ACM Research Q2 Earnings Call Highlights

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ACM Research (NASDAQ:ACMR) reported second-quarter revenue of $292.9 million, up 36% from a year earlier, as growth in electroplating, furnace and advanced-packaging products offset a decline in cleaning-related revenue. The semiconductor equipment supplier also raised the midpoint of its full-year revenue outlook and said orders rose 105% in the first half of 2026.

Chief Executive Officer Dr. David Wang said revenue and shipments both increased 36% year over year in the June quarter. Revenue from the company’s electrochemical plating, furnace and other technology category rose 168%, while revenue from advanced packaging, excluding ECP but including services and spares, increased 153%.

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“The June quarter marked another period of strong execution for ACM Research,” Wang said, adding that ECP and advanced-packaging product categories each grew more than 150% year over year.

Financial Results and Outlook

ACM reported non-GAAP gross margin of 46.0%, compared with 48.7% a year earlier, and operating margin of 19.2%, essentially flat with 19.3% in the prior-year period. Non-GAAP operating income increased to $56.3 million from $41.5 million.

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Net income attributable to ACM Research was $44.5 million, compared with $37.3 million a year earlier. Diluted earnings per share were $0.61, up from $0.55.

The company increased its 2026 revenue guidance to a range of $1.125 billion to $1.175 billion, from its prior range of $1.08 billion to $1.175 billion. The new forecast implies annual revenue growth of 25% to 30%. Management continues to expect shipment growth to exceed revenue growth this year.

Chief Financial Officer Mark McKechnie said the company expects full-year research and development spending to represent 16% to 18% of revenue, sales and marketing spending to be around 8%, and general and administrative spending to be 5% to 6% of revenue. ACM maintained its long-term gross-margin target range of 42% to 48%.

Cash, cash equivalents, restricted cash and time deposits totaled $1.36 billion at quarter-end, while net cash was $1.0 billion. The company said approximately $300 million of net cash was held on its U.S. balance sheet, following a $150 million direct offering completed in May.

ACM used $6.4 million in operating cash flow during the quarter and spent $65.4 million on capital expenditures. McKechnie reiterated expected capital expenditures of about $175 million for the full year, reflecting continued investment in production and global operations.

Product Mix Shifts Toward Plating and Packaging

Revenue from single-wafer cleaning, Tahoe and semi-critical cleaning products totaled $133 million, down 14.2% from a year earlier and representing 45.4% of total sales. Wang said the category included little contribution from newer products, particularly its single-wafer hot sulfuric peroxide mixture, or SPM, tools.

The company said it shipped a handful of single-wafer SPM systems during the first half and expects to ship more in the second half, targeting more than 20 systems by year-end. Wang said ACM expects its broader cleaning revenue to recover as customers qualify initial tools and repeat shipments increase.

ACM also expanded capabilities on its Ultra C Tahoe platform, adding wet etching and monitor-wafer reclaim applications. The company said the expanded platform has been adopted by multiple leading semiconductor manufacturers.

Meanwhile, revenue from ECP, front-end and packaging, furnace and other technologies reached $128.5 million, accounting for 43.9% of sales. Wang said demand was supported by both front-end and back-end plating applications, including increased copper-processing requirements tied to larger logic dies, more interconnect layers and higher-bandwidth memory packaging.

During the quarter, ACM shipped its 2,000th electroplating chamber. The company had shipped its 1,500th chamber in 2025 and its 500th chamber in 2022.

Panel-Level Packaging Orders and Global Expansion

Wang announced that ACM received orders from two advanced-packaging customers for horizontal panel-level plating systems. One was a production order from an existing customer in mainland China for a 510-by-515 millimeter panel format, while the other was an evaluation system for a new customer in Asia using a 310-by-310 millimeter format.

Management said it believes ACM will be among the first companies to deliver horizontal panel-level plating systems to multiple customers across regions. Wang described panel-level packaging as a potential long-term growth opportunity as artificial intelligence-related chip designs increase in complexity and size.

The company also said its PECVD and track platforms are progressing through customer evaluations. ACM expects production qualification for a PECVD tool shipped to a new customer in the first quarter, as well as its high-throughput KrF track tool, by the end of 2026.

Outside mainland China, ACM said it expects to have more than 20 tools installed at customer sites by year-end, spanning roughly 10 customers in five countries. Wang cited activity in Singapore and North America, while highlighting the planned opening later this year of a U.S.-based demo center in Oregon.

ACM’s first Lingang production building is already in volume production, and the company expects to open a second building later this year. Together, the two facilities can support up to $3 billion in annual output, according to management.

Orders, Supply Chain and Customer Diversification

Management said first-half orders rose 105% year over year across product categories, with relatively greater emphasis on newer products. McKechnie said some orders received in 2026 may not be fulfilled this year, potentially supporting growth into 2027.

The company acknowledged that component availability remains tight, with longer lead times for certain parts. However, McKechnie said ACM does not anticipate a significant impact on gross margin, citing inventory purchased in advance and the company’s existing supply arrangements.

Customer concentration also declined. During the first half, ACM had one customer representing more than 10% of revenue, accounting for 12.7% of the mix. In the first half of 2025, three customers represented 49.9% of revenue.

About ACM Research (NASDAQ:ACMR)

ACM Research, Inc (NASDAQ:ACMR) designs, develops and markets wet processing equipment for the semiconductor industry. The company focuses on advanced wafer cleaning technologies that address critical contamination-control requirements for logic, memory and advanced packaging applications. Since its founding in 2003, ACM Research has engineered modular platform tools that can be configured for a range of spin, scrub and batch cleaning processes.

Its product portfolio encompasses single-wafer spin cleaning systems featuring high-purity megasonic capabilities, dynamic chemical scrubbing modules for post-CMP residue removal and batch-process cleaning equipment designed for high-throughput production environments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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