Camtek (CAMT) Q4 2025 earnings summary

Executive summary

• Achieved record fourth quarter revenue of $128.1 million, up 9% year-over-year, and full-year revenue of $496.9 million, up 16% year-over-year.

• Approximately 50% of annual revenue was driven by AI-related products, with major manufacturers expanding capacity for AI applications.

• Strong order pipeline and backlog, with recent $45 million in new orders and major customers expanding capacity.

• Management expects double-digit revenue growth in 2026, with growth weighted toward the second half of the year.

Financial highlights

• Q4 2025 revenue: $128.1 million (+9% YoY); full-year revenue: $496.9 million (+16% YoY).

• Q4 gross profit: $65.4 million; gross margin: 51.1% (up from 50.6% YoY).

• Q4 operating profit: $36.7 million; operating margin: 28.6%.

• Q4 net income: $40.7 million non-GAAP (up 8% YoY); GAAP net income: $35.9 million (up 9% YoY).

• Cash and equivalents at year-end: $851.1 million, up from $794 million in Q3 and $448.6 million YoY.

• Strong cash generation in Q4: $61.2 million from operations.

Outlook and guidance

• Q1 2026 revenue guidance: around $120 million, with growth expected in Q2 and significant acceleration in the second half.

• 2026 expected to be another double-digit growth year, driven by AI and advanced packaging demand.

• Gross margin expected to improve in the second half of 2026 as higher ASPs and operational efficiencies take effect.

• Operating expenses to increase in the first half of 2026 due to R&D investments.