Axcelis Technologies (ACLS) investor relations material

Executive summary

• Q2 2026 revenue reached $215.2 million, up 10.6% year-over-year, exceeding expectations due to strong system shipments, robust Memory and Power demand, and higher CS&I/aftermarket volume.

• Bookings activity strengthened, with a book-to-bill ratio near 1 for three consecutive quarters and backlog at $452 million.

• Net income was $23.3 million, down from $31.4 million year-over-year, as higher operating expenses and lower gross margins offset revenue gains.

• The pending merger with Veeco Instruments is expected to close in the second half of 2026, with regulatory steps ongoing and transaction costs impacting results.

Financial highlights

• Q2 2026 revenue: $215.2 million (system revenue $132.4 million, CS&I/aftermarket revenue $83 million); gross margin: 42.4% (down from 44.9% YoY); non-GAAP gross margin: 42.7%.

• GAAP diluted EPS: $0.75 (down from $0.98 YoY); non-GAAP diluted EPS: $1.06; adjusted EBITDA: $36 million (16.7% margin).

• Net income: $23.3 million (down from $31.4 million YoY); non-GAAP net income: $33 million.

• Free cash flow: $14.8 million, including $6 million in merger-related expenses; cash and equivalents: $155 million; total cash, equivalents, and investments: $577 million.

• Operating margin: 9.4% (down from 14.9% YoY); non-GAAP operating margin: 14.7%.

Outlook and guidance

• Q3 2026 revenue expected at ~$230 million, with non-GAAP gross margin of ~43% and non-GAAP diluted EPS of ~$1.11.

• Full-year 2026 revenue growth anticipated at mid-single digits year-over-year, up from prior flat outlook; sequential growth expected in Q4 2026.

• Continued investment in technology innovation and growth initiatives, with Q4 operating expenses to rise slightly.

• Management expects continued financial improvement through the remainder of 2026.

• Veeco merger expected to close in H2 2026, pending regulatory approval.