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Q4 2025 EARNINGS PRESENTATION FEBRUARY 17, 2026
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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 and, with respect to the potential transaction with Veeco, failure to obtain applicable regulatory approvals in a timely manner or otherwise; failure to satisfy other closing conditions to the proposed transaction or to complete the proposed transaction on anticipated terms and timing; negative effects of the announcement of the proposed transaction; risks that the businesses will not be integrated successfully or that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth, or that such benefits may take longer to realize or may be more costly to achieve than expected; the risk that disruptions from the proposed transaction will harm business plans and operations; risks relating to unanticipated costs of integration; significant transaction and/or integration costs, or difficulties in connection with the proposed transaction and/or unknown or inestimable liabilities; restrictions during the pendency of the proposed transaction that may impact the ability to pursue certain business opportunities or strategic transactions; potential litigation associated with the proposed transaction; the potential impact of the announcement or consummation of the proposed transaction on the Company’s, Veeco’s or the combined company’s relationships with suppliers, customers, employees and regulators; and demand for the combined company’s products. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: economic, political and social conditions in the countries in which the Company and Veeco, their respective customers and suppliers operate; disruption to the Company’s and Veeco’s respective manufacturing facilities or other operations, or the operations of Company’s and Veeco’s respective customers and suppliers, due to natural catastrophic events, health epidemics or terrorism; ongoing changes in the technology industry, and the semiconductor industry in particular, including future growth rates, pricing trends in end- markets, or changes in customer capital spending patterns; the Company’s, Veeco’s and the combined company’s ability to timely develop new technologies and products that successfully anticipate or address changes in the semiconductor industry; the Company’s, Veeco’s and the combined company’s ability to maintain their respective technology advantage and protect their respective proprietary rights; the Company’s, Veeco’s and the combined company’s ability to compete with new products introduced by their respective competitors; the Company’s, Veeco’s and the combined company’s ability or the ability of their respective customers to obtain U.S. export control licenses for the sale of certain products or provision of certain services to customers in China. 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 Q4 2025 HIGHLIGHTS Stronger than expected CS&I revenue – another record quarter Robust Gross Margins due to favorable mix Bookings improved significantly on a sequential basis *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation . REVENUE $238M NON-GAAP DILUTED EPS* $1.49 GAAP DILUTED EPS $1.10
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5 5 SHIPPED SYSTEMS REVENUE BY SEGMENT: Q4 & FULL YEAR 2025 power mature nodes power maturenodes Q4’25 SEGMENT 2025 41% SILICON CARBIDE (SiC) 43% 12% OTHER POWER2 12% 35% GENERAL MATURE1 37% 9% MEMORY 7% 3% ADVANCED LOGIC 2% Q4 2025 2025 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. Note: Figures may not sum due to rounding.
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6 6 53% OF TOTAL SHIPPED SYSTEM REVENUE IN Q4 2025 • Customers taking disciplined approach to capacity investments, given significant build out over the past several years. • One customer made sizeable upgrade of SiC tools from 150mm to 200mm, while using our recently introduced Purion Power Series+ platform. • Select customers in China continue to build out SiC device capacity and capabilities, while customers in other regions are focused on next gen technology investments. • Growing interest in proprietary High Energy channeling capabilities for deep implants such as SiC superjunction development. 35% OF TOTAL SHIPPED SYSTEM REVENUE IN Q4 2025 • Sequential improvement in revenue, led by demand for High Current tools. • Customers managing capacity investments amidst stabilizing Auto and Industrial demand. • Continued improvement in implant tool utilization rates across multiple customers. MATURE PROCESS TECHNOLOGY POWER GENERAL MATURE1 88% OF TOTAL SHIPPED SYSTEM REVENUE IN Q4 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 7 3% OF TOTAL SHIPPED SYSTEM REVENUE IN Q4 2025 • Generated revenue from a follow-on order from an existing customer. • Continue to work closely with customers on next generation technology needs, including implant for backside power contacts, as well as other material modification implant applications. 9% OF TOTAL SHIPPED SYSTEM REVENUE IN Q4 2025 • Growing implant demand for DRAM and HBM applications in Q4 - momentum expected to continue 2026. • Received order for High Current system from leading North American memory manufacturer – an important customer win which expands footprint outside of Korea. • NAND customers continue prioritizing layer count scaling rather than incremental wafer capacity additions - limiting near-term implant demand. • NAND demand and pricing trends encouraging and Axcelis well positioned once customers resume wafer capacity additions. ADVANCED LOGIC & MEMORY TECHNOLOGY ADVANCED LOGIC MEMORY
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8 2025 HIGHLIGHTS REVENUE $839M GAAP DILUTED EPS $3.80 NON-GAAP DILUTED EPS* $4.88 • Cyclical Digestion in Power and General Mature, Recovery In Memory • Focused Aggressively on Product Development and Customer Engagement • Record CS&I Revenue (+14% Y/Y), Led By Growing Installed Base and Focus On Upgrades and Services • Y/Y Non-GAAP Gross Margin Expansion of ~30 basis points, Due to Favorable Mix and Continued Cost Control *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation.
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9 INITIAL PERSPECTIVES ON 2026 MEMORY Anticipated Y/Y Growth in Memory driven by DRAM/HBM investments expected to meet accelerating AI-driven demand Long term DRAM and NAND bit demand growth expected to drive implant investments POWER & GENERAL MATURE Slight Y/Y decline in Power and General Mature revenue anticipated as customers manage capacity Electrification, efficient power delivery and Physical AI expected to be key long term market drivers ADVANCED LOGIC Revenue expected to be relatively similar to 2025 levels. Engaging with customers on next gen logic architectures Making progress in long term strategy to penetrate this market ANTICIPATE OVERALL 2026 REVENUE TO BE RELATIVELY FLAT WITH 2025 LEVELS
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10 Q4 2025 & FULL YEAR REVENUE DETAIL (in millions) Q4 2025 Q3 2025 Q4 2024 2025 2024 Systems Revenue $156.5 $143.7 $187.4 $571.0 $782.6 CS&I Revenue $81.9 $69.9 $65.0 $268.0 $235.3 Total Revenue $238.3 $213.6 $252.4 $839.0 $1,017.9 Systems Bookings $127.6 $52.2 $84.5 $385.9 $381.1 Systems Backlog $457.0 $484.5 $645.8 $457.0 $645.8 Q4 2025 Q3 2025 Q4 2024 2025 2024 Geographic Breakdown (% of Total Revenue) China 32% 46% 46% 42% 52% US 14% 14% 12% 16% 14% South Korea 13% 10% 12% 13% 9% Europe 15% 11% 11% 11% 9% Taiwan 3% 7% 10% 5% 6% Japan 9% 7% 0% 5% 2% Rest of World 13% 5% 8% 7% 8% Note: Figures may not sum due to rounding.
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11 Q4 2025 & FULL YEAR SELECT GAAP & NON-GAAP FINANCIAL MEASURES In million, expect per share amounts Q4 2025 Q4 2024 2025 2024 Revenue $238.3 $252.4 $839.0 $1,017.9 Select GAAP Financial Measures Gross Margin 47.0% 46.0% 44.9% 44.7% Operating Expenses $75.8 $61.7 $257.5 $243.9 Operating Income $36.2 $54.5 $119.3 $210.8 Operating Margin 15.2% 21.6% 14.2% 20.7% Net Income $34.3 $50.0 $120.2 $201.0 Diluted Shares Outstanding 31.1 32.5 31.7 32.7 Diluted Earnings Per Share $1.10 $1.54 $3.80 $6.15 Select Non-GAAP Financial Measures* Non-GAAP Gross Margin 47.3% 46.3% 45.2% 44.9% Non-GAAP Operating Expenses $62.5 $55.8 $220.1 $220.0 Non-GAAP Operating Income $50.2 $61.0 $159.1 $237.3 Non-GAAP Operating Margin 21.1% 24.2% 19.0% 23.3% Non-GAAP Net Income $46.4 $55.5 $154.5 $223.8 Non-GAAP Diluted Earnings Per Share $1.49 $1.71 $4.88 $6.84 Adjusted EBITDA $54.7 $65.3 $176.7 $253.1 Adjusted EBITDA Margin 22.9% 25.9% 21.1% 24.9% *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation.
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12 Q4 2025 & FULL YEAR SELECT CASH FLOW AND BALANCE SHEET RESULTS In millions Q4 2025 Q3 2025 Q4 2024 2025 2024 Cash, Cash Equivalents & Marketable Securities1 $556.6 $592.8 $571.3 $556.6 $571.3 Cash From Operations ($6.6) $45.3 $12.8 $118.3 $140.8 Capital Expenditures $2.3 $2.0 $4.7 $11.3 $12.2 Free Cash Flow ($8.9)2 $43.3 $8.1 $107.0 $128.6 Share Repurchase $25.2 $32.3 $15.1 $121.1 $60.5 1 Marketable securities includes both Short-Term Investments and Long-Term Investments. 2 Q4 2025 Free Cash Flow includes an estimated $5 million impact from cash transaction expenses associated with the pending Veeco merger.
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13 OUTLOOK Q1 2026 Revenue ~$195M Non-GAAP Gross Margin* ~41.0% Non-GAAP Operating Expenses* ~$59M Adjusted EBITDA* ~$26.0 Non-GAAP Diluted Earnings Per Share* ~$0.71 *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. FULL YEAR COMMENTARY • 2026 Revenue expected to be relatively flat compared to 2025 levels, weighted to 2H 2026. • 2026 Non-GAAP Gross Margin expected to be in the low to mid 40s% range. • Y/Y decline is primarily due to higher mix of Memory, and to a lesser extent, modest Y/Y impact from tariffs of less than 100 basis points • Non-GAAP Operating Expenses for the balance of the year expected to be consistent with anticipated Q1 2026 levels. • Expected 2026 Tax Rate of ~15%.
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APPENDIX
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15 APPENDIX: GAAP TO NON-GAAP RECONCILIATION Q4'25 Q4'24 FY25 FY24 Revenue $ 238,330 $ 252,417 $ 839,048 $ 1,017,865 Gross Profit $ 111,932 116,223 $ 376,848 454,654 Restructuring1 293 256 519 1,132 Stock-based compensation 443 399 1,864 1,505 Non-GAAP Gross Profit $ 112,668 $ 116,878 $ 379,231 $ 457,291 Non-GAAP Gross Margin 47.3% 46.3% 45.2% 44.9% Operating Expense $ 75,760 $ 61,692 $ 257,533 $ 243,860 Transaction and Integration (7,541) - (16,296) - Bad debt expense - (3) - (2,987) Restructuring1 (1,078) (862) (2,208) (1,414) Stock-based compensation (4,662) (4,981) (18,909) (19,446) Non-GAAP Operating Expense $ 62,479 $ 55,846 $ 220,120 $ 220,013 Operating Income $ 36,172 $ 54,351 $ 119,315 $ 210,794 Transaction and Integration2 7,541 - 16,296 - Bad debt expense - 3 - 2,987 Restructuring1 1,371 1,118 2,727 2,546 Stock-based compensation 5,105 5,380 20,773 20,951 Non-GAAP Operating Income $ 50,189 $ 61.032 $ 159,111 $ 237,278 Non-GAAP Operating Margin 21.1% 24.2% 19.0% 23.3% Income tax provision $ 5,721 $ 8,689 $ 18,011 $ 29,282 Tax impact of non-GAAP adjustments3 1,962 910 5.571 3,708 Non-GAAP Income tax provision $ 7,683 $ 9,599 $ 23,582 $ 32,990 Net Income $ 34,297 $ 49,956 $ 120,238 $ 200,992 Transaction and Integration2 7,541 - 16.296 - Bad debt expense - 3 - 2,987 Restructuring1 1,371 1,118 2,727 2,547 Stock-based compensation 5,105 5,380 20,773 20,951 Tax impact of non-GAAP adjustments3 (1,962) (910) (5,571) (3,708) Non-GAAP Net Income $ 46,352 $ 55,547 $ 154,463 $ 223,769 Diluted earnings per share $ 1.10 $ 1.54 $ 3.80 $ 6.15 Transaction and Integration2 0.24 - 0.51 - Bad debt expense - - - 0.09 Restructuring1 0.05 0.03 0.09 0.07 Stock-based compensation 0.16 0.17 0.66 0.64 Tax impact of non-GAAP adjustments3 (0.06) (0.03) (0.18) (0.11) Non-GAAP diluted earnings per share $ 1.49 $ 1.71 $ 4.88 $ 6.84 Basic Share O/S 30,925 32,424 31,574 32,552 Diluted Shares O/S 31,123 32,514 31,668 32,704 Adjusted EBITDA Reconciliation Q4'25 Q4’24 FY25 FY24 Net income $ 34,297 $ 49,956 $ 120,238 $ 200,992 Other (income)/expense (3,846) (4,114) (18,934) (19,480) Income tax provision 5,721 8,689 18,011 29,282 Depreciation & amortization 4,461 4,267 17,613 15,809 Subtotal $ 40,633 $ 58,798 $ 136,928 $ 226,603 Transaction and Integration2 7,541 - 16,296 - Bad debt expense - 3 - 2,987 Restructuring1 1,371 1,118 2,727 2,547 Stock-based compensation 5,105 5,380 20,773 20,951 Adjusted EBITDA $ 54,650 $ 65,299 $ 176,724 $ 253,088 Adjusted EBITDA Margin 22.9% 25.9% 21.1% 24.9% Footnotes: 1Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives. 2Transaction and Integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025. 3Impact of taxes from Non-GAAP adjustments, uses adjusted tax rate of 14%. Note: Figures may not sum due to rounding.
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16 16 APPENDIX: Q1 2026 OUTLOOK GAAP TO NON-GAAP RECONCILIATION Footnotes: 1Transaction and Integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025. 2Impact of taxes from Non-GAAP adjustments, uses adjusted tax rate of 14%. Note: Figures may not sum due to rounding; Dollar amounts in millions, except per share figures. Q1 2026 Outlook Revenue $195 GAAP Gross Margin 41.1% Restructuring - Stock-based compensation 0.2% Non-GAAP Gross Margin 41.0% GAAP Operating Expense $71 Transaction and Integration1 ($7) Restructuring - Stock Comp ($5) Non-GAAP Operating Expense $59 GAAP Diluted earnings per share $0.38 Transaction and Integration1 $0.22 Restructuring - Stock-based compensation $0.16 Tax impact of non-GAAP adjustments2 ($0.05) Non-GAAP Diluted earnings per share $0.71 Adjusted EBITDA Reconciliation Q1 2026 Outlook Net Income $12 Other (Income)/Expense ($4) Income tax provision $2 Depreciation & Amortization $5 Subtotal $ 15 Transaction and Integration1 $7 Restructuring - Stock-based compensation $5 Adjusted EBITDA $26