ASM International (ASM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached a record €779 million, up 26% year-over-year at constant currencies, at the upper end of guidance, driven by strong demand for GAA and HBM technologies.

• Spares and service sales grew 45% year-over-year, led by strong demand from China and outcome-based services.

• Equipment revenue rose 22% year-over-year, with memory and ALD product lines leading growth; logic/foundry remained the largest sales contributor.

• Gross margin improved to 49.4% from 48.9% in Q3 2023, aided by higher China sales and favorable mix.

• Operating profit margin increased to 28.2%, including a €7 million one-off gain from a Singapore building divestment.

Financial highlights

• Q3 2024 new orders reached €815 million, up 30% year-over-year at constant currencies.

• Adjusted net earnings were €134 million, down sequentially due to €48 million FX loss, despite higher gross profit.

• Free cash flow was €242 million, boosting cash position to €747 million at quarter end.

• Share buybacks totaled €93 million in Q3; €287 million returned to shareholders YTD including dividends.

• Book-to-bill ratio was 1.0 in Q3 2024.

Outlook and guidance

• Q4 2024 revenue expected between €770–€810 million; full-year 2024 sales to grow ~10% year-over-year.

• 2025 revenue guidance raised to €3.2–€3.6 billion, mainly driven by Gate-all-around and sustained memory spending.

• Bookings anticipated to decrease in Q4 due to order pull-ins in Q3; GAA orders to rise, China orders to decline.

• Power/analog wafer market not expected to recover before H2 2025; China spending to be down somewhat in 2025.

• H2 2024 revenue expected to increase over 15% versus H1.