ASM International (ASM) Q4 2024 earnings summary

Executive summary

• Achieved eighth consecutive year of double-digit growth, with 2024 sales up 12% at constant currencies to €2,933 million, outperforming the WFE market.

• Q4 2024 revenue reached €809 million, up 27% year-over-year at constant currencies, at the upper end of guidance, with orders of €731 million driven by GAA and HBM.

• Growth driven by strong demand for GAA and HBM DRAM, with leading-edge logic/foundry as key contributors; maintained leadership in ALD and expanded Si Epi market presence.

• Solid cash position of €927 million at year-end, no debt, and a proposed €3.00 dividend per share; announced €150 million share buyback for 2025/2026.

• Achieved significant ESG progress, including 100% renewable electricity and a 52% reduction in Scope 1 and 2 emissions.

Financial highlights

• Q4 2024 revenue: €809 million, up 27% year-over-year at constant currencies; new orders: €731 million, up 8% year-over-year.

• Full-year 2024 sales: €2.9 billion, up 12% at constant currencies, a new record.

• Adjusted gross margin for FY 2024: 50.5% (Q4: 50.3%); adjusted operating margin: 28.0% for FY 2024 (Q4: 28.1%).

• Free cash flow increased 23% to €548 million; cash and cash equivalents at year-end: €927 million.

• Spares and service sales grew 49% year-over-year in Q4 and 29% for the year.

Outlook and guidance

• FY 2025 revenue guidance set at €3.2–3.6 billion, with Q1 revenue expected at €810–850 million and further increase in Q2.

• Gross margin expected to normalize to 46–50% in 2025 due to lower China sales.

• Net R&D to remain at the upper end of the target range or slightly higher; SG&A to decrease as a percentage of sales.

• Continued robust growth expected in AI-related segments, especially GAA in logic foundry; memory sales outlook healthy but may not match 2024 levels.

• China revenue expected to decrease in 2025 due to new U.S. export controls, projected in the low-to-high 20s percentage of total revenue.