American Superconductor reported third quarter fiscal 2025 adjusted earnings of $2.75 per share, far surpassing the Zacks Consensus Estimate of $0.15. This marks a dramatic turnaround from the $0.16 per share posted in the same period last year, driven by higher sales of power electronics and system integration services for utility-scale wind and grid resiliency projects.

Quarterly revenue climbed more than 20% year-over-year to in excess of $74 million, reflecting strong demand for megawatt-scale power resiliency solutions in both commercial and defense segments. The company achieved a gross margin above 30%, up from approximately 25% in Q3 2024, benefiting from improved factory utilization and favorable mix of higher-margin control systems.

AMSC delivered record net income for the quarter, bolstered by a one-time discrete tax benefit tied to changes in the company’s deferred tax assets. Excluding this benefit, adjusted net income still expanded by over 150% year-over-year, underscoring the scalability of AMSC’s business model and the operational leverage achieved through cost discipline and higher throughput in key manufacturing processes.

Zacks Investment Research upgraded AMSC to a Rank #1 (Strong Buy), citing growing optimism around sustained earnings momentum and the potential for new utility grid contracts. Management will host a conference call on February 5 at 10:00 am Eastern to discuss the outlook, where executives are expected to reaffirm full-year revenue growth targets of 15% to 25% and gross margin expansion toward 32% to 34% in fiscal 2025.