Camtek Ltd. Q4 FY2025 earnings call

Camtek concluded Q4 and full year with record results. Q4 revenues hit $128.1M, up 9% y/y. Full year revenues $496.9M, up 16% y/y. Gross margin Q4 51.1%, full year 51.6%. COO Ramy discussed 2026 Q1 revenue guidance around $120M, strong order pipeline and backlog, product performance and R&D progress. CFO Moshe reviewed Q4 and full-year financial results, including revenue, gross margin, operating expenses, net income, and balance sheet/cash flow metrics

Fourth quarter revenues reached $128 million, up 9% year-over-year. Full year revenues totaled $496 million, up 16% year-over-year. Approximately 50% of full-year revenue was driven by AI-related products, 20% from other advanced packaging applications, with remaining revenue distributed across CMOS image sensors, compound semiconductors, front-end and general 2D applications

Revenue guidance for Q1 2026 is around $120 million. Expect 2026 to be another double-digit growth year, with confidence derived from order pipeline, backlog, and customer interactions, expecting stronger second half growth

Forward-looking statements subject to risks and uncertainties, detailed in Camtek's earnings release and SEC filings

Q: Brian Chin asked about where the accelerating demand is more prevalent and when the larger step-up occurs.

A: Ramy said it's AI-related products, customer-dependent, and step in second half.

Q: Charles Shi asked about Hawk vs G5 and China expectation.

A: Ramy explained Hawk for high-end apps, G5 for flexibility, and China revenues stable.

Q: James Schneider asked about revenue growth vs WFE and gross margin trajectory.

A: Ramy said better visibility and confidence in 2026, Moshe expected improved gross margin in second half.

Q: Shane Brett asked about competitive dynamics for HBM sockets and business with OSATs.

A: Ramy said no lost market share, OSATs benefit Camtek.

Q: Craig Ellis asked about growth across customer classes.

A: Ramy agreed on strong growth in IDM, OSAT and foundry.

Q: Craig Ellis asked about demand upside and gross margin in Q1.

A: Ramy said ready for demand, Moshe said Q1 gross margin around 50.5%-51.5%, OpEx to increase in first half due to R&D.

Q: Edward Yang asked about market share maintenance and WFE growth.

A: Ramy said systems under qualification, too early to quantify WFE growth.

Q: Auguste Richard asked about divergence with test and probe companies and disconnect with KLA.

A: Ramy said slow start in Q1 due to customer order timing, and Camtek has advantages in market.

Q: Michael Mani asked about chiplet business and capacity.

A: Ramy said Camtek has share in chiplet business, no capacity limitation and expanding capacity.

Q: Vedvati Shrotre asked about visibility beyond 2026 and advanced packaging growth.

A: Ramy said seeing signs of 2027, advanced packaging growth double digits but too soon to quantify