ACM Research, Inc. (ACMR) | The Buildout — AI Infrastructure
The Verdict
ACM Research designs and sells capital equipment for semiconductor front-end fabrication and advanced packaging. Its tools address particle removal, material deposition, and process control at yield-critical steps. AI demand reaches the company indirectly, through electroplating and advanced-packaging tools used in HBM stacking, 2.5D/3D packaging, and larger AI logic dies; ACM is not a data-center, power, or cooling provider.
| Market Cap | — |
| Revenue (TTM) | $960M |
| Revenue Growth | +19.7% |
| EBITDA Margin (TTM) | 14.4% |
| Net Cash | $950M |
| Earnings Beats | 5 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- H1 2026 orders grew 105% y/y, and management said some orders received this year cannot be supported until 2027.
- ECP/furnace/other rose 167.7% y/y and advanced packaging ex-ECP rose 153.3% in Q2 2026.
- H1 2026 customer concentration improved to one customer above 10% at 12.7%, from three customers representing 49.9% a year earlier.
- Net cash exceeded $1.0B globally as of Q2 2026, with about $300M on the U.S. balance sheet.
- Panel-level horizontal plating received one production order and one evaluation order in Q2 2026, spanning 510×515mm and 310×310mm formats.
What We’re Watching
- H2 2026 revenue bridge: the raised range midpoint implies about $626M in H2 revenue versus $524.2M in H1, execution-dependent.
- SPM ramp: management targets more than 20 units by end of 2026, with the majority shipping in H2.
- PECVD and Track production qualification are targeted by year-end 2026; production orders are not yet secured.
- Early October backlog release will test the +105% H1 order growth claim and the 2027 visibility statement.
The product-diversification thesis strengthened in Q2 2026: order growth, AI-facing segment growth, customer concentration, and panel-level plating validation all moved in the company's favor. The unresolved question is whether H2 manufacturing and supply execution, plus a cleaning rebound from new SPM tools, can convert that order momentum into recognized revenue.
Earnings Beat
ACM reported Q2 2026 revenue of $292.9M, up 36% year over year, with non-GAAP gross margin of 46.0% versus 48.7% a year earlier. Operating income was $56.3M, and net income attributable to ACM Research was $44.5M. The standout forward indicator was first-half 2026 order growth of 105% year over year.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $231M | $244M | $172M | +34.2% |
| Gross margin | 46.4% | 40.9% | 47.9% | -150bps |
| EBITDA | $42M | $29M | $29M | +44.4% |
| EPS | $0.25 | $0.12 | $0.30 | −18.6% |
| ECP/furnace/other revenue | $128.5M | $84.2M | n/a | +167.7% y/y |
For the first half of 2026, orders increased 105% year-over-year. This is a mix across all product categories with a heavier emphasis on some of our new products.— David Wang, August 7, 2026
Management tone: Management's tone moved from confident in Q1 to more explicitly confident in Q2 after citing H1 order growth, the first panel-level plating production order, a raised SPM unit target, and the 2,000th electroplating chamber shipment. Management also became more candid about component supply, calling it the one thing that might impact full-year shipments.
Management Guidance
For fiscal 2026, management raised the revenue range to $1.125B–$1.175B at the low end, implying 25–30% year-over-year growth, and reiterated gross margin of 42–48%. The effective tax rate guide moved from 8–10% to 10–12%, and capex was held at about $175M. Management reiterated that 2026 shipment growth should outpace revenue growth.
Trajectory
The financial facts show revenue accelerating on a trailing basis: quarterly revenue went from $215M in Q2 2025 to $269M in Q3 2025, then $244M in Q4 2025 and $231M in Q1 2026, before Q2 2026's $292.9M. Growth is carried by ECP and advanced packaging while cleaning revenue contracts. Gross margin is compressing from the prior year, operating margin is stable, and EBITDA margin is expanding; trailing free-cash-flow conversion is negative, and the earnings bar is in line with recent performance.
The Model
The model projects FY+1 revenue of $1,165M and EBITDA of $198M, a 17.0% EBITDA margin, followed by FY+2 revenue of $1,550M and EBITDA of $305M, a 19.7% margin. The near-term path is anchored by the raised fiscal 2026 revenue range and ECP/packaging momentum; FY+2 assumes the newer platforms—PECVD, Track, and horizontal panel-level plating—move into commercialization as management expects.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $901M | $1.2B | $1.6B |
| YoY Growth | — | +29.3% | +33.0% |
| EBITDA | $126M | $198M | $305M |
| EBITDA Margin | 13.9% | 17.0% | 19.7% |
Projections are the median of 5 independent model runs. The model’s revenue sits 7.9% above analyst consensus.
For fiscal 2026, management raised the revenue range to $1.125B–$1.175B at the low end, implying 25–30% year-over-year growth, and reiterated gross margin of 42–48%. The effective tax rate guide moved from 8–10% to 10–12%, and capex was held at about $175M. Management reiterated that 2026 shipment growth should outpace revenue growth.
What Could Go Right — and Wrong
- Panel-level plating evaluation converts to a production order, adding a second customer and multi-region validation.
- PECVD or Track wins production qualification by year-end and enters 2027 with initial production orders.
- SPM shipments exceed 20 units and cleaning revenue rebounds in H2 2026, restoring the full-year cleaning mix toward 65%.
- Early October backlog release shows a large September 30 backlog, confirming 2027 revenue visibility.
- Component supply loosens, allowing H2 shipments to meet the raised revenue range.
- Component shortages and long lead times worsen, cutting full-year shipments—the risk management itself flagged.
- PECVD, Track, or panel-level plating evaluations slip past their year-end targets, delaying 2027 commercialization.
- Cleaning revenue continues to decline and SPM conversions lag, leaving revenue dependent on ECP and packaging.
- China WFE downshifts, pressuring the company's largest revenue base and new-product qualification environment.
- Panel-level packaging competition from Applied Materials' NEXX acquisition or Lam Research's advanced-packaging growth blunts ACM's first-mover claim.
Looking Ahead
Over the next twelve months, ACM's path runs through manufacturing execution and four new-product platforms. Management expects the SPM ramp to accelerate in H2, panel-level plating to progress through customer evaluation, and PECVD and Track to target production qualification by year-end 2026. The company also plans to open its second Lingang building, stand up an Oregon demo center, and disclose September 30 backlog in early October; those milestones will test whether order-book momentum becomes recognized revenue.
- Early October 2026September 30 backlog release — Tests the +105% H1 order claim and 2027 visibility.
- H2 2026SPM unit ramp — More than 20 units targeted by year-end; majority shipped in H2.
- Year-end 2026PECVD production qualification — First system shipped April 2026; qualification expected by year-end.
- Year-end 2026Track production qualification — Evaluation tool delivered September 2025; qualification targeted year-end.
- Later in 2026Lingang second building opening — Combined capacity target up to $3B annual output.
- Year-end 202620+ tools outside China — About 10 customers in 5 countries.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $782M | $901M | $960M | +15.2% |
| Gross Margin | 50.2% | 44.8% | 44.2% | 538bps |
| EBITDA | $161M | $126M | $590M | -22.0% |
| EBITDA Margin | 20.6% | 13.9% | 14.4% | 665bps |
| Net Income | $104M | $94M | $91M | -9.2% |
| Free Cash Flow | $66M | −$68M | −$470M | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)44.2%
- EBITDA Margin (TTM)14.4%
- Net Margin (TTM)9.5%
- ROIC15.0%
- FCF Conversion-78.5%
- SBC / Revenue2.5%
The Company
ACM Research supplies capital equipment for semiconductor front-end fabrication and advanced packaging. Its disclosed revenue categories are single-wafer cleaning, Tahoe and semi-critical cleaning; electroplating, furnace and other technologies; and advanced-packaging wet tools, services and spares. These tools address yield-critical steps as chip structures shrink and become more complex, including AI-linked copper plating used in HBM stacking and 2.5D/3D packaging. Management describes the company as focused on world-class differentiated tools based on its own IP.
The company operates through ACM Shanghai as its main China operating subsidiary. Manufacturing and R&D are centered at the Lingang site in Shanghai, with additional facilities in ZhangJiang Science City and Chuansha, and a U.S. presence in Hillsboro, Oregon that includes an owned 39,500 sq ft facility with a 5,200 sq ft cleanroom. Management said Korea already handles some U.S.-bound tool manufacturing. The 10-K names Ninebell Co., Ltd. as the principal supplier of robotic delivery system subassemblies, with limited and single-source suppliers for critical components.
Business Segments
Competitive Landscape
The 10-K lists principal competitors in wafer cleaning, electrical plating, and furnace as Lam Research, NAURA, SCREEN Holdings, SEMES, Tokyo Electron, and Kokusai Semiconductor Equipment; in PECVD and Track it also lists Applied Materials and Suzhou Jingtuo. ACM claims to be among the first to deliver horizontal panel-level plating, but the assembled ecosystem signals show Applied Materials and Lam Research are also pushing aggressively into panel-level and advanced packaging.
- Named in the 10-K as a cleaning, plating, and furnace competitor; ecosystem signals show Lam is growing advanced packaging strongly.
- Named in the 10-K as a PECVD/Track competitor; ecosystem signals show it is acquiring NEXX for panel-level packaging.
- Tokyo Electron Ltd.Named in the 10-K as a principal competitor in wafer cleaning, electrical plating, and furnace.
- NAURA Technology Group Co., Ltd.Named in the 10-K as a principal competitor in wafer cleaning, electrical plating, and furnace.
- SCREEN Holdings Co., Ltd.Named in the 10-K as a principal competitor in wafer cleaning, electrical plating, and furnace.
Supply Chain
ACM sits between component suppliers and semiconductor manufacturers and OSATs. The 10-K names Ninebell as principal supplier of robotic subassemblies.
More on ACMR: Earnings recap