/s/ John W. Kosiba, Jr. |
| Date: |
November 4, 2026 |
|
John W. Kosiba, Jr. |
|
|
|
|
Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) |
Exhibit 10.1
September 10, 2026
To:
Comtrafo Indústria de Transformadores Elétricos S.A.
Irineu Minato, Stockholder Representative
Re: Amendment No. 2 to Stock Exchange Agreement
Dear Irineu:
Reference is made to that certain Stock Exchange Agreement by and among Comtrafo Indústria de Transformadores Elétricos S.A. (the “Company”), Mardin Participações Ltda. (the “Buyer”), the Stockholders, and the other parties named therein, as amended by Amendment No. 1 to Stock Exchange Agreement dated January 29, 2026 (the “Agreement”). Capitalized terms used but not otherwise defined herein (this “Amendment No. 2”) have the meanings given to them in the Agreement.
The Parties desire to amend Section 1.6 of the Agreement, as set forth below, to, among other things, extend the period included in the definition of ‘First Performance Period,’ at the request of the Stockholders.
|
1. |
Amendment to Definitions |
|
(a) |
Section 1.6(b)(vi) of the Agreement is hereby amended and restated to read in full as follows: |
(vi) “First Performance Period” means the period from January 1, 2026 through and including December 31, 2026.
|
(b) |
Section 1.6(b)(x) of the Agreement is hereby amended and restated to read in full as follows: |
(x) “Second Performance Period” means the period from January 1, 2027 through and including December 31, 2027.
|
(c) |
Section 1.6(b)(xiii) of the Agreement is hereby amended and restated to read in full as follows: |
(xiii) “Third Performance Period” means the period from January 1, 2028 through and including December 31, 2028.
|
2. |
No Change to Other Provisions |
For the avoidance of doubt, (i) this Amendment No. 2 is intended only to address the matters described above; and (ii) nothing in this Amendment No. 2 changes the time as of which any representation, warranty, or covenant in the Agreement is made or deemed made.
|
3. |
Miscellaneous |
This Amendment No. 2 shall be deemed to form part of, and be incorporated into, the Agreement. From and after the date hereof, any reference to the “Agreement” shall be deemed to be a reference to the Agreement as amended by this Amendment No. 2. Except as expressly amended hereby, the Agreement shall remain in full force and effect in accordance with its terms. In the event of any conflict between the terms of this Amendment No. 2 and the Agreement, the terms of this Amendment No. 2 shall control. This Amendment No. 2 shall be governed by, and construed in accordance with, the laws governing the Agreement. This Amendment No. 2 may be executed in counterparts (including by electronic or .pdf signature), each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
[Signature Page Follows]
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 2 as of the date first written above.
STOCKHOLDER REPRESENTATIVE
Signature: /s/ Irineu Minato
Printed Name: Irineu Minato
Date: 11-set-2026 | 08:28:23 BRT
MARDIN PARTICIPAÇÕES LTDA.
Signature: /s/ Felipe Gabriel Machado Cargnin /s/ Marco Antônio Junqueira de Arantes
Printed Name: Felipe Gabriel Machado Cargnin Marco Antônio Junqueira de Arantes
Date: 11-Sep-2026 | 07:00:17 PDT
COMTRAFO INDÚSTRIA DE TRANSFORMADORES ELÉTRICOS
Signature: /s/ Ademar Minato /s/ Irineu Minato
Printed Name: Ademar Minato Irineu Minato
Date: 11-set-2026 | 08:28:23 BRT
Exhibit 31.1
AMERICAN SUPERCONDUCTOR CORPORATION
CERTIFICATIONS
I, Daniel P. McGahn, certify that:
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of American Superconductor Corporation; |
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
|
Date: |
November 4, 2026 |
By: |
/s/ Daniel P. McGahn |
|
|
Daniel P. McGahn | ||
|
|
Chief Executive Officer |
Exhibit 31.2
AMERICAN SUPERCONDUCTOR CORPORATION
CERTIFICATIONS
I, John W. Kosiba, Jr., certify that:
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of American Superconductor Corporation; |
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
|
Date: |
November 4, 2026 |
By: |
/s/ John W. Kosiba, Jr. |
|
|
John W. Kosiba, Jr. |
||
|
|
Chief Financial Officer |
Exhibit 32.1
AMERICAN SUPERCONDUCTOR CORPORATION
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of American Superconductor Corporation (the “Company”) for the period ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Daniel P. McGahn, Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
|
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
Date: |
November 4, 2026 |
By: |
/s/ Daniel P. McGahn |
|
|
|
|
Daniel P. McGahn |
|
|
|
|
Chief Executive Officer |
Exhibit 32.2
AMERICAN SUPERCONDUCTOR CORPORATION
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of American Superconductor Corporation (the “Company”) for the period ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, John W. Kosiba, Jr., Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
|
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
Date: |
November 4, 2026 |
By: |
/s/ John W. Kosiba, Jr. |
|
|
|
|
John W. Kosiba, Jr. |
|
|
|
|
Chief Financial Officer |