VAT Group (VACN) CMD 2025 summary

Strategic outlook and market drivers

• Plans to outgrow the wafer fab equipment (WFE) market by up to 2x, leveraging technology shifts, AI-fueled demand, and share of wallet expansion, especially in leading-edge tools.

• WFE market expected to grow at 8% CAGR to $150B by 2030, with vacuum-related WFE growing at 12% and leading-edge tools at 15%.

• Transition to Gate-All-Around technology in 2025 will increase process steps by 25%, boosting demand for precision vacuum solutions.

• China’s push for self-sufficiency and advanced packaging trends are additional growth pillars.

• Vacuum technology remains essential for chip manufacturing, with no foreseeable substitute.

Growth strategy and business segments

• Core vacuum valve business to remain over 50% of group sales, targeting 15%+ CAGR and 85% market share by 2029.

• Adjacent products (modules, motion components, ALD inlet valves, OLED display valves) expected to reach up to 20% of sales with 25% CAGR by 2029.

• Service revenues projected at 18–20% of group sales, leveraging a 1.7 million installed valve base and targeting 14% CAGR.

• Advanced industrials segment aims for 12% CAGR and about 15% of sales, focusing on research, scientific instruments, coating, and power generation.

• Expansion into adjacencies demonstrates ability to leverage core competencies into new high-growth markets.

Financial guidance and capital allocation

• Five-year sales CAGR projected at low to mid-teens, with 2027 revenue guidance of CHF 1.5–1.7 billion.

• EBITDA margin band set at 30%–37% and free cash flow conversion at 60%–70% of EBITDA.

• CapEx and R&D to remain around 5% of sales, with dividend payout up to 100% of free cash flow to equity.

• Major capacity expansions in Malaysia and Romania provide installed capacity for over CHF 2.4 billion in sales.

• Strong balance sheet targeted, with net cash position by end of 2026 and ROIC above 45% over the cycle.