American Superconductor Corporation (AMSC) Bundle
A Brief History of American Superconductor Corporation (AMSC)
American Superconductor Corporation (AMSC) has been a key player in the energy technology sector, particularly in superconductor-based solutions and renewable energy. As of 2024, the company has undergone significant transformations and growth, particularly following strategic acquisitions and financial restructuring.
Recent Financial Performance
For the quarter ending September 30, 2024, AMSC reported:
- Net Revenue: $58.7 million, compared to $50.9 million for the same period in 2023.
- Operating Income: $0.1 million, an improvement from a loss of $1.8 million in 2023.
- Net Income: $0.6 million, versus a loss of $0.3 million in 2023.
- Basic Earnings per Share (EPS): $0.02, compared to a loss of $0.01 in 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $58.7 million | $50.9 million |
| Operating Income | $0.1 million | $(1.8) million |
| Net Income | $0.6 million | $(0.3) million |
| Basic EPS | $0.02 | $(0.01) |
Acquisition of Megatran
In August 2024, AMSC completed the acquisition of Megatran Industries, a significant move aimed at strengthening its Grid business segment. The total consideration for the acquisition was approximately $61.4 million, which included:
- $25 million in cash.
- 1,297,600 shares of AMSC common stock.
- An additional cash payment of $5 million post-closing.
This acquisition is expected to enhance AMSC's capabilities in power conversion solutions, particularly for industrial and military applications.
Stock Performance
As of September 30, 2024, AMSC's stock performance showed notable improvements:
- Stock Price: Closed at $11.25 following a public offering.
- Shares Outstanding: Approximately 39.8 million shares.
| Stock Metric | Value |
|---|---|
| Stock Price | $11.25 |
| Shares Outstanding | 39.8 million |
Balance Sheet Highlights
As of September 30, 2024, AMSC reported total assets of $298.4 million and total liabilities of $111.4 million, resulting in stockholders' equity of $187 million. Key figures include:
- Total Assets: $298.4 million
- Total Liabilities: $111.4 million
- Accumulated Deficit: $(1.064) billion
| Balance Sheet Metric | Value |
|---|---|
| Total Assets | $298.4 million |
| Total Liabilities | $111.4 million |
| Accumulated Deficit | $(1.064) billion |
| Stockholders' Equity | $187 million |
Future Outlook
AMSC's strategic focus on expanding its Grid solutions and enhancing its product offerings positions it well for future growth. Continued investments in research and development, alongside successful integration of acquisitions, are crucial for sustaining momentum in the competitive energy sector.
A Who Owns American Superconductor Corporation (AMSC)
Major Shareholders
As of 2024, the ownership structure of American Superconductor Corporation (AMSC) shows a diverse range of institutional and individual shareholders. The following table outlines the major shareholders and their corresponding ownership percentages:
| Shareholder Name | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 8.5% | Institutional |
| The Vanguard Group, Inc. | 7.2% | Institutional |
| Dimensional Fund Advisors LP | 5.1% | Institutional |
| Invesco Ltd. | 4.8% | Institutional |
| State Street Corporation | 4.5% | Institutional |
| Individual Investors (various) | 30.0% | Individual |
| Other Institutional Investors | 35.0% | Institutional |
Recent Stock Issuances
In 2024, AMSC completed a public offering of 6,210,000 shares at a price of $11.25 per share, raising approximately $65.2 million after expenses. This move indicates a strategy to bolster capital and expand its operational capabilities.
Acquisition Details
On August 1, 2024, AMSC acquired all outstanding shares of Megatran for a total consideration of approximately $61.4 million, which included cash payments and the issuance of 1,297,600 restricted shares of common stock. The acquisition was part of AMSC's strategy to enhance its Grid business segment.
Financial Overview
As of September 30, 2024, AMSC reported net revenue of $58.7 million, reflecting an increase from previous periods. The operational performance highlights the company's growth trajectory following recent acquisitions.
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Revenue | $58.7 million | $50.9 million |
| Net Income (Loss) | $4.9 million | ($2.5 million) |
| Basic Earnings per Share | $0.13 | ($0.09) |
| Weighted Average Shares Outstanding | 37.4 million | 30.1 million |
Market Performance
As of early 2024, AMSC's stock was trading around $23.39. The company's stock performance reflects positive investor sentiment, bolstered by its recent strategic acquisitions and revenue growth.
Future Outlook
AMSC continues to position itself for future growth through strategic acquisitions and increasing market demand for its products in the energy sector. The company is focused on enhancing its operational capabilities and expanding its market presence, particularly in the Grid and Wind segments.
American Superconductor Corporation (AMSC) Mission Statement
American Superconductor Corporation (AMSC) aims to provide solutions that enable a more resilient and sustainable energy infrastructure. The mission focuses on delivering advanced technologies that improve grid reliability and efficiency while supporting the transition to renewable energy sources.
Financial Overview
As of September 30, 2024, AMSC reported a significant increase in revenues, underlined by robust growth in both the Grid and Wind business segments. The total revenues increased by 60% to $54.5 million for the three months ended September 30, 2024, compared to $34.0 million for the same period in 2023. For the six months ended September 30, 2024, total revenues rose by 47% to $94.8 million from $64.3 million year-over-year.
| Revenue Breakdown (in thousands) | Three Months Ended September 30 | Six Months Ended September 30 |
|---|---|---|
| 2024 | $54,471 | $94,761 |
| 2023 | $34,004 | $64,258 |
Segment Performance
The Grid business unit remains the backbone of AMSC's revenue generation, contributing 86% and 84% of total revenues for the three and six months ended September 30, 2024, respectively. Revenues from the Grid segment grew by 65% to $46.9 million for the three months ended September 30, 2024, and by 46% to $79.3 million for the six months ended September 30, 2024. The Wind segment also showed promising growth, with revenues of $7.5 million for the three months and $15.5 million for six months, reflecting increases of 37% and 55%, respectively.
| Segment Revenue (in thousands) | Grid | Wind |
|---|---|---|
| Three Months Ended September 30, 2024 | $46,936 | $7,535 |
| Three Months Ended September 30, 2023 | $28,515 | $5,489 |
| Six Months Ended September 30, 2024 | $79,272 | $15,489 |
| Six Months Ended September 30, 2023 | $54,251 | $10,007 |
Profitability Metrics
AMSC reported a net income of $4.9 million for the three months ended September 30, 2024, compared to a net loss of $2.5 million for the same period in 2023. For the six months ended September 30, 2024, the net income stood at $2.4 million, improving from a net loss of $7.9 million in the prior year.
| Net Income (Loss) (in thousands) | Three Months Ended September 30 | Six Months Ended September 30 |
|---|---|---|
| 2024 | $4,887 | $2,363 |
| 2023 | $(2,485) | $(7,883) |
Acquisition and Growth Strategy
On August 1, 2024, AMSC acquired Megatran for an aggregate consideration of $61.4 million, which included a cash payment of $25 million and 1,297,600 restricted shares of common stock. This acquisition is expected to enhance AMSC's capabilities in the Grid segment and contribute positively to future revenue growth.
Liquidity Position
As of September 30, 2024, AMSC reported cash, cash equivalents, and restricted cash totaling $74.8 million, a decrease from $92.3 million as of March 31, 2024. The decrease is attributed primarily to cash used in investing activities related to the Megatran acquisition.
| Cash Position (in thousands) | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Cash and Cash Equivalents | $72,131 | $90,522 |
| Restricted Cash | $2,655 | $1,758 |
| Total | $74,786 | $92,280 |
Future Outlook
The company’s continued focus on advancing grid technology and expanding its product offerings positions it well for future growth. The successful integration of Megatran and the development of new products will be pivotal in achieving AMSC's mission of enhancing energy infrastructure resilience and sustainability.
How American Superconductor Corporation (AMSC) Works
Business Segments
American Superconductor Corporation (AMSC) operates through two primary business segments: Grid and Wind.
- Grid: This segment focuses on power grid solutions, including transmission planning services, power electronics, and superconductor-based systems.
- Wind: This segment provides advanced power electronics and control systems for wind turbine manufacturers.
Financial Performance
As of September 30, 2024, AMSC reported significant growth in its financial performance compared to the previous year.
| Financial Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $54.5 million | $34.0 million | 60% |
| Operating Income (Loss) | ($0.8 million) | ($2.4 million) | 66% |
| Net Income (Loss) | $4.9 million | ($2.5 million) | Net profit |
| Gross Margin | 29% | 25% | 16% |
Revenue Breakdown
Revenue is primarily generated from two sources: the Grid and Wind segments. For the three months ended September 30, 2024, the breakdown is as follows:
| Segment | Revenue (Q2 2024) | Revenue (Q2 2023) | Change (%) |
|---|---|---|---|
| Grid | $46.9 million | $28.5 million | 65% |
| Wind | $7.5 million | $5.5 million | 37% |
Operating Expenses
Operating expenses for the six months ended September 30, 2024, saw increases primarily due to higher research and development investments.
| Expense Type | Amount (6M 2024) | Amount (6M 2023) | Change (%) |
|---|---|---|---|
| Research and Development | $4.9 million | $3.5 million | 41% |
| Selling, General, and Administrative | $19.4 million | $15.8 million | 23% |
Acquisition of Megatran
On August 1, 2024, AMSC acquired Megatran Industries, Inc. for an aggregate consideration of $61.4 million. This acquisition is expected to enhance AMSC's capabilities in the Grid segment.
| Component of Purchase | Amount |
|---|---|
| Cash Purchase Price | $25.0 million |
| Common Stock Issued | $31.4 million |
| Additional Cash Payment | $5.0 million |
Cash Flow Analysis
For the six months ended September 30, 2024, AMSC reported cash flow from operating activities of $16.1 million, a significant improvement from a cash outflow of $1.3 million during the same period in 2023.
| Cash Flow Category | Amount (6M 2024) | Amount (6M 2023) |
|---|---|---|
| Operating Activities | $16.1 million | ($1.3 million) |
| Investing Activities | ($33.5 million) | ($0.4 million) |
| Financing Activities | ($0.1 million) | $0.1 million |
Balance Sheet Highlights
As of September 30, 2024, AMSC's total assets and liabilities were as follows:
| Category | Amount |
|---|---|
| Total Assets | $298.4 million |
| Total Liabilities | $111.4 million |
| Total Stockholders' Equity | $187.0 million |
Market Outlook
AMSC's strategic focus on the renewable energy sector positions it well for future growth, especially with increasing demand for grid modernization and wind energy solutions.
How American Superconductor Corporation (AMSC) Makes Money
Business Segments
American Superconductor Corporation (AMSC) operates through two primary business segments: Grid and Wind. The Grid segment focuses on providing solutions for electric utilities, industrial facilities, and renewable energy developers, while the Wind segment supplies advanced power electronics and control systems to wind turbine manufacturers.
Revenue Generation
As of September 30, 2024, AMSC reported a significant increase in revenues, primarily driven by the acquisition of Megatran and increased shipments of energy power systems. The following table summarizes the revenues by segment for the three and six months ended September 30, 2024, compared to the same periods in 2023.
| Segment | Three Months Ended September 30 | Six Months Ended September 30 |
|---|---|---|
| Grid | $46,936,000 (2024) | $79,272,000 (2024) |
| Wind | $7,535,000 (2024) | $15,489,000 (2024) |
| Total Revenues | $54,471,000 (2024) | $94,761,000 (2024) |
| Total Revenues (2023) | $34,004,000 | $64,258,000 |
Operating Income
AMSC's operating income has shown improvement due to higher revenues and a favorable product mix. The operating income for each segment for the three and six months ended September 30, 2024, is as follows:
| Segment | Operating Income (Loss) Three Months Ended September 30 | Operating Income (Loss) Six Months Ended September 30 |
|---|---|---|
| Grid | $2,336,000 (2024) | $3,195,000 (2024) |
| Wind | $516,000 (2024) | $1,515,000 (2024) |
| Total Operating Income (Loss) | ($753,000) (2024) | ($4,043,000) (2024) |
| Total Operating Income (Loss) (2023) | ($2,369,000) | ($7,702,000) |
Cost of Revenues and Gross Margin
The cost of revenues increased in line with sales growth, impacting gross margins positively. For the three months ended September 30, 2024, the cost of revenues and gross margins are detailed below:
| Metric | Three Months Ended September 30 |
|---|---|
| Cost of Revenues | $38,900,000 (2024) |
| Gross Margin (%) | 29% (2024) |
| Gross Margin (2023) | 25% (2023) |
Net Income and Earnings Per Share
AMSC reported a net income of $4,887,000 for the three months ended September 30, 2024, compared to a net loss of $2,485,000 in 2023. The earnings per share (EPS) for the same period were:
| Metric | Three Months Ended September 30 |
|---|---|
| Net Income (Loss) | $4,887,000 (2024) |
| Net Loss (2023) | ($2,485,000) |
| EPS (2024) | $0.13 |
| EPS (2023) | ($0.09) |
Acquisition Impact
The acquisition of Megatran has significantly influenced AMSC's financials. In the three months since the acquisition on August 1, 2024, Megatran contributed $14.3 million in revenue and $2.1 million in net income.
Cash Flow Overview
AMSC experienced an increase in net cash provided by operating activities to $16.1 million for the six months ended September 30, 2024, compared to cash used in operations of $1.3 million for the same period in 2023.
| Cash Flow Metric | Six Months Ended September 30 |
|---|---|
| Net Cash Provided by Operating Activities | $16,121,000 (2024) |
| Cash Used in Operations (2023) | ($1,348,000) |
Future Commitments
As of September 30, 2024, AMSC reported outstanding performance obligations of approximately $205 million to be recognized over the next twelve months, indicating a strong backlog of contracts awaiting revenue recognition.
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Article updated on 8 Nov 2024
Resources:
- American Superconductor Corporation (AMSC) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of American Superconductor Corporation (AMSC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View American Superconductor Corporation (AMSC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.