ASM International (ASM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached €863 million, at the high end of guidance, with 16% year-on-year growth at constant currency, driven by strong logic/foundry demand, AI-led infrastructure expansion, and a rebound in China.

• Gross margin was 53.3%, supported by favorable mix and cost reduction programs; operating margin hit a record 33.1%.

• Free cash flow was negative €48 million due to working capital outflow; cash position remains strong at nearly €1 billion.

• Maintains leading >55% ALD market share and expanding Epi position, supported by R&D and global investments.

• Strong sustainability progress: 100% renewable electricity since 2024 and industry ESG leadership.

Financial highlights

• Equipment sales grew 14% year-on-year at constant currency, led by ALD; spares and services up 23%.

• Gross profit rose 17% year-over-year to €460 million; gross margin improved from 49.8% in Q4 2025 to 53.3% in Q1 2026.

• Adjusted operating profit grew 21% year-over-year at constant currency to €286 million; adjusted operating margin hit a record 33.1%.

• Adjusted net earnings increased to €246 million from €192 million in Q1 2025.

• CapEx was €38 million in Q1 2026, mainly for new site construction.

Outlook and guidance

• Q2 2026 revenue projected at €980 million ±5% at constant currency; H2 2026 expected to be stronger than H1, with advanced logic/foundry as the main growth driver.

• China sales to be first-half weighted, with other segments strengthening in H2.

• Full-year 2026 expected to be strong, with growth outpacing the WFE market.

• Gross margin expected at the higher end of the 47%-51% target range for the year.

• Gradual recovery expected in power/analog/wafer segment from a low base.