American Superconductor Corp Comtrafo Acquisition Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Eric Stine - Craig-Hallum Holdings LLC - Analyst : Daniel, so when thinking about this, so obviously, I mean, an expansion into Brazil, big market, but some slightly different products than what you have today. What I'm curious -- I mean, should we think about this as more expansion to a new market? Or do you believe that this is something with a slightly different product offering and set of customers that you can bring to different markets, I mean, namely, the US? And then, conversely, what do you think the opportunity is to bring AMSC's existing products to Brazil through this acquired company?

Question: Eric Stine - Craig-Hallum Holdings LLC - Analyst : Yes. Understood. Very comprehensive. I guess, maybe last one for me. So, I guess, it sounds like given that their -- the lead time is very similar to your current business. And so that $55 million annual number could change to an extent there could be some upside. But is it fair to say that people should not expect that number to grow substantially, at least over the next 12 months? Once you get beyond 12 months, then that's a different story.

Question: Eric Stine - Craig-Hallum Holdings LLC - Analyst : Right, and immediately accretive, if I heard that right.

Question: Justin Clare - Roth Capital Partners LLC - Analyst : So, I wanted to just start off. Wondering as you look to potentially expand the Comtrafo business outside of Brazil into other Latin American markets or into the US, are there particular product standards or certification requirements that might be needed as you expand? And maybe you can just speak to the potential timeline for when you might look to expand in a greater way across Latin America? And when could you enter the US?

Question: Justin Clare - Roth Capital Partners LLC - Analyst : Got it. That's helpful. And then -- so I guess I'm curious, which -- so kind of going in the other direction, which AMSC products could potentially be sold in Brazil or in Latin America more broadly? And maybe you could speak to the go-to-market strategy there? And then, are there similar kind of certifications or requirements that may need to be met for your product portfolio as you look to expand?

Question: Justin Clare - Roth Capital Partners LLC - Analyst : Got it. Okay. And then just one more. How are you thinking about adding incremental capacity given that it seems like you have a meaningful amount of space to expand there? What could be the potential time frame and the level of CapEx that you might be thinking about for expansion?

Question: Colin Rusch - Oppenheimer & Co Inc - Analyst : Dan, you've been pretty judicious around corporate culture and managing integrity of the business. Moving into a new geography, working with another language, another culture is a level of complexity you guys haven't engaged in historically. Can you just talk about your thought process on that integration? And how long you think that will take? And how much diligence you've been able to do in the M&A process here? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 2:00PM, AMSC.OQ - American Superconductor Corp Comtrafo Acquisition Call

Question: Colin Rusch - Oppenheimer & Co Inc - Analyst : I think so. You guys have done a nice job with the bolt-ons and then slowly integrating these businesses over time. So I think it's really just about a question of pacing for me. So we got after it. The second question, you guys have been really capable around technology design and innovation for some complex problems. And certainly, you don't want to disrupt the product line, but you have been able to drive some cost benefits through improved design on some of the products and some of the optimization of how these things fit together. Can you talk a little bit about how mature your thought process is and kind of diligence is around that opportunity even as you think about this as a bolt-on with some multiyear potential synergies as you go forward, either from sales or customer-need perspective as you look at how some of these technology pieces fit together?

Question: Tim Moore - ClearStreet LLC - Analyst : Dan, congratulations on the deal with a rapidly growing end market in Brazil and Latin America. Just kind of curious, roughly how long might have you been in talks with them? I know you raised equity in April. Just curious if there are other large US-based acquisition targets just not growing as fast or maybe too high of asking valuation prices?

Question: Tim Moore - ClearStreet LLC - Analyst : That makes sense, Dan. It's good that you didn't get too tempted on the US stuff, but this looks very good. So I believe from the press release you talked about doubling, the double for the earn-out, that's their EBITDA in three years. Is that correct?

Question: Tim Moore - ClearStreet LLC - Analyst : Okay. So it's doubling revenue. Is there anything tied to EBITDA? I thought I might have read that, maybe I read it wrong.

Question: Tim Moore - ClearStreet LLC - Analyst : And just on that, given this rapid growth and the potential to add more capacity, I know you're still working through this, and you mentioned it. I guess, you would be mindful kind of incremental margins and not adding a whole lot of capacity once it would be done in phases that you get the incremental margin without underutilization down there. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 2:00PM, AMSC.OQ - American Superconductor Corp Comtrafo Acquisition Call

Question: Tim Moore - ClearStreet LLC - Analyst : Good. And just my last question is, clearly, T&D work is booming in Brazil, in the US, in Europe. This is a great direct play into it. I was wondering, did you know if they have any work driven by data centers? I think Brazil is supposed to double their data sale -- data center investments over the next five years, and they're growing like 15%, 20% a year. I mean -- or do you think they're just doing work on T&D and they haven't pinpointed if any of it is actually going to data centers?