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    ACMR
    Earnings call· Mar 2026(Q1 FY26)

    ACM Research Q1 FY26 earnings call ACMR

    May 7, 2026 Source

    Executive summary

    ACM Research Q1 FY26 — Strong Revenue Growth Driven by ECP and Advanced Packaging

    ACM Research delivered a solid Q1 FY26, with strong revenue growth driven by its ECP and Advanced Packaging segments, while the cleaning segment experienced a temporary decline. The company is seeing significant traction with new products like single-wafer SPM and panel-level horizontal plating, supported by its Lingang mini-line for faster qualification. ACM reiterated its full-year revenue outlook, expecting shipments to continue outpacing revenue, and is investing in global expansion and R&D to achieve its long-term growth targets.

    Highlights

    5

    • Revenue increased 34% year-over-year to $231.3 million.

    • ECP and Advanced Packaging revenue grew 204.9% and 62% respectively.

    • Shipments were up 54% year-over-year to $240.7 million, outpacing revenue growth.

    • Gross margin was 46.5%, above the midpoint of the long-term target range of 42%-48%.

    • Significant ramp expected for single-wafer SPM tools with 15-20 units to be delivered by year-end.

    Concerns

    2

    • Single-wafer cleaning revenue declined 5.5% year-over-year to $122.5 million.

    • Non-GAAP operating margin decreased to 18.1% from 20.7% in Q1 2025.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $1.08 billion to $1.175 billion
    high materiality
    High
    Annual Shipment Growth
    outpace revenue growth
    medium materiality
    High
    R&D as % of Sales
    16% to 18%
    medium materiality
    High
    Sales and Marketing as % of Sales
    8% to 9%
    medium materiality
    High
    G&A as % of Sales
    5% to 6%
    medium materiality
    High
    Effective Tax Rate
    8% to 10%
    medium materiality
    High
    Capital Expenditures
    about $175 million
    high materiality
    High
    Cleaning Segment Mix
    normalize towards the 65% level
    medium materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Single-wafer cleaning, Tahoe and semi-critical cleaning
    Represented 53% of total sales. Included very little contribution from new products in Q1. Shipments for cleaning grew 32% YoY.
    		$122.5 million-5.5%——
    ECP front-end packaging, furnace and other technologies
    Represented 36.4% of total sales. Majority was ECP front end, with very little contribution from furnace.
    		$84.2 million204.9%——
    Advanced packaging (excluding ECP, services and spares)
    Represented 10.6% of total sales. Includes coders, developers, etchers, scrubbers, and vacuum clean flux tools.
    		$24.5 million62%——

    Operational metrics

    26
    Revenue
    $231.3 millionup 34.2% YoY
    Q1 FY26

    Solid Q1 report.

    Shipments
    $240.7 millionup 53.6% YoY
    Q1 FY26

    Driven by strong customer demand and execution across product portfolio.

    Non-GAAP gross margin
    46.5%vs 48.2% YoY
    Q1 FY26

    Above the midpoint of the long-term target model.

    Non-GAAP operating expenses
    $65.8 millionup 38.5% YoY
    Q1 FY26

    Excludes stock-based compensation and unrealized gain/loss on short-term investments.

    R&D as % of sales
    15%
    Q1 FY26

    Current quarter R&D spending.

    Sales and marketing as % of sales
    8.3%
    Q1 FY26

    Current quarter sales and marketing spending.

    G&A as % of sales
    5.1%
    Q1 FY26

    Current quarter G&A spending.

    Non-GAAP operating income
    $41.8 millionvs $35.6 million YoY
    Q1 FY26

    Excludes stock-based compensation and unrealized gain/loss on short-term investments.

    Non-GAAP operating margin
    18.1%vs 20.7% YoY
    Q1 FY26

    Excludes stock-based compensation and unrealized gain/loss on short-term investments.

    Income tax expense
    $3.8 millionvs $2.2 million YoY
    Q1 FY26

    GAAP income tax expense.

    Non-GAAP net income attributable to ACM Research
    $24.3 millionvs $31.3 million YoY
    Q1 FY26

    Excludes $5.6 million in stock-based compensation expense.

    Non-GAAP net income per diluted share
    $0.34vs $0.46 YoY
    Q1 FY26

    Excludes stock-based compensation and unrealized gain/loss on short-term investments.

    Stock-based compensation expense
    $5.6 million
    Q1 FY26

    Excluded from non-GAAP results.

    Cash and investments balance
    $1.25 billionvs $1.13 billion at FY25 end
    Q1 FY26

    Balance at the end of the first quarter.

    Net cash
    $924.2 millionvs $844.5 million at FY25 end
    Q1 FY26

    Excludes short-term and long-term debt.

    Total inventory
    $738 millionvs $702.6 million at FY25 end
    Q1 FY26

    Balance at the end of the first quarter.

    Raw materials inventory
    $377.9 millionup $28.3 million QoQ
    Q1 FY26

    Additional strategic purchases made to support production plans and mitigate potential supply chain risk.

    Work in process inventory
    $81.6 millionup $20.2 million QoQ
    Q1 FY26

    Balance at the end of the first quarter.

    Finished goods inventory
    $278.4 milliondown $13.1 million QoQ
    Q1 FY26

    Balance at the end of the first quarter.

    Cash used by operations
    $29.5 million
    Q1 FY26

    Cash flow from operating activities.

    Capital expenditures
    $22 million
    Q1 FY26

    Current quarter capital expenditures.

    Gross proceeds from ACM Shanghai share sale
    $110 million
    February 2026

    Generated from a minority share sale, providing capital for global operations.

    Single-wafer SPM units to be delivered
    15 to 20 units
    FY26

    Expected production ramping across customer base.

    Cleaning shipments growth
    32%YoY
    Q1 FY26

    Reflects strong customer demand and execution.

    Cleaning project backlog increase
    50%vs last 1 year, first 6 months
    first 6 months

    Increase in purchase orders received, showing momentum.

    Global tools installed outside Mainland China
    more than 20 tools
    FY26

    Includes about 10 customers in 5 countries.

    Industry KPIs

    9
    MetricValueDetails
    Backlog order bookbuilding a backlog
    Ai data center revenue—
    Services installed baseup 62%%
    Fab capacity utilizationup to $3 billionUSD
    Bookings net order intake50%%
    Design wins socket pipeline—
    Inventory channel inventoryTotal inventory: $738 million; Raw materials: $377.9 million; Work in process: $81.6 million; Finished goods: $278.4 millionUSD
    Node platform ramp schedulefewer than 15 particle at 15-nanometerparticles
    End market segment revenue mixCleaning: $122.5M; ECP/Furnace/Other: $84.2M; Advanced Packaging (ex-ECP): $24.5MUSD

    Orderbook & backlog

    2
    Panel-level horizontal electroplating backlogbuilding a backlogQ1 FY26

    Supporting both 515x510mm and 310x310mm format panels. Successful customer evaluation expected to lead to volume production orders.

    Cleaning project backlogincreased 50%first 6 months

    up 50% vs prior year first 6 months

    Reflects increased purchase orders received for cleaning products.

    Product announcements

    5
    ProductTypeDetails
    ACM Planetary Familylaunch
    Single-wafer SPM toolsmilestone
    Panel-level horizontal electroplating platformmilestone
    PECVD silicon carbon nitride systemlaunch
    High-throughput 300 WPH KrF track toolmilestone

    Deals & partnerships

    2
    ACM Shanghai (minority investors)Minority share sale of ACM Shanghai$110 million

    Completed in February, generating gross proceeds that are now on U.S. accounts to support global expansion.

    Hong Kong Stock ExchangeProposed H-share secondary listing for ACM Shanghai

    ACM Shanghai announced a proposed H-share secondary listing in Hong Kong in April.

    Capital programs

    4
    Lingang Facility (First Building)in volume production

    The first building of the Lingang facility is currently in volume production.

    Lingang Facility (Second Building)planned

    Benefit: up to $3 billion in annual output (combined with first building)

    The second building is planned to open later this year, contributing to a combined annual output capacity of up to $3 billion.

    Lingang Mini-Linefully operational
    Start: H2 last year

    Benefit: accelerating R&D effort, speeding up joint R&D collaboration, shortening qualification cycle, enhancing capital efficiency

    Went into full operation in the second half of last year, providing a fully experimental R&D line in a Class 100 Environment. It allows for customer-specific validation before shipment, reducing on-site qualification time.

    Oregon Facilityon track

    Benefit: in-house demo lab with multiple tools, capability to produce U.S.-made tools

    Investment continues, on track for an in-house demo lab and U.S.-made tool production by year-end 2026, strengthening position as a key local partner.

    Risks & headwinds

    2
    Cleaning segment revenue declineQ1 FY26

    down 5.5% YoY to $122.5 million

    Mitigation: Problem-solving efforts over 12 months, Lingang production line usage, and strong interest in proprietary single-wafer SPM tools with 15-20 units expected to be delivered by year-end.

    Potential supply chain riskQ1 FY26

    Raw materials inventory up $28.3 million QoQ to $377.9 million

    Mitigation: Made additional strategic purchases of raw materials to support production plans and mitigate potential supply chain risk.

    What to watch in Q2 FY26

    5

    Single-wafer SPM deliveries

    by year-end 2026
    CurrentLittle contribution to Q1 revenue
    Target15 to 20 units delivered by year-end

    Why it matters

    Successful delivery of these units will demonstrate the ramp-up of a key new product and its potential to capture significant market share in the cleaning segment.

    I'm pleased to announce today that we expect a significant production ramping of single-wafer SPM production product line with more than 15 to 20 units to be delivered by year-end across our customer base.

    Q&A highlights

    3

    What caused the year-over-year decline in the cleaning segment revenue in Q1, and how will it ramp up for the rest of the year?

    The Q1 decline was attributed to difficulties with new applications in 2025, which have largely been resolved with problem-solving efforts and the Lingang production line. Cleaning shipments grew 32% year-over-year in Q1, and project backlog increased 50% for the first six months. The proprietary SPM technology, with superior particle performance, is expected to drive significant market share gains, with 15-20 units to be delivered by year-end.

    “And the 2025 we start to see our cleaning product has been going through the many applications, right, including those mature nodes and all the advanced nodes. So the 2025, we're still facing some difficulty and also problem, right, for those new applications. And with the 12 months, our problem solving with the customer, especially most important in the our Lingang production has started using. So those kind of problems actually we're mostly solving already.”

    asked by Sujeeva De Silva · answered by David Wang

    2 min read6 chapters

    Detailed Narrative

    01

    New Product Momentum and Planetary Family

    ACM is seeing a significant impact from new products in 2026, including Tahoe, single-wafer SPM, and vertical furnace. The company expects increased shipments of evaluation tools for panel-level horizontal plating, low-pressure flux cleaning, high-throughput track, and PECVD tools. At SEMICON China, ACM announced the 'ACM Planetary Family,' organizing its tool portfolio to align with key semiconductor manufacturing steps, showcasing its comprehensive multi-product offering.

    02

    Single-Wafer SPM Technology and Ramp

    A substantial production ramp is anticipated for ACM's proprietary single-wafer SPM tools, with 15 to 20 units slated for delivery by year-end. This technology demonstrates superior particle performance, achieving fewer than 15 particles at 15-nanometer, and offers a maintenance-free solution, unlike competitors. ACM believes this innovative hot SPM tool, which addresses 30% of the cleaning market, will capture significant market share due to strong global customer interest.

    03

    Advanced Packaging Leadership and Global Shipments

    The company is experiencing strong momentum in electroplating, particularly with its panel-level horizontal plating solutions (515x510mm and 310x310mm formats) gaining traction globally. ACM shipped its panel-level vacuum cleaning system to a leading global semiconductor packaging manufacturer outside Mainland China and multiple wafer-level advanced packaging systems to an OSAT customer in Singapore, positioning itself for 2.5D and 3D integration challenges.

    04

    Lingang Mini-Line Accelerates R&D and Qualification

    The Lingang mini-line, fully operational since the second half of last year, is a critical asset for ACM's R&D and customer collaboration. This Class 100 environment allows for pre-shipment validation of new products, significantly shortening qualification cycles and accelerating time to revenue. This approach has already proven beneficial for the PECVD silicon carbon nitride system and single-wafer SPM tools, reducing on-site qualification time from over a year to a few quarters.

    05

    Global Expansion and Oregon Facility Development

    ACM is actively expanding its global footprint, projecting over 20 tools installed outside Mainland China by the end of 2026, serving approximately 10 customers across 5 countries. The Oregon facility remains on track to establish an in-house demo lab and commence U.S.-made tool production by year-end 2026, which is expected to strengthen relationships with global customers and support local production scaling.

    06

    ACM Shanghai's Strategic Role and Capital Initiatives

    ACM Shanghai continues to be a vital component of the company's strategy, serving as a leading supplier in Asia and a source of capital for global expansion. A minority share sale in February generated $110 million in gross proceeds, intended to support U.S. expansion and broader global growth. Additionally, ACM Shanghai announced a proposed H-share secondary listing in Hong Kong in April.

    AI-generated summary of the company’s earnings call. Not investment advice.