ACM Research Inc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did ACMR Beat Earnings? Q2 2025 Results
ACM Research delivered a mixed second quarter for fiscal 2025, posting stronger-than-expected earnings while falling short on the top line. Non-GAAP diluted EPS of $0.54 beat the $0.50 consensus by 7.46%, with net income attributable to ACM climbing to $29.76 million, helped in part by a sharply lower tax bill of $1.89 million compared to $9.34 million a year earlier. Revenue of $215.37 million grew 6.4% year-over-year but missed the $223.42 million consensus by 3.60%, reflecting the complex trade and customer spending environment the company continues to navigate. Gross margin expanded to 48.5%, above the high end of ACM's own 40%-45% long-term target range, though a 22.9% surge in operating expenses pressured operating margin to 14.7% from 18.6%. The company's milestone delivery of its 1,500th electroplating chamber underscored continued momentum in ECP equipment. Looking ahead, ACM maintained its fiscal 2025 revenue guidance of $850 million to $950 million and raised its long-term revenue target for mainland China, signaling confidence in its differentiated technology positioning despite near-term headwinds.
- Modest growth from single wafer cleaning, Tahoe and semi-critical cleaning equipment
- Higher sales of ECP (front-end and packaging), furnace and other technologies
- Higher sales of advanced packaging (excluding ECP), services & spares
- Gross margin of 48.5% exceeded long-term target range of 40%-45%
- Significantly lower income tax expense ($1.9 million vs $9.3 million)
“Our results for the first half of 2025 reflect good execution across our product portfolio and strengthen our confidence in our long-term growth opportunity in China. We see continued momentum from our SPM, Tahoe, plating and furnace tools, and we are encouraged by customer engagements across multiple new platforms including Track, PECVD, and panel-level packaging. As a result, we have raised our long-term revenue target for the mainland China market. At the same time, we are making important strides in our global expansion efforts, with several tool deliveries planned to the U.S. during the third quarter.”
ACM Research CEO, on the earnings call
Forward Guidance & Outlook
ACM is maintaining its fiscal year 2025 revenue guidance range of $850 million to $950 million. This expectation is based on management's current assessment of the continuing impact from international trade policy, together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field. The company has raised its long-term revenue target for the mainland China market and plans several tool deliveries to the U.S. during the third quarter.
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Figures from SEC filings and company reports. Not investment advice.