What American Superconductor Corporation told the SEC could break it.

AMSC's revenue is concentrated in its largest customer and in international markets. Inox Wind (an Indian wind-turbine OEM that buys AMSC's electrical control systems and licenses its turbine designs) accounted for ~13% of total revenue in fiscal 2023 and ~14% in fiscal 2024 — the only customer above 10% — so the Wind segment is materially exposed to Inox's order cadence, financial health and the Indian wind market. More broadly, 52% of fiscal 2025 revenue was recognized outside the U.S. (with ~16% denominated in Euro and ~7% in Brazilian Real after the Comtrafo acquisition), adding currency and country exposure. The Inox relationship is captured as an inverted 'supplies' edge; this records the concentration. Severity medium.

“In fiscal 2023, Inox accounted for 13% of our total revenues. No other customer accounted for more than 10% of our total revenues in each of fiscal 2025, 2024, and 2023.”

AMSC manufactures some products and buys raw materials and components from foreign suppliers and purchases large amounts of commodity-based raw materials, leaving it exposed to a highly uncertain tariff environment. In February 2026 the U.S. Supreme Court ruled that IEEPA could not be used to impose tariffs, invalidating a significant portion of U.S. tariffs in effect since April 2025; the Administration responded by invoking a 10% global tariff under Section 122 of the Trade Act of 1974 for 150 days (effective February 24, 2026) and initiated trade investigations that could yield further tariffs. This creates substantial uncertainty over the timing and scope of future tariffs and over commodity prices (stainless steel, copper), pressuring input costs on a global manufacturer. A specific, current trade-policy exposure. Severity medium.

“The Administration responded by invoking a 10% global tariff pursuant to section 122 of the Trade Act of 1974 for 150 days, effective February 24, 2026.”

While AMSC believes adequate alternative sources exist for most of its key raw materials and purchased components, it is dependent on a single or limited number of suppliers for certain materials and components used in its grid power-electronics, wind ECS, and naval (HTS degaussing) systems. It also flags stainless steel specifically: new or proposed tariff increases on raw materials, particularly stainless steel, may raise prices and/or create shortages as customers seek alternative suppliers. Combined with foreign sourcing of some components, a supplier loss or material shortage could disrupt production. Suppliers are unnamed, so a sole-source/limited-supplier risk rather than an edge. Severity medium.

“the Company is dependent on a single or limited number of suppliers for certain materials and components. In addition, new or proposed tariff increases on our raw materials, in particular stainless steel, may increase prices for such raw materials and/or may create shortages as customers seek alternative suppliers.”