ACM Research 2025 Q2 Earnings Strong Performance as Net Income Surges 15.5%

ACM Research reported its fiscal 2025 Q2 earnings on August 8, 2025, delivering results that exceeded expectations with double-digit net income growth. The company’s revenue increased modestly, while it provided optimistic guidance for the upcoming quarter, signaling continued momentum in its core markets.

Revenue
ACM Research reported total revenue of $215.37 million in Q2 2025, a 6.4% increase compared to $202.48 million in the same period last year. The company’s core single-wafer cleaning, Tahoe, and semi-critical cleaning equipment segment remained a strong driver, contributing $154.96 million. ECP (front-end and packaging), furnace, and other technologies accounted for $48.02 million, while the advanced packaging (excluding ECP), services, and spares segment added $12.39 million to the total revenue.

Earnings/Net Income
Earnings per share (EPS) increased by 20.5% to $0.47 in 2025 Q2, compared to $0.39 in 2024 Q2. Net income also rose to $36.27 million in Q2 2025, a 15.5% increase from $31.40 million a year earlier. This marked a new nine-year high for fiscal Q2 net income, underscoring the company’s improving profitability and operational efficiency. The performance reflects the company’s solid execution and continued demand in its key markets.

Price Action
The stock price of ACM Research experienced a notable decline in the period following the earnings report. Over the latest trading day, the stock fell by 6.11%, and over the past full trading week, it dropped by 20.06%. Month-to-date, the stock has declined by 14.93%, reflecting investor caution and mixed reactions to the earnings release and broader market conditions.

Post-Earnings Price Action Review
A strategy of buying ACMR following the earnings beat and holding for 30 days yielded a return of -35.02%, significantly underperforming the benchmark return of 86.19%. The strategy’s compound annual growth rate (CAGR) was -8.32%, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.10. These metrics indicate a high-risk investment approach with no positive returns, highlighting the market’s volatility and the challenges in capitalizing on the earnings beat.

CEO Commentary
Dr. X, the CEO of ACM Research, highlighted the company’s strong performance in Q2 2025, driven by increased demand in its core semiconductor cleaning technology segment. The leadership team successfully navigated ongoing industry volatility and supply chain challenges. Looking ahead, the CEO emphasized strategic investments in R&D and global manufacturing capabilities to maintain a competitive edge. He also expressed cautious optimism about the long-term market outlook, given the continued growth in semiconductor demand across key markets. The leadership tone reflected a balanced approach between seizing growth opportunities and managing operational risks.

Guidance
ACM Research provided forward-looking guidance, expecting revenue growth in Q3 2025 with continued improvements in gross margin as production scales. The company reiterated its focus on long-term profitability and intends to maintain capital expenditures in line with current operational needs. While not specifying exact figures, the CEO stated that the company expects to see continued momentum in its core markets and maintain EPS growth in the mid-single-digit range.

Additional News
Recent international news included heightened tensions in the Middle East, as rifts emerged over a proposed Gaza plan ahead of a critical cabinet meeting, with the UN chief warning against trade wars. In the Americas, President Trump ordered the U.S. Census to exclude illegal immigrants and nominated a key economic adviser to the Federal Reserve Board. Meanwhile, in Asia, India pushed back after the U.S. doubled import levies, and a Chinese film on the Nanjing Massacre made its U.S. debut. Additionally, Portugal extended its national alert due to the worst wildfire season in years, and the first illegal migrants were detained in Britain under a return deal with France. These global developments underscore the complex geopolitical and economic landscape shaping markets.