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ASM International’s Earnings Call: Balancing Growth and Challenges

ASM International’s Earnings Call: Balancing Growth and Challenges

Asm International ((ASMIY)) has held its Q2 earnings call. Read on for the main highlights of the call.

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The latest earnings call for ASM International presented a balanced sentiment, showcasing strong financial performance in several areas while acknowledging challenges in others. The company reported robust revenue growth and increased equipment sales, contributing to a solid gross margin. However, these positives were countered by a decline in order intake, difficulties in the memory segment, and uncertain market conditions in China, painting a picture of both significant achievements and notable challenges.

Strong Revenue Growth

In the second quarter of 2025, ASM International reported revenue of EUR 836 million, marking a 23% increase year-on-year at constant currency and a 7% rise compared to the first quarter. This impressive growth surpassed the company’s guidance range, highlighting ASM’s strong market position and effective strategies.

Increase in Equipment Sales

Equipment sales experienced a remarkable 25% increase year-on-year at constant currency, with Atomic Layer Deposition (ALD) leading the charge, followed by epitaxy (epi). This surge underscores the growing demand for ASM’s advanced technological solutions in the semiconductor industry.

Gross Margin Performance

The gross margin for the second quarter stood at a robust 51.8%, up from 49.8% in the same quarter last year. This improvement reflects ASM’s efficient cost management and ability to capitalize on increased sales volumes.

Operating Profit Growth

Operating profit saw a significant rise of approximately 40% year-on-year, adjusted for previous one-off SG&A expenses. This growth indicates ASM’s strong operational performance and effective cost control measures.

Decline in Order Intake

Despite the positive revenue and sales figures, ASM faced a 10% decrease in new orders compared to the first quarter and a 4% decline year-on-year at constant currency. This decline highlights potential challenges in maintaining future growth momentum.

Soft Conditions in Memory Segment

The memory segment experienced a year-on-year decrease in sales, with continued pressure in the power/analog and wafer segments. This softness suggests ongoing challenges in these areas, impacting overall performance.

Challenges in China

Sales in China were higher than the latter half of 2024 but fell short of the exceptionally high levels seen in early 2024. With expectations of lower bookings in the second half of 2025, ASM faces uncertainties in this critical market.

Forward-Looking Guidance

Looking ahead, ASM International anticipates a flat to slightly lower revenue in the third quarter of 2025, with full-year revenue growth projected around the midpoint of their 10% to 20% guidance range. Despite a slight dip in gross margin from the previous quarter, the company expects it to remain in the upper range of 46% to 50% for the full year. These projections reflect ASM’s cautious optimism amid current market challenges.

In conclusion, ASM International’s earnings call revealed a balanced outlook, with strong financial performance in revenue and equipment sales offset by challenges in order intake and specific market segments. The company’s forward-looking guidance suggests a cautious approach, aiming to navigate the uncertainties while leveraging its strengths in technology and market presence.

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