ACM Research 2025 Q3 Earnings 32% Revenue Growth, 20% Net Income Surge

ACM Research (ACMR) reported Q3 2025 results exceeding revenue expectations while narrowing its full-year guidance. The company’s 32% year-over-year revenue growth to $269.16 million outperformed analyst estimates, though profitability metrics showed compression. Management cited AI-driven demand and strategic capital raises as key growth drivers.

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Revenue

Single-wafer cleaning dominated the revenue stream with $181.57 million, while ECP (front-end and packaging), furnace, and other technologies contributed $59.85 million. Advanced packaging (excluding ECP), services, and spares added $27.74 million, completing the $269.16 million total. This diversification reflects the company’s shift toward higher-growth segments beyond its core cleaning business.

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Earnings/Net Income

Earnings per share (EPS) rose 14.3% to $0.56, with net income reaching $46.40 million—a 20% increase from the prior year. The record net income marked a nine-year high, underscoring improved profitability despite margin compression.

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Post-Earnings Price Action Review

The stock’s post-earnings trajectory revealed mixed signals: a modest 1.10% gain in the latest trading day contrasted with a 26.17% weekly and 25.47% monthly decline. This volatility highlights investor concerns over margin pressures, even as revenue growth exceeded expectations.

CEO Commentary

Dr. David Wang emphasized innovation in horizontal plating and high-temperature SPM platforms, noting 19nm particle performance. He highlighted $623 million in proceeds from ACM Shanghai’s capital raise, earmarked for next-gen tool development and capacity expansion. Leadership remains optimistic about AI and datacenter demand driving long-term growth.

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Guidance

ACM narrowed its 2025 revenue outlook to $875–$925 million, citing trade policy impacts and supply chain dynamics. Gross margin targets remain at 42%–48%, with long-term growth anchored to product innovation and market diversification.

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Additional News

1. Capital Raise: ACM Shanghai secured $623 million in net proceeds via a STAR Market offering, funding mini-line completion and production capacity expansion.

2. Product Launches: The KrF Track platform and Ultra ECDP electrochemical deplating tool were introduced, targeting lithography-adjacent applications and compound semiconductor processes.

3. Dividend Distribution: ACM Shanghai paid a $36.8 million cash dividend to shareholders during Q3, reflecting strong liquidity and operational confidence.

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ACM Research’s strategic focus on AI-driven semiconductor innovation and diversified product offerings positions it to capitalize on long-term industry tailwinds, despite near-term margin challenges.