Camtek (NASDAQ:CAMT) reported record results for the fourth quarter and full year, driven by demand tied to high-performance computing and AI-related semiconductor applications. Management also reiterated that it expects 2026 to be a growth year, with a slower start followed by stronger performance in the second half of the year.
Record quarter and full-year performance
Chief Operating Officer Ramy Langer said the company closed the fourth quarter and full year with “record results.” Fourth-quarter revenue reached a quarterly record of $128 million, up 9% year over year. Gross margin was 51% and operating margin was 29%.
Management also provided a breakdown of the full-year revenue mix:
- Approximately 50% from AI-related products
- 20% from other advanced packaging applications
- The remainder across CMOS image sensors, compound semiconductors, front-end, and general 2D applications
Guidance: slower start, stronger second half expected
For the first quarter of 2026, Camtek guided revenue to be around $120 million, reflecting what management characterized as a slower start to the year. Langer said the company previously expected 2026 revenue to be more second-half weighted, and added that the months since the prior guidance “significantly reinforced” confidence in the second half and in achieving full-year growth.
At this stage, management said it expects 2026 to be “another double-digit growth year” for Camtek, citing the company’s order pipeline and backlog as well as ongoing customer discussions. Langer said customers have been asking Camtek to confirm its ability to ship and install “a double-digit number of systems within a relatively short timeframe,” and that some customers finalizing next-generation devices are seeking clarity on which Camtek platform best fits their needs.
On the Q1 sequential decline versus some adjacent semiconductor equipment categories, Langer said the slow start is “primarily driven by the timing of the orders,” with a large portion of capacity expansion planned for the second half.
Demand drivers: AI, HBM transition, and customer capacity expansion
Management repeatedly pointed to AI-related semiconductor demand as the primary growth engine. Langer said the growth curve expected in 2026 is largely linked to the pace at which device manufacturers—particularly memory suppliers—expand production capacity for AI applications.
As an example, Langer referenced a recently announced $25 million order from an IDM customer for multiple Hawk systems. He said that order was in addition to previous orders placed in recent months, bringing the total to approximately $45 million, and added that Camtek expects additional orders from that customer as it builds new fabs to meet demand for AI components.
Langer also highlighted the transition to HBM4 as a “major opportunity,” noting that denser structures and higher requirements make the shift “more metrology and inspection intensive.” He said Camtek is the “tool of reference for 3D metrology” at all major players, has significant market share in 2D inspection, and expects to expand that share in 2026.
Product positioning: Hawk and Eagle G5
Management discussed the Hawk and Eagle G5 platforms at length, emphasizing that both systems have been deployed broadly since their launches about a year ago. Langer said Camtek has installed dozens of systems of each model over the past year and has continued investing in R&D, completing development of new capabilities that have been demonstrated to customers and received validation and interest.
In response to analyst questions, Langer described Hawk as aimed at customers seeking very high throughput and longer-term capability, with higher accuracy and performance than Eagle G5. He characterized Eagle G5 as a flexible platform that remains popular with OSAT customers. While Camtek has “many hundreds” of Eagle systems already running relevant applications, Langer said some future capacity builds are expected to “tend more towards the Hawk,” especially for high-volume and more demanding use cases, including certain HBM generations.
Management also updated expectations for revenue contribution from the two newer platforms. Langer said Hawk and Eagle G5 accounted for about 30% of revenue in 2025 and are expected to be at least 50% in 2026.
Margins, operating expenses, and balance sheet highlights
Chief Financial Officer Moshe Eisenberg provided additional fourth-quarter details. Fourth-quarter revenue was $128.1 million, up 9% year over year, and full-year revenue was $496.9 million, up 16%. The geographic revenue mix in the quarter was 89% Asia and 11% rest of world.
Fourth-quarter gross profit was $65.4 million with gross margin of 51.1%, similar to the prior quarter and slightly above the year-ago quarter. Operating expenses were $28.7 million, compared with $23.1 million a year earlier. Operating profit was $36.7 million and operating margin was 28.6%.
Financial income totaled $8.2 million, which Eisenberg attributed partly to higher interest income from an increased cash balance and convertible notes issued toward the end of the third quarter. Net income for the fourth quarter of 2025 was $40.7 million, or $0.81 per diluted share, compared to $37.7 million, or $0.77 per share, in the year-ago period. Total diluted shares at quarter-end were 51.3 million.
Camtek ended 2025 with $851.1 million in cash and cash equivalents, including deposits and marketable securities, up from $794 million at the end of the third quarter. Eisenberg said the company generated $61.2 million in operating cash flow in the fourth quarter, aided by collections and reduced accounts receivable as well as inventory optimization. Accounts receivable fell by $22 million to $90.8 million, and days sales outstanding improved to 65 days from 81 days in the prior quarter. Inventory declined by $15 million, with Eisenberg saying inventory levels had been increased to support the Hawk and Eagle G5 launches but have now returned to a level aligned with expected revenue.
On profitability outlook, management said gross margin in the first half is expected to remain around the current level of 50.5% to 51.5%, with improvement expected in the second half as revenue grows and as supply chain and bill-of-material measures take effect. Eisenberg also said operating expenses are expected to increase in the first half due to additional R&D investment aimed at capturing opportunities the company sees ahead.
On competitive positioning, Langer said Camtek has not lost market share and believes it can increase share by expanding into more inspection and metrology steps. He also described Camtek as well positioned as advanced packaging adoption broadens, noting strong presence with OSATs—about half of Camtek’s business—as well as large players involved in HBM and CoWoS-related technologies.
About Camtek (NASDAQ:CAMT)
Camtek Ltd. (NASDAQ: CAMT) is a provider of automated inspection and metrology solutions for the semiconductor and printed circuit board (PCB) industries. The company develops, manufactures and markets a suite of inline and stand-alone systems that perform high‐resolution 2D and 3D measurements, defect review and process control. Its products are used by integrated device manufacturers, foundries, OSAT (outsourced semiconductor assembly and test) providers, and PCB fabricators to optimize yield, improve product quality and reduce production costs.
Camtek’s core offerings include wafer inspection systems that detect and classify defects on patterned wafers, patterned wafer metrology tools for overlay and critical dimension measurements, and advanced packaging inspection platforms for 3D ICs and fan-out wafer-level packaging.
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