Sign in
AR

ACM Research, Inc. (ACMR)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered solid growth and profitability: revenue $172.35M (+13.2% y/y) with GAAP gross margin 47.9% (non-GAAP 48.2%) and GAAP diluted EPS $0.30 (non-GAAP $0.46). Management maintained FY25 revenue guidance of $850–$950M .
  • Results beat S&P Global consensus: revenue $172.35M vs $165.33M* and non-GAAP EPS $0.46 vs $0.35*; GAAP diluted EPS was $0.30 (non-GAAP better reflects core operations). Gross margin stayed above the long-term model despite mix headwinds, but down y/y .
  • Strategic milestones underpin the narrative: high‑temperature SPM tool qualified at a leading China logic customer; U.S. customer acceptance for a backside/bevel etch tool; continued progress in plating, furnace, Track and PECVD; Oregon facility investment to support global customers .
  • Shipments were $157M (down y/y on tough compare/pull-ins from Q4’24), with management flagging a return to y/y shipment growth in Q2’25—an important near-term stock narrative catalyst alongside maintained FY guide and China share gains .

Estimates marked with * are from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Technology wins and product momentum: “Qualification of our high‑temperature SPM tool by a leading logic customer in China” and U.S. acceptance of a backend bevel etch tool; ACM also won the 2025 3D InCites award for its Ultra ECP ap‑p panel plating tool, highlighting leadership in both front-end and advanced packaging .
  • Revenue growth and profitability: Revenue +13.2% y/y to $172.3M; GAAP operating income $25.8M (15.0% margin); non‑GAAP operating income $35.6M (20.7% margin), with non‑GAAP EPS $0.46 .
  • Gross margin resilience: GAAP GM 47.9% (non‑GAAP 48.2%), above the long‑term model (42–48%) even amid mix/currency variability .

What Went Wrong

  • Gross margin and non‑GAAP operating leverage down y/y: GAAP GM fell 410 bps y/y (52.0% → 47.9%); non‑GAAP operating margin decreased to 20.7% from 26.2% on higher opex to support growth and R&D .
  • Shipments declined vs. tough compare: $157M vs $245M in Q1’24 due partly to Q4’24 pull-ins; however, mgmt expects y/y shipment growth to resume in Q2’25 .
  • Regional concentration persists: Mainland China comprised ~$169.1M of $172.3M in revenue (98%), underscoring continued geographic concentration risk despite ongoing global expansion efforts .

Financial Results

Quarterly performance vs prior periods (actuals)

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Millions)$152.19 $223.47 $172.35
Gross Margin % (GAAP)52.0% 49.8% 47.9%
Operating Margin % (GAAP)16.6% 23.6% 15.0%
Diluted EPS (GAAP)$0.26 $0.56 $0.30

Q1 2025 results vs S&P Global consensus

MetricQ1 2025 ActualQ1 2025 Consensus
Revenue ($USD Millions)$172.35 $165.33*
EPS (Non-GAAP, Primary)$0.46 $0.35*

Estimates marked with * are from S&P Global.

Product and geographic mix (Q1 2025 vs Q1 2024)

Revenue by Product ($USD Thousands)Q1 2024Q1 2025
Single-wafer cleaning, Tahoe & semi-critical cleaning109,470 129,569
ECP (front-end & packaging), furnace & other25,800 27,630
Advanced packaging (ex-ECP), services & spares16,921 15,148
Total152,191 172,347
Revenue by Region ($USD Thousands)Q1 2024Q1 2025
Mainland China152,135 169,053
Other Regions56 3,294
Total152,191 172,347

KPIs and cash metrics

KPIQ1 2024Q4 2024Q1 2025
Shipments ($USD Millions)$245 $264 $157
Cash, restricted cash & time deposits ($USD Millions)—$441.9 (12/31/24) $498.4 (3/31/25)
Net Cash ($USD Millions)—$259 (12/31/24) $271 (3/31/25)
Cash from Operations ($USD Millions)——$5.3
Capital Expenditures ($USD Millions)——$17.1

Note: “—” indicates not disclosed for that specific period in the cited documents.

Non-GAAP definitions and reconciliations are provided in the company’s materials .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$850–$950M (Jan/Feb reiteration) $850–$950M (maintained) Maintained
Gross Margin Target (Long-term model)Long-term40–45% 42–48% Raised (in Feb’25)
Effective Tax RateFY 202512–15% 10–15% Lowered
R&D as % of RevenueFY 202512–13% 13–14% Raised
Sales & Marketing as % of RevenueFY 20257–8% ~7% Slightly Lower
G&A as % of RevenueFY 20255–6% 5–6% Maintained
Capital ExpendituresFY 2025$65–$75M ~ $70M Narrowed to midpoint
ShipmentsQ2 2025—Expect return to y/y growth New qualitative color
Dividends (ACM Research, Inc.)—None disclosedNone disclosedNo change

Earnings Call Themes & Trends

TopicQ3 2024 (Q-2)Q4 2024 (Q-1)Q1 2025 (Current)Trend
AI/advanced packaging initiativesTahoe performance breakthrough; panel-level products (Ultra ECP ap‑p, Ultra C vac‑p, Ultra C bev‑p) highlighted Ongoing interest across portfolio incl. panel-level packaging 3D InCites award for Ultra ECP ap‑p; strong industry interest in panel-level for AI chips Building momentum
Supply chain/tariffs/macro—Entity List updates; accelerated localization; impact manageable Tariff impact to ACM minimized via local/third-country sourcing; possible impact to customers Manageable for ACM; watch customer implications
Product performance & pipelineRecord revenue/shipments; Tahoe in production; WL/PL packaging tools ramping Furnace traction (17 customers in 2024); ALD furnace qualified at 2 China customers SPM qualified; U.S. acceptance for bevel etch; furnace ramp expected; Track/PECVD demos and 2025 initial revenue Multi-product cycle broadening
Regional trendsChina growth, early U.S. orders for WL packaging tools (deliveries H1’25) Engaging customers in U.S./EU/KR/TW/SG; Oregon facility acquired China ~98% of Q1 revenue; Oregon build-out to support global expansion China-led now; groundwork for global
Regulatory/legal—Entity List context; compliance affirmed No new restrictions disclosed; continued compliance focus Stable since Q4 update
R&D/manufacturing footprintLingang facility opening Lingang operations ramp; Oregon facility expansion Lingang near completion; Oregon clean room/demo; initial manufacturing planned Capacity and demo capability expanding

Management Commentary

  • “Our first quarter results mark a good start to 2025. We delivered 13% year-over-year revenue growth, solid profitability, and positive cash flow from operations.” — Dr. David Wang, CEO .
  • “We qualified our high-temperature SPM tool with a leading logic customer in China and achieved customer acceptance for our backend bevel etch tool from a U.S. customer.” .
  • “We are investing in our Oregon facility… to reduce tariff uncertainty for U.S. customers… and establish production close to the customer.” .
  • “We are maintaining our 2025 revenue outlook in the range of $850 million to $950 million.” .
  • CFO: “For 2025, we plan for R&D in the 13% to 14% of revenue range, sales and marketing in the 7% range and G&A in the 5% to 6% range… We expect our effective tax rate in the 10% to 15% range.” .

Q&A Highlights

  • Shipments trajectory: Management expects shipments to grow in 2025, though shipment growth may be below revenue growth; reaffirmed expectation for y/y shipment growth in Q2’25 .
  • Tariffs: ACM’s profitability impact minimized via local/third-country sourcing; potential impact may fall more on customers than on ACM .
  • 2026 outlook: China WFE seen plateauing; ACM plans to drive growth via share gains and new product cycles (furnace, panel packaging, Track/PECVD), with beta Track tool planned mid‑2025 .
  • Competition/consolidation in China: Emphasis on IP and differentiated technology; management views competition as a technology game rather than price and expects industry consolidation; focus remains on organic growth .

Estimates Context

  • Q1 2025 performance vs S&P Global: Revenue $172.35M vs $165.33M* and non-GAAP EPS $0.46 vs $0.35* — both beats. GAAP diluted EPS was $0.30; company/non‑GAAP view better reflects core operations .
  • Implications: The maintained FY25 revenue guide ($850–$950M) alongside pipeline milestones (SPM qualification, U.S. acceptance, furnace ramp) suggests estimates may bias toward the upper half if shipments recover in Q2 as guided; however, management cautions gross margin variability due to mix/currency .

Estimates marked with * are from S&P Global.

Key Takeaways for Investors

  • Core beat on both revenue and non‑GAAP EPS with GM still above the long‑term model despite y/y compression; non‑GAAP remains the cleaner profitability lens .
  • FY25 revenue guidance maintained; near‑term narrative hinges on the promised return to y/y shipment growth in Q2 and continued multi‑product ramps (SPM, furnace, plating) .
  • Technology differentiation is translating to wins (SPM qualification; U.S. bevel etch acceptance) and external validation (3D InCites panel plating award), strengthening the share‑gain thesis in China and enabling global expansion .
  • Geographic concentration remains high (China ~98% of Q1 revenue) while Oregon investments aim to reduce trade/tariff risk and seed U.S. customer traction—an important de‑risking vector to track .
  • Watch margin cadence: mix and currency can drive volatility; mgmt’s updated long‑term GM target (42–48%) provides a realistic guardrail while execution focuses on scale and opex discipline (R&D 13–14%, S&M ~7%, G&A 5–6%) .
  • Balance sheet provides flexibility (cash/time deposits ~$498M; net cash ~$271M) to support R&D, capacity (Lingang/Oregon), and global evaluations .
  • Stock‑moving catalysts: confirmation of Q2 shipment growth y/y, additional global customer acceptances/deliveries, furnace/Track/PECVD revenue contribution, and sustained GM within target range .

Values retrieved from S&P Global for consensus estimates.