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1. Company Snapshot

1.a. Company Description

Axcelis Technologies, Inc.designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia.The company offers high energy, high current, and medium current implanters for various application requirements.


It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training.It sells its equipment and services to semiconductor chip manufacturers through its direct sales force.The company was founded in 1978 and is headquartered in Beverly, Massachusetts.

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1.b. Last Insights on ACLS

Axcelis Technologies' recent performance was driven by strong Q3 2025 earnings, with revenue of $213.6 million and non-GAAP diluted earnings per share of $1.21, beating estimates. The company's growth prospects are fueled by its position in the semiconductor industry, with a consensus recommendation of "Hold" from brokerages and a target price of $98.80. Technical indicators also suggest a short-term bullish trend, with the stock recently breaking out above the 50-day and 20-day moving averages. Institutional investors, such as Oppenheimer Asset Management, have also shown confidence, boosting their stakes in the company.

1.c. Company Highlights

2. Axcelis Technologies' Q3 2025 Earnings: A Strong Performance

Axcelis Technologies reported a robust third quarter 2025, with revenue reaching $214 million and non-GAAP earnings per diluted share of $1.21, both exceeding expectations. The company's CS&I business continued to shine, with revenue hitting a record $70 million, driven by strong demand for spares and consumables, as well as an improvement in service revenues. The systems revenue was $144 million, also above expectations. The actual EPS of $1.21 was significantly higher than the estimated $1.01, indicating a strong operational performance.

Publication Date: Nov -08

📋 Highlights
  • Q3 Revenue Exceeds Outlook: Revenue reached $214 million, surpassing expectations with non-GAAP EPS at $1.21.
  • CS&I Revenue Hits Record: CS&I revenue hit a record $70 million, driven by spares, consumables, and service demand.
  • Strong Free Cash Flow: Generated $43 million in free cash flow, supported by improved profitability and working capital efficiency.
  • Backlog Stability: Maintained $485 million backlog (excluding CS&I), with inventory investments to meet customer needs.

Segmental Performance

The company's Power business saw shipments to Silicon Carbide applications grow sequentially, and it expects revenue from Silicon Carbide to fluctuate from quarter-to-quarter. In Advanced Logic, Axcelis continues to target next-generation ion implantation applications across multiple customers. Memory revenue remained muted in Q3 but is expected to increase sequentially in Q4 as customers expand capacity to address growing demand for AI-related applications.

Cash Flow and Balance Sheet

The company generated $43 million of free cash flow in Q3, driven by better-than-expected profitability and a slight improvement in both days sales and days payable outstanding. Axcelis exited Q3 with a strong balance sheet, comprising $593 million of cash, cash equivalents, and marketable securities. The free cash flow yield is around 4.89%, which is a positive indicator.

Outlook and Valuation

Looking ahead, Axcelis expects revenues to be relatively similar to Q4 2025 levels in Q1 2026. Analysts estimate revenue growth of 6.9% for next year. With a current P/E ratio of 17.34 and an EV/EBITDA of 12.35, the market seems to have priced in a moderate growth trajectory. The ROE of 15.7% and ROIC of 12.1% indicate a healthy return on equity and invested capital, respectively.

Bookings and Backlog

Bookings declined sequentially, primarily due to softer power and general mature bookings, but are expected to be higher in Q4 relative to Q3. The company has a backlog of $485 million, excluding CS&I base, which provides a stable revenue visibility. As James Coogan noted, "We're making investments in inventory to meet customer requirements. We can operate efficiently with current production visibility and expect to capture incremental opportunities."

3. NewsRoom

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Halper Sadeh LLC Encourages THS, CDTX, SPNS Shareholders to Contact the Firm to Discuss Their Rights

Nov -22

Source: globenewswire.com

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Brokerages Set Axcelis Technologies, Inc. (NASDAQ:ACLS) Target Price at $98.80

Nov -17

Source: defenseworld.net

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Aviva PLC Sells 2,659 Shares of Axcelis Technologies, Inc. $ACLS

Nov -14

Source: defenseworld.net

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Axcelis Technologies (ACLS) Recently Broke Out Above the 50-Day Moving Average

Nov -11

Source: zacks.com

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Axcelis Technologies (ACLS) Just Flashed Golden Cross Signal: Do You Buy?

Nov -10

Source: zacks.com

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All You Need to Know About Axcelis (ACLS) Rating Upgrade to Buy

Nov -06

Source: zacks.com

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Axcelis Announces Participation in Upcoming Investor Conferences

Nov -06

Source: prnewswire.com

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Axcelis Technologies, Inc. (ACLS) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.32%)

6. Segments

Ion Implantation Systems and Services

Expected Growth: 7.3%

Growing demand for high-precision semiconductor manufacturing, increasing adoption of IoT and AI devices, and rising need for precise control of dopant distribution drive the growth of Ion Implantation Systems and Services market.

Other Systems and Services

Expected Growth: 8.5%

Growing demand for semiconductor manufacturing equipment, increasing adoption of IoT and AI technologies, and rising need for maintenance and repair services drive the growth of Other Systems and Services segment of Axcelis Technologies, Inc.

7. Detailed Products

Purion XE

High-energy implant systems for advanced semiconductor manufacturing

Purion H

High-current implant systems for high-volume semiconductor manufacturing

Purion M

Medium-current implant systems for specialty semiconductor manufacturing

Celsius

Advanced thermal processing systems for semiconductor manufacturing

Optima

Advanced ion implantation systems for semiconductor manufacturing

Service and Support

Comprehensive service and support programs for semiconductor manufacturing equipment

8. Axcelis Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Axcelis Technologies, Inc. faces moderate threat from substitutes due to the availability of alternative semiconductor manufacturing equipment.

Bargaining Power Of Customers

Axcelis Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Axcelis Technologies, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power.

Threat Of New Entrants

The semiconductor manufacturing equipment industry has high barriers to entry, making it difficult for new entrants to compete with Axcelis Technologies, Inc.

Intensity Of Rivalry

The semiconductor manufacturing equipment industry is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.48%
Debt Cost 7.97%
Equity Weight 94.52%
Equity Cost 11.81%
WACC 11.60%
Leverage 5.80%

11. Quality Control: Axcelis Technologies, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rambus

A-Score: 5.1/10

Value: 0.8

Growth: 8.0

Quality: 9.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Axcelis Technologies

A-Score: 4.7/10

Value: 4.4

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Teradyne

A-Score: 4.0/10

Value: 4.2

Growth: 4.4

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
MACOM Tech

A-Score: 3.9/10

Value: 2.2

Growth: 6.7

Quality: 3.5

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Entegris

A-Score: 3.7/10

Value: 2.6

Growth: 6.6

Quality: 6.9

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
FormFactor

A-Score: 2.6/10

Value: 0.6

Growth: 5.2

Quality: 5.4

Yield: 0.0

Momentum: 2.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.82$

Current Price

90.82$

Potential

-0.00%

Expected Cash-Flows