VAT Group (VACN) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 sales reached CHF 275 million, up 39% year-over-year and 5% sequentially, reflecting modest growth amid ongoing volatility in semiconductor equipment investment.

• Q1 2025 order intake was CHF 242 million, up 3% year-over-year but down 10% sequentially, indicating continued uncertainty due to geopolitical headwinds.

• Group net sales for Q1 were just above the bottom of guidance, with semi sales up 52% year-over-year.

• The company maintains a healthy order book of CHF 339 million, 5% higher than last year, but book-to-bill is at 0.9x, below the >1x target.

• Despite macroeconomic and geopolitical uncertainties, the outlook for 2025 and 2026 remains positive, with expectations for growth driven by technology transitions and capacity expansions.

Financial highlights

• Net sales for Q1 2025 were CHF 275.1 million, a 38.6% increase year-over-year and a 2.8% decrease sequentially.

• Q1 semi sales increased 52% compared to Q1 last year.

• Order intake slowed by around 10% sequentially from Q4 due to uncertainty and geopolitical factors.

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

• Q1 sales were at the low end of the guidance range (CHF 275–295 million).

Outlook and guidance

• 2025 outlook maintained: expectations for 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.

• Consensus revenue target for 2025 is CHF 1,140 million, with management reiterating comfort with this figure despite FX and macro headwinds.

• Growth in 2025 and 2026 expected to be driven by technology transitions, especially in leading edge and vacuum-intensive processes.

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