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$35 Million Investment Will Expand Axcelis' Manufacturing Capacity and Enable the Company to Better Serve Customers

, /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, today announced that it will officially break ground on its new ion implantation equipment manufacturing facility in Pyeongtaek, Gyeonggi Province, Korea. This $35 million investment reflects Axcelis' continued commitment to strengthening its high-volume manufacturing infrastructure and expanding its capacity to serve customers around the world.

Axcelis to Begin Construction of New Manufacturing Facility
in Pyeongtaek, Korea

The Pyeongtaek site will expand Axcelis' current manufacturing operations in Korea, the Axcelis Asia Operations Center. The new facility will encompass approximately 200,000 square feet of total gross floor area. The manufacturing center's design will provide a lean production environment that integrates learnings from the Company's nearly 50 years of semiconductor capital equipment experience. The Pyeongtaek facility will include warehousing, cleanrooms, and a training center to enable fast and flexible responses to customers' needs. Production at the new manufacturing facility is scheduled to commence in the second half of 2028.

President and CEO Russell Low commented, "We are proud to celebrate this pivotal moment for Axcelis and the next chapter of our growth in Korea. As the global economy enters the AI era, leadership in advanced semiconductors will be a cornerstone of technological progress and economic growth. This new facility will expand our ability to serve customers while building on the ingenuity of our people, whose work helps enable breakthrough technologies and a more sustainable, prosperous future for all."

Governor of Gyeonggi Province Choo Mi Ae stated, "I would like to extend my sincere congratulations on the groundbreaking of Axcelis Korea's Pyeongtaek facility. Axcelis' investment in advanced semiconductor process equipment represents a significant milestone in strengthening the position of Gyeonggi Province and Pyeongtaek City as global hubs for the semiconductor industry. In particular, we expect this project to contribute greatly not only to the creation of high-quality jobs and the revitalization of the local economy, but also to enhance the competitiveness of the world's leading semiconductor ecosystem. Gyeonggi Province will continue to foster a business-friendly environment and provide efficient administrative support to help Axcelis achieve sustainable growth and long-term success in Korea. Once again, congratulations on this groundbreaking ceremony. I wish Axcelis every success in its business expansion and continued prosperity in the years ahead."

About Axcelis

Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for nearly 50 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

Safe Harbor Statement:

Statements made in this press release that are not of known historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including the risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission ("SEC"), including specifically the risk factors described in our most recent Annual Report on Form 10-K and other subsequent filings with the SEC. The Company undertakes no obligation to update the information or statements made in this press release.

CONTACTS:

Investor Relations Contact:
David Ryzhik
Senior Vice President and Interim CFO
Telephone: (978) 787-2352
Email: [email protected]

Press/Media Relations Contacts:
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: [email protected]

SOURCE Axcelis Technologies, Inc.

Key Takeaways Axcelis expects mid-single-digit revenue growth in 2026 and further growth in 2027.ACLS aftermarket revenue rose 35.1% year over year to $82.8 million in the second quarter.Axcelis trades at 21.2X forward earnings as gross and operating margins remain below year-ago levels. Axcelis Technologies, Inc. (ACLS - Free Report) is moving toward renewed growth as memory, power and aftermarket demand improve. Management's outlook points to a stronger revenue trajectory through 2027.

The challenge is valuation. ACLS trades above its industry multiple and historical median while margins remain below prior-year levels, leaving execution central to the investment case.

ACLS Growth Outlook Is ImprovingManagement expects full-year 2026 revenues to grow at a mid-single-digit rate and anticipates further growth in 2027. The Zacks Consensus Estimate calls for 2027 revenues of $981 million and earnings of $5.29 per share, versus $884 million and $4.12 expected for 2026.

Applied Materials, Inc. (AMAT - Free Report) reported fiscal third-quarter 2026 revenues of $9.12 billion, up 25% year over year. Lam Research Corporation (LRCX - Free Report) reported record June-quarter revenues of $6.72 billion and cited artificial intelligence-driven demand across the semiconductor industry.

Image Source: Zacks Investment Research

Axcelis Aftermarket Revenue Adds StabilityCustomer Solutions & Innovation revenues increased 35.1% year over year to $82.8 million in the second quarter of 2026. They also rose 14% sequentially from $72.6 million, adding another source of growth while systems demand recovers.

The business benefits from a larger installed base, higher equipment utilization and upgrades that add capacity within existing fab footprints. Management expects Customer Solutions & Innovation to build a larger base of revenues and profitability as utilization and the installed base expand.

ACLS Valuation Leaves Less Room for ErrorACLS trades at 21.2X forward 12-month earnings, above the Zacks industry multiple of 20.0X and its five-year median of 18.6X. Its PEG ratio is 6.19 and the stock carries a Value Score of F.

That valuation leaves less room for a slower recovery. Broader growth and firmer margins would provide more support for the multiple, but the current price already reflects a meaningful portion of the anticipated improvement.

Axcelis Margin Recovery Is Still IncompleteSecond-quarter non-GAAP gross margin was 42.7%, down from 45.2% a year earlier. Non-GAAP operating margin also fell to 14.7% from 17.7%, even as revenues increased 10.6% year over year.

Management expects third-quarter non-GAAP gross margin of about 43% and only a slight sequential improvement in the fourth quarter. Memory mix, Customer Solutions & Innovation mix, service costs and a higher operating-expense base can limit earnings conversion while sales recover.

Image Source: Zacks Investment Research

ACLS Merger Upside Comes With Execution RiskThe pending all-stock combination with Veeco Instruments Inc. (VECO - Free Report) could add laser annealing, ion beam deposition, metal-organic chemical vapor deposition, wet processing, lithography and advanced packaging capabilities. It could also expand exposure to advanced logic, gallium nitride and optical communications.

Axcelis shareholders approved the related share issuance in February 2026, but closing still depends on regulatory approval from China's State Administration for Market Regulation. Second-quarter free cash flow included about $6 million of cash transaction expenses associated with the pending merger.

ACLS Signals Point to a Mixed Near-Term SetupGrowth is returning, but premium valuation and incomplete margin recovery keep the near-term setup balanced. Better revenue momentum can improve the earnings picture, while slower order conversion or persistent margin pressure would make the current multiple harder to support.

ACLS currently carries a Zacks Rank #3 (Hold). Its Momentum Score of B is comparatively favorable, while the Value Score of F, Growth Score of F and VGM Score of F indicate weaker characteristics in those styles. The Style Scores complement the Zacks Rank rather than replace it.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Axcelis shares fell 22.4% in four weeks even as second-quarter revenue and bookings improved.ACLS raised its 2026 revenue outlook to mid-single-digit growth as memory and power demand strengthens.Axcelis margins and backlog remain below prior-year levels, while China generated 46% of quarterly revenue. Shares of Axcelis Technologies, Inc. (ACLS - Free Report) have fallen sharply in the past four weeks even as second-quarter results and the 2026 outlook point to firmer demand. The retreat puts a recovering order picture against still-weaker profitability.

Bookings, memory activity and power demand are improving, but margins, backlog and customer concentration create execution risk. The sell-off therefore needs to be weighed against the breadth and quality of the recovery.

ACLS Revenue Recovery Is Gaining TractionSecond-quarter revenues rose 10.6% year over year to $215.2 million. Systems bookings climbed 36.1% to $130.9 million, while the book-to-bill ratio was approximately 1:1, extending a stabilization trend after bookings weakened in 2025.

Management now expects full-year 2026 revenues to increase at a mid-single-digit rate, versus its prior view for roughly flat growth. Fourth-quarter revenues are expected to rise sequentially, with another year of growth anticipated in 2027.

Image Source: Zacks Investment Research

Axcelis Margins Still Trail Prior-Year LevelsProfitability has not recovered at the same pace. Second-quarter non-GAAP gross margin was 42.7%, down from 45.2% a year earlier, while non-GAAP operating margin narrowed to 14.7% from 17.7%.

Customer Solutions & Innovation mix and higher service costs weighed on gross margin, while non-GAAP operating expenses rose to $60.4 million from $53.6 million. Management expects a slight fourth-quarter gross-margin improvement from the 43% third-quarter outlook.

Image Source: Zacks Investment Research

ACLS Memory and Power Create Recovery PathsMemory represented 14% of second-quarter shipped systems revenue. Investment in dynamic random-access memory and high-bandwidth memory capacity for artificial intelligence applications supports demand, and Axcelis expects meaningful year-over-year memory growth in 2026 with momentum into 2027.

Power represented 39% of shipped systems revenue. Silicon carbide bookings improved sequentially, and management expects second-half 2026 power revenues to exceed the first half as spending recovers and high-energy implant applications expand.

Applied Materials, Inc. (AMAT - Free Report) expects overall packaging revenues to grow more than 70% in calendar 2026, with high-bandwidth memory among the supporting areas. Lam Research Corporation (LRCX - Free Report) reported record June-quarter revenues and cited artificial intelligence-driven demand across the semiconductor industry.

Axcelis Backlog and China Exposure Add VolatilitySystems backlog ended the second quarter at $451.6 million, down 21.6% from $575.7 million a year earlier and roughly flat sequentially versus $453.3 million. Orders are stabilizing, but they have not yet rebuilt the backlog.

China generated 46% of second-quarter revenues, while the 10 largest customers accounted for 68.5% of first-half revenues. Two customers each represented 17.8% of first-half revenues, increasing sensitivity to regional and individual spending decisions.

ACLS Valuation Still Requires Stronger ExecutionACLS trades at 21.2X forward 12-month earnings, above the Zacks industry multiple of 20.0X and its five-year median of 18.6X. The decline therefore has not pushed the stock below its historical median valuation.

That premium leaves less room for execution shortfalls. Broader demand recovery and firmer margins would better support the multiple, while uneven orders and weaker profitability could keep valuation under scrutiny.

ACLS Signals Stay Mixed After the Sell-OffThe lower share price does not resolve the operating crosscurrents. Revenues and bookings are recovering, while margins and backlog remain below prior-year levels, keeping the focus on whether demand improvement translates into stronger earnings conversion.

ACLS currently carries a Zacks Rank #3 (Hold), with a Momentum Score of B, Value Score of F, Growth Score of F and VGM Score of F. The #3 rank is a neutral near-term signal. The Momentum Score is relatively favorable, but the F scores point to weaker value, growth and combined style characteristics.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 2026 Highlights:

Revenue of $215.2 million GAAP Gross Margin of 42.4%, and Non-GAAP Gross Margin of 42.7% GAAP Operating Margin of 9.4% and Non-GAAP Operating Margin of 14.7% GAAP Diluted Earnings Per Share of $0.75, and Non-GAAP Diluted Earnings Per Share of $1.06 , /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2026.

President and CEO Russell Low commented, "We executed well in the second quarter, delivering results that exceeded our forecasts driven by stronger system shipments and higher CS&I volume." Low continued, "Demand in the Memory market remains robust, and we are also benefitting from positive momentum in our Power market. In General Mature, we are encouraged by improving engagement and utilization trends as customers respond to growing end-demand in data center, industrial and automotive segments. As a result, we now expect to deliver year-over-year revenue growth in 2026, with momentum carrying through to 2027. We are focused on satisfying the remaining conditions to complete our pending merger with Veeco and look forward to closing the transaction in the second half of 2026."

Senior Vice President and Interim CFO David Ryzhik stated, "Axcelis delivered better than expected revenue and operating income in our second quarter, reflecting the attractive operating leverage in our business." Ryzhik concluded, "With improving systems demand in our markets and continued strength in our CS&I aftermarket business, we anticipate that Axcelis' financial performance will continue to improve over the balance of 2026."

Results Summary

(In thousands, except per share amounts and percentages)

Three months ended June 30,

2026

2025

Revenue

$

215,175

$

194,544

Gross margin

42.4 %

44.9 %

Operating margin

9.4 %

14.9 %

Net income

$

23,291

$

31,376

Diluted earnings per share

$

0.75

$

0.98

Non-GAAP Results

Three months ended June 30,

2026

2025

Non-GAAP gross margin

42.7 %

45.2 %

Non-GAAP operating margin

14.7 %

17.7 %

Adjusted EBITDA

$

35,972

$

38,872

Non-GAAP net income

$

32,968

$

36,013

Non-GAAP diluted earnings per share

$

1.06

$

1.13

Business Outlook
For the third quarter ending September 30, 2026, Axcelis expects revenues of approximately $230 million, GAAP earnings per diluted share of approximately $0.76, and non-GAAP earnings per share of approximately $1.11.

Please refer to Third Quarter 2026 Outlook under the "Notes on our Non-GAAP Financial Information" section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

Second Quarter 2026 Conference Call
The Company will host a call to discuss the results for the second quarter 2026 today at 8:30 a.m. ET. The call will be available via webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by registering as a participant here:
https://register-conf.media-server.com/register/BIf61211144e3b4baeb4c13ba3b1f529fa
Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial Results
This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("non-GAAP financial measures"). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense, certain items related to restructuring and severance charges and any associated adjustments and transaction and integration costs associated with the merger agreement with Veeco Instruments announced on October 1, 2025.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the "Notes on Our Non-GAAP Financial Information" at the end of this press release.

Safe Harbor Statement
This press release contains, and the conference call will contain, forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions, including with respect to the imposition of tariffs on our products or components of our products, could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis
Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

CONTACTS:

Investor Relations Contact:
David Ryzhik
Senior Vice President and Interim CFO
Telephone: (978) 787-2352
Email: [email protected]

Press/Media Relations Contact:
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: [email protected]

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three months ended 

Six months ended

June 30,

June 30,

2026

2025

2026

2025

Revenue:

Product

$

200,488

$

183,402

$

388,497

$

366,226

Services

14,687

11,142

25,634

20,881

Total revenue

215,175

194,544

414,131

387,107

Cost of revenue:

Product

106,998

95,462

212,734

189,962

Services

16,988

11,739

29,627

21,034

Total cost of revenue

123,986

107,201

242,361

210,996

Gross profit

91,189

87,343

171,770

176,111

Operating expenses:

Research and development

28,977

27,064

57,493

54,192

Sales and marketing

19,554

15,003

36,908

30,127

General and administrative

22,377

16,311

49,138

33,668

Total operating expenses

70,908

58,378

143,539

117,987

Income from operations

20,281

28,965

28,231

58,124

Other income (expense):

Interest income

4,575

5,481

9,037

11,082

Interest expense

(1,263)

(1,355)

(2,554)

(2,722)

Other, net

1,755

1,906

1,259

1,597

Total other income

5,067

6,032

7,742

9,957

Income before income taxes

25,348

34,997

35,973

68,081

Income tax provision

2,057

3,621

3,468

8,126

Net income

$

23,291

$

31,376

$

32,505

$

59,955

Net income per share:

Basic

$

0.76

$

0.99

$

1.06

$

1.87

Diluted

$

0.75

$

0.98

$

1.05

$

1.87

Shares used in computing net income per share:

Basic weighted average shares of common stock

30,805

31,847

30,764

32,051

Diluted weighted average shares of common stock

31,134

31,882

31,084

32,103

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

June 30,

December 31,

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

$

154,996

$

145,451

Short-term investments

247,220

228,802

Accounts receivable, net

154,149

168,479

Inventories, net

338,174

329,010

Prepaid income taxes

4,863

4,658

Prepaid expenses and other current assets

80,369

66,802

Total current assets

979,771

943,202

Property, plant and equipment, net

58,022

56,146

Operating lease assets

27,568

28,927

Finance lease assets, net

13,516

14,154

Long-term restricted cash

10,633

10,627

Deferred income taxes

78,815

79,895

Long-term investments

174,829

182,396

Other assets

43,684

46,004

Total assets

$

1,386,838

$

1,361,351

Current liabilities:

Accounts payable

$

58,807

$

42,309

Accrued compensation

20,010

34,233

Warranty

9,634

9,516

Income Taxes

2,833

11,383

Deferred revenue

81,679

65,494

Current portion of finance lease obligation

1,722

1,575

Other current liabilities

25,416

33,150

Total current liabilities

200,101

197,660

Long-term finance lease obligation

39,845

40,754

Long-term deferred revenue

36,863

43,445

Other long-term liabilities

44,208

44,815

Total liabilities

321,017

326,674

Stockholders' equity:

Common stock, $0.001 par value, 75,000 shares authorized; 30,881 shares issued and
outstanding at June 30, 2026; 30,717 shares issued and outstanding at December 31, 2025

31

31

Additional paid-in capital

536,152

533,309

Retained earnings

536,044

503,539

Accumulated other comprehensive loss

(6,406)

(2,202)

Total stockholders' equity

1,065,821

1,034,677

Total liabilities and stockholders' equity

$

1,386,838

$

1,361,351

Axcelis Technologies, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended

Six months ended

June 30,

June 30,

2026

2025

2026

2025

Cash flows from operating activities

Net income

$

23,291

$

31,376

$

32,505

$

59,955

Adjustments to reconcile net income to net cash provided by operating
activities:

Depreciation and amortization

4,439

4,515

8,875

8,824

Stock-based compensation expense

6,425

5,421

11,324

10,324

Other

(645)

(9,335)

3,160

(11,017)

Change in other assets and liabilities, net

(15,137)

7,750

(19,352)

11,436

Net cash provided by operating activities

18,373

39,727

36,512

79,522

Cash flows from investing activities

Expenditures for property, plant and equipment and capitalized software

(3,554)

(1,985)

(5,393)

(6,945)

Other changes in investing activities, net

(2,543)

(2,628)

(11,343)

42,801

Net cash (used in) provided by investing activities

(6,097)

(4,613)

(16,736)

35,856

Cash flows from financing activities

Repurchase of common stock

(244)

(45,337)

(244)

(63,515)

Other changes from financing activities, net

(7,608)

(1,650)

(9,005)

(3,582)

Net cash used in financing activities

(7,852)

(46,987)

(9,249)

(67,097)

Effect of exchange rate changes on cash and cash equivalents

(252)

1,643

(976)

1,935

Net increase (decrease) in cash, cash equivalents and restricted cash

4,172

(10,230)

9,551

50,216

Cash, cash equivalents and restricted cash at beginning of period

161,457

191,510

156,078

131,064

Cash, cash equivalents and restricted cash at end of period

$

165,629

$

181,280

$

165,629

$

181,280

Axcelis Technologies, Inc. 

Schedule Reconciling Selected Non-GAAP Financial Measures

(In thousands, except per share amounts)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

GAAP gross Profit

$

91,189

$

87,343

$

171,770

$

176,111

Restructuring1

—

—

—

226

Stock-based compensation

755

569

1,197

922

Non-GAAP gross profit

$

91,944

$

87,912

$

172,967

$

177,259

Non-GAAP gross margin

42.7 %

45.2 %

41.8 %

45.8 %

GAAP operating expense

$

70,908

$

58,378

$

143,539

$

117,987

Transaction and integration2

(4,827)

—

(15,225)

(481)

Bad debt expense

—

—

(65)

—

Restructuring1

—

29

—

(894)

Stock-based compensation

(5,670)

(4,852)

(10,127)

(9,402)

Non-GAAP operating expense

$

60,411

$

53,555

$

118,122

$

107,210

GAAP operating income

$

20,281

$

28,965

$

28,231

$

58,124

Transaction and integration2

4,827

—

15,225

481

Bad debt expense

—

—

65

—

Restructuring1

—

(29)

—

1,120

Stock-based compensation

6,425

5,421

11,324

10,324

Non-GAAP operating income

$

31,533

$

34,357

$

54,845

$

70,049

Non-GAAP operating margin

14.7 %

17.7 %

13.2 %

18.1 %

GAAP income tax provision

$

2,057

$

3,621

$

3,468

$

8,126

Income tax effect of non-GAAP
adjustments3 

1,575

755

3,726

1,670

Non-GAAP income tax provision

$

3,632

$

4,376

$

7,194

$

9,796

GAAP net income

$

23,291

$

31,376

$

32,505

$

59,955

Transaction and integration2

4,827

—

15,225

481

Bad debt expense

—

—

65

—

Restructuring1

—

(29)

—

1,120

Stock-based compensation

6,425

5,421

11,324

10,324

Income tax effect of non-GAAP
adjustments3 

(1,575)

(755)

(3,726)

(1,670)

Non-GAAP net income

$

32,968

$

36,013

$

55,393

$

70,210

GAAP diluted EPS

$

0.75

$

0.98

$

1.05

$

1.87

Transaction and integration2

0.16

—

0.49

.01

Bad debt expense

—

—

—

—

Restructuring1

—

—

—

0.03

Stock-based compensation

0.21

0.17

0.36

0.32

Income tax effect of non-GAAP
adjustments3 

(0.05)

(0.02)

(0.12)

(0.05)

Non-GAAP diluted EPS

$

1.06

$

1.13

$

1.78

$

2.19

Note 1:

Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2:

Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025. Transaction and integration costs for the six months ended June 30, 2025 include $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported second quarter 2025 results, given that they occurred prior to transaction announcement on October 1, 2025.

Note 3:

Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.

Axcelis Technologies, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(In thousands, except percentages)

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Net Income

$

23,291

$

31,376

$

32,505

$

59,955

Other (income)/expense

(5,067)

(6,032)

(7,742)

(9,957)

Income tax provision

2,057

3,621

3,468

8,126

Depreciation & amortization

4,439

4,515

8,875

8,824

Subtotal

24,720

33,480

37,106

66,948

Transaction and integration1

4,827

—

15,225

481

Bad debt expense

—

—

65

—

Restructuring2

—

(29)

—

1,120

Stock-based compensation

6,425

5,421

11,324

10,324

Adjusted EBITDA

$

35,972

$

38,872

$

63,720

$

78,873

Adjusted EBITDA margin

16.7 %

20.0 %

15.4 %

20.4 %

Note 1:

Transaction and integration costs for the six months ended June 30, 2025 include $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported second quarter 2025 results, given that they occurred prior to transaction announcement on October 1, 2025.

Note 2:

Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Axcelis Technologies, Inc.

Third Quarter 2026 Outlook

GAAP to Non-GAAP Diluted Earnings Per Share

Three months ended

September 30, 2026

GAAP diluted EPS

$

0.76

Transaction and Integration1

0.19

Stock-based compensation

0.21

Income tax effect of non-GAAP adjustments2

(0.06)

Non-GAAP diluted EPS

$

1.11

Note 1:

Transaction and Integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025.

Note 2:

Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.

SOURCE Axcelis Technologies, Inc.