[Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) This section details ACM Research's financial performance for Q2 and H1 2025, including management commentary, key financial metrics, and the fiscal year 2025 outlook [Management Commentary and Highlights](index=1&type=section&id=Management%20Commentary%20and%20Highlights) Management expressed confidence in the company's performance, citing strong execution in the first half of 2025, continued momentum in China, and progress in global expansion - CEO Dr. David Wang highlighted good execution, strengthening confidence in the long-term growth opportunity in China, and progress in global expansion with tool deliveries planned to the U.S. in Q3[3](index=3&type=chunk) - The company announced major upgrades to its Ultra C wb Wet Bench cleaning tool, integrating patent-pending nitrogen bubbling technology, and has already received repeat orders for shipment this year and next[3](index=3&type=chunk) - ACM remains confident in its ability to drive long-term growth and increase market share in both China and global markets, positioning itself as a multi-product company with proprietary world-class technology to meet challenges from the AI transformation[3](index=3&type=chunk) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) ACM Research reported revenue of **$215.4 million** for Q2 2025, a **6.4%** increase year-over-year, with H1 revenue reaching **$387.7 million**, up **9.3%** Q2 Financial Performance (Three Months Ended June 30) | Metric | Q2 2025 (GAAP) (in millions) | Q2 2024 (GAAP) (in millions) | Q2 2025 (Non-GAAP) (in millions) | Q2 2024 (Non-GAAP) (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $215.4 | $202.5 | $215.4 | $202.5 | | **Gross Margin** | 48.5% | 47.8% | 48.7% | 48.2% | | **Income from Operations** | $31.7 | $37.6 | $41.5 | $51.9 | | **Net Income** | $29.8 | $24.2 | $36.8 | $37.5 | | **Diluted EPS** | $0.44 | $0.35 | $0.54 | $0.55 | H1 Financial Performance (Six Months Ended June 30) | Metric | H1 2025 (GAAP) (in millions) | H1 2024 (GAAP) (in millions) | H1 2025 (Non-GAAP) (in millions) | H1 2024 (Non-GAAP) (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $387.7 | $354.7 | $387.7 | $354.7 | | **Gross Margin** | 48.2% | 49.6% | 48.5% | 50.0% | | **Income from Operations** | $57.5 | $62.8 | $77.1 | $91.7 | | **Net Income** | $50.1 | $41.6 | $68.1 | $72.1 | | **Diluted EPS** | $0.74 | $0.61 | $1.01 | $1.07 | [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) The company has reaffirmed its full-year revenue guidance for fiscal year 2025, maintaining the previously stated range - ACM is maintaining its revenue guidance range of **$850 million to $950 million** for fiscal year 2025[4](index=4&type=chunk) [Operating Highlights and Detailed Financials (Q2 2025)](index=2&type=section&id=Operating%20Highlights%20and%20Detailed%20Financials%20%28Q2%202025%29) In Q2 2025, total shipments grew **1.9%** to **$206.4 million**, and the company achieved a milestone by delivering its **1,500th ECP chamber** - Total shipments in Q2 2025 were **$206.4 million**, an increase of **1.9%** from Q2 2024[7](index=7&type=chunk) - The company delivered its **1,500th electroplating (ECP) chamber**, marking a significant milestone in its plating technology adoption[7](index=7&type=chunk) Q2 2025 vs Q2 2024 Financial Breakdown | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $215.4 | $202.5 | +6.4% | | **GAAP Gross Margin** | 48.5% | 47.8% | +0.7 p.p. | | **GAAP Operating Expenses** | $72.8 | $59.2 | +22.9% | | **GAAP Operating Income** | $31.7 | $37.6 | -15.7% | | **GAAP Net Income** | $29.8 | $24.2 | +23.1% | | **GAAP Diluted EPS** | $0.44 | $0.35 | +25.7% | - Cash and cash equivalents, plus restricted cash and time deposits, totaled **$483.9 million** at the end of Q2 2025, down from **$498.4 million** at the end of Q1 2025[13](index=13&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the detailed consolidated balance sheets, statements of operations, and revenue breakdown by product category for ACM Research [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, ACM's total assets grew to **$2.04 billion** from **$1.86 billion** at the end of 2024, driven by increases in cash, accounts receivable, and inventories Balance Sheet Summary (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $1,645,653 | $1,483,379 | | **Total Assets** | $2,039,715 | $1,855,721 | | **Total Current Liabilities** | $671,012 | $641,233 | | **Total Liabilities** | $848,026 | $759,815 | | **Total Equity** | $1,191,689 | $1,095,906 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations shows a **6.4%** revenue increase for Q2 2025 year-over-year, reaching **$215.4 million**, with gross profit growing to **$104.5 million** Q2 Statement of Operations Summary (in thousands) | Account | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $215,372 | $202,480 | | **Gross Profit** | $104,461 | $96,784 | | **Total Operating Expenses** | $72,767 | $59,191 | | **Income from Operations** | $31,694 | $37,593 | | **Net Income Attributable to ACM** | $29,760 | $24,210 | H1 Statement of Operations Summary (in thousands) | Account | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $387,719 | $354,671 | | **Gross Profit** | $187,011 | $175,905 | | **Total Operating Expenses** | $129,540 | $113,080 | | **Income from Operations** | $57,471 | $62,825 | | **Net Income Attributable to ACM** | $50,140 | $41,643 | [Total Revenue by Product Category](index=7&type=section&id=Total%20Revenue%20by%20Product%20Category) For Q2 2025, revenue from 'Single wafer cleaning, Tahoe and semi-critical cleaning equipment' remained relatively flat but continues to be the largest contributor at **$155.0 million** Revenue by Product Category (in thousands) | Product Category | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Single wafer cleaning, Tahoe and semi-critical cleaning | $154,961 | $153,221 | $284,530 | $262,691 | | ECP, furnace and other technologies | $48,016 | $38,962 | $75,646 | $64,762 | | Advanced packaging (ex-ECP), services & spares | $12,395 | $10,297 | $27,543 | $27,218 | | **Total Revenue** | **$215,372** | **$202,480** | **$387,719** | **$354,671** | [Supplemental Information](index=3&type=section&id=Supplemental%20Information) This section provides reconciliation of GAAP to non-GAAP financial measures and other important disclosures regarding the company's operations and future outlook [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation of GAAP to non-GAAP financial results for the three and six months ended June 30, 2025 - Non-GAAP measures exclude **stock-based compensation (SBC)** and, for net income and EPS, also exclude **unrealized gains/losses on short-term investments**[11](index=11&type=chunk)[25](index=25&type=chunk) Q2 2025 GAAP to Non-GAAP Reconciliation Summary (in thousands) | Metric | GAAP (in thousands) | SBC Adjustment (in thousands) | Other Adjustments (in thousands) | Non-GAAP (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Gross Profit** | $104,461 | $(356) | - | $104,817 | | **Income from Operations** | $31,694 | $(9,770) | - | $41,464 | | **Net Income Attributable to ACM** | $29,760 | $(9,770) | $2,730 | $36,800 | H1 2025 GAAP to Non-GAAP Reconciliation Summary (in thousands) | Metric | GAAP (in thousands) | SBC Adjustment (in thousands) | Other Adjustments (in thousands) | Non-GAAP (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Gross Profit** | $187,011 | $(885) | - | $187,896 | | **Income from Operations** | $57,471 | $(19,587) | - | $77,058 | | **Net Income Attributable to ACM** | $50,140 | $(19,587) | $1,648 | $68,079 | [Other Information](index=3&type=section&id=Other%20Information) This section includes logistical details for the upcoming investor conference call, standard forward-looking statement disclaimers, and a brief overview of ACM Research's business operations - A conference call to discuss the results is scheduled for **August 6, 2025, at 8:00 a.m. Eastern Time**[8](index=8&type=chunk) - The report contains **forward-looking statements** that involve risks and uncertainties, and readers are cautioned not to place undue reliance on them[14](index=14&type=chunk) - ACM develops, manufactures, and sells semiconductor process equipment for wet cleaning, electroplating, polishing, and other critical processes for advanced semiconductor manufacturing and wafer-level packaging[15](index=15&type=chunk)

Core Viewpoint - ACM Research, Inc. reported strong financial results for Q2 2025, highlighting growth in revenue and net income, driven by robust demand for its semiconductor processing solutions, particularly in China and globally [2][10]. Financial Performance - Revenue for Q2 2025 was $215.4 million, a 6.4% increase from $202.5 million in Q2 2024 [10]. - Gross margin improved to 48.5% from 47.8% year-over-year, with non-GAAP gross margin at 48.7% compared to 48.2% [10]. - Net income attributable to ACM Research, Inc. was $29.8 million, up from $24.2 million in the same quarter last year [10]. - Basic EPS increased to $0.47 from $0.39, while diluted EPS rose to $0.44 from $0.35 [10]. Operational Highlights - Total shipments in Q2 2025 reached $206.4 million, reflecting a 1.9% increase from Q2 2024 [4]. - The company announced significant upgrades to its Ultra C wb Wet Bench cleaning tool, enhancing etching rate uniformity by over 50% [5]. - ACM delivered its 1,500th electroplating chamber, underscoring its leadership in high-performance electroplating equipment [5]. Market Outlook - ACM maintains its revenue guidance for fiscal year 2025 in the range of $850 million to $950 million, considering factors like international trade policy and customer spending scenarios [3]. - The company is optimistic about long-term growth opportunities in China and is expanding its global footprint with planned tool deliveries to the U.S. [2]. Product Performance - Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning equipment was $155 million in Q2 2025, slightly up from $153.2 million in Q2 2024 [23]. - ECP and other technologies generated $48 million in revenue, compared to $39 million in the previous year [23]. - Advanced packaging and services contributed $12.4 million, up from $10.3 million year-over-year [23].

Core Viewpoint - ACM Research, Inc. reported strong financial results for Q2 2025, with revenue growth and improved gross margins, while also highlighting advancements in technology and expansion plans in both China and global markets [2][3][11]. Financial Performance - Revenue for Q2 2025 was $215.4 million, a 6.4% increase from $202.5 million in Q2 2024 [11]. - Gross margin improved to 48.5% from 47.8% year-over-year, exceeding the company's long-term target range of 40% to 45% [11]. - Operating income decreased to $31.7 million from $37.6 million, with an operating margin of 14.7% compared to 18.6% in the previous year [11]. - Net income attributable to ACM Research, Inc. was $29.8 million, up from $24.2 million in Q2 2024, resulting in a diluted EPS of $0.44 compared to $0.35 [11][17]. Product and Technology Developments - The company announced major upgrades to its Ultra C wb Wet Bench cleaning tool, which features a patent-pending nitrogen bubbling technology that enhances etching rate uniformity by over 50% [4][11]. - ACM delivered its 1,500th electroplating chamber, marking a significant milestone in its growth in plating technology adoption [5]. Market Outlook - ACM maintains its revenue guidance for fiscal year 2025 in the range of $850 million to $950 million, reflecting ongoing assessments of international trade policies and customer spending [3]. - The company is experiencing continued momentum in its product lines, particularly in China, and has raised its long-term revenue target for the mainland China market [2][3]. Operational Highlights - Total shipments in Q2 2025 were $206.4 million, a 1.9% increase from Q2 2024 [4]. - The company is making strides in global expansion, with several tool deliveries planned to the U.S. in Q3 2025 [2].

Core Insights - ACM Research, Inc. has announced significant upgrades to its Ultra C wb cleaning tool, incorporating a patent-pending nitrogen bubbling technique to enhance wet etching uniformity and cleaning performance [1][2]. Group 1: Technology Enhancements - The upgraded Ultra C wb tool features nitrogen (N2) bubbling technology that addresses issues of poor wet etching uniformity and by-product regrowth commonly found in conventional wet bench processes [2]. - The N2 bubbling technique improves the transport efficiency of phosphoric acid and promotes uniformity in temperature, concentration, and flow velocity within the wet etching bath [2]. - This technology is particularly applicable in the manufacturing processes for 3D DRAM, 3D logic, and 500+ layer 3D NAND devices [2]. Group 2: Performance Improvements - The Ultra C wb platform enhances within-wafer and wafer-to-wafer wet etching uniformity by more than 50% compared to conventional batch processes [6]. - The advanced cleaning capabilities of the Ultra C wb platform have demonstrated effective removal of organic residues from special phosphoric acid additives in advanced-node processes [6]. - The upgraded tool is qualified for three layers of advanced-node processes, including stack silicon nitride removal and channel hole polysilicon etch back [6]. Group 3: Proprietary Technology - The nitrogen bubbling technology generates large-size bubbles with good uniformity, with bubble density being precisely controllable [6]. - The N2 bubbling core technology can also be applied to ACM's Ultra C Tahoe platform, addressing future process requirements for customers [6]. Group 4: Market Position - ACM Research, Inc. is a leading supplier of wafer and panel processing solutions for semiconductor and advanced packaging applications, committed to delivering high-performance, cost-effective process solutions [1][7].

Core Viewpoint - ACM Research, Inc. will release its financial results for the second quarter of 2025 on August 6, 2025, before the U.S. market opens, followed by a conference call to discuss the results [1]. Group 1: Earnings Call Details - The earnings call for the second quarter ended June 30, 2025, is scheduled for 8:00 a.m. U.S. Eastern Time on August 6, 2025 [2]. - Participants must complete an online registration process to join the conference call via telephone, which aims to reduce delays due to operator congestion [2][3]. - A live and archived webcast of the conference call will be available on ACM's website [3]. Group 2: Company Overview - ACM develops, manufactures, and sells semiconductor process equipment, including cleaning, electroplating, and wafer-level packaging tools [4]. - The company focuses on delivering customized, high-performance, and cost-effective process solutions to improve productivity and product yield for semiconductor manufacturers [4].

Group 1 - ACM Research, Inc. (ACMR) closed at $28.53, with a +1.97% change from the previous day, outperforming the S&P 500's daily loss of 0.07% [1] - Prior to the latest trading session, ACMR shares had gained 11.83%, surpassing the Computer and Technology sector's gain of 5.58% and the S&P 500's gain of 3.94% [1] Group 2 - ACM Research, Inc. is expected to report an EPS of $0.42, reflecting a decrease of 23.64% from the prior-year quarter, while revenue is anticipated to be $221.04 million, indicating a 9.17% increase compared to the year-ago quarter [2] - For the full year, earnings are projected at $2 per share and revenue at $912.29 million, representing changes of -11.5% and +16.64%, respectively, from the prior year [3] Group 3 - Recent changes to analyst estimates for ACM Research, Inc. suggest a favorable outlook on the business health and profitability, as these revisions typically reflect short-term business trends [4] - The Zacks Rank system, which evaluates estimated changes, currently ranks ACM Research, Inc. at 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [6] Group 4 - ACM Research, Inc. is trading with a Forward P/E ratio of 13.99, which aligns with the industry average Forward P/E of 13.99 [7] - The Semiconductor Equipment - Material Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [7][8]

Group 1 - ACM Research (NASDAQ: ACMR) is strategically positioned in the semiconductor capital equipment sector, generating over 99% of its revenue from China in 2024 [1] - The company specializes in advanced wafer-cleaning and electroplating technologies, which are critical for semiconductor manufacturing [1] Group 2 - The article highlights the growing importance of companies like ACMR in the semiconductor industry, particularly in the context of increasing demand for advanced manufacturing processes [1]

Investment Rating - The report maintains an "Overweight" (OW) rating on Naura, AMEC, and ACMR, with revised target prices reflecting positive outlooks for these companies [6][37][55]. Core Insights - The outlook for China's wafer fab equipment (WFE) market remains strong, driven by better-than-expected demand from logic foundries and ongoing localization efforts [1][2]. - The total addressable market (TAM) forecast for China WFE has been raised from $36.6 billion (down 12% year-over-year) to $40.3 billion (down 3% year-over-year) for 2025, and from $35.1 billion (down 4% year-over-year) to $36.2 billion (down 10% year-over-year) for 2026 [3][9]. - China is expected to continue gaining market share in WFE, with approximately 25% of foundry capital expenditures allocated to domestic WFE in 2025, up from 20% in 2024 [4]. Market Demand and Supply Dynamics - Strong demand for logic foundries in China is anticipated in the second half of 2025, with expectations of increased spending related to AI applications [2][9]. - Despite concerns regarding oversupply in mature nodes, the report suggests that government initiatives may prioritize localization over economic rationale in the second half of 2025 [5]. - The report indicates that imports of semiconductor equipment into China may recover starting in July 2025, following a decline in early 2025 [21]. Company-Specific Developments - Naura has expanded its product portfolio, launching new ion implant equipment, and is expected to benefit from the increasing localization of semiconductor manufacturing in China [4][37]. - The report highlights that leading Chinese WFE players are likely to capture larger shares of the market due to their expanding product pipelines and advanced R&D capabilities [6][37]. - Naura's revenue growth is projected to be supported by increased capital expenditures from logic foundry and memory customers in 2025 [37][51]. Financial Projections - The report revises Naura's earnings estimates upward for 2025-2027, reflecting strong demand and market share gains [51][52]. - Naura's net sales are projected to increase from Rmb 41.88 billion in 2025 to Rmb 61.42 billion by 2027, with corresponding net income growth [63][66].

Core Viewpoint - ACM Research, Inc. is experiencing a positive stock performance, with a recent closing price of $26.51, reflecting a 1.77% increase from the previous day, outperforming major indices like the S&P 500, Dow, and Nasdaq [1] Financial Performance - The upcoming earnings report for ACM Research, Inc. is projected to show earnings of $0.42 per share, representing a year-over-year decline of 23.64% [2] - Revenue is expected to be $221.04 million, indicating a 9.17% growth compared to the same quarter last year [2] - For the annual period, earnings are anticipated to be $2 per share, with revenue projected at $912.29 million, reflecting shifts of -11.5% and +16.64% respectively from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for ACM Research, Inc. indicate evolving short-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations and profit generation [4] - The Zacks Rank system, which incorporates these estimate changes, currently assigns ACM Research, Inc. a rank of 4 (Sell) [6] Valuation Metrics - ACM Research, Inc. is trading at a Forward P/E ratio of 13.02, which aligns with the industry average [7] - The Semiconductor Equipment - Material Services industry, to which ACM Research belongs, ranks in the bottom 5% of all industries, with a current Zacks Industry Rank of 236 [7][8]

Financial Performance - ACM Research achieved revenue of $7821 million in FY24, a 40% increase year-over-year from $5577 million in FY23[14, 44] - The company's non-GAAP gross profit for 2024 was $3939 million, representing a 504% gross margin, compared to $2776 million and 498% in 2023[48] - Non-GAAP operating income reached $2006 million in 2024, a 628% increase year-over-year, representing 256% of revenue[33] - Diluted non-GAAP earnings per share (EPS) increased to $226 in 2024, compared to $163 in 2023[33, 46] - Q4 2024 revenue was $2235 million, a 31% increase compared to $1703 million in Q4 2023[33, 35] Product Mix and Market - Cleaning products accounted for 74% of the company's revenue in FY24[14] - ECP, Furnace & Other products contributed 19% to the revenue in FY24[14] - Advanced Packaging & Other products made up 7% of the revenue in FY24[14] - ACM Research estimates its current product portfolio addresses a $18 billion Serviceable Available Market (SAM)[21, 27]