Asm International Nv Stock Earnings Reports

ASM reported strong Q1 2026 results: revenue €863m (high end of guidance), +16% YoY at constant currency and +26% vs Q4. Equipment sales were led by ALD; spares & services grew 23% YoY driven by outcome-based offerings and high fab utilization. Logic/foundry (advanced nodes) was the largest contributor; memory (DRAM/HBM) and power/analog showed sequential improvement. Gross margin was strong at 53.3% and the company expects full-year margin at the higher end of its 47–51% target range. Operating margin reached a record 33.1%. Cash was ~€1bn; free cash flow was negative €48m due to working-capital build (DWC rose to 69 days). CapEx was €38m in Q1 and full-year CapEx is expected around or somewhat above the higher end of the €150–€250m range (large part for a new Scottsdale site).

Key strategic/market points: AI remains the primary demand driver across advanced logic/foundry and memory; ASM sees growing ALD and epitaxy intensity at 2nm and expects pilot investment for 1.4nm later this year with meaningful revenue contribution in H2 2026 and larger impact in 2027–28. China sales rebounded in Q1 and are expected to be H1-weighted for 2026, though visibility remains limited. Advanced packaging and CMP (via recent Axus acquisition) are highlighted as mid-term growth opportunities. Supply-chain and lead-time pressure are increasing; ASM says it has managed these so far but they add execution risk. The company reaffirmed it expects to at least match or outperform overall wafer fab equipment (WFE) market growth in 2026 and gave Q2 revenue guidance of €980m ±5% with H2 > H1 expected.