#USA #Semiconductor #Beverly #Axcelis #Veeco

Axcelis Announces Financial Results for Q3 2025

Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of ion implantation solutions for the semiconductor industry, has released its financial results for the third quarter ending September 30, 2025. The company reported a revenue of $213.6 million, marking a decline from $256.6 million in the same period last year, yet still showing substantial operational efficiency.

Key Highlights

• - GAAP Gross Margin: 41.6%
• - Non-GAAP Gross Margin: 41.8%
• - GAAP Operating Margin: 11.7%
• - Non-GAAP Operating Margin: 18.2%
• - GAAP Diluted Earnings Per Share: $0.83
• - Non-GAAP Diluted Earnings Per Share: $1.21

President and CEO Russell Low commented on the results, expressing his satisfaction with the quarter's performance. He pointed out the exceeding sales and earnings expectations, alongside a record revenue in customer service initiatives that showcase Axcelis's effective aftermarket strategies.

“We are executing our product development roadmap with precision, ensuring disciplined cost controls during this anticipated cyclical period across the markets,” said Low. He emphasized that these efforts have equipped the company to handle the challengesposed by the semiconductor industry's cyclical nature.

Financial Snapshot

Axcelis reported a net income of $25.986 million, a decrease from $48.576 million year-over-year. The decline was also reflected in the diluted earnings per share, dropping from $1.49 last year to $0.83 in Q3 2025. The increased operating expenses, stated at $63.786 million, were largely attributed to investments in technology and employee costs.

Despite these challenges, Axcelis managed to maintain a strong free cash flow, now standing at over $590 million on its balance sheet. This financial stability excites leadership, allowing them to pursue strategic initiatives aimed at long-term growth.

Future Outlook

Looking ahead, Axcelis forecasts revenues of approximately $215 million for the upcoming fourth quarter, with a GAAP earnings forecast of $0.76 per diluted share and a non-GAAP expectation of $1.12 per share.

Additionally, Axcelis's merger with Veeco Instruments, announced earlier this year, is anticipated to create a robust fabric for growth amid ongoing trends in artificial intelligence and electrification of industries. This merger aims to position the newly formed entity as a strong competitor within the semiconductor equipment sector, aligning well with emerging technological demands.

Executive Vice President and Chief Financial Officer, Jamie Coogan, emphasized the company’s adaptability, stating, "With ongoing development and capital management, we are well equipped to leverage opportunities that align with our strategic goals.”

In Conclusion

In summary, while Axcelis Technologies has faced some setbacks in revenue and net income compared to last year, the company remains optimistic about its trajectory moving forward. With a solid financial foundation and strategic partnerships in place, Axcelis is poised to thrive in the evolving semiconductor landscape. Investors and stakeholders continue to watch closely as the company navigates this dynamic industry.

For more updates, a conference call conducted at 8:30 a.m. ET today will delve deeper into these results. Interested parties can access the live session via the Investors page of Axcelis' website. Follow-up inquiries and discussions are expected.