ASM International (ASM) Q3 2024 earnings summary

Executive summary

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

• Adjusted operating profit rose to €220 million (margin 28.2%), aided by a €7 million one-off gain from a Singapore building divestment.

• ASM maintains leadership in ALD and is expanding in Si Epi, with selective growth in PECVD, vertical furnaces, and spares & services.

• Balance sheet remains strong with €747 million cash and no debt; €150 million share buyback completed in July 2024.

• Sustainability focus increased, with 100% renewable electricity achieved and a Climate Transition Plan launched.

Financial highlights

• Q3 2024 new orders: €815 million (+30% YoY at constant currencies); revenue: €779 million (+26% YoY at constant currencies).

• Adjusted gross margin: 49.4% (vs. 48.9% in Q3 2023); adjusted operating margin: 28.2% (vs. 25.3%).

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

• €287 million cash returned to shareholders in 9M 2024, including €93 million spent on share buybacks in Q3.

• Net R&D expenses increased 36% YoY, reflecting project transitions to commercial release.

Outlook and guidance

• Q4 2024 revenue projected at €770–810 million; H2 2024 revenue to increase over 15% vs. H1; FY 2024 revenue expected to rise ~10% YoY.

• 2025 revenue guidance raised to €3.2–3.6 billion, mainly driven by GAA-related sales and sustained memory demand.

• Q4 order intake expected to remain solid but lower than Q3, with GAA orders up and China orders down.

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