ACM Research 2025 Q1 Earnings Strong Performance as Net Income Surges 13.2%

ACM Research(ACMR) reported its fiscal 2025 Q1 earnings on May 12th, 2025. ACM Research exceeded expectations, reporting a 13% year-over-year revenue increase to $172.3 million for Q1 2025. The company maintained its guidance, forecasting revenue between $850 million to $950 million for the fiscal year. This aligns with management’s positive outlook amid international trade policy impacts and customer spending scenarios. ACM Research's robust performance reflects strategic milestones and technological leadership, contributing to its sustained growth trajectory.

Revenue
ACM Research demonstrated substantial revenue growth in Q1 2025, with a total of $172.35 million, marking a 13.2% increase from the previous year. The single wafer cleaning, Tahoe, and semi-critical cleaning equipment segments led with $129.57 million. Meanwhile, the ECP (front-end and packaging), furnace, and other technologies contributed $27.63 million. Advanced packaging, services, and spares excluding ECP added $15.15 million to the overall revenue, showcasing the company's diverse product offerings.

Earnings/Net Income
ACM Research's EPS rose 14.3% to $0.32 in 2025 Q1 from $0.28 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $25.01 million in 2025 Q1, marking 13.2% growth from $22.09 million in 2024 Q1. Remarkably, in 2025 Q1, the company set a new record high for fiscal Q1 net income, the highest in 9 years. The EPS performance reflects positive growth and profitability.

Price Action
The stock price of ACM Research has edged up 2.24% during the latest trading day, has surged 24.91% during the most recent full trading week, and has surged 22.24% month-to-date.

Post-Earnings Price Action Review
The strategy of buying ACMR when there is a revenue miss and holding for 30 days resulted in poor performance. The strategy yielded a return of -3.71%, significantly underperforming the benchmark return of 95.08%. The excess return was -98.79%, and the CAGR was -0.76%. This strategy exhibited a high maximum drawdown of -88.74%, highlighting substantial risk and negative returns. The Sharpe ratio of -0.01 further underscored the unfavorable risk-adjusted performance. Despite the negative results of this approach, ACM Research's stock showed notable price increases in recent trading periods, driven by other factors beyond earnings misses. Investors should consider the broader market context and company fundamentals when evaluating stock strategies.

CEO Commentary
“Our first quarter results mark a good start to 2025. We delivered 13% year-over-year revenue growth, solid profitability, and positive cash flow from operations,” said Dr. David Wang, President and Chief Executive Officer of ACM Research. He highlighted strategic milestones, including the qualification of a high-temperature SPM tool by a leading customer in China and acceptance of a backside/bevel etch tool from a U.S. client. Dr. Wang expressed confidence in ACM’s technology leadership within the semiconductor industry, anticipating incremental revenue contributions from various tools and ongoing investments in the Oregon facility to support customer evaluations and technology development.

Guidance
ACM Research is maintaining its revenue guidance range of $850 million to $950 million for fiscal year 2025. This outlook reflects management’s assessment of the impact from international trade policy, customer spending scenarios, supply chain constraints, and the timing of tool acceptances.

Additional News
ACM Research announced the appointment of Charlie Pappis to its Board of Directors, effective March 15, 2025, enhancing its leadership team with his industry expertise. The company also secured the prestigious 2025 3D InCites Technology Enablement Award for its Ultra ECP ap-p tool, recognized for innovation in semiconductor packaging solutions. Furthermore, ACM Research is investing in its Oregon facility, aiming to enhance technology development and serve as a base for customer evaluations and initial production for global clients. These strategic moves underscore ACM’s commitment to technological advancement and market leadership.