ASM International N.V.

Orders provide 1-2 quarter forward visibility: Q4 2025 orders were 803 million euros versus revenue of 698 million euros, and the growing Spares and Services segment adds a recurring revenue layer. Equipment sales remain predominantly project-based, following fab capex cycles rather than subscription or multi-year contracts.

Revenue is concentrated in ALD tools, the dominant product category, with silicon epitaxy and vertical furnaces as secondary lines. All three categories serve the same semiconductor manufacturing end market, meaning product diversity does not provide meaningful protection against industry-wide capex downturns.

China represented more than 30% of total revenue in FY2025, and the combined Asia-Pacific cluster (Taiwan, Korea, Japan) accounted for the substantial majority of remaining revenue. No single country exceeds 40%, but the effective revenue base is concentrated in a narrow band of Asian semiconductor manufacturing hubs with correlated policy and geopolitical risks.

Gross margin held at approximately 51.8% in FY2025 as revenue scaled from approximately 1.4 billion euros in FY2022 to 3.2 billion euros in FY2025, demonstrating operating leverage on a largely fixed R&D and infrastructure base. Continued heavy R&D investment to maintain technology leadership constrains the full extent of incremental margin capture relative to less R&D-intensive businesses.

ASM sells mission-critical equipment to the world's most advanced chip fabs: there is no substitute for ALD tools in high-k metal gate formation at 2nm GAA nodes, making purchases non-discretionary for leading-edge customers. The Spares and Services segment, growing 18% at constant currency in FY2025, adds recurring revenue, though capital equipment orders remain tied to fab investment cycles.