Axcelis Technologies (ACLS) investor relations material

Executive summary

• Q2 2026 revenue reached $215.2 million, up 10.6% year-over-year, exceeding expectations due to strong system shipments, higher CS&I/aftermarket volume, and robust demand in Memory and Power markets, with sequential improvements in General Mature segments.

• Bookings activity strengthened, with a book-to-bill ratio near 1 for three consecutive quarters and backlog at $451.6 million.

• Net income for Q2 2026 was $23.3 million, down from $31.4 million in Q2 2025, as margins and profitability declined due to higher operating expenses and less favorable product mix.

• The pending merger with Veeco Instruments is progressing, with transaction and integration costs impacting results; closing is expected in the second half of 2026, pending regulatory approval.

Financial highlights

• Q2 2026 revenue: $215.2 million (system revenue $132.4 million, CS&I/aftermarket revenue $82.8 million); GAAP diluted EPS: $0.75, non-GAAP diluted EPS: $1.06.

• Gross margin: 42.4% GAAP (down from 44.9% YoY), 42.7% non-GAAP; operating margin: 9.4% GAAP, 14.7% non-GAAP; adjusted EBITDA: $36.0 million (16.7% margin).

• Free cash flow: $14.8 million, including $6 million in merger-related expenses; cash, equivalents, and marketable securities: $577 million at quarter end.

• Cash and cash equivalents at June 30, 2026: $155.0 million; short-term investments: $247.2 million; long-term investments: $174.8 million.

Outlook and guidance

• Q3 2026 revenue expected at ~$230 million, with non-GAAP gross margin of 43% and non-GAAP diluted EPS of $1.11.

• Full-year 2026 revenue growth anticipated at mid-single digits year-over-year, up from prior flat outlook; sequential growth expected in Q4 2026.

• Management expects continued financial improvement through the remainder of 2026 and momentum into 2027, led by Memory and Power markets.