ASM International posts a record quarter and expects to reach its 2030 sales goal in 2027
The Almere-based maker of chip deposition equipment beat forecasts for the quarter and the outlook, and launched a new €300 million share buyback as AI chip investment keeps its customers' factories full.
ASM International, the Dutch maker of equipment that deposits ultra-thin layers on silicon wafers, reported record third-quarter revenue of €1,159 million on Tuesday evening, 27 October. That was 45% more than a year earlier, or 44% at constant currencies, according to the company's results release.
The bigger news was the outlook. ASM now expects revenue of more than €5.7 billion in 2027, which would reach the target it had set for 2030 three years early. Reuters reported that analysts polled by LSEG had expected 2027 revenue of €5.41 billion.
The quarter in numbers
According to the results release, gross margin was stable at 52.0%, the same level as a year earlier. The adjusted operating result rose to €386.7 million from €247.5 million, an adjusted operating margin of 33.4%. Adjusted net earnings increased by €109 million to €315 million.
Reported net earnings were €308.1 million, below the €384.1 million of the third quarter of 2025. The company's adjusted figures, which it reconciles in its release, exclude items that do not reflect day-to-day operations and show the stronger trend.
Third-quarter revenue came in above the analyst estimate of €1.10 billion, according to Reuters. Michael Roeg of Degroof Petercam told Reuters the results were a "triple beat", with the quarter, the quarterly outlook and the annual outlook all ahead of expectations.
What drove growth
ASM said advanced logic and foundry was the main driver, with continued strong investment in 2nm chips, more activity at 3nm to 5nm and the first solid sales contribution from 1.4nm. Memory sales also grew strongly, especially in DRAM linked to high-bandwidth memory (HBM) used in AI systems. Sales in mature logic and foundry, mainly driven by China, stayed robust.
"The continued build-out of AI infrastructure is driving significant capacity requirements across the industry, particularly in the leading edge," chief executive Hichem M'Saad said in the release. He added that capacity remains tight across the customer base and that customers are moving quickly to increase output. The company also launched a new product during the quarter, a flowable carbon film for complex patterning in advanced 3D logic and memory chips, which it says is already used in high-volume manufacturing.
Outlook and buyback
For the fourth quarter, ASM expects revenue of €1,230 million, plus or minus 5%, at constant currencies. Reuters said analysts had expected €1.18 billion. For the full year 2026, revenue is expected to grow by about 35% at constant currencies, with equipment revenue up more than 40%.
For 2027, ASM expects advanced logic and foundry to be its strongest growth driver, with further growth in 2nm and strong momentum in 1.4nm. It said its served market at 1.4nm is a solid double-digit percentage larger than at 2nm, and that it expects a higher market share. It also expects strong growth in memory, while mature logic and foundry sales should stay relatively stable. The company noted that supply chain conditions are increasingly tight.
The management board approved a new share buyback of up to €300 million. ASM completed its previous €150 million programme in September, buying back 185,522 shares at an average price of €808.53, according to the release.
What it means for European founders and investors
ASM is one of a small group of European companies that sit at the heart of the global chip supply chain, alongside ASML. Its results show that the AI investment wave is not only a story for US chip designers and cloud companies. European equipment makers are capturing a large part of the spending, and they are doing it from the Netherlands.
For founders, the message is that the hardware layer of AI is still growing fast. Startups working on semiconductor materials, process control, metrology software, chip design tools or energy-efficient computing operate in a market where the largest customers are expanding capacity and where suppliers are struggling to keep up. That creates openings for new suppliers, and for acquisitions by established players looking for new technology.
For investors, ASM's decision to bring forward its 2030 target is a strong signal about the length of the current cycle. It also comes with a reminder: when expectations are this high, investors watch closely for any sign that demand is slowing. Our recent coverage of NXP's third quarter and of chip startup Ubitium's seed round adds more context, and more is on our AI & Tech page.
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