ASM INTL NV (ASMIY) Q1 2026 Earnings Call Transcript
Bullish Semiconductors 38.14B Netherlands
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ASM delivered a solid Q4 with a 2025 growth upside; 2026 guidance prioritizes advanced logic/foundry growth, a rebound in memory and China, and continued capacity investments including Scottsdale and new CMP-related acquisitions.
⭐ Key Highlights
Q4 revenue and performance
Q4 revenue of €698 million declined 7% YoY (cc) but beat guidance (€630-€660 million), with gross margin 49.8% and operating margin 25%.
Full-year 2025 results
2025 sales rose 12% in constant currency to a record €3.2 billion; operating profit up 17% and operating margin a record 30.2%.
New orders and backlog
New orders reached €803 million in Q4, up 19% YoY, driven by advanced logic/foundry; the company will stop quarterly bookings from 2026 and report backlog at year-end.
2026 outlook and growth drivers
Guidance for 2026 calls for Q1 revenue around €830 million (+/-4%), with growth expected to accelerate in H2; advanced logic/foundry remains the core growth engine, memory expected to grow healthily, and China to rebound.
Capital allocation and strategic moves
Axus Technology acquisition completed for about €81 million (with potential earnout up to €30 million); CapEx guided to €200-€250 million range for 2026, Scottsdale expansion ongoing, Almere capex expected later; new share buyback program (€150 million) and higher dividend (€3.25/sh).
✔Positive Signals
- 2025 full-year sales and margins reached record levels with 12% CC growth and 30.2% operating margin
- Q4 beat on revenue vs guidance and 19% YoY increase in new orders driven by advanced logic/foundry
- Strong free cash flow of €615 million in 2025, with cash just over €1 billion and no debt
- Axus Technology acquisition enhances CMP capabilities for advanced packaging, aligning with 1.4nm/multi-node roadmap
- Guidance suggests 2026 revenue growth at or above 112% of 2025 base with expectant CAPEX supports (Scottsdale, Almere timeline)
✖Negative Signals
- Q4 revenue decline vs prior year despite guidance beat, indicating ongoing volatility in some segments
- Memory and China normalization pose variability; some segments remain softer (and silicon carbide in power/wafer)
📊Financial Results
- Q4 revenue €698 million, -7% YoY cc, above guidance (€630-€660 million)
- 2025 revenue €3.2 billion, +12% CC, gross margin 50.1% (2024 50.5%), operating margin 30.2% (record)
- Free cash flow €615 million in 2025, +12% YoY, cash position >€1 billion, net debt zero
- CapEx €280 million in 2025, within guidance (€200-€250 million) driven by Scottsdale and Korea expansions
- Q4 net earnings declined vs Q3 due to absence of non-cash gains (Q3 included €181 million noncash reversal) and recurring items
🔮Future Guidance
- Q1 2026 revenue guidance around €830 million (+/-4%), with sequential increase into Q2 and higher in H2
- Advanced logic/foundry expected to be the strongest growth engine in 2026; memory to grow healthily; China to increase vs 2025
- R&D net spend to rise with investments in new nodes and projects; SG&A to fall as a percentage of sales, aiming below 9%
- Capital expenditure planned for 2026 geared toward Scottsdale expansion; Almere capex expected to begin in 2027
- Discontinuation of quarterly bookings from 2026; continued disclosure of backlog at year-end and semi-annual/annual segment reporting
💡Interesting Insights
- 1.4-nanometer node is viewed as a major long-term growth opportunity with multiple customers showing interest; 60% of ALD layers at 1.4nm expected to be transition-related
Detailed Analysis
AI-generated summary of ASM INTL NV earnings call transcript.
In 2025 ASM achieved a 12% constant-currency sales increase to a record €3.2 billion, with operating profit rising 17% and an all-time high operating margin of 30.2%, driven by strong advanced logic/foundry demand and a healthier mix. Q4 revenue came in at €698 million, down 7% YoY (cc) but above guidance, with gross margin at 49.8% and an operating margin of 25%. New orders of €803 million (+19% YoY) were led by advanced logic/foundry, while mature logic/foundry in China softened. The company will discontinue quarterly bookings from 2026 and shift to semi-annual/annual segment reporting, while continuing to publish backlog at year-end. For 2026, ASM expects revenue to start around €830 million in Q1 (+/-4%) and to accelerate into H2, with logic/foundry as the main growth driver, memory growth expected to be healthy, and China sales rising. The firm plans continued capex (notably Scottsdale), expansion of its Korea and Netherlands facilities, and integration of Axus CMP technology to strengthen advanced packaging; a new €150 million buyback and a higher dividend signal ongoing capital discipline. The outlook hinges on AI-driven semiconductor demand, ongoing 2-nm and upcoming 1.4-nm transitions, and a recovery in China and power/analog segments, while the company maintains cost discipline and efficiency programs to support margins.
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