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    ASM International (ENXTAM:ASM) Stock Slides Despite Record Cash Flow And Margins

    Simply Wall St·07/30/2026 09:32:52
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    ASM International stock has been under pressure for weeks, with the share price down roughly 26% over the past month, yet the latest quarter reads more like a flex than a stumble. Q2 revenue landed at €1.0b and basic earnings per share reached €5.83, while gross margin held at a high 51.9% in a capital intensive sector.

    For a company often treated as a pure artificial intelligence beneficiary, the real story in this earnings print is profit quality. Investors now have to weigh a rich recent share price run against a business that just produced record free cash flow and strong margins.

    Love ASM International's strong margins and record free cash flow but concerned about the recent share price slide and rich run up before this report? Check out the list of solid balance sheet and fundamentals stocks (422 results)

    Q2 2026 Earnings Summary

    • Revenue, Q2 2026 vs. Q2 2025: €1,003.1m vs. €835.6m (up about 20%)
    • Net Income, Q2 2026 vs. Q2 2025: €285.4m vs. €202.4m (up about 41%)
    • Basic EPS, Q2 2026 vs. Q2 2025: €5.83 vs. €4.12 (up about 42%)
    • Gross Margin and net profit margin context: Gross margin was 51.9% in Q2 2026. The trailing 12‑month net profit margin was 31.9%, compared with 16.2% in the prior year.

    Prefer clean charts instead of scrolling through dense earnings tables and raw figures? See ASM International's full financial picture with a visual breakdown of its valuation in the company report for ASM International.

    ENXTAM:ASM Trailing 12-Month Revenue & Expenses Breakdown as at Jul 2026
    ENXTAM:ASM Trailing 12-Month Revenue & Expenses Breakdown as at Jul 2026

    ASM International bull story meets key execution tests

    Bulls argue ASM International is a prime beneficiary of multi year advanced node spending with a sticky services layer on top. Q2 gives that view concrete support. Revenue of €1.0b beat guidance, with equipment sales and spares and services both growing strongly in constant currency. That fits the claim that ALD and epi tools gain as layer complexity rises and that the installed base keeps throwing off high margin service work. Logic and foundry made up 77% of H1 equipment sales and 2 nm was the largest contributor, which matches the thesis that advanced nodes drive the cycle. Management also highlighted first meaningful 1.4 nm contributions in H2 2026 and record orders in HBM focused DRAM, pointing to broader exposure across logic and memory rather than a single product pocket.

    Bear case on concentration and risk still has teeth

    The bear story centers on concentrated customers, China risk, cost creep and potential margin pressure if orders slow. Q2 does not remove those concerns, even if it softens some of them. Management flagged mature logic in China as a major H1 contributor and guided that piece down in H2 2026, which validates worries about reliance on a few demand pools. The company expects China overall to stay solid as memory and power or analog fill some of the gap, but that shift still depends on a small group of large chipmakers. Gross margin of 51.9% and a roughly 33% adjusted operating margin show no immediate erosion, yet R&D, CapEx and supply chain inflation are all running higher. That means the current margin structure still needs strong volumes to hold.

    After concentrated China exposure, higher cost run rate and a volatile €720 share price, review our completed risk analysis for ASM International which shows 1 important warning sign

    Stay Ahead With ASM International Insights

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.