ACM Research (Shanghai) (688082) Q2 2025 earnings summary

Executive summary

• Achieved strong sequential and year-over-year growth in revenue and shipments, driven by momentum in SPM, Tahoe, plating, furnace tools, and robust demand in mainland China.

• Introduced and received repeat orders for the Ultra C wb wet Bench tool with proprietary nitrogen bubbling technology, enhancing etching rate uniformity for advanced 3D devices.

• Increased long-term revenue target to $4 billion and China target to $2.5 billion, based on higher WFE market assumptions and increased market share goals for cleaning and plating.

• Net profit attributable to shareholders was RMB 696 million, up 56.99% year-over-year, with adjusted net profit up 55.17%.

• The company’s global market share in semiconductor cleaning equipment reached 8.0% (4th globally), and 8.2% in electroplating equipment (3rd globally).

Financial highlights

• Q2 2025 revenue was $215 million, up 25% sequentially and 6% year-over-year; shipments were $206 million, up 32% sequentially and 2% year-over-year.

• Gross margin reached 48.7%, above the targeted 42%-48% range; main business gross margin was 49.97%, stable year-over-year.

• Net income attributable was $36.8 million ($0.54 per diluted share) versus $37.5 million ($0.55) year-over-year; basic EPS: RMB 1.58, up 54.90% year-over-year.

• Cash, cash equivalents, and time deposits totaled $483.9 million; net cash was $205.8 million; cash flow from operating activities was negative RMB 132 million.

• Inventory increased to $648.3 million and RMB 4.39 billion, with strategic purchases to mitigate supply chain risks.

Outlook and guidance

• Maintained 2025 revenue outlook of $850 million–$950 million, implying 15% year-over-year growth at the midpoint.

• Long-term China revenue target raised to $2.5 billion, global target to $4 billion, reflecting higher WFE market size and increased market share assumptions.

• The company expects continued strong demand in China’s semiconductor sector, supported by local policy and customer capital expenditure.

• Ongoing R&D and product platform upgrades are expected to further enhance competitiveness and support future growth.

• Management highlights risks from global trade tensions, supply chain uncertainties, and potential regulatory changes.