Nova Ltd. Q3 FY2025 earnings call

• Nova achieved record quarterly revenue of $224.6 million, 25% YOY growth. • Record revenue from memory devices (advanced DRAM, HBM) and advanced logic nodes (gate-all-around processors). • Materials metrology revenue benefited from ELIPSON and METRION platforms; service revenue was record. • 2025 expected to be record year with ~30% YOY growth at midpoint; 2026 growth expected in advanced logic, packaging, DRAM. • Opened new state-of-the-art production facility in Mannheim, Germany to triple advanced packaging optical metrology capacity.

Nova achieved record quarterly revenue of $224.6 million in the third quarter, a 25% year-over-year growth. Product revenue distribution was approximately 70% from logic and foundry and 30% from memory. Memory had record revenue driven by advanced DRAM and high-bandwidth memory. Advanced logic had record revenue from gate-all-around processors. Materials metrology revenue benefited from adoption of ELIPSON and METRION platforms, and service revenue was record.

• Fourth quarter 2025 revenue expected $215M-$225M; GAAP EPS $1.77-$1.95; non-GAAP EPS $2.02-$2.20. • 2025 expected to close with record high revenues, ~30% YOY growth. • 2026 WFE growth mid-single digits with potential upside due to AI-driven demand.

Q: Strong execution throughout the year. With respect to mid-single-digit wafer fab equipment outlook for next year, can you walk through upside case and if Nova will outperform?

A: Definitely. Believe there's improvement since September; Nova has right growth engines to outperform. 2026 expected to continue trend, second half weighted year.

Q: On gross margins, a little bit light on reported quarter and guiding to 58%. Can you walk through puts and takes?

A: This quarter gross margin 59% aligned with forecast; next quarter guiding 58% ±1% point. Main fluctuation from product mix; annual gross margin expected 59% within target model of 57%-60%.

Q: In the quarter, foundry and logic was down like 6%, memory up over 20%. Can you talk about moving pieces?

A: Memory had record revenue, DRAM recovering nicely. Adoption of portfolio across product divisions by leading memory customers; expect memory to be growth driver in 2026. Long-term model suggests 40% memory and 60% logic due to higher metrology intensity in logic.

Q: On gate-all-around, what kind of trajectory are you seeing in 4Q and through '26?

A: Gate-all-around has been driving business; 2025 business significantly increased, expect to continue next year. Aggregated business from gate-all-around players '24-'26 about $500M, on track.

Q: On WFE outlook second half weighted for 2026, can you provide color on foundry logic vs memory?

A: Advanced nodes, especially gate-all-around, will accelerate further in second half of next year, driving weighted assumption. Both memory and advanced logic driving business, accelerating towards second half.

Q: On advanced packaging contribution for '25 and next year?

A: 2025 advanced packaging revenue expected higher than last year (15% last year, ~20% this year). 2026 expected to further grow, given AI announcements. Majority of revenue from logic devices, driven by dimensional and chemical metrology portfolios.

Q: On NAND cycle, what's needed for NAND revenues to start picking up?

A: NAND is muted, but hoped to start growing towards second half of next year. Nova well positioned in NAND, business capacity driven, expecting investments to start in second half of next year.