Axcelis(US:ACLS) Prnewswire·2026-02-17 21:01Core Viewpoint - Axcelis Technologies reported strong financial results for Q4 and full year 2025, exceeding expectations, with a focus on growth in the semiconductor equipment market and a pending merger with Veeco Instruments that is expected to enhance their market position [1][2]. Financial Performance - Q4 2025 revenue was $238 million, down from $252 million in Q4 2024, while full year revenue was $839 million, a decrease from $1,018 million in 2024 [1][3]. - GAAP diluted earnings per share (EPS) for Q4 2025 was $1.10, compared to $1.54 in Q4 2024, and for the full year, GAAP EPS was $3.80, down from $6.15 in 2024 [1][3]. - Non-GAAP diluted EPS for Q4 2025 was $1.49, compared to $1.71 in Q4 2024, and for the full year, it was $4.88, down from $6.84 in 2024 [1][3]. Margins and Growth - GAAP gross margin for Q4 2025 was 47.0%, up from 46.0% in Q4 2024, while full year gross margin was 44.9%, slightly up from 44.7% in 2024 [1][3]. - Non-GAAP gross margin for Q4 2025 was 47.3%, compared to 46.3% in Q4 2024, and for the full year, it was 45.2%, up from 44.9% in 2024 [1][3]. - The company achieved double-digit growth in CS&I (Customer Support & Integration) for the full year, reflecting operational discipline and a favorable product mix [1][2]. Cash Flow and Shareholder Returns - Axcelis generated over $100 million in free cash flow for the year and returned more than $120 million to shareholders [1][2]. - The company reported a net cash used in operating activities of $6.6 million for Q4 2025, compared to $12.8 million provided in Q4 2024 [3]. Business Outlook - For Q1 2026, Axcelis expects revenues of approximately $195 million, with GAAP EPS of about $0.38 and non-GAAP EPS of approximately $0.71 [1][4]. - The company remains optimistic about improving demand trends in the Memory market and anticipates continued momentum into 2026 [1][2].