Camtek (CAMT) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $118.6 million, up 22% year-over-year, with gross margin rising to 52.1% and operating income reaching $37.3 million, a 30% increase from last year.

• Advanced packaging and high-performance computing (HPC) for AI applications are key growth drivers, supported by new product launches (Eagle G5 and Hawk).

• Customer base remains diversified, with over 35 customers in the quarter and more than 200 active globally.

• No material impact from tariffs or geopolitical issues; manufacturing is based in Israel and Europe, with sales concentrated in Asia.

• Received Intel EPYC Supplier Award, highlighting strong technology recognition.

Financial highlights

• Q1 revenue: $118.6 million (+22% YoY); gross profit: $61.8 million; non-GAAP gross margin: 52.1%; GAAP gross margin: 51.0%.

• Operating income: $37.3 million (non-GAAP, 31.5% margin), $32.7 million (GAAP, 27.6% margin); both up significantly YoY.

• Net income: $38.7 million (non-GAAP, $0.79 per diluted share), $34.3 million (GAAP, $0.70 per share), both up YoY.

• Cash from operations: $23.6 million; cash and equivalents: $523 million (up from $501 million sequentially and $467 million YoY).

• Inventory increased to $141.5 million, mainly to support new product launches.

Outlook and guidance

• Q2 2025 revenue guidance: $120–123 million, representing 17–20% YoY growth.

• Healthy backlog for Q3; solid business expected, but visibility for Q4 remains limited.

• Advanced packaging, especially HPC and AI-related applications, expected to be primary growth drivers.

• New products (Eagle G5 and Hawk) anticipated to contribute significant revenue in 2025.