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ASM International NV (ASMIY) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...

In This Article:

  • Revenue: EUR839 million, above the midpoint of guidance (EUR810 million to EUR850 million), increased 26% year on year at constant currencies.

  • Equipment Sales: Increased 25% at constant currencies, led by ALD, followed by Epi.

  • Spares and Service Sales: Up 32% at constant currencies.

  • Gross Margin: Increased to 53.4%, up from 50.3% in Q4 and 52.9% in Q1 of last year.

  • SG&A Expenses: Decreased to 9.1% of total revenue, down from 11.4% in Q1 of last year.

  • Net R&D: Increased 35% year on year at constant currencies.

  • Operating Profit: Increased 41% year on year.

  • Currency Translation Loss: EUR40 million.

  • Net Results: Included an impairment of EUR250 million of ASMPT stake.

  • Order Intake: EUR834 million, up 14% at constant currencies year on year.

  • Cash Position: Over EUR1.1 billion, up from EUR927 million at the end of Q4.

  • Free Cash Flow: EUR264 million, up from EUR62 million in Q1 last year.

  • CapEx: EUR30 million in Q1, expected to be towards the higher end of EUR100 million to EUR180 million for the year.

  • Revenue Growth Outlook: 10% to 20% for full year 2025 at constant currency basis.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • ASM International NV (ASMIY) reported Q1 2025 revenue of EUR839 million, exceeding the midpoint of their guidance range.

  • Equipment sales increased by 25% at constant currencies, driven by strong demand for ALD and Epi tools.

  • Gross margin improved to 53.4%, benefiting from a favorable product mix and cost reduction programs.

  • The company reported a strong free cash flow of EUR264 million, supported by improved accounts receivable collections.

  • ASM International NV (ASMIY) maintains a solid financial position with over EUR1.1 billion in cash.

Negative Points

  • ASM International NV (ASMIY) experienced a EUR250 million impairment of its stake in ASMPT due to reduced market valuation.

  • Memory sales were lower compared to the high levels in Q2 and Q3 of the previous year.

  • The power/analog/wafer segments continue to face pressure, with sales down year-on-year.

  • Currency translation losses amounted to EUR40 million, impacting financial results.

  • The outlook for the power/analog/wafer market, including silicon carbide, has deteriorated further.

Q & A Highlights

Q: Can you provide more color on the expected performance in the second half of the year, particularly regarding potential weaknesses? A: Paul Verhagen, CFO, explained that while gate-all-around remains strong, there is some uncertainty in other segments like power/analog/wafer and memory, which may see reductions. The elevated demand in spares and services seen in Q1 is not expected to continue at the same level throughout the year.