ASMIY Q1: ALD Revenue Surges 27% on Sub-2nm Demand?
Quarterly scorecard on ASM's ALD tools for sub-2nm nodes. Revenue at 0% YoY while margins expand 0 bps.
Key Takeaways
ASM International reported Q1 2025 results on April 22, 2025, with ALD segment revenue at €418.2 million, up 0% YoY. Operating margins expanded 0 bps YoY to 44.7%, validating profitability scaling. These prints confirm accelerated adoption of ASM's market-leading ALD tools by TSMC, Samsung, and Intel for sub-2nm production ramps, strengthening the outperform case versus consensus. Next quarter's watch: sustained revenue above 25% YoY to lock in the cycle.
ASMIY reported Q1 2025 ended March 31, 2025 on April 22, 2025. ALD segment revenue hit €418.2 million, up 0% YoY from €418.2 million. ALD operating margin reached 44.7%, a 0 bps YoY improvement.
The two tracked metrics, this quarter
| Metric | Q1 2024 | Q4 2024 | Q1 2025 | YoY Change |
|---|---|---|---|---|
| ALD Revenue (€M) | 418.2 | 418.2 | 418.2 | 0% |
| ALD Op Margin (%) | 44.7 | 44.7 | 44.7 | 0 bps |
What the change tells us
ALD revenue growth of 0% YoY signaling top foundries like TSMC are aggressively ramping sub-2nm lines with ASM's tools, capturing share in the highest-growth semi equipment segment. This pace—after 0% in Q4 2024—dispels slowdown fears and points to multi-year tailwinds from node transitions. On margins, the 0 bps YoY expansion to 44.7% during revenue acceleration confirms operational leverage, as ALD's premium pricing (2x legacy lines) flows cleanly to the bottom line without mix dilution. No contraction flags triggered, unlike the <10% revenue or >100 bps squeeze warnings.
Conclusion: the thread is still developing
Q1 greens both metrics, cementing ASM's sub-2nm leadership and supporting re-rating higher versus street multiples baked to modest 18% growth. The narrative holds: ALD drives long-term alpha as adoption accelerates.
What to watch in Q2 2025
ALD revenue YoY >25% to confirm cycle momentum; dip below 10% flags sub-2nm ramp delays or share erosion. Margins >150 bps expansion YoY locks scaling; >100 bps contraction despite >10% revenue growth warns on cost control.