ASM International (ASM) Q4 2025 earnings summary

Executive summary

• Achieved ninth consecutive year of double-digit revenue growth, with FY 2025 revenue up 12% at constant currency to €3.2 billion, driven by advanced logic/foundry demand and robust Spares & Services sales.

• Q4 2025 revenue was €698 million, down 7% year-on-year but above guidance, with strong advanced logic foundry demand and a sharp drop in mature logic foundry sales from China.

• Operating profit rose 17% year-over-year, with operating margin reaching a record 30.2%.

• Maintained a leading >55% market share in ALD and expanded Epi position, supported by ongoing R&D and global investments.

• Strategic investments included the acquisition of Axus Technology, expansion of manufacturing facilities, and plans for a new global headquarters and R&D center in Almere, Netherlands.

Financial highlights

• Q4 2025 gross margin: 49.8%; full year gross margin: 51.8%, up from 50.5% in 2024.

• Q4 2025 adjusted operating margin: 25.1%; full year adjusted operating margin: 30.2%.

• Free cash flow for FY 2025 was €434 million, down from €548 million in 2024, impacted by M&A outflows; adjusted free cash flow was €615 million after M&A adjustments.

• CapEx rose to €218 million in 2025, mainly for new facilities in Korea and Arizona.

• Cash and cash equivalents at year-end: €1,027 million; no debt.

Outlook and guidance

• Q1 2026 revenue guidance: €830 million ±4%, with sequential increases projected for Q2 and H2.

• Advanced logic/foundry expected to be the strongest business in 2026, with DRAM sales expected to grow and China sales forecasted to increase.

• Gross margin for 2026 expected at the higher end of the 46–51% range.

• Company expects to at least match WFE market growth, projecting 20%+ growth at constant currency and long-term targets of 12% revenue CAGR through 2030.

• Second half 2026 revenue anticipated to exceed first half, driven by advanced logic/foundry and initial 1.4nm node investments.