ACM Research (Shanghai) (688082) Q2 2025 earnings summary

Executive summary

• Achieved strong sequential and year-over-year growth in revenue and shipments, driven by momentum in SPM, Tahoe, plating, furnace tools, and robust demand in mainland China.

• Introduced upgraded Ultra C wb wet Bench cleaning tool with proprietary nitrogen bubbling technology, receiving repeat orders and enhancing etching rate uniformity for advanced 3D devices.

• Raised long-term revenue target to $4 billion globally and $2.5 billion for China, based on higher WFE market assumptions and increased market share goals for cleaning and plating.

• Investments in new production facilities in Ningbo and Oregon, and completion of R&D center in June 2025, to support global growth and innovation.

• Maintained robust R&D investment, with R&D expenses rising 20.17% and accounting for 16.67% of revenue.

Financial highlights

• Q2 2025 revenue was $215 million, up 25% sequentially and 6% year-over-year; first half 2025 revenue reached RMB 3.27 billion, up 35.83% year-over-year.

• Net profit attributable to shareholders was $36.8 million or RMB 696 million, up 56.99% year-over-year.

• Gross margin reached 48.7% (main business: 49.97%), above the targeted range and stable year-over-year.

• Operating income was $41.5 million, down 20.2% year-over-year; operating margin was 19.3% versus 25.6%.

• Cash, cash equivalents, and time deposits totaled $483.9 million at quarter end; cash flow from operating activities was negative RMB 132 million.

Outlook and guidance

• Maintained 2025 revenue outlook of $850 million–$950 million, implying 15% year-over-year growth at the midpoint.

• Long-term China revenue target raised to $2.5 billion, global target to $4 billion, reflecting higher WFE market assumptions and increased market share goals.

• Expect continued growth in shipments and revenue in the second half of 2025, with Q3 outlook described as very strong.

• Ongoing R&D and product platform upgrades are expected to further enhance competitiveness and support future growth.

• Management highlights risks from global trade tensions, supply chain uncertainties, and potential regulatory changes.