Amtech Systems (ASYS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $19.0 million, with strong AI-related demand driving a book-to-bill ratio of 1.1 and robust bookings.

• Gross margin improved to 44.8%–45% from 38.4% a year ago, despite lower sales volume, due to favorable product mix and cost management.

• Net income was $0.1 million ($0.01 per share), compared to $1.1 million in the prior quarter and $0.3 million in Q1 2025.

• Cash and cash equivalents increased to $22.1 million, with strong operating cash flow of $4.1 million and no debt.

• Initial orders for panel-level packaging equipment and specialty chemicals for medical device semiconductors signal future growth opportunities.

Financial highlights

• Gross profit was $8.5 million, with gross margin rising to 44.8%–45%.

• SG&A expenses rose $0.5 million sequentially but fell $1.2 million year-over-year; R&D expenses increased $0.3 million sequentially.

• Cash generated from operations was $4.1 million, with a quarter-end cash balance of $22.1 million and no debt.

• Effective tax rate was 84.3%, primarily due to foreign income and valuation allowance changes.

• Revenue declined by $5.4 million year-over-year, with TPS down 25% and SFS down 12%.

Outlook and guidance

• Q2 2026 revenue expected between $19.0 million and $21.0 million, with AI-related equipment sales as the main growth driver.

• Adjusted EBITDA margins anticipated to remain in the high single digits, supported by cost reductions.

• Backlog increased 14% year-over-year to $21.6 million, with strong new orders in TPS driven by AI demand in Asia.

• Continued strong demand for AI equipment expected into Q3 and Q4, with improved visibility on AI-related orders.

• Management continues to invest in R&D for AI and advanced mobility applications, expecting demand from supply chain shifts and EV/AI growth.