Direct Answer
8 SEC filers are classified under the Standard Industrial Classification code that describes the deposition equipment industry, and their latest annual reports show $24.3 billion of combined revenue and a median operating margin of 4.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Deposition equipment makers sell machines that lay thin films on wafers during chip fabrication. Orders follow semiconductor fab capital spending, especially in leading-edge logic and memory. The first numbers to compare across companies here are orders and backlog, revenue by customer and gross margin.
Key Industry Metrics
- Orders and backlog: Machine orders and those not yet delivered. Orders lead revenue and move with chipmaker spending plans, and backlog gives a few quarters of visibility in a cyclical business.
- Revenue by customer: The share of sales by chipmaker. A few large buyers account for most tool purchases, so the split shows whose fab plans drive results.
- Gross margin: Revenue left after building tools. Technology leadership and mix toward newer processes support it, and price competition and low volumes reduce it.
- Service and spares share: Parts, upgrades and maintenance on installed tools. It is steadier than new equipment sales and grows with the installed base, which cushions results during downturns.
- Technology share in advanced nodes: How much of the company's tools are used in leading-edge production lines. Advanced nodes and 3D memory use more deposition steps, so a higher share points to stronger content growth.
Primary Macro Drivers
- Chipmaker capital spending: Chipmakers' budgets for new tools drive orders and backlog, which follow factory build plans and technology upgrades.
- Leading-edge and 3D memory transitions: Advanced logic and layered memory need more deposition steps, so each wafer uses more tool time and increases orders and technology share.
- Export policy: Rules on which tools can be sold to which countries change the addressable market and the regional mix of orders.
- Fab construction: New factories require full sets of tools, so construction timing sets bursts of orders and later service revenue.
Major Risks
- Cyclical capex: Chipmakers cut tool purchases quickly in downturns, causing sharp swings in orders; watch orders, backlog and customer capital spending plans.
- Export restrictions: New limits on sales to certain customers can remove orders or servicing revenue; watch regional revenue mix and license disclosures.
- Customer concentration: A few chipmakers buy most tools, so one customer's pause moves results; watch revenue by customer and backlog.
- Technology shifts: A new film process or architecture could favor a rival tool type, so share can move; watch technology share in advanced nodes and research spending.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Deposition Equipment Filers in the SEC Record
8 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3559. Their latest fiscal years end between 2025 and 2026, and together they reported $24.3 billion of revenue. Median revenue growth over the prior year was -2.3%. Median operating margin was 4.7% and median net margin 4.3%. Median total liabilities were 33% of total assets, and 4 of 8 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Lam Research Corp | $23.2 billion | 26.0% | 35.3% | 31.3% | FY 2026 |
| Cricut, Inc. | $709 million | -0.5% | 13.5% | 10.8% | FY 2025 |
| Energy Recovery, Inc. | $135 million | -6.9% | 17.7% | 17.0% | FY 2025 |
| Amtech Systems Inc | $79 million | -21.6% | -35.9% | -38.2% | FY 2025 |
| Velo3d, Inc. | $46 million | 12.1% | -119.5% | -155.2% | FY 2025 |
| Trio-Tech International | $36 million | -13.8% | 0.7% | -0.1% | FY 2025 |
| Cvd Equipment Corp | $26 million | -4.1% | -7.4% | -6.1% | FY 2025 |
| Sono Tek Corp | $21 million | 2.0% | 8.7% | 8.6% | FY 2026 |
Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Deposition Equipment guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Deposition Equipment industry?
Key performance indicators for the Deposition Equipment industry include: Orders and backlog, Revenue by customer, Gross margin, Service and spares share, Technology share in advanced nodes. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Deposition Equipment industry?
The Deposition Equipment industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Deposition Equipment industry?
The primary risks for Deposition Equipment companies include: Cyclical capex, Export restrictions, Customer concentration, Technology shifts. Investors should assess each company's exposure to these factors and its track record of navigating them.