American Superconductor reported revenue of $74.2 million for the quarter ended December 31, 2025, marking a 20.3% increase year-over-year from $61.7 million. Gross margin expanded to 31.4%, up from 28.6% in the prior-year period. The company delivered earnings of $2.75 per share, significantly outperforming both last year’s $0.16 per share and the consensus estimate of $0.15. Management attributed record profitability to a discrete tax benefit that bolstered net income despite steady operating expenses.

Zacks Investment Research elevated American Superconductor to a #1 (Strong Buy) ranking, citing accelerating growth in grid resiliency and naval systems contracts. Analysts highlighted that AMSC’s backlog for megawatt-scale power conversion orders has grown by 35% over the past six months, and they forecast adjusted EBITDA margin improvement to 18% in fiscal 2026, up from 14% this year.

Management affirmed full-year guidance, projecting revenue between $290 million and $310 million and gross margin above 30%. The company plans to scale its manufacturing footprint in Massachusetts and invest in R&D for next-generation superconducting cable. A conference call is scheduled for February 5th at 10:00 a.m. Eastern to discuss the quarter, with participation from senior executives and the newly appointed head of Naval Solutions.