VAT Group (VACN) Q2 2026 earnings summary

Executive summary

• Record H1 2026 order intake of CHF 856 million, up 75% year-over-year, driven by robust semiconductor demand, data center investments, and advanced chip fab expansions.

• Net sales declined 8% to CHF 512 million, but sequential sales grew 32% in Q2 due to ramp initiatives and increased output.

• Over 700 employees added globally, mainly in production roles in Malaysia, Switzerland, and Romania, to support capacity ramp-up.

• Acquisition agreement signed for Atonarp for CHF 110 million to expand advanced process control and molecular sensing capabilities, supporting long-term growth.

• Maintained focus on innovation with 60 specification wins and 7% of sales invested in R&D during H1 2026.

Financial highlights

• Gross profit margin improved to 67% in H1 2026 (up from 65.4% a year ago), supported by efficiency gains.

• EBITDA margin at 29.0% in H1 2026, down from 29.6% last year, reflecting ramp costs and lower sales.

• Net income for H1 2026 was CHF 98.8 million, down 6.4% year-over-year; EPS CHF 3.30.

• Free cash flow decreased 18% to CHF 41.8 million; capex reduced to CHF 20.5 million.

• Book-to-bill ratio reached a record 1.7x in Q2 2026; order backlog CHF 648 million as of June 30, 2026.

Outlook and guidance

• Full-year 2026 guidance confirmed for higher orders, sales, EBITDA, EBITDA margin, net income, and free cash flow versus 2025.

• Q3 2026 sales expected between CHF 355–385 million.

• Factory output run rate targeted above CHF 450 million per quarter by year-end 2026.

• 2027 sales guidance under review amid rising WFE estimates and expectations for continued growth.

• Semiconductor equipment investment and WFE market expected to reach USD 145 billion in 2026 and USD 180 billion in 2027.