VAT Group (VACN) H2 2025 earnings summary

Executive summary

• Achieved record results in 2025, including factory output exceeding CHF 1.1 billion, free cash flow of CHF 230 million, and 150 specification wins, driven by AI infrastructure and China build-out, despite market volatility and FX headwinds.

• Major infrastructure and capex projects completed, including new innovation center in Switzerland, expanded facilities in Romania and Malaysia, and new manufacturing in Penang, enhancing capacity and flexibility.

• R&D investment reached a record CHF 75 million (7% of sales), supporting technology leadership and future growth.

• Segment and regional performance aligned with long-term averages, with over 80% of sales related to semiconductors and 32% of sales in China.

• Positioned for significant growth in 2026, with expectations for new records in orders, sales, EBITDA, and free cash flow.

Financial highlights

• Order intake for 2025 was CHF 1,033 million, up 6% in constant currency; Q4 orders grew 28% quarter-over-quarter, with a book-to-bill ratio of 1.2.

• Sales increased 14% year-over-year to CHF 1,074 million, driven by semiconductor segment growth and higher fab utilization.

• EBITDA margin stable at 30%, with EBITDA of CHF 273–322 million; net income rose to CHF 214 million, EPS CHF 7.15.

• Free cash flow reached a record CHF 230 million, up 26% year-over-year, with a 72% conversion rate.

• CapEx was CHF 68 million (6% of sales), up 22.6%; R&D spend hit a record CHF 75 million, up 22%.

• Dividend proposed at CHF 7 per share, up 12% from 2024, representing 93% of 2025 free cash flow to equity.

Outlook and guidance

• 2026 expected to set new records in orders, sales, EBITDA, EBITDA margin, net income, and free cash flow, with favorable semiconductor investment conditions and continued high demand in Global Service.

• Q1 2026 sales guidance: CHF 240–260 million, with book-to-bill ratio substantially above 1.

• Ongoing high CapEx (CHF 70–80 million) and R&D investments planned.

• Long-term target: CHF 1.6 billion revenue by 2027, assuming robust wafer fab equipment CapEx.

• AI-driven semiconductor market growth expected to accelerate, with WFE consensus for 2026 at USD 130 billion.