ACM Research, Inc. Q4 FY2025 earnings call

• CEO David Wong noted revenue grew 9% in Q1 and 15% for full year 2025. Investment in AI and data center infrastructure is reshaping semiconductor demand. ACM's technology portfolio aligns with high value process steps. Announced delivery of single wafer cleaning tools to Singapore facility and multiple orders for advanced packaging tools. - Progress with new product platforms, including new SPM nozzle design achieving best-in-class performance, supercritical CO2 tool with reduced CO2 consumption, and advancements in furnace, track, and PCVD platforms. - Lingang production and R&D center is primary production center, with two facilities supporting up to $3 billion annual output. Oregon facility investment expected to begin in second half of 2026. ACM Shanghai's private offering and share sales generated proceeds, enhancing financial flexibility.

For the fourth quarter of 2025, revenue was $244 million, up 9%. For the year 2025, revenue was $901 million, up 15%. Revenue from single wafer cleaning, Tahoe, and the semi-critical cleaning tool was $626 million in 2025, up 8%, representing 69% of total revenue. Revenue from ECP, front-end packaging, furnace, and other technologies was $64.1 million in Q4 2025, up 23.9%, and grew 32.1% for the year. Revenue from advanced packaging, excluding ECP, services, and spares was $20.5 million in Q4 2025, up 23.8%, and grew 45.3% for the year. Revenue from furnace was relatively small in 2025 but expected to contribute more meaningfully in 2026. Revenue from advanced packaging was up 45% in 2025 to $76 million, representing 8% of revenue.

In middle January, introduced 2026 revenue outlook in range of $1.08 to $1.175 billion, implying 25% year-over-year growth at midpoint. Remain committed to long-term target of $4 billion in revenue. Expect 2026 shipment growth rate to be higher than 2026 revenue growth rate. Anticipate gross margins to be at lower end of 42% to 48% range in first half of 2026, with lift in second half due to newer products.

• Forward-looking statements subject to risks and uncertainties causing actual results to differ materially, described in risk factors and SEC filings. - Gross margins affected by product mix, including semi-critical products with margin pressure and higher inventory provisions. - Uncertainties related to global market dynamics, competition, and regulatory requirements that could impact revenue and margins.

Q: Asked about growth excluding new products, A: Discussed SPM process, End-to-bubbling proprietary bubbling wet etching technology, supercritical CO2 dry tool, and copper plating products as drivers.

Q: Asked about profitability and operating margin pressure, A: Mentioned product mix, inventory provision, R&D investment, and expectation of new products and reduced inventory provision improving margins.

Q: Asked about Q4 margin, revenue growth, shipment decline, and use of proceeds from ACM Shanghai stock sale, A: Explained product mix, seasonality, new product progress, and proceeds used for R&D, manufacturing expansion, and global market development.

Q: Asked about potential size of treatments for single wafer cleaning tools to Singapore-based foundry and panel packaging with Taiwanese players, A: Discussed tool qualification, potential expansion in Asia and US markets, and ongoing engagement with Taiwanese customers.