Camtek Ltd. Q3 FY2025 earnings call

• Camtek concluded Q3 with record performance: revenues $126M, +12% YOY; gross margin 51.5%; operating income over $37.6M. Strong cash position ~$800M including $500M convertible notes offering. • Revenue distribution: HPC ~45%, other advanced packaging ~25%, balance from other segments. • Shift of CoWoS-like production toward OSATs favorable; received significant orders from Tier 1 OSATs for CoWoS/CoWoS-like and fan-out applications. • Leadership in HBM market: tools are reference for 3D metrology steps for HBM4; installed tools this quarter and have orders for next quarter. • Technological developments: Eagle G5 and Hawk designed for demanding requirements, expected to contribute ~30% of 2025 revenue; Hawk to get enhanced version early next year. • 2026 revenue weighted toward second half as market absorbs existing capacity before next expansion.

Q3 revenues reached a record $126 million, up over 12% year-over-year. Gross margin was 51.5%, contributing to a record operating income of over $37.6 million. Revenue distribution: High-performance computing applications contributed approximately 45% of total revenue, other advanced packaging applications accounted for about 25%, with the balance from CMOS image sensors, compound semiconductor front-end applications, and other general applications. Geographic revenue split for the quarter was Asia 93% and rest of the world 7%.

• Q4 2025 revenue expected around $125 million, annual revenue $495 million (15% growth over 2024). • 2026 revenue weighted toward second half with slower start as market absorbs existing capacity before next wave of expansion.

• Statements made contain forward-looking statements subject to changes, risks, and uncertainties. • Actual results may vary materially from forward-looking statements; review Camtek's earnings release, SEC filings, and most recent annual report on SEC Form 20-F for risk factors.

Q: Yu Shi asked about timing lag between announcement and implementation, first half vs second half weighting in 2026.

A: Ramy Langer said 2026 is a growth year, second half better than first half, but too early to comment on exact numbers.

Q: Brian Chin asked about China strength and 2026 outlook.

A: Ramy Langer said China continues to be healthy, OSAT segment strong.

Q: Matthew Prisco asked about first half vs second half weighting and confidence in second half.

A: Ramy Langer said based on customer discussions and pipeline, confident in second half.

Q: Craig Ellis asked about manufacturing capacity and inorganic growth.

A: Ramy Langer said enough manufacturing capacity; Rafi Amit said working on M&A with team looking at potential areas.

Q: Michael Mani asked about gross margins for next year.

A: Moshe Eisenberg said gross margin should gradually improve as more high-margin products (Hawk, Gen 5) are shipped.

Q: Edward Yang asked about competitive environment and hybrid bonding.

A: Ramy Langer said no loss of market share; hybrid bonding traction moderate in 2026, more significant in 2027.