ACMR Q2 Earnings Call Raises Revenue Floor as Orders Accelerate

ACMR Raises the 2026 Revenue Floor

Chief executive officer and president David Wang said 2026 revenues are now expected at $1.13 billion to $1.18 billion versus the prior $1.08 billion to $1.18 billion, implying 25% to 30% year-over-year growth.

Wang cited first-half execution and improved visibility, while customer spending, supply constraints and first-tool acceptances remain variables. Shipments are expected to outgrow revenues this year.

In Q&A, a Needham & Company analyst asked about second-half timing. Wang said Q3 and Q4 revenues depend on manufacturing execution and deferred-revenue conversion, with some orders extending later.

ACM Research Advances Panel-Level Packaging

Wang placed panel-level packaging at the center of ACM's advanced-packaging strategy. The company received a production order for a 510 x 515 mm system in Mainland China and an evaluation order for a 310 x 310 mm system from a new Asian customer.

The production system is scheduled for delivery in the first half of 2027, while the evaluation unit is scheduled for the fourth quarter of 2026. Wang said the horizontal plating platform addresses next-generation AI packaging requirements.

Chief financial officer Mark McKechnie said ECP, furnace and other technologies produced $128.5 million of revenues, up 167.7%. Advanced packaging excluding ECP, services and spares rose 153.3% to $31.4 million.

ACMR Pushes More Platforms Toward Qualification

Wang said Track, PECVD and horizontal panel-level plating should move from evaluation toward commercialization beyond 2026. He also expects SPM and furnace product cycles to support growth this year.

The SPM ramp remains early. Wang said ACMR shipped a handful of single-wafer SPM tools in the first half and remains on track to ship more than 20 by year-end, with revenues following qualifications.

In Q&A, a Craig-Hallum analyst asked about 2027. Mark McKechnie said some 2026 orders should flow into next year, while Wang said Track and PECVD qualifications are anticipated by year-end.

ACM Research Manages Supply Without a Margin Reset

A JPMorgan analyst asked about component shortages and costs. Wang said some lead times have stretched, creating more delivery pressure than pricing pressure from key suppliers.

McKechnie said ACMR stocked raw materials in advance and does not see a significant gross-margin impact. He maintained the 42% to 48% long-term gross-margin target range.

Wang said ACMR has not raised customer pricing at this point. Second-quarter non-GAAP gross margin was 46.0%.

ACMR Builds Outside Mainland China

Wang said ACMR expects more than 20 tools installed outside Mainland China by year-end across about 10 customers in five countries. Singapore received nearly a dozen tools in the first half.

The Oregon demo center remains on track to begin operating later in 2026. Wang said Korea already provides manufacturing capability for some systems shipped to the United States.

A ROTH Capital analyst asked about use of U.S. cash. Wang said funding will support expansion in the United States, Taiwan, Singapore and Europe, while McKechnie said ACMR has no near-term plan to sell additional ACM Shanghai shares.

ACM Research Maintains an Investment-Heavy Posture

McKechnie said ACMR remains in growth mode and expects about $175 million of capital expenditures in 2026, with some cash use this year for production facilities and Oregon.

Wang emphasized capacity expansion, product qualifications and geographic diversification. McKechnie said the investments are intended to be harvested over several years, with longer-term operations expected to generate positive cash flow.

Zacks Signals

ACMR currently has a Zacks Rank #3 (Hold). Its Value, Growth, Momentum and VGM Score are all F, the lowest grade in the A-to-F Style Score scale.

Zacks describes Style Scores as complementary to the Rank, with A or B scores preferred alongside Zacks Rank #1 (Strong Buy) and 2 (Buy) stocks. ACMR's current combination lacks that favorable alignment. The Zacks Rank can change as estimates are revised after the just-reported results. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

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