ASM International (ASM) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached €836 million, up 23% year-over-year at constant currency, exceeding guidance, with strong gross margin and profitability improvements led by logic/foundry and spares & services.

• Gross margin was 51.8%, up from 49.8% a year ago, driven by favorable mix, operational improvements, and strong China sales.

• Operating profit increased ~40% year-over-year, adjusted for prior one-off SG&A expense, with adjusted operating margin at 31.5%.

• Bookings declined 4% year-over-year and 10% sequentially, mainly due to timing in advanced logic/foundry and lower memory contribution.

• Free cash flow was €125 million, and cash position ended at €1,042 million with no debt.

Financial highlights

• Revenue: €836 million (+23% year-over-year at constant currencies); equipment sales up 25% year-over-year.

• Gross margin: 51.8% (up from 49.8% year-over-year, down from 53.4% sequentially).

• Adjusted operating profit: €263 million; margin 31.5% (up 5.7 pts year-over-year).

• Adjusted net earnings: €173 million; net earnings reached €202 million including €34 million ASMPT impairment reversal.

• Free cash flow: €125 million; working capital at €401 million and 43 days outstanding.

Outlook and guidance

• H2 2025 revenue expected to be similar to H1 at constant currencies; Q3 revenue projected flat to slightly lower (0% to -5%) versus Q2.

• 2025 revenue growth at constant currencies expected around midpoint of +10% to +20% guidance range.

• Gross margin for 2025 projected in the upper half of 46%-50% range, with H2 lower than H1.

• Book-to-bill ratio in Q3 projected below one; advanced logic/foundry bookings to rise, China bookings to fall.

• Memory equipment sales contribution expected to drop to less than 20% in 2025 (from 25% in 2024).