AMERICAN SUPERCONDUCTOR CORP /DE/ Segments Disclosure
20. 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 fiscal years ended March 31, 2026, 2025, and 2024 (in thousands):
| Fiscal Year Ended March 31, 2026 | ||||||||||||||||
| Grid | Wind | Unallocated | Total | |||||||||||||
| Segment operating income: | ||||||||||||||||
| Revenues | $ | 251,317 | $ | 47,838 | $ | — | $ | 299,155 | ||||||||
| Less (a) | ||||||||||||||||
| Segment other operating expenses (b) | 242,849 | 40,689 | 4,171 | 287,710 | ||||||||||||
| Segment operating income (loss) | $ | 8,468 | $ | 7,149 | $ | (4,171 | ) | $ | 11,445 | |||||||
(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.
| Fiscal Year Ended March 31, 2025 | ||||||||||||||||
| Grid | Wind | Unallocated | Total | |||||||||||||
| Segment operating income: | ||||||||||||||||
| Revenues | $ | 187,170 | $ | 35,648 | $ | — | $ | 222,818 | ||||||||
| Less (a) | ||||||||||||||||
| Segment other operating expenses (b) | 185,358 | 31,856 | 6,681 | 223,895 | ||||||||||||
| Segment operating income (loss) | $ | 1,812 | $ | 3,792 | $ | (6,681 | ) | $ | (1,077 | ) | ||||||
(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.
| Fiscal Year Ended March 31, 2024 | ||||||||||||||||
| Grid | Wind | Unallocated | Total | |||||||||||||
| Segment operating income: | ||||||||||||||||
| Revenues | $ | 122,065 | $ | 23,574 | $ | — | $ | 145,639 | ||||||||
| Less (a) | ||||||||||||||||
| Segment other operating expenses (b) | 128,974 | 23,125 | 4,908 | 157,007 | ||||||||||||
| Segment operating income (loss) | $ | (6,909 | ) | $ | 449 | $ | (4,908 | ) | $ | (11,368 | ) | |||||
(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 consist of a loss on contingent consideration of $4.2 million, $6.7 million and $4.9 million in the fiscal years ended March 31, 2026, 2025 and 2024, respectively.
The reconciliation of segment operating income (loss) to consolidated income (loss) before income taxes for the fiscal years ended March 31, 2026, 2025, and 2024 is as follows (in thousands):
| Fiscal Years Ended March 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| Operating income (loss): | $ | 11,445 | $ | (1,077 | ) | $ | (11,368 | ) | ||||
| Interest income, net | 6,356 | 3,708 | 1,302 | |||||||||
| Other expense | (1,053 | ) | (265 | ) | (736 | ) | ||||||
| Income (loss) before taxes | $ | 16,748 | $ | 2,366 | $ | (10,802 | ) | |||||
Depreciation and amortization expense by segment for the years ended March 31, 2026, 2025, and 2024 is as follows (in thousands):
| Fiscal Years Ended March 31, | ||||||||||||
| 2026 | 2025 | 2024 | ||||||||||
| Grid | $ | 7,253 | $ | 5,468 | $ | 4,407 | ||||||
| Wind | 133 | 92 | 87 | |||||||||
| Total | $ | 7,386 | $ | 5,560 | $ | 4,494 | ||||||
Total assets for the two business segments as of March 31, 2026 and March 31, 2025 are as follows (in thousands):
| March 31, 2026 | March 31, 2025 | |||||||
| Grid | $ | 574,195 | $ | 211,520 | ||||
| Wind | 17,572 | 13,697 | ||||||
| Corporate assets | 147,714 | 85,304 | ||||||
| Total | $ | 739,481 | $ | 310,521 | ||||
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 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.
Geographic information about property, plant and equipment associated with particular regions is as follows (in thousands):
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| North America | $ | 36,521 | $ | 37,426 | ||||
| Europe | 1,722 | 1,097 | ||||||
| Asia Pacific | 38 | 49 | ||||||
| South America | 51,494 | — | ||||||
| Total | $ | 89,775 | $ | 38,572 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 27, 2026 | Showing above |
| 2025 | May 21, 2025 | |
| 2024 | May 29, 2024 | |
| 2023 | May 31, 2023 | |
| 2022 | Jun 1, 2022 | |
| 2021 | Jun 2, 2021 | |
| 2020 | Jun 2, 2020 | |
| 2019 | Jun 5, 2019 | |
| 2018 | Jun 6, 2018 | |
| 2017 | May 25, 2017 | |
| 2016 | May 31, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.