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    ACMR
    Earnings call· Jun 2026(Q2 FY26)

    ACM Research Q2 FY26 earnings call ACMR

    Aug 7, 2026 Source

    Executive summary

    ACM Research Q2 FY26 — Strong Order Growth & Panel-Level Plating Orders

    ACM Research delivered strong Q2 FY26 results, driven by robust order growth and significant advancements in advanced packaging, particularly panel-level plating. The company raised its full-year revenue guidance, reflecting confidence in new product cycles and global expansion efforts, despite facing some component supply constraints. Management emphasized its strengthened balance sheet to support global operations and R&D.

    Highlights

    5

    • Orders increased 105% year-over-year for the first half of 2026.

    • Q2 revenue was $293 million, up 36% year-over-year.

    • ECP, furnace, and other technology revenue grew 168% year-over-year, representing 44% of revenue.

    • Advanced packaging revenue (excluding ECP, services, spares) was up 153% year-over-year.

    • Received production orders for panel-level horizontal plating tools from advanced packaging customers.

    Concerns

    4

    • Single wafer, cleaning, and semi-critical cleaning tool revenue was down 14% year-over-year.

    • Gross margin decreased to 46.0% from 48.7% year-over-year.

    • Cash used by operations was $6.4 million in Q2 FY26.

    • Component shortages and supply chain tightness are noted as potential impacts on shipment timing.

    Guidance & targets

    11
    CategoryTargetConfidence
    Full-year revenue
    $1.125 billion to $1.175 billion
    high materiality
    High
    Full-year revenue growth
    25% to 30%
    high materiality
    High
    Full-year shipment growth
    outpace revenue growth
    medium materiality
    High
    Long-term revenue target
    $4 billion
    high materiality
    High
    Long-term gross margin target
    42% to 48%
    medium materiality
    High
    Full-year R&D as % of sales
    16% to 18% range
    medium materiality
    High
    Full-year Sales and Marketing as % of sales
    8% range
    medium materiality
    High
    Full-year G&A as % of sales
    5% to 6% range
    medium materiality
    High
    Full-year effective tax rate
    10% to 12% range
    medium materiality
    High
    Full-year capital expenditures
    about $175 million
    medium materiality
    High
    Global tools installed outside Mainland China
    more than 20 tools
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Single wafer, cleaning, and semi-critical cleaning tool
    Included very little contribution from newer products. SPM will be reflected first in shipments, then revenue in later quarters.
    Represented 45.4% of sales
    		$133.0 million-14.2%——
    ECP, furnace, and other technologies
    Growth driven by momentum in front-end and back-end plating tools, benefiting from larger die sizes, increased interconnector layers in logic, and HPM packaging demands in memory.
    Represented 43.9% of sales
    		$128.5 million167.7%——
    Advanced packaging (excluding ECP, services, spares)
    Includes coaters, developers, etchers, strippers, scrubbers, and vacuum cleaning tools. Active deployment in Singapore and North America.
    Represented 10.7% of sales
    		$31.4 million153.3%——

    Operational metrics

    18
    Non-GAAP gross margin
    46.0%vs 48.7% (Q2 FY25)
    Q2 FY26

    Above the midpoint of the long-term target model of 42% to 48%.

    Non-GAAP operating expenses
    $78.5 millionup 23.9% YoY
    Q2 FY26

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

    Non-GAAP R&D as % of sales
    13.9%
    Q2 FY26

    Part of operating expenses.

    Non-GAAP Sales and marketing as % of sales
    7.7%
    Q2 FY26

    Part of operating expenses.

    Non-GAAP G&A as % of sales
    5.2%
    Q2 FY26

    Part of operating expenses.

    Non-GAAP operating income
    $56.3 millionvs $41.5 million (Q2 FY25)
    Q2 FY26

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

    Non-GAAP operating margin
    19.2%vs 19.3% (Q2 FY25)
    Q2 FY26

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

    Income tax expense
    $13.5 millionvs $1.9 million (Q2 FY25)
    Q2 FY26

    Reported income tax expense.

    Net income attributable to ACM Research
    $44.5 millionvs $37.3 million (Q2 FY25)
    Q2 FY26

    Non-GAAP net income excluded $6.6 million in stock-based compensation expense and $69.6 million of unrealized gain on short-term investments.

    Net income per diluted share
    $0.61vs $0.55 (Q2 FY25)
    Q2 FY26

    Non-GAAP diluted EPS.

    Cash and investments balance
    $1.36 billion
    Q2 FY26 end

    Includes cash, cash equivalents, restricted cash, and time deposits.

    Net cash
    $1.0 billion
    Q2 FY26 end

    Excludes short-term and long-term debt.

    Cash used by operations
    $6.4 million
    Q2 FY26

    Cash flow from operating activities.

    Capital expenditures
    $65.4 million
    Q2 FY26

    Capital expenditures for the quarter.

    10% customer concentration
    1 customervs 3 customers (H1 FY25)
    H1 FY26

    Reduced concentration is considered positive, representing a broadening of the customer base.

    Single-wafer SPM tool shipments
    handful
    H1 FY26

    On track to ship more than 20 by end of the year.

    Cleaning market share projection
    1/3
    current

    Estimate for SPM's representation of the total cleaning market.

    Lingang facility annual output capacity
    $3 billion
    annual

    Combined capacity of the first and second buildings.

    Industry KPIs

    9
    MetricValueDetails
    Lead timeslongermonths
    Ai data center revenuedirectional
    Services installed base2,000chambers
    Bookings net order intake105%%
    Wfe industry spend outlookCNY 140 billion (2025), CNY 200 billion (2029)CNY
    Design wins socket pipelinemultiplewins
    Inventory channel inventory$783.1MUSD
    Node platform ramp schedulemultipleplatforms
    End market segment revenue mixSingle wafer, cleaning, and semi-critical cleaning tool: $133.0M; ECP, furnace, and other technologies: $128.5M; Advanced packaging (excluding ECP, services, spares): $31.4MUSD

    Orderbook & backlog

    2
    Orders105%H1 FY26

    increased YoY

    Mix across all product categories with a heavier emphasis on new products.

    Backlog figure releasenot statedSeptember

    ACM Shanghai plans to release backlog figure as of September in early October.

    Product announcements

    4
    ProductTypeDetails
    Panel-level horizontal plating toollaunch
    Tahoe platformexpansion
    PVD platformmilestone
    Track platform (AIF track tool)milestone

    Deals & partnerships

    2
    Existing customer in Mainland ChinaProduction order for panel-level horizontal plating tool

    Order for panel-level horizontal plating tool addressing 510x550mm and 310x310mm panel sizes.

    New customer in AsiaEvaluation system for panel-level horizontal plating tool

    Evaluation system for panel-level horizontal plating tool addressing 510x550mm and 310x310mm panel sizes.

    Capital programs

    2
    Lingang facility (second building)underway

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

    The first building is in volume production, and the second building is planned to open later this year, ready to scale with strong order book.

    Oregon demo centerunderway

    Benefit: U.S.-based demo center with multiple tools in world-class cleaning room environment

    Important for global customers and expected to help secure production orders.

    Risks & headwinds

    3
    Component shortages and supply chain tightnessH2 FY26

    Delivery constrained for supply; some components used to take 4 months, now up to 6 months.

    Mitigation: Managing supply chain, switching to local suppliers, stocked up on raw materials in late FY25.

    Revenue decline in single wafer, cleaning, and semi-critical cleaning tool segmentQ2 FY26

    Down 14% YoY

    Mitigation: Expect overall cleaning revenue to rebound as new SPM products qualify and repeater shipments grow.

    Cash used by operationsQ2 FY26

    $6.4 million

    Mitigation: Company is in growth mode, making investments in CapEx and new production facilities, expects to burn some cash this year but positive cash flow longer term.

    What to watch in Q3 FY26

    5

    PVD platform qualification

    by year-end
    CurrentSecondary tool shipped to new customer in Q1
    TargetQualification by year-end

    Why it matters

    Successful qualification will lead to production orders and drive revenue growth for a new platform.

    We shipped the secondary tool to our new customer in Q1 and we anticipate this qualification by year-end.

    Q&A highlights

    5

    What geographies are seeing larger tool shipments today, and where are the best near-term growth opportunities expected outside China?

    Singapore is a key geography for front-end and packaging tools, with significant shipments to a packaging house and a foundry. The U.S. demo lab in Oregon will attract more interest and provide demo capabilities for global customers.

    “wherever, almost like close to 100 to go to Singapore, right? One of their packaging house there. Also Evert and running 1 of their foundry in the single to -- so we do see Singapore as an opportunity for front-end tool and also packaging tool there.”

    asked by Sujeeva De Silva · answered by David Wang

    2 min read6 chapters

    Detailed Narrative

    01

    Advanced Packaging Leadership and Panel-Level Plating

    ACM Research announced receiving production orders for its panel-level horizontal plating tools, addressing both 510x550mm and 310x310mm panel sizes. This includes a production order from an existing customer in Mainland China and an evaluation system for a new customer in Asia. The company believes it will be among the first to deliver horizontal panel-level plating systems to multiple customers, validating its early investments in this technology for next-generation AI packaging.

    02

    Robust Order Book and Shipment Outlook

    The company reported a strong order book, with orders increasing 105% year-over-year for the first half of 2026. This growth was across all product categories, with a heavier emphasis on new products. ACM expects shipment growth to outpace revenue growth for the full year 2026, indicating strong demand and future revenue conversion, despite potential impacts from component shortages.

    03

    Expanding Product Portfolio and New Platforms

    ACM is expanding its product offerings beyond cleaning and plating. The Tahoe platform has added wet etching and mode wafer reclaim applications. New PVD and Track platforms are progressing, with a proprietary one chamber, three trucks architecture for PVD and a high-throughput AIF track tool undergoing customer evaluation. These new products are expected to drive significant growth and reinforce ACM's market position.

    04

    Global Expansion and Market Opportunity

    ACM is actively scaling its global business, with plans to open a U.S.-based demo center in Oregon later this year. The company expects to have more than 20 tools installed at customer sites outside Mainland China by the end of 2026, serving approximately 10 customers in 5 countries. Management sees strong demand for its differentiated technology in Asia, Europe, and the U.S., aiming for $1.5 billion in long-term revenue outside China.

    05

    Financial Strength and Strategic Investments

    ACM has strengthened its balance sheet, now holding over $1 billion in net cash globally, including approximately $300 million in the U.S. This financial strength provides a solid foundation to support global operations, R&D for new products, and sales activities in key regions. The company is comfortable with its balance sheet and has no near-term plans to dispose of Shanghai shares for further expansion funding.

    06

    Semiconductor Equipment Market Outlook

    Market research estimates the global semiconductor equipment market exceeded CNY 140 billion in 2025 and will grow to more than CNY 200 billion by 2029. The Mainland China market is expected to exceed CNY 50 billion in 2025 and grow to more than 80 billion in 2029. ACM sees a healthy backdrop for China WFE in 2026 and expects to outgrow the market with its new product cycles.

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