Semiconductor production equipment provider Amtech Systems (NASDAQ: ASYS) met Wall Street’s revenue expectations in Q4 CY2025, but sales fell by 22.2% year on year to $18.97 million. The company expects next quarter’s revenue to be around $20 million, coming in 2.6% above analysts’ estimates. Its non-GAAP profit of $0.03 per share was 57.1% below analysts’ consensus estimates.
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Amtech (ASYS) Q4 CY2025 Highlights:
- Revenue: $18.97 million vs analyst estimates of $19 million (22.2% year-on-year decline, in line)
- Adjusted EPS: $0.03 vs analyst expectations of $0.07 (57.1% miss)
- Adjusted EBITDA: $1.44 million vs analyst estimates of $2.5 million (7.6% margin, 42.2% miss)
- Revenue Guidance for Q1 CY2026 is $20 million at the midpoint, above analyst estimates of $19.5 million
- Operating Margin: 4.1%, up from 1.8% in the same quarter last year
- Free Cash Flow Margin: 20.2%, up from 11.2% in the same quarter last year
- Inventory Days Outstanding: 165, up from 155 in the previous quarter
- Market Capitalization: $226.7 million
Company Overview
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ: ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Amtech’s sales grew at a mediocre 3.3% compounded annual growth rate over the last five years. This was below our standard for the semiconductor sector and is a poor baseline for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Amtech’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 20.4% annually. 
This quarter, Amtech reported a rather uninspiring 22.2% year-on-year revenue decline to $18.97 million of revenue, in line with Wall Street’s estimates. Despite meeting estimates, the drop in sales could mean that the current downcycle is deepening. Company management is currently guiding for a 28.4% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 11% over the next 12 months. Although this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Amtech’s DIO came in at 165, which is 11 days above its five-year average, suggesting that the company’s inventory has grown to higher levels than we’ve seen in the past.
Key Takeaways from Amtech’s Q4 Results
It was encouraging to see Amtech’s revenue guidance for next quarter beat analysts’ expectations. On the other hand, its EPS missed and its inventory levels increased. Overall, this quarter could have been better. The stock traded down 11.2% to $14.18 immediately following the results.
Amtech didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
