Amtech Systems Q1 Earnings Call Highlights

Key Points

• AI-driven demand lifted the Thermal Processing Solutions business: AI-related products accounted for 35% of TPS revenue (up from ~30%), AI revenues rose ~10% sequentially, and the company reported a book-to-bill of 1.1, with management expecting AI equipment demand to continue into Q3–Q4.
• Amtech received initial orders for panel-level packaging and is investing in a next‑generation high‑density packaging platform that could significantly increase its addressable market beyond 2026, although meaningful demand may not materialize until 2027.
• Q1 financials: revenue was $19 million (midpoint of guidance) with adjusted EBITDA of $1.4 million and gross margin of 44.8%; the company generated $4.1 million of operating cash flow, finished the quarter with $22.1M in cash and no debt, and guided Q2 revenue to $19–21M with expected high‑single‑digit adjusted EBITDA margins.

Amtech Systems NASDAQ: ASYS reported fiscal first-quarter 2026 revenue of $19 million, landing at the midpoint of the company’s guidance, as management cited continued demand tied to artificial intelligence infrastructure and advanced packaging. Adjusted EBITDA was $1.4 million, also within the company’s guidance range, while leadership highlighted strong bookings, expanding AI-related mix in its Thermal Processing Solutions business, and ongoing benefits from its multi-year restructuring and shift to a semi-fabless operating model.

AI-driven demand lifts Thermal Processing Solutions bookings and mix

Chief Executive Officer Bob Daigle said the quarter benefited from “strength in demand for AI-related products,” which accounted for 35% of revenue in the Thermal Processing Solutions (TPS) segment, up from about 30% in the prior quarter. Interim Chief Financial Officer Mark Weaver added that AI revenues within TPS increased approximately 10% sequentially.

Daigle also pointed to strong bookings in the quarter, with an overall book-to-bill ratio of 1.1, driven by TPS performance and “strength in AI equipment orders.” He said Amtech’s short lead times allow it to deliver a majority of the ordered equipment in the second quarter, though some customers requested third-quarter deliveries to align with factory build-outs.

Management said semiconductor OEMs and OSATs are increasing investments to expand capacity to support AI infrastructure demand. Daigle stated the company expects demand for AI application equipment to continue increasing into the third and fourth quarters.

Initial panel-level packaging orders and next-generation packaging investment

Daigle said Amtech received initial orders from “multiple industry leaders” for panel-level packaging equipment during the quarter. He described panel-level packaging as an emerging technology aimed at cost and throughput advantages by processing packaging in large panel formats and dicing later, similar to wafer processing. In response to an analyst question, Daigle said Amtech views panel-level packaging as “the future of advanced packaging,” and described the variety of customer orders as validation of future demand.

While panel-level processing uses similar technology to what Amtech provides today, Daigle separately emphasized the company is investing in next-generation equipment to address higher-density packaging requirements. He said Amtech is processing samples for multiple customers and believes the next-generation platform could “significantly increase” its addressable market beyond 2026. However, he cautioned that meaningful demand for the next-generation equipment may not arrive until 2027.

Semiconductor Fabrication Solutions: specialty chemicals win offset by PR Hoffman weakness

Within the Semiconductor Fabrication Solutions (SFS) segment, Daigle highlighted a first win for a specialty chemical product developed for a medical device semiconductor application, noting the company produced and delivered initial product during the quarter. He said customer engagement and an opportunity pipeline in specialty chemicals are validating Amtech’s strategy to target “underserved customers” with technically demanding, high-value applications.

Daigle also said bookings improved at the company’s Entrepix and BTU Parts and Services businesses, attributing gains to a more proactive approach to business development and service-level improvements.

That progress was offset, however, by weak demand for PR Hoffman products, which Daigle said continues to be pressured by weakness in mature-node semiconductor markets and “severe cost pressures” at major silicon carbide semiconductor customers. He characterized 2026 as an “investment year” for SFS, but said the company expects double-digit growth and meaningful profits from recurring revenue streams beyond 2026.

Margins, expenses, and cash flow reflect transformation efforts

Weaver said first-quarter revenue is not meaningfully comparable to the prior-year period due to product line rationalization that began two years ago, and he emphasized management’s focus on AI demand and improved operating performance metrics. He reported gross margin of 44.8% in the first quarter, up from 38.4% in the same quarter last year and 44.4% in the prior quarter, noting the increase occurred on lower sales volume.

Selling, general and administrative (SG&A) expense rose $500,000 sequentially but declined $1.2 million versus the year-ago quarter. Weaver attributed the sequential increase primarily to incentive compensation, professional fees, and insurance, while he said the year-over-year decrease reflected cost reductions and structural changes aimed at reducing fixed costs. Research, development, and engineering expenses increased $0.3 million sequentially and were “relatively flat” compared to the prior-year period, as the company continues investing in next-generation AI supply chain products and specialty chemicals.

GAAP net income was $0.1 million, or $0.01 per share, compared with GAAP net income of $1.1 million ($0.07 per share) in the preceding quarter and $0.3 million ($0.02 per share) in the first quarter of fiscal 2025.

Daigle said the company generated $4.1 million of cash from operations in the quarter, marking its ninth consecutive quarter of positive operating cash flow. Amtech ended the quarter with $22.1 million in cash and no debt. Weaver said cash increased from $17.9 million at September 30, 2025, driven by operational cash generation, working-capital optimization, accounts receivable collections, and accounts payable management. Over the past 12 months through December 31, 2025, he said cash increased 67%, or $8.9 million, while the company remained debt-free.

Daigle also reiterated that consolidation of the manufacturing footprint from seven facilities to four and adoption of a semi-fabless model should support higher revenue with minimal capital expenditure. He said the company expects capital expenditures for the year to be below $1 million.

Guidance and additional call highlights

For the fiscal second quarter ending March 31, 2026, management guided revenue to a range of $19 million to $21 million, with AI-related TPS equipment sales expected to drive the majority of the growth. Weaver said Amtech expects continued operating leverage from previously implemented cost reductions, with adjusted EBITDA margins “once again coming in at high single digits.”

During Q&A, Daigle said visibility into AI-related demand has improved as customers become more open about expansion plans to ensure supply chain readiness. He also noted a shift from “squeezing equipment into existing facilities” toward new facilities being built and outfitted, which he said influenced delivery timing into the third quarter for some orders. For non-AI semiconductor markets, he said visibility is less clear, though there are “inklings” of improvement in mature-node markets.

Weaver addressed a question on the quarter’s effective tax rate, explaining the company’s U.S. entities were in a loss position and the tax benefit was not recognized due to a valuation allowance against deferred tax assets, while tax expense reflected income in foreign entities.

About Amtech Systems NASDAQ: ASYS

Amtech Systems, Inc is a global supplier of capital equipment and aftermarket parts for the solar photovoltaic and semiconductor industries. The company's solutions support key steps in wafer and cell production, offering both new machinery and spares designed to optimize yield, throughput and energy efficiency. Amtech operates through two primary segments: solar manufacturing and semiconductor & electronics packaging.

In its solar segment, Amtech provides diffusion furnaces, epitaxy reactors and plasma-enhanced chemical vapor deposition (PECVD) systems used in high-volume solar cell fabrication.

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