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Q2 2025 EARNINGS PRESENTATION AUGUST 5, 2025
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2 2 This presentation contains, and the conference call will contain, forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management’s current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions, including with respect to the imposition of tariffs on our products or components of our products, could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission. SAFE HARBOR STATEMENT
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3 3 This presentation includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non- GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense and certain items related to restructuring and severance charges and any associated adjustments. Reconciliations of these Non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this presentation. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non- GAAP results to our GAAP results at the end of this presentation. USE OF NON-GAAP MEASURES
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4 4 Q2 2025 HIGHLIGHTS Revenue and profitability exceeded expectations Strong gross margins, cost control & favorable mix Bookings moderated slightly on Q/Q basis, but 1H 2025 is up compared to 2H 2024 *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation REVENUE $195M NON-GAAP DILUTED EPS* $1.13 GAAP DILUTED EPS $0.98
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5 5 Q2 2025 SHIPPED SYSTEM REVENUE BY SEGMENT 15% OTHER POWER2 (IGBT, OTHER) 40% SILICON CARBIDE (SiC) POWER 43% GENERAL MATURE1 power mature nodes 3% MEMORY 1 Starting with Q1 2025 results, shipped system revenue from Image Sensor applications is included in the General Mature category 2 Starting with Q2 2025 results, the category previously labeled as “IGBT” is now labeled “Other Power” to reflect IGBT and the broader set of applications in Power
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6 55% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2025 • Continued firm demand in China for 150mm and 200mm SiC applications • ROW customers using slower period to increase R&D engagement and prepare for next-gen transitions • Shipped Purion XE High Energy tool for 200mm Superjunction application • Declining SiC wafer prices expected to drive broader adoption across EV and other markets 43% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2025 • Slight decline sequentially as customers manage capacity investments given demand environment • Pockets of improved tool utilization, however sustained trend needed to support future investment • Secured meaningful order for High Energy and High Current tools in 28nm node from China-based customer MATURE PROCESS TECHNOLOGY POWER GENERAL MATURE1 97% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2025 1 Starting with Q1 2025 results, shipped system revenue from Image Sensor applications is now included in the General Mature category
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7 NO SHIPPED SYSTEM REVENUE IN Q2 2025 • Received follow-on order from existing evaluation customer • Active collaboration with customers targeting next generation implant applications, including for backside power distribution network integration 3% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2025 • Sequential decline in shipments, full-year outlook remains for modest YoY growth DRAM • Secured new High Current order for DRAM application; potential for follow-ons NAND • NAND customers continue prioritizing layer count scaling via dep/etch, limiting near-term implant demand ADVANCED LOGIC & MEMORY TECHNOLOGY ADVANCED LOGIC MEMORY
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8 Relentless focus on innovation and strong customer engagement across current and next- generation technology roadmaps. CS&I (Customer Solutions and Innovation) remains a foundational pillar of the overall customer experience, extending value beyond system shipments. Prudent cost management combined with continued investment in strategic growth initiatives drives favorable financial performance. DELIVERING RESULTS DESPITE END-MARKET SOFTNESS
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9 Q2 REVENUE DETAIL (in millions) Q2 2025 Q1 2025 Q2 2024 Systems Revenue $133.3 $137.6 $198.6 CS&I Revenue $61.3 $55.0 $57.9 Total Revenue $194.5 $192.6 $256.5 Systems Bookings $96.2 $109.9 $105.1 Systems Backlog $582.1 $618.2 $878.7 Q2 2025 Q1 2025 Q2 2024 Q2 2025 Q1 2025 Q2 2024 Geographic Breakdown (% of Total Revenue) Prior Method (% of Shipped System Revenue) China 55% 38% 48% 65% 37% 55% US 18% 21% 13% 19% 23% 11% South Korea 13% 16% 11% 8% 20% 9% Europe 8% 9% 10% 4% 5% 8% Taiwan 4% 7% 7% 4% 7% 6% Japan 0% 1% 1% 0% 0% 0% Rest of World 2% 8% 10% 0% 8% 11% Note: Figures may not sum due to rounding
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10 Q2 2025 SELECT GAAP & NON-GAAP FINANCIAL MEASURES Select Income Statement Information (in millions) Q2 2025 Q2 2024 Revenue $194.5 $256.5 Select GAAP Financial Measures Gross Margin 44.9% 43.8% Operating Expenses $58.4 $59.6 Operating Income $29.0 $52.8 Operating Margin 14.9% 20.6% Net Income $31.4 $50.9 Diluted Shares Outstanding 31.9 32.8 Diluted Earnings Per Share $0.98 $1.55 Select Non-GAAP Financial Measures* Non-GAAP Gross Margin 45.2% 44.3% Non-GAAP Operating Expenses $53.6 $54.0 Non-GAAP Operating Income $34.4 $59.7 Non-GAAP Operating Margin 17.7% 23.3% Non-GAAP Net Income $36.0 $56.8 Non-GAAP Diluted Earnings Per Share $1.13 $1.73 Adjusted EBITDA $38.9 $63.6 Adjusted EBITDA Margin 20.0% 24.8% *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation
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11 Q2 2025 CASH FLOW AND BALANCE SHEET Select Balance Sheet & Cash Flow Information (in millions) Q2 2025 Q1 2025 Q2 2024 Cash, Cash Equivalents & Marketable Securities1 $581.0 $587.1 $548.3 Cash From Operations $39.7 $39.8 $40.1 Capital Expenditures $2.0 $5.0 $2.0 Free Cash Flow $37.7 $34.8 $38.1 Share Repurchase $45.3 $18.2 $15.0 1 Marketable securities includes both Short-Term Investments and Long-Term Investments
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12 Q3 2025 OUTLOOK ADDITIONAL COMMENTARY • Q4 2025 Revenue and Non-GAAP Gross Margins expected to be relatively similar to Q3 2025 levels • Q4 2025 Operating Expenses expected to be slightly up on a sequential basis Q3 2025 Revenue ~$200M Non-GAAP Gross Margin* ~43.0% Non-GAAP Operating Expenses* ~$53M Adjusted EBITDA* ~$39M Non-GAAP Diluted Earnings Per Share* ~$1.00 *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation
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APPENDIX
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14 APPENDIX: HISTORIAL GEOGRAPHIC SPLIT OF TOTAL REVENUE % of Total Revenue Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 China 52% 48% 60% 46% 52% 38% 55% US 18% 13% 13% 12% 14% 21% 18% South Korea 7% 11% 6% 12% 9% 16% 13% Europe 7% 10% 8% 11% 9% 9% 8% Taiwan 1% 7% 6% 10% 6% 7% 4% Japan 6% 1% 0% 0% 2% 1% 0% Rest of World 8% 10% 7% 8% 8% 8% 2% % of Total Shipped Systems Revenue (for reference) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 China 59% 55% 71% 49% 59% 37% 65% US 17% 11% 10% 11% 12% 23% 19% South Korea 4% 9% 1% 11% 6% 20% 8% Europe 4% 8% 7% 9% 7% 5% 4% Taiwan 0% 6% 5% 11% 6% 7% 4% Japan 8% 0% 0% 0% 2% 0% 0% Rest of World 9% 11% 6% 9% 9% 8% 0% UPDATED PRIOR
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15 APPENDIX: GAAP TO NON-GAAP RECONCILIATION Q2'25 Q2'24 Revenue $ 194,544 $ 256,512 Gross Profit $ 87,343 $ 112,409 Restructuring1 - 876 Stock-based compensation 569 462 Non-GAAP Gross Profit $ 87,912 $ 113,747 Non-GAAP Gross Margin 45.2% 44.3% Operating Expense $ 58,378 $ 59,599 Bad debt expense - - Restructuring1 29 (552) Stock-based compensation (4,852) (5,007) Non-GAAP Operating Expense $ 53,555 $ 54,040 Operating Income $ 28,965 $ 52,810 Bad debt expense - - Restructuring1 (29) 1,428 Stock-based compensation 5,421 5,469 Non-GAAP Operating Income $ 34,357 $ 59,707 Non-GAAP Operating Margin 17.7% 23.3% Income tax provision $ 3,621 $ 6,399 Tax impact of non-GAAP adjustments2 755 966 Non-GAAP Income tax provision $ 4,376 $ 7,365 Net Income $ 31,376 $ 50,866 Bad debt expense - - Restructuring1 (29) 1,428 Stock-based compensation 5,421 5,469 Tax impact of non-GAAP adjustments2 (755) (966) Non-GAAP Net Income $ 36,013 $ 56,797 Diluted earnings per share $ 0.98 $ 1.55 Bad debt expense - - Restructuring1 - 0.04 Stock-based compensation 0.17 0.17 Tax impact of non-GAAP adjustments2 (0.02) (0.03) Non-GAAP diluted earnings per share $ 1.13 $ 1.73 Basic Share O/S 31,847 32,598 Diluted Shares O/S 31,882 32,771 Adjusted EBITDA Reconciliation Q2'25 Q2’24 Net income $ 31,376 $ 50,866 Other (income)/expense (6,032) (4,455) Income tax provision 3,621 6,399 Depreciation & amortization 4,515 3,861 Subtotal $ 33,480 $ 56,671 Bad debt expense - - Restructuring1 (29) 1,428 Stock-based compensation 5,421 5,469 Adjusted EBITDA $ 38,872 $ 63,568 Adjusted EBITDA Margin 20.0% 24.8% Footnotes: 1Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives 2Impact of taxes from Non-GAAP adjustments, uses adjusted tax rate of 14% Figures may not sum due to rounding
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16 16 APPENDIX: Q3 2025 OUTLOOK GAAP TO NON-GAAP RECONCILIATION Footnotes: 1Impact of taxes from Non-GAAP adjustments, uses adjusted tax rate of 14% Dollar amounts in millions, except per share figures Figures may not sum due to rounding Q3 2025 Outlook Revenue $200 GAAP Gross Margin 42.8% Stock-based compensation 0.2% Non-GAAP Gross Margin 43.0% GAAP Operating Expense $58 Stock-based compensation ($5) Non-GAAP Operating Expense $53 GAAP Diluted earnings per share $0.87 Stock-based compensation $0.17 Tax impact of non-GAAP adjustments ($0.03) Non-GAAP Diluted earnings per share $1.00 Adjusted EBITDA Reconciliation Q3 2025 Outlook Net Income $28 Other (Income)/Expense ($4) Income tax provision $5 Depreciation & Amortization $5 Subtotal $34 Stock-based compensation $5 Adjusted EBITDA $39