VAT Group (VACN) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 sales reached CHF 275 million, up 39% year-over-year, with order intake at CHF 242 million and a book-to-bill ratio of 0.9x, reflecting modest growth amid ongoing volatility.

• Semiconductor segment sales rose 52% year-over-year, driven by technology transitions and strong demand for leading-edge and HBM applications.

• The order book stood at CHF 339 million, up 5% year-over-year, but down 8% sequentially.

• Macroeconomic and geopolitical uncertainties, including tariffs and factory reshoring, have led to a 10% slowdown in order intake since Q4.

Financial highlights

• Q1 net sales: CHF 275 million, a 38.6% increase year-over-year, at the lower end of guidance.

• Semiconductor sales up 52% year-over-year.

• Order book at CHF 339 million, up 5% year-over-year.

• FX impact in Q1 was a negative 1%-2%, with more significant effects expected in future quarters.

• Book-to-bill ratio at 0.9x, below the desired level for 2025.

Outlook and guidance

• 2025 outlook maintained: expecting improved sales, EBITDA, EBITDA margin, net income, and free cash flow.

• Q2 2025 sales expected between CHF 260 million and CHF 290 million, midpoint in line with full-year consensus.

• Confident in achieving consensus sales of CHF 1,140 million for 2025, implying around 20% growth, despite FX and macro headwinds.

• Growth in 2025 and 2026 expected, driven by technology transitions and increased vacuum intensity in wafer fab equipment.

• Demand from Chinese OEMs and hyperscaler investment programs expected to remain strong.