ASM International (ASM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached €800 million, up 8% year-over-year at constant currency, driven by advanced logic/foundry and robust gross margin performance, while bookings declined 17% year-over-year due to lower demand from China and export restrictions.

• Gross margin improved to 51.9% from 49.4% a year ago, with full-year gross margin expected around 51%; adjusted operating margin rose to 30.9%.

• Net earnings surged to €384 million, including a €181 million non-cash gain from the reversal of a prior impairment on the ASMPT stake; adjusted net earnings were €206 million.

• Free cash flow was €139 million (or €239 million excluding earnouts), with a strong cash position of €1.1 billion and no debt at quarter-end.

• €150 million share buyback program completed, with 322,533 shares repurchased.

Financial highlights

• Equipment sales grew 10% year-over-year, led by ALD; spares/services revenue up 2% year-over-year.

• Adjusted operating profit was €248 million, up from €220 million in Q3 2024, but down 6% sequentially.

• Adjusted net earnings for Q3 2025 were €206 million, up from €134 million in Q3 2024, aided by an €11 million currency translation gain.

• Capex was €38 million in Q3, with full-year guidance of €200–250 million.

• Net working capital decreased to €330 million, with working capital days dropping to 37.

Outlook and guidance

• Q4 2025 revenue expected between €630–660 million; full-year 2025 revenue growth projected close to 10% at constant currencies.

• Orders projected to bottom in Q4, with recovery expected through 2026; China sales to decline by double digits in 2026.

• 2030 targets: revenue over €5.7 billion, gross margin 47–51%, operating margin above 30%, free cash flow over €1 billion, and at least 12% CAGR revenue growth.