ASMPT Ltd ((HK:0522)) has held its Q3 earnings call. Read on for the main highlights of the call.
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ASMPT Ltd‘s recent earnings call reflected a strong performance, driven by impressive revenue growth and continuous momentum in AI adoption. The company expressed a positive outlook for Q4 2025, although challenges in the SEMI segment, a decrease in gross margin, and higher operating expenses were noted as areas of concern.
Strong Revenue Growth
ASMPT reported a robust revenue of USD 468.0 million, marking a 7.6% increase quarter-on-quarter and a 9.5% rise year-on-year. This growth was largely fueled by the SMT segment, showcasing the company’s ability to capitalize on market opportunities.
Continuous AI Momentum
The company’s Advanced Packaging and mainstream businesses continued to benefit from AI adoption. The momentum was particularly strong in Thermo-Compression Bonding and the first mover advantage in HBM4, reinforcing ASMPT’s position in the market.
SMT Segment Performance
The SMT segment delivered impressive revenue of USD 227.5 million, up 28% quarter-on-quarter and 14.6% year-on-year. This performance was driven by the Asian markets, AI servers, and electric vehicles in China, highlighting the segment’s strategic importance.
Bookings and Backlog
ASMPT recorded bookings of USD 462.5 million, marking the sixth consecutive quarter of year-on-year growth. The company closed the quarter with a substantial backlog of USD 867.7 million, indicating strong future demand.
SEMI Segment Challenges
The SEMI segment faced challenges with revenue of USD 240.5 million, down 6.5% quarter-on-quarter. This was due to the timing of key customers’ AI technology roadmaps and shipment disruptions caused by a typhoon in China.
Lower Gross Margin
The group’s adjusted gross margin for the third quarter was 37.7%, affected by a larger contribution from SMT and lower SEMI gross margin. This was attributed to a higher contribution from wire bonders and lower TCB revenue.
Operating Expense Increase
Operating expenses increased by 6.2% quarter-on-quarter and 5.3% year-on-year. This rise was due to strategic R&D and infrastructure investments, along with the impact of foreign exchange.
Panel Deposition Tool Order Cancellation
ASMPT experienced an isolated cancellation of bookings for panel deposition tools from a leading high-density substrate manufacturer. This was a one-off occurrence and not indicative of a broader trend.
Q4 Revenue Guidance
ASMPT provided optimistic guidance for Q4 2025, expecting revenue to range between USD 470 million and USD 530 million, representing a 6.8% increase quarter-on-quarter and a 14.3% rise year-on-year at the midpoint. The company anticipates continued demand in both SEMI and SMT segments, supported by their leadership in Thermo-Compression Bonding technology.
In summary, ASM Pacific Technology’s earnings call highlighted strong revenue growth and AI momentum, despite challenges in the SEMI segment and increased operating expenses. The company’s forward-looking guidance remains positive, with expectations of continued growth in Q4 2025.