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axcelis Q2 2026 EARNINGS PRESENTATION August 6 , 2026 aptop he Purion 45 Monday S
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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, certain items related to restructuring and severance charges and any associated adjustments and transaction and integration costs associated with the merger agreement with Veeco Instruments announced on October 1, 2025. 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 2026 HIGHLIGHTS Higher-than-expected system volume and CS&I sales Sequential improvement in Power and General Mature markets; demand backdrop in Memory remains robust Stronger booking activity; book-to-bill of approximately 1x *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. REVENUE $215M NON-GAAP DILUTED EPS* $1.06 GAAP DILUTED EPS $0.75
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5 5 Q2 2026 SHIPPED SYSTEM REVENUE BY SEGMENT 23% OTHER POWER (IGBT, OTHER) 16% SILICON CARBIDE (SiC) POWER 44% GENERAL MATURE power mature nodes 14% MEMORY 3% ADVANCED LOGIC
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6 6 39% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2026 • Silicon Carbide bookings improved on a sequential basis. • Expanded the SiC customer base with orders from two new customers in China. • Secured orders from multiple customers for high- energy channeling applications supporting next- generation superjunction architectures in SiC. • Completed a successful Purion XEmax evaluation at a leading foundry for PMIC production, highlighting demand for implant energies of up to 15 MeV. 44% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2026 • Sales increased sequentially as tool utilization and customer engagement continued to improve. • Growing AI data-center demand for devices produced at 28 nanometers and above, including optical connectivity, microcontrollers and analog ICs. • Capacity additions continue in China, while customer activity outside China is beginning to improve. • Growing customer interest in our recently introduced Purion H6 High Current platform. MATURE PROCESS TECHNOLOGY POWER GENERAL MATURE 83% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2026
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7 7 3% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2026 • Shipped a system in the second quarter for a materials-modification application supporting 2- nanometer production • Also shipped a follow-on system in the third quarter for this application. • Continuing to work closely with the customer in support of its next-generation technology roadmap. 14% OF TOTAL SHIPPED SYSTEM REVENUE IN Q2 2026 • Continue to expect meaningful year-over-year growth in 2026, with momentum extending into 2027. • Demand remains driven by accelerated investment in DRAM and HBM capacity to support AI applications. • Expanding customer portfolio with an order for multiple high-current tools in current quarter. • Secured additional orders from a leading North American manufacturer following successful completion of its system evaluation. ADVANCED LOGIC & MEMORY TECHNOLOGY ADVANCED LOGIC MEMORY
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8 8 IMPROVING BUSINESS TRENDS POWER Improving activity in Silicon Carbide and continued opportunities across broader power applications GENERAL MATURE Customer engagement and utilization trends showing signs of improvement MEMORY Strong 2026 outlook, with customer investment activity expected to support momentum into 2027 CS&I Growing installed base and improved utilization rates supporting revenue and profitability Now expecting revenue growth in 2026, with continued growth anticipated in 2027
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9 Q2 2026 REVENUE DETAIL (In millions) Q2 2026 Q1 2026 Q2 2025 Systems Revenue $132.4 $126.3 $133.3 CS&I Revenue $82.8 $72.6 $61.3 Total Revenue $215.2 $199.0 $194.5 Systems Bookings $130.9 $128.2 $96.2 Systems Backlog $451.6 $453.3 $575.7 Q2 2026 Q1 2026 Q2 2025 Geographic Breakdown (% of Total Revenue) China 46% 40% 55% US 6% 11% 18% South Korea 26% 28% 13% Europe 11% 16% 8% Taiwan 2% 2% 4% Japan 1% 1% 0% Rest of World 8% 2% 2% Figures may not sum due to rounding
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10 Q2 2026 SELECT GAAP & NON-GAAP FINANCIAL MEASURES (In millions, expect per share amounts) Q2 2026 Q2 2025 Revenue $215.2 $194.5 Select GAAP Financial Measures Gross Margin 42.4% 44.9% Operating Expenses $70.9 $58.4 Operating Income $20.3 $29.0 Operating Margin 9.4% 14.9% Net Income $23.3 $31.4 Diluted Shares Outstanding 31.1 31.9 Diluted Earnings Per Share $0.75 $0.98 Select Non-GAAP Financial Measures* Non-GAAP Gross Margin 42.7% 45.2% Non-GAAP Operating Expenses $60.4 $53.6 Non-GAAP Operating Income $31.5 $34.4 Non-GAAP Operating Margin 14.7% 17.7% Non-GAAP Net Income $33.0 $36.0 Non-GAAP Diluted Earnings Per Share $1.06 $1.13 Adjusted EBITDA $36.0 $38.9 Adjusted EBITDA Margin 16.7% 20.0% *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 2026 SELECT CASH FLOW AND BALANCE SHEET RESULTS (In millions) Q2 2026 Q1 2026 Q2 2025 Cash, Cash Equivalents & Marketable Securities1 $577.0 $570.0 $581.0 Cash From Operations $18.4 $18.1 $39.7 Capital Expenditures $3.6 $1.8 $2.0 Free Cash Flow2 $14.8 $16.3 $37.7 Share Repurchase - - $45.3 1 Marketable securities includes both Short-Term Investments and Long-Term Investments. 2 Q2 2026 includes approximately $6M and Q1 2026 includes approximately $12M from cash transaction expenses associated with the pending Veeco merger.
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12 Q3 2026 OUTLOOK Q3 2026 Revenue $230M Non-GAAP Gross Margin* 43.0% Non-GAAP Operating Expenses* $62M Adjusted EBITDA* $41M Non-GAAP Diluted Earnings Per Share* $1.11 *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. ADDITIONAL COMMENTARY • Q4 2026 revenue is expected to increase sequentially • Full-year 2026 revenue now expected to grow mid-single digit % on a YoY basis • Q4 2026 Non-GAAP Gross Margins and Operating Expense both anticipated to increase slightly on a sequential basis
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APPENDIX
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14 APPENDIX: GAAP TO NON-GAAP RECONCILIATION Q2’26 Q2’25 Revenue $ 215,175 $ 194,544 Gross Profit $ 91,189 $ 87,343 Restructuring1 - - Stock-based compensation 755 569 Non-GAAP Gross Profit $ 91,944 $ 87,912 Non-GAAP Gross Margin 42.7% 45.2% Operating Expense $ 70,908 $ 58,378 Transaction and Integration (4,827) - Bad debt expense - - Restructuring1 - 29 Stock-based compensation (5,670) (4,852) Non-GAAP Operating Expense $ 60,411 $ 53,555 Operating Income $ 20,281 $ 28,965 Transaction and Integration2 4,827 - Bad debt expense - - Restructuring1 - (29) Stock-based compensation 6,425 5,421 Non-GAAP Operating Income $ 31,533 $ 34,357 Non-GAAP Operating Margin 14.7% 17.7% Income tax provision $ 2,057 $ 3,621 Tax impact of non-GAAP adjustments3 1,575 755 Non-GAAP Income tax provision $ 3,632 $ 4,376 Net Income $ 23,291 $ 31,376 Transaction and Integration2 4,827 - Bad debt expense - - Restructuring1 - (29) Stock-based compensation 6,425 5,421 Tax impact of non-GAAP adjustments3 (1,575) (755) Non-GAAP Net Income $ 32,968 $ 36,013 Diluted earnings per share $ 0.75 $ 0.98 Transaction and Integration2 0.16 - Bad debt expense - - Restructuring1 - - Stock-based compensation 0.21 0.17 Tax impact of non-GAAP adjustments3 (0.05) (0.02) Non-GAAP diluted earnings per share $ 1.06 $ 1.13 Basic Share O/S 30,805 31,847 Diluted Shares O/S 31,134 31,882 Adjusted EBITDA Reconciliation Q2’26 Q2’25 Net income $ 23,291 $ 31,376 Other (income)/expense (5,067) (6,032) Income tax provision 2,057 3,621 Depreciation & amortization 4,439 4,515 Subtotal $ 24,720 $ 33,480 Transaction and Integration2 4,827 - Bad debt expense - - Restructuring1 - (29) Stock-based compensation 6,425 5,421 Adjusted EBITDA $ 35,972 $ 38,872 Adjusted EBITDA Margin 16.7% 20.0% 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. 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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15 15 Footnotes: 1Transaction and Integration costs include expenses associated with the merger agreement with Veeco Instruments. 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. Q3 2026 Outlook Revenue $230 GAAP Gross Margin 42.7% Restructuring - Stock-based compensation 0.3% Non-GAAP Gross Margin 43.0% GAAP Operating Expense $74 Transaction and Integration1 ($6) Restructuring - Stock Comp ($6) Non-GAAP Operating Expense $62 GAAP Diluted EPS $0.76 Transaction and Integration1 $0.19 Stock-based compensation $0.21 Income tax effect of non-GAAP adjustments2 ($0.06) Non-GAAP Diluted EPS $1.11 Adjusted EBITDA Reconciliation Q3 2026 Outlook Net Income $24 Other (Income)/Expense ($4) Income tax provision $4 Depreciation & Amortization $5 Subtotal $29 Transaction and Integration1 $6 Restructuring - Stock-based compensation $7 Adjusted EBITDA $41 Q3 2026 OUTLOOK: GAAP TO NON-GAAP RECONCILIATION