Axcelis Technologies (ACLS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $193 million, exceeding outlook, with GAAP EPS of $0.88 and non-GAAP EPS of $1.04, driven by strong gross margins and disciplined cost control, though revenue was down from $252.4 million year-over-year.

• Bookings rose to $110 million, a sequential increase of 30%, resulting in a book-to-bill ratio of 0.8, the highest since Q4 2023.

• Both systems and CS&I sales slightly surpassed expectations, with CS&I showing resilience due to a growing install base and higher-margin spare sales.

• The company continues to adapt to macroeconomic and tariff-related uncertainties, leveraging a diversified global supply chain and manufacturing footprint.

• Gross margin remained stable at 46.1% GAAP and 46.4% non-GAAP, supported by effective cost control.

Financial highlights

• GAAP gross margin was 46.1% (outlook: 40%), non-GAAP gross margin 46.4%, benefiting from lower warranty/installation costs and favorable mix.

• GAAP operating expenses were $59.6 million (below outlook), with a $1.1 million restructuring charge; non-GAAP OpEx was $54.1 million.

• GAAP operating profit was $29.2 million (15.1% margin); non-GAAP operating margin was 18.3%.

• Adjusted EBITDA reached $39.5 million (20.5% margin), down from $64.5 million (25.6% margin) in Q1 2024.

• Free cash flow was $35 million; cash and equivalents at quarter-end were $587 million, with no debt.

• Share repurchases totaled $18.2 million in Q1, with $212 million remaining authorized; $23 million repurchased in Q2 to date.

Outlook and guidance

• Q2 2025 revenue expected at ~$185 million; non-GAAP gross margin ~42%, reflecting mix and lower volumes.

• Adjusted EBITDA for Q2 forecast at ~$29 million; non-GAAP EPS expected at ~$0.73.

• Second-half 2025 revenue anticipated to be consistent with first-half levels; gross margins to remain similar to Q2, inclusive of tariffs.

• Full-year non-GAAP OpEx expected to be flat year-over-year, maintaining investment in R&D and talent.

• Sufficient liquidity is expected to support both short- and long-term operational and strategic needs.