Amtech Systems 2025 Q3 Earnings Beats Expectations Despite Net Income Decline

Amtech Systems (ASYS) reported fiscal 2025 Q3 earnings on Aug 07th, 2025. The company exceeded expectations with $19.6 million in revenue, a 26% increase from the prior quarter, despite a 26.9% year-over-year drop to $19.56 million. Net income fell sharply by 75.8% to $106,000 from $438,000 in 2024 Q3, while EPS declined 66.7% to $0.01. The earnings call emphasized structural cost savings and strong demand in the advanced packaging market.

Revenue
Amtech Systems reported total revenue of $19.56 million in 2025 Q3, a decrease of 26.9% compared to $26.75 million in 2024 Q3. The decline was attributed to ongoing weakness in the mature-node semiconductor market, which led to lower sales of wafer cleaning equipment, diffusion systems, and high-temperature furnaces. However, the decline was partially offset by increased sales of advanced packaging solutions. Specifically, the Thermal Processing Solutions segment generated $14.21 million in revenue, while the Semiconductor Fabrication Solutions segment contributed $5.35 million. No revenue was reported under the "Non-segment related" category.

Earnings/Net Income
Amtech Systems's earnings per share (EPS) declined by 66.7% to $0.01 in 2025 Q3 from $0.03 in 2024 Q3. Meanwhile, the company's net income dropped to $106,000 in 2025 Q3, representing a 75.8% decrease from the $438,000 reported in 2024 Q3. The decline in net income was primarily due to continued weakness in the mature-node semiconductor market and lower sales volume. However, the company's gross margin showed a slight improvement, with the benefit of a $1.0 million Employee Retention Credit (ERC) refund. Excluding the ERC, normalized gross margin was 41.5%, an improvement from 36.5% in the third quarter of fiscal 2024.

Price Action
The stock price of Amtech Systems has edged up 0.22% during the latest trading day, has dropped 3.03% during the most recent full trading week, and has dropped 5.68% month-to-date.

Post Earnings Price Action Review
The strategy of buying Amtech Systems (ASYS) shares on the date of its quarterly earnings release and holding for 30 days showed favorable performance over the past three years. The cumulative return was 22.8%, significantly outperforming the NASDAQ Composite's 14.8% return over the same period. This indicates a robust short-to-medium-term investment approach, capitalizing on positive earnings surprises and subsequent price appreciation.

CEO Commentary
Mr. Bob Daigle, Chief Executive Officer of Amtech, highlighted that the company exceeded expectations in Q3, reporting $19.6 million in revenue, a 26% increase from the prior quarter, driven by strong performance in both Thermal Processing Solutions and Semiconductor Fabrication Solutions. He noted ongoing strength in the advanced packaging market and stabilizing demand in the mature-node semiconductor market. Additionally, Daigle emphasized $13 million in annualized cost savings from operational optimizations over the past 18 months, expressing optimism that structural changes and focused R&D investments will enable profitable growth in the future.

Guidance
Amtech expects continued strength in the advanced packaging market and a stabilization in demand for mature-node semiconductor products. The company believes its recent operational improvements, including $13 million in annualized savings, and ongoing investments in product and application development will support long-term profitable growth. No specific quantitative guidance was provided for future periods in the report.

Additional News
Amtech Systems announced a conference call on August 6, 2025, to discuss its fiscal third quarter financial results. The call will be available to interested parties by dialing 1-800-717-1738 or +1-646-307-1865 for international callers. A live webcast will be available on the company’s website, and a replay will be accessible afterward for approximately 30 days. The company also provided updated cash and liquidity figures, with unrestricted cash and cash equivalents at $15.6 million as of June 30, 2025, up from $11.1 million at September 30, 2024. This was attributed to operational cash generation and strong accounts receivable collections. Additionally, Amtech outlined its expectations for the fiscal fourth quarter ending September 30, 2025, projecting revenues in the range of $17 to $19 million, with growth in AI-related equipment sales partially offsetting continued softness in mature-node semiconductor product lines.