ASMPT Limited Announces Robust 2025 Annual Results: AI-Driven Structural Growth and Strategic Transformations

Key Highlights from the Annual Report

• Significant Growth Across Bookings and Revenue: ASMPT Limited reported a strong increase in both bookings and revenue for the year ended 31 December 2025, largely driven by structural growth in Artificial Intelligence (AI) applications.
• Technology Leadership in Thermo-Compression Bonding (TCB): The Group’s TCB solutions in advanced packaging achieved record revenue and captured substantial new orders, solidifying its leadership in both logic and memory markets.
• SMT Segment Performance: Surface Mount Technology (SMT) saw robust bookings, particularly from AI server demand and Electric Vehicle (EV) sector growth in China.
• Strategic Divestment Decision: ASMPT has decided to divest its subsidiary ASMPT NEXX, Inc., reclassifying it as a Discontinued Operation. This move is designed to sharpen the Group’s focus on its core back-end packaging business.
• Dividend Announcement: The Board recommended a final dividend of HK\$0.34 and a special dividend of HK\$0.79 per share, bringing the total dividend per share for 2025 to HK\$1.39, a notable return for shareholders.

Detailed Financial Performance

• Full-Year Revenue: HK\$13.74 billion (US\$1.76 billion), up 10.0% year-on-year.
• Group Bookings: HK\$14.48 billion (US\$1.86 billion), up 21.7% YoY. SMT bookings surged 40% YoY; SEMI bookings increased 6.3% YoY.
• Backlog: HK\$6.17 billion (US\$792.9 million) with a book-to-bill ratio of 1.05, the highest since 2021.
• Adjusted Gross Margin: 38.3%, down 172 basis points YoY, reflecting margin pressure in both SEMI and SMT segments.
• Adjusted Net Profit: HK\$466.7 million, up 24.5% YoY, driven by higher operating profit.
• Cash Position: Ended 2025 with HK\$5.68 billion in cash and bank deposits; net cash stood at HK\$3.28 billion.

Segment-Specific Developments

Advanced Packaging (AP) – TCB Drives Growth

• AP Revenue: US\$532.1 million, up 30.2% YoY, with TCB solutions as the main contributor.
• TCB Market Leadership: Record revenue with ~146% YoY growth. Estimated TCB total addressable market revised up from US\$760 million (2025) to US\$1.6 billion (2028), implying a CAGR of 30%. ASMPT targets a 35–40% market share.
• Logic Segment: Dominant in TCB chip-to-substrate (C2S). Strong order flows and positioning for larger compound dies. Chip-to-wafer (C2W) solution with proprietary plasma AOR technology won multiple tool orders in Q1 2026.
• Memory Segment: Deepened engagement with multiple customers. TCB solutions for HBM4 12H secured orders from several industry players, affirming leadership in HBM4 transition. Leading in HBM4 16H tech development.
• Hybrid Bonding (HB): Shipped more tools, continued development of 2nd-gen platform with improved precision and UPH.
• Photonics: 10% YoY revenue growth, sustained dominance in 800G optical transceivers, active engagement in next-gen 1.6T transceiver solutions.

SMT Segment – AI and EV Momentum

• SiP Orders: Significant growth (~43% YoY), mainly driven by AI-driven demand for System-in-Package solutions, particularly for RF modules in base stations.
• Mainstream Business: AI demand boosted power management needs in global data centers, supporting SEMI’s mainstream business and SMT’s orders for data-transmission and EVs in China.
• China Market: Delivered ~18% YoY revenue growth across SEMI and SMT, driven by strong OSAT utilization and AI server board deployment.

Quarterly Performance – Q4 2025

• Revenue: HK\$4.33 billion (US\$557.1 million), up 12.2% quarter-on-quarter and 30.9% YoY.
• Bookings: HK\$3.89 billion (US\$499.7 million), up 5.0% QoQ and 28.2% YoY, driven by both TCB (SEMI) and SMT mainstream business.
• Adjusted Gross Margin: 35.8%, down 175 bps QoQ and 101 bps YoY.
• Adjusted Operating Profit: HK\$161.0 million, up 4.3% QoQ.
• Adjusted Net Profit: HK\$119.9 million, up 42.2% QoQ and 390.7% YoY, QoQ increase driven by fees from order cancellations.

Strategic Divestment: ASMPT NEXX, Inc.

• ASMPT has decided to divest ASMPT NEXX, Inc., which has now been classified as a Discontinued Operation. The divestment aims to sharpen focus on the back-end packaging business and is expected to enable NEXX to achieve long-term success under new ownership.
• No binding agreement had been entered into as of the results announcement date; updates will be provided as required.

Forward-Looking Guidance and Outlook

• Q1 2026 Revenue Guidance: US\$470 million to US\$530 million, representing -1.8% QoQ but +29.5% YoY at the mid-point. Guidance is above current market consensus, reflecting management confidence.
• Gross Margin Outlook: Group Q1 2026 gross margin expected to improve, primarily from SEMI segment returning to mid-40s, driven by higher TCB and high-end die bonder volumes. SMT margins expected to stay flat due to softness in Automotive and Industrial end-markets.
• Bookings Momentum: Expected to accelerate in Q1 2026 across both SEMI and SMT segments.
• AI Demand: Structural industry growth from AI is anticipated to drive revenue expansion across both SEMI and SMT throughout 2026.
• China and Global AI Infrastructure: SEMI and SMT mainstream businesses are supported by steady demand from China and global investments in AI infrastructure.
• Automotive and Industrial SMT: Expected to remain soft in the near term.

Shareholder-Relevant, Price-Sensitive Developments

• TCB Market Leadership: ASMPT’s leadership and rapid growth in the TCB market, coupled with a major upward revision of the TAM, could materially impact future earnings and share value.
• Dividend Announcement: The total dividend per share for 2025 is HK\$1.39, including a special dividend, representing a significant return to shareholders.
• Strategic Divestment: The divestment of ASMPT NEXX, Inc. is a material strategic move that may affect the Group’s future earnings profile and market focus.
• Strong Q1 2026 Guidance: Revenue guidance above consensus and improving margins could positively influence share price.
• Robust Cash Position: ASMPT’s strong cash and net cash positions provide financial flexibility, supporting further investment and potential shareholder returns.

About ASMPT Limited

ASMPT Limited is a global leader in hardware and software solutions for the semiconductor and electronics manufacturing industries, offering a comprehensive suite of assembly, packaging, and SMT solutions. The company is listed on the Hong Kong Stock Exchange (HKEX: 0522) and is a constituent of several major indices, including the HKEX Tech 100 Index and the Hang Seng Corporate Sustainability Benchmark Index.

Disclaimer

This article is based on ASMPT Limited’s published results and forward-looking statements. All forward-looking statements reflect ASMPT’s current expectations, beliefs, and assumptions but are subject to risks and uncertainties that may cause actual results to differ materially. Investors should not place undue reliance on such statements and should conduct their own due diligence. This article does not constitute financial advice or a recommendation to buy or sell shares.

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