ASM International (ASM) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached €1,003 million, surpassing guidance and marking a 24% year-over-year increase at constant currency, driven by strong growth in leading-edge logic/foundry, HBM DRAM, and solid mature logic/foundry sales in China.

• Maintained strong profitability with a gross margin of 51.9% and adjusted operating margin of 33.0%, reflecting operating leverage and disciplined cost management.

• Free cash flow hit a record €355 million, and the cash position stood at €1,180 million at quarter-end.

• Accelerated semiconductor market growth driven by AI, device complexity, and new materials, boosting demand for ALD and Epi technologies.

• Continued aggressive investment in R&D to support future technology breakthroughs and capitalize on AI infrastructure momentum.

Financial highlights

• Revenue grew 24% year-over-year and 15% sequentially; equipment sales up 22% year-over-year, spares & services up 34%.

• Adjusted operating profit rose 27% year-over-year to €331 million; adjusted net earnings reached €293 million.

• Gross profit increased 24% year-over-year at constant currency, with gross margin stable at 51.9%.

• Free cash flow reached a record €355 million, driven by profitability and working capital normalization.

• CapEx increased 66% sequentially, mainly for new site construction, with full-year expectations above €250 million.

Outlook and guidance

• Q3 2026 revenue projected at €1,100 million +/- 5% at constant currency.

• H2 2026 revenue expected to rise over 20% versus H1, led by advanced logic/foundry, memory, and initial 1.4nm node contributions.

• 2027 revenue expected to exceed previous €3.7–4.6 billion guidance, driven by strong demand in advanced nodes and DRAM.

• Gross margin for full year guided around 51%; SG&A to remain below 8.5% of sales.