(Reuters) -Computer chip equipment maker ASM International cut its revenue target for the second half of 2025, ahead of its investor day on Tuesday, seeing demand for its most advanced machines drop towards the end of the year.
Shares in ASM dropped 5.9% in early trading.
The Dutch company anticipates revenue in the second half of the year to be 5% to 10% lower compared to the first half of 2025 at constant currency rates. ASM had previously guided revenue in the second half to be flat compared with the first half.
ASM said it expects a fourth quarter revenue drop, despite the third quarter being in line with its guidance.
“This is due to lower-than-expected demand in leading-edge logic/foundry, with a mixed picture per customer, as well as lower demand in the power/wafer/analog markets,” it said in a statement.
WEAK SALES OUTLOOK
Degroof Petercam analyst Michael Roeg said he was surprised by the weak sales outlook as TSMC, the world’s largest contract chipmaker is rolling out its latest manufacturing process using ASM’s tools.
“This could be the results of weaknesses of ASM’s other major customers, Intel and Samsung <005930.KS>,” the analyst said.
ASM said its updated guidance implies 2025 full-year revenue growth to fall to the lower end of its 10% to 20% range. It reported 12% revenue growth in 2024 to 2.93 billion euros ($3.46 billion).
The company also laid out its financial targets for 2030, anticipating revenue to increase to more than 5.7 billion euros, with compound annual growth rate (CAGR) of at least 12%, and operating margin to exceed 30%.
It also narrowed its 2027 revenue target to account for currency effects. It now sees it coming in a range of 3.7 to 4.6 billion euros, compared with 4 to 5 billion euros previously.
Analysts polled by LSEG expected the figure at 4.12 billion euros.
($1 = 0.8480 euros)
(Reporting by Nathan Vifflin in Gdansk; Editing by Matt Scuffham and Anna Pruchnicka)
