ASYS · Amtech Systems, Inc.

Amtech Systems delivered strong Q2 FY2026 results with net revenues of $20.5 million, reflecting 31% year-over-year growth and 8% sequential increase, primarily fueled by robust demand for reflow equipment in AI applications. Over 20% of Thermal Processing Solutions revenue came from higher-margin parts and services, underscoring the benefits of customer-centric initiatives. Gross profit rose to $9.8 million with a 47.7% margin, a 297 basis point improvement from Q1's 44.8% and a dramatic turnaround from last year's negative 2.1%, driven by product line rationalization, discontinuation of low-margin offerings, and migration to a semi-fabless model. These changes have enabled significant operating leverage, marking the tenth straight quarter of positive operating cash flow at $2.1 million. GAAP net income of $1.2 million ($0.08 per share) compared favorably to $0.1 million in Q1 and a $31.8 million loss in Q2 FY2025, which included $22.9 million in impairment charges and inventory write-downs. CEO Bob Daigle highlighted AI equipment demand and recurring revenue growth in both segments, positioning Amtech to capitalize on AI infrastructure buildout. Balance sheet strengthened with cash at $24.4 million, up from $17.9 million at FY start, supported by working capital optimization. Q3 guidance of $20.5-22.5 million in revenue anticipates continued leverage from cost reductions and recurring sales, targeting low double-digit adjusted EBITDA margins. A $5 million share repurchase program initiated in December 2025 remains untapped, signaling confidence in valuation.