ASM International (ASM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached EUR 706 million, up 6% year-on-year, slightly above guidance, driven by strong demand for GAA and HBM technologies.

• Orders surged 56% year-on-year to EUR 755 million, led by memory (especially HBM-related DRAM) and logic/foundry, with a book-to-bill ratio of 1.1.

• Gross margin was 49.8%, up from 49% last year, with adjusted operating margin at 25.8%, impacted by a one-off EUR 8.4 million tax charge.

• Cash balance at quarter-end was EUR 637 million, with no debt; 39% of the EUR 150 million share buyback program completed by June 30, 2024.

• Achieved 100% renewable electricity for global operations in H1 2024 and launched a Climate Transition Plan.

Financial highlights

• Equipment revenue rose 4% year-on-year; spares & services grew 20% year-on-year.

• Adjusted net earnings were EUR 165 million, down from Q1 2024 due to higher operating expenses.

• Free cash flow was EUR 103 million; CapEx for Q2 was EUR 36 million, with FY24-27 guidance at EUR 100–180 million.

• Cash and cash equivalents stood at EUR 637 million as of June 30, 2024.

• Working capital at EUR 502 million, with days outstanding down to 64 from 70 in Q1 2024.

Outlook and guidance

• Q3 2024 revenue projected at EUR 740–780 million; H2 2024 revenue expected to increase ~15% over H1.

• China sales expected to decline in H2, offset by strong growth in leading-edge logic/foundry and HBM DRAM memory.

• Double-digit percentage growth anticipated in silicon carbide (SiC) Epi sales for 2024.

• 2025 guidance maintained at EUR 3.0–3.6 billion, with potential to reach the higher end if current trends persist.

• Confident in mid-term targets for 2025 and 2027, expecting to outperform the wafer fab equipment market.