Inventories, net

3 Months Ended

Mar. 31, 2026

Note 9. Inventories, net

The components of inventories are as follows:


		March 31,			December 31,
		2026			2025

		(in thousands)
Raw materials		$	265,737		$	259,039
Work in process			47,130			51,761
Finished goods (completed systems)			13,185			18,210
Inventories, net		$	326,052		$	329,010

When recorded, inventory reserves reduce the carrying value of inventories to their net realizable value. We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for our products or market conditions. We regularly evaluate the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales or usage, estimated product end of life dates, estimated current and future market value and new product introductions. Purchasing and usage alternatives are also explored to mitigate inventory exposure.

AXCELIS TECHNOLOGIES INC 10-Q