ASM announces third quarter 2024 results
Rhea-AI Summary
ASM International reported strong Q3 2024 results with new orders reaching €815 million, up 30% year-over-year, driven by strong demand for gate-all-around (GAA) and high-bandwidth memory (HBM). Revenue increased 26% to €779 million, reaching the upper end of guidance. Adjusted operating result increased 40% to €220 million with a margin of 28.2%. AI continues to drive demand for advanced devices, while other markets remain sluggish. The company projects Q4 2024 revenue between €770-810 million and expects FY 2024 revenue to increase approximately 10% year-over-year. For 2025, ASM forecasts revenue in the range of €3.2-3.6 billion.
Positive
- New orders increased 30% YoY to €815 million
- Revenue grew 26% YoY to €779 million
- Adjusted operating result increased 40% to €220 million
- Operating margin improved to 28.2% from 25.3% YoY
- Raised 2025 revenue forecast to €3.2-3.6 billion
Negative
- Expected decline in China sales for H2 2024
- Projected moderate decrease in Chinese customer sales for H1 2025
- Impact from recently announced capex reductions in advanced logic/foundry spending
- Sluggish recovery in PC and smartphone markets
- Automotive/industrial segments remain in cyclical downturn
News Market Reaction
On the day this news was published, ASMIY gained 6.16%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Almere, The Netherlands
October 29, 2024, 6 p.m. CET
AI-related demand drives robust growth in bookings and revenue
ASM International N.V. (Euronext Amsterdam: ASM) today reports its Q3 2024 results (unaudited).
Financial highlights
| € million | Q3 2023 | Q2 2024 | Q3 2024 |
| New orders | 627.4 | 755.4 | 815.3 |
| yoy change % at constant currencies | | | |
| Revenue | 622.3 | 706.1 | 778.6 |
| yoy change % at constant currencies | | | |
| Gross profit margin % | 48.1 % | 49.8 % | 49.4 % |
| Adjusted gross profit margin 1 | 48.9 % | 49.8 % | 49.4 % |
| Operating result | 147.3 | 177.6 | 215.2 |
| Operating result margin % | 23.7 % | 25.1 % | 27.6 % |
| Adjusted operating result 1 | 157.2 | 182.3 | 219.9 |
| Adjusted operating result margin 1 | 25.3 % | 25.8 % | 28.2 % |
| Net earnings | 129.6 | 159.0 | 127.9 |
| Adjusted net earnings 1 | 139.1 | 164.7 | 133.6 |
1 Adjusted figures are non-IFRS performance measures (previously referred to as "normalized"). Refer to Annex 3 for a reconciliation of non-IFRS performance measures.
- New orders of
€815 million in Q3 2024 increased by30% at constant currencies (also30% as reported) mainly driven by strong demand for gate-all-around (GAA) and high-bandwidth memory (HBM). - Revenue of
€779 million increased by26% at constant currencies (increased by25% as reported) from Q3 of last year and at the upper end of the guidance (€740 -780 million). - YoY improvement in adjusted gross profit margin is due to mix including slightly stronger-than-expected sales to China.
- Adjusted operating result margin increased to
28.2% , compared to25.3% in Q3 last year and increased from25.8% last quarter mainly due to higher revenue and a one-off positive result of€7 million related to the sale of a building. - Revenue for Q4 2024 is expected to be in the range of
€770 -810 million.
Comment
"ASM delivered strong results against a backdrop of continued mixed market conditions,” said Hichem M’Saad, CEO of ASM. “Revenue increased
Orders were up
AI continues to be the dominant semiconductor end market driver, while recovery in other markets such as PCs and smartphones is still sluggish, and the automotive/industrial segments remain in a cyclical downturn. AI is increasingly driving the demand for the most advanced devices, both in logic/foundry and HBM DRAM, and this plays to the strengths of ASM.
While recently announced capex reductions have somewhat impacted the outlook for advanced logic/foundry spending, we still project a substantial increase in our GAA-related sales in 2025. Leading customers have reiterated their plans to ramp the GAA node in high-volume manufacturing next year. With this transition we continue to expect meaningful increases in our served available market.
Sales and orders in China held up slightly better than expected in Q3. We still expect sales in China to be lower in the second half compared to the first half, and Q4 to be lower than Q3. While visibility for FY 2025 is still limited, we currently assume sales from Chinese customers to be moderately lower in the first half of 2025 compared to the second half of 2024.
For SiC Epi, we still expect a double-digit percentage increase in sales in FY 2024, despite the current market slowdown in this segment, and reflecting the contribution from previously won new customers. We believe that SiC Epi remains an attractive long-term growth market. ASM is well positioned, in particular on the back of our recently launched PE2O8 SiC Epi tool, which combines our proven best-in-class film performance with a new dual-chamber high-productivity platform for 200mm applications."
Outlook
On a currency-comparable level, we project revenue of
For WFE spending, a slight increase is expected in 2024, followed by continued growth in 2025. Based on this, we now expect revenue to be in the range of
In terms of order intake we expect the level in Q4 to be again solid, albeit lower than in the third quarter. GAA related orders are expected to further increase, offset by a drop in China orders and the effect of aforementioned order pull-ins in Q3.
Share buyback program
On February 27, 2024, ASM announced the authorization of a new share buyback program of up to
About ASM
ASM International N.V., headquartered in Almere, the Netherlands, and its subsidiaries design and manufacture equipment and process solutions to produce semiconductor devices for wafer processing, and have facilities in the United States, Europe, and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol: ASM). For more information, visit ASM's website at www.asm.com.
Cautionary note regarding forward-looking statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, changes in import/export regulations, epidemics, pandemics and other risks indicated in the company's reports and financial statements. The company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Quarterly earnings conference call details
ASM will host the quarterly earnings conference call and webcast on Wednesday, October 30, 2024, at 3:00 p.m. CET.
Conference-call participants should pre-register using this link to receive the dial-in numbers, passcode and a personal PIN, which are required to access the conference call.
A simultaneous audio webcast and replay will be accessible at this link.
Attachment
FAQ
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