Camtek (CAMT) Q2 FY26 earnings call: guidance and Q&A

Clarification on the 70% AP growth in Q4 FY26 over Q1 FY26, and if AP will remain ~75% of total revenue in Q4, implying total Q4 revenue.

Management confirmed that AP revenue in Q4 FY26 is expected to be 70% higher than Q1 FY26, and that AP's share of total revenue is expected to gradually increase to 80% by the end of the year.

“So first of all, yes, we do see a gradual increase of our Advanced Packaging business compared to other businesses that we have. So we expect that at the end of this year, we will probably 80% of our revenues will go towards Advanced Packaging. And yes, you are correct. When the revenues, the Advanced Packaging revenues in the first quarter compared to the fourth quarter, we expect growth of 70%.”

asked by Brian Chin · answered by Ramy Langer

Inquiring about the company's ability to meet strong demand, utilization of European manufacturing capacity, and potential for earlier customer deliveries.

Management stated they are well-prepared to ramp business, with subcontractors and supply chain in place, expressing confidence in shipping machines on time. Most new orders are for 2027, with few remaining for 2026.

“So first of all, let's talk about our capacity. So we've done a lot of work, and I've roughly discussed it in the opening statements and we are well ready to ramp the business, we have all the subcontractors and supply chain in place, and we are very confident about our ability to ship the machines on time and we don't see any issues or obstacles when we discuss capacity.”

asked by Brian Chin · answered by Ramy Langer

Asking about the current visibility into 2027 and whether the strong growth rates seen in late 2026 are sustainable into the next year.

Management indicated it's early for a full 2027 forecast but noted strong initial visibility and positive signals from customers planning increased capacity. They see continued growth into 2027.

“Well, first of all, I think it's a very good sign that at this stage of the year, in the -- really in the beginning of the second quarter, we already have visibility into 2027. All in all, we're talking to customers. Our customers are planning increased capacity in 2027. They are very optimistic about 2027.”

asked by Matthew Prisco · answered by Ramy Langer

Questioned the expected OpEx trend for coming quarters and the flow-through of sales growth to the bottom line.

Management expects OpEx to increase, primarily in R&D due to the Visual Layer acquisition and technology investments, but not to exceed revenue growth. They anticipate improved gross margin (53-55%) and operating margin (30-32%) by year-end due to leverage and product mix.

“We definitely plan to see some increase in our OpEx level, but not to the extent that it will exceed the revenue growth. So the leverage that we have in the model will play a major role in the improved profitability in the next few quarters ahead, and we definitely plan to improve both the gross margin, but even more the operating margin levels.”

asked by James Schneider · answered by Moshe Eisenberg

Asked about Camtek's growth in the OSAT market relative to overall CapEx trends and how they view the competitive environment as the market becomes more sophisticated.

Management asserted a dominant position in the OSAT market with strong relationships, noting that 50% of their business and recent orders come from OSATs. They feel comfortable with their competitive position and expect continued strong order intake as OSAT CapEx increases.

“Let me start from the basics. We are very -- we have a dominant position in the OSATs market, something that we've had for quite a few years, very good relationship. And this relates to when we talk about OSAT, this is the growth of the 2.5 IC and 3D IC manufacturing and all the other applications that we have been discussing.”

asked by Michael Mani · answered by Ramy Langer

Inquired about the purpose and metrology steps covered by the newly launched NanoProf product.

NanoProf is a new metrology platform developed from the FRT acquisition, designed to significantly increase Camtek's footprint in metrology. It offers improved stability and speed, addressing wafer topography and new applications, with initial installations already underway.

“So the NanoProf is a very important product because this is a product where we believe through this product will be able to significantly increase our footprint in the metrology area. If you recall, 3 years ago, we bought a company in Germany called FRT. We have been working with this company, developing new application.”

asked by Auguste Richard · answered by Ramy Langer