Camtek Ltd. Q4 2025 Earnings Call Summary

• Achieved a $0.5 billion revenue milestone in 2025, with approximately 50% of full-year revenue driven by AI-related products.

• Performance was bolstered by the successful launch of the Hawk and Eagle Gen 5 platforms, which accounted for 30% of 2025 revenue.

• Management attributes strong cash generation of $61.2 million in Q4 to optimized inventory levels and improved accounts receivable collection.

• The company maintains a dominant position in the OSAT market, which represents roughly 50% of the business and is increasingly adopting CoWoS-like technologies.

• Strategic R&D investments have focused on 3D metrology and 2D inspection capabilities to address the denser structures required for next-generation devices.

• Management emphasizes that they have not lost market share to competitors and expect to expand their total available market through new production step penetrations.

• Management expects 2026 to be a double-digit growth year, with performance significantly weighted toward the second half.

• The transition to HBM4 represents a major strategic opportunity, as it is more metrology and inspection intensive than previous generations.

• Revenue for Q1 2026 is guided to approximately $120 million, reflecting a slower start due to the specific timing of customer capacity expansion plans.

• Adoption of the Hawk and Eagle Gen 5 platforms is expected to increase to at least 50% of total revenue in 2026.

• Operational capacity is being expanded to over $700 million, including a new facility in Europe expected to be utilized by late 2026.

• Inventory levels were reduced by $50 million in Q4 after a deliberate build-up to support the initial launch of new system models.

• Operating expenses are expected to increase in the first half of 2026 due to front-loaded R&D investments aimed at capturing second-half opportunities.

• Gross margins are projected to remain between 50.5% and 51.5% in the first half, with expansion expected in the second half driven by volume and supply chain optimizations.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our #1 pick. Tap here.

• Management explicitly stated they have not lost market share and expect to increase it in 2026 through superior R&D-driven capabilities.

• The move to HBM4 is viewed as a positive catalyst because it requires higher accuracy and more frequent inspection steps.