AMSC Expands Product Portfolio and Enters Brazil by way of Comtrafo Acquisition
AMSC
Transaction Anticipated to be Accretive to Income and Earnings
Expands Product Choices within the Utility and Industrial Sectors
Expands Income in Brazil and Positions for Progress in Latin America
AMSC to Maintain Convention Name on December 11, 2025 at 9am.
AYER, Mass., Dec. 10, 2025 (GLOBE NEWSWIRE) — AMSC (NASDAQ: AMSC), a number one system supplier of megawatt-scale energy resiliency options that orchestrate the rhythm and concord of energy on the grid™ and shield and develop the aptitude of our Navy’s fleet, as we speak introduced that it has acquired Comtrafo Indústria de Transformadores Elétricos S.A (Comtrafo), a privately held firm primarily based in Brazil that manufactures and provides high-performance utility-scale energy and distribution transformers.
At closing, AMSC bought all the issued and excellent shares of Comtrafo for R$300 million (Brazilian Actual), roughly US$55 million, in money and issued 2,417,142 restricted shares of AMSC frequent inventory with a worth of roughly US$78 million. AMSC additionally bought actual property together with two factories with over 100 acres of land for roughly R$155.6 million, roughly US$29 million, in money. As a part of the transaction, sooner or later the promoting stockholders might earn a further earnout in money upon the achievement of specified earnings earlier than curiosity, taxes, depreciation, and amortization targets through the three years following the closing.
AMSC believes that the acquisition of Comtrafo straight aligns with the corporate’s strategic priorities to speed up worthwhile development, broaden its product choices, and develop market attain and share. Comtrafo has a historical past of worthwhile income. We consider Comtrafo seems positioned to ship income of roughly US$55 million in calendar yr 2025, which is now practically full. Normalized gross margins on this income are anticipated to be commensurate with not too long ago demonstrated AMSC ranges of 30% and normalized working margins are anticipated to be about 20%.
Trying forward into calendar yr 2026, Comtrafo has roughly US$85 million in complete backlog with about US$55 million falling within the 12-month backlog. By leveraging Comtrafo’s trusted management place within the transformer marketplace for utility and industrial functions, AMSC expects to develop its grid enterprise choices and improve the worth delivered to clients.
“Comtrafo is a pacesetter in Brazil’s important energy infrastructure marketplace for energy and distribution transformers,” stated Daniel P. McGahn, Chairman, President and CEO of AMSC. “The addition of Comtrafo to AMSC’s grid options is predicted to speed up additional profitability and develop our choices of proprietary merchandise to satisfy rising utility and industrial demand throughout the total energy platform, from energy era to transmission, distribution, and industrial end-use. Comtrafo operates in an estimated US$1.5 billion annual market in Brazil, the place the native authorities has outlined important deliberate funding exceeding US$20 billion within the nation’s electrical energy grid. We’re very excited in regards to the enterprise prospects on this massive market and all through Latin America.”
For extra details about this transaction, please discuss with AMSC’s Type 8-Okay filed with the SEC as we speak.
Convention Name Along with this announcement, AMSC administration will conduct a convention name with traders starting at 9:00 a.m. Jap Time on Thursday, December 11, 2025. Those that want to take heed to the reside or archived convention name webcast ought to go to the “Traders” part of the Firm’s web site at https://ir.amsc.com. The reside name additionally may be accessed by dialing 1-844-481-2802 or 1-412-317-0675 and asking to be joined into the AMSC name.
About COMTRAFO Since 1994, Comtrafo has manufactured high-quality distribution and energy transformers for the Brazilian nationwide and worldwide Latin American markets. Combining superior know-how with a talented crew, Comtrafo delivers dependable merchandise backed by complete testing, and each transformer is individually examined to world requirements. Their purchasers embody utilities, industrials, telecom operators, hospitals, development corporations, and extra. Comtrafo additionally offers technical assist by way of a nationwide community of accredited companions and an in-house crew able to serve clients shortly and effectively.
About AMSC (Nasdaq: AMSC) AMSC generates the concepts, applied sciences and options that meet the world’s demand for smarter, cleaner … higher vitality™. Via its Gridtec™ Options, AMSC offers the engineering planning companies and superior grid techniques that optimize community reliability, effectivity and efficiency. Via its Marinetec™ Options, AMSC offers ship safety techniques and is creating propulsion and energy administration options designed to assist fleets improve system efficiencies, improve energy high quality and enhance operational security. Via its Windtec™ Options, AMSC offers wind turbine digital controls and techniques, designs and engineering companies that scale back the price of wind vitality. The Firm’s options are enhancing the efficiency and reliability of energy networks, growing the operational security of navy fleets and powering gigawatts of renewable vitality globally. Based in 1987, AMSC is headquartered close to Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For extra info, please go to www.amsc.com.
Ahead-Trying Statements This press launch comprises “forward-looking statements” throughout the that means of Part 21E of the Securities Alternate Act of 1934, as amended (the “Alternate Act”). Such statements embody, however aren’t restricted to, statements about our expectation that the addition of Comtrafo to AMSC’s Grid options will speed up additional profitability, the anticipated advantages and results of our acquisition of Comtrafo, our expectation that the Comtrafo acquisition can be accretive to our income and earnings; the potential further funds required underneath the phrases of the inventory change settlement; anticipated Comtrafo monetary outcomes for calendar yr 2025; and different statements containing the phrases “believes,” “anticipates,” “plans,” “expects,” “will” and related expressions, represent forward-looking statements throughout the that means of the Non-public Securities Litigation Reform Act of 1995. Such forward-looking statements symbolize administration’s present expectations and are inherently unsure. There are a variety of necessary components that might materially impression the worth of our frequent inventory or trigger precise outcomes to vary materially from these indicated by such forward-looking statements. These necessary components embody, however aren’t restricted to: Dangers associated to the monetary efficiency of Comtrafo; Dangers that the Comtrafo enterprise will not be built-in efficiently; Failure to comprehend anticipated advantages of the Comtrafo acquisition; Potential litigation referring to the transaction; Now we have not been traditionally worthwhile, which can recur sooner or later; Our working outcomes might fluctuate considerably from quarter to quarter and will fall beneath expectations in any specific fiscal quarter; Whereas we generated optimistic working money circulation in fiscal 2024 and the prior yr, we’ve a historical past of detrimental working money flows, and we might require further financing sooner or later, which will not be obtainable to us; Our know-how and merchandise might infringe mental property rights of others, which can require pricey litigation and, if we aren’t profitable, might trigger us to pay substantial damages and disrupt our enterprise; Modifications in change charges might adversely have an effect on our outcomes of operations; If we fail to take care of correct and efficient inside management over monetary reporting, our capability to provide correct and well timed monetary statements may very well be impaired and will lead traders and different customers to lose confidence in our monetary knowledge; We could also be required to challenge efficiency bonds, which restricts our capability to entry any money used as collateral for the bonds; We might not notice all the gross sales anticipated from our backlog of orders and contracts; If we fail to implement our enterprise technique efficiently, our monetary efficiency may very well be harmed; We depend on third-party suppliers for the parts and subassemblies of a lot of our Grid and Wind merchandise, making us weak to produce shortages and value fluctuations, which might hurt our enterprise; Our contracts with the U.S. and Canadian governments are topic to audit, modification or termination by such governments and embody sure different provisions in favor of the governments. The continued funding of such contracts might stay topic to annual legislative appropriation, which, if not permitted, might scale back our income and decrease or remove our revenue; Modifications in U.S. authorities protection spending might negatively impression our monetary place, outcomes of operations, liquidity and total enterprise; Our enterprise and operations could also be materially adversely impacted within the occasion of a failure or safety breach of our or any important third events’ IT Methods or Confidential Info; Failure to adjust to evolving knowledge privateness and knowledge safety legal guidelines and rules or to in any other case shield private knowledge, might adversely impression our enterprise and monetary outcomes; Our success relies upon attracting and retaining certified personnel and our lack of ability to take action might considerably injury our enterprise and prospects; We might purchase further complementary companies or applied sciences, which can require us to incur substantial prices for which we might by no means notice the anticipated advantages; A good portion of our Wind phase revenues are derived from a single buyer. If this buyer’s enterprise is negatively affected, it might adversely impression our enterprise; Our success in addressing the wind vitality market relies on the producers that license our designs; Lots of our income alternatives are dependent upon subcontractors and different enterprise collaborators; Issues with product high quality or product efficiency might trigger us to incur guarantee bills and will injury our market repute and forestall us from reaching elevated gross sales and market share; Lots of our clients outdoors of the USA could also be both straight or not directly associated to governmental entities, and we may very well be adversely affected by violations of the USA International Corrupt Practices Act and related worldwide anti-bribery legal guidelines outdoors the USA; Now we have had restricted success advertising and promoting our superconductor merchandise and system-level options, and our failure to extra broadly market and promote our merchandise and options might decrease our income and money circulation; We or third events on whom we rely could also be adversely affected by pure disasters, together with occasions ensuing from local weather change, and our enterprise continuity and catastrophe restoration plans might not adequately shield us or our worth chain from such occasions; Uncertainty surrounding our prospects and monetary situation might have an adversarial impact on our buyer and provider relationships; Pandemics, epidemics, or different public well being crises might adversely impression our enterprise, monetary situation and outcomes of operations; Adversarial adjustments in home and world financial circumstances might adversely have an effect on our working outcomes; Our worldwide operations are topic to dangers that we don’t face in the USA, which might have an adversarial impact on our working outcomes; Our merchandise face competitors, which might restrict our capability to accumulate or retain clients; Now we have operations in, and rely on gross sales in, rising markets, together with India, and world circumstances might negatively have an effect on our working outcomes or restrict our capability to develop our operations outdoors of those markets. Modifications in India’s political, social, regulatory and financial surroundings might have an effect on our monetary efficiency; Business consolidation might end in extra highly effective rivals and fewer clients; Our success might rely on the business adoption of the REG system, which is at the moment restricted, and a widespread business marketplace for our REG merchandise might not develop; Rising focus and scrutiny on environmental sustainability and social initiatives might adversely impression our enterprise and monetary outcomes; Progress of the wind vitality market relies upon largely on the supply and measurement of presidency subsidies, financial incentives and legislative packages designed to assist the expansion of wind vitality; Decrease costs for different vitality sources might scale back the demand for wind vitality growth, which might have a fabric adversarial impact on our capability to develop our Wind enterprise; We could also be unable to adequately forestall disclosure of commerce secrets and techniques and different proprietary info; Our patents might not present significant or long-term safety for our know-how, which might end in us shedding some or all of our market place; Third events have or might purchase patents that cowl the supplies, processes and applied sciences we use or might use sooner or later to fabricate our Amperium merchandise, and our success is dependent upon our capability to license such patents or different proprietary rights; There are a variety of technological challenges that have to be efficiently addressed earlier than our superconductor merchandise can achieve widespread business acceptance, and our lack of ability to deal with such technological challenges might adversely have an effect on our capability to accumulate clients for our merchandise; Our frequent inventory has skilled, and will proceed to expertise, market value and quantity fluctuations, which can forestall our stockholders from promoting our frequent inventory at a revenue and will result in pricey litigation in opposition to us that might divert our administration’s consideration; Unfavorable outcomes of authorized proceedings might have a fabric adversarial impact on our enterprise, working outcomes and monetary situation and the opposite necessary components mentioned underneath the caption “Threat Elements” in Half 1. Merchandise 1A of our Type 10-Okay for the fiscal yr ended March 31, 2025, and our different reviews filed with the SEC. These necessary components, amongst others, might trigger precise outcomes to vary materially from these indicated by forward-looking statements made herein and offered elsewhere by administration every now and then. Any such forward-looking statements symbolize administration’s estimates as of the date of this press launch. Whereas we might elect to replace such forward-looking statements sooner or later sooner or later, we disclaim any obligation to take action, even when subsequent occasions trigger our views to alter. These forward-looking statements shouldn’t be relied upon as representing our views as of any date subsequent to the date of this press launch.
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