ASM International (ASM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 26% year-over-year at constant currencies to €839 million, surpassing guidance midpoint, driven by strong demand in leading-edge logic/foundry and memory segments, especially for 2nm GAA and HBM-related DRAM, with a solid contribution from China.

• Gross margin improved to 53.4%, up from 52.9% a year ago and 50.3% in the prior quarter, supported by favorable mix and cost reductions; adjusted operating margin reached 32.3%.

• Free cash flow surged to €264 million, with cash and cash equivalents at €1,145 million at quarter-end.

• Order intake grew 14% year-over-year to €834 million, led by logic/foundry and strong demand for advanced nodes.

• Net earnings were impacted by a non-cash impairment on the ASMPT stake (€215–250 million) due to reduced market valuation.

Financial highlights

• Equipment sales up 25% and spares/services up 32% year-over-year at constant currencies.

• Adjusted operating profit was €271 million, with margin at 32.3%; adjusted net earnings for Q1 2025 were €192 million.

• SG&A expenses as a percentage of revenue decreased to 9.1% from 11.4% year-on-year.

• Net R&D increased 35% year-on-year; adjusted net R&D as % of revenue at 12.0%.

• CapEx for Q1 was €30 million; full-year CapEx expected at the higher end of €100–180 million.

Outlook and guidance

• 2025 revenue growth expected at 10–20% at constant currencies, with visibility to the lower end of the range and outpacing the WFE market.

• Q2 2025 sales projected to increase 1–6% sequentially at constant currencies, maintaining double-digit year-over-year growth.

• Gross margin for 2025 forecasted in the upper half of 46–50% range, excluding tariff impacts.

• Guidance now provided at constant currencies due to FX volatility; over 80% of revenue is USD-denominated.

• Power/analog/wafer segment outlook remains weak for 2025.