Camtek Q4 2025 Earnings Report

Camtek EPS Results

• Actual EPS: $0.81
• Consensus EPS: $0.83
• Beat/Miss: Missed by -$0.02
• One Year Ago EPS: $0.77

Camtek Revenue Results

• Actual Revenue: $128.12 million
• Expected Revenue: $127.10 million
• Beat/Miss: Beat by +$1.03 million
• YoY Revenue Growth: +9.20%

Camtek Announcement Details

• Quarter: Q4 2025
• Date: 2/18/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, February 18, 2026
• Conference Call Time: 9:00AM ET

Camtek (NASDAQ:CAMT) (NASDAQ: CAMT) is an Israel-based semiconductor equipment company that develops, manufactures and sells automated inspection and metrology systems. Its technologies are used to detect defects, measure wafer and package characteristics, and support process control during semiconductor manufacturing and advanced packaging.

The company’s product portfolio includes inspection systems for wafers, substrates and semiconductor packages, as well as metrology solutions and related software. Camtek serves applications across several semiconductor markets, including advanced packaging, memory, foundry and specialty devices. Its systems are designed for use at multiple stages of production, helping manufacturers improve yield and maintain process quality.

Camtek was founded in 1987 and is headquartered in Migdal HaEmek, Israel. The company serves semiconductor manufacturers and outsourced semiconductor assembly and test providers through a global sales and support network, with an important presence in Asia as well as markets in North America and Europe. Rafi Amit serves as Camtek’s chief executive officer.

Camtek Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record results: Q4 revenue reached $128.1M and full-year revenue was $496.9M with ~51% gross margin and ~30% operating margin, while Q4 net income was $40.7M and cash and marketable securities totaled $851.1M after strong operating cash generation.
• Positive Sentiment: Confident 2026 outlook: Management guides Q1 revenue around $120M and expects 2026 to be another double-digit growth year, with a second-half weighted ramp backed by a growing order pipeline and confirmed customer capacity plans (including a recent ~$25M Hawk order).
• Positive Sentiment: Product momentum: The Hawk and Eagle G5, launched about a year ago, have been validated in the field and the company expects Hawk—targeted at very high throughput/HBM4 and hybrid-bonding use cases—to drive share gains and expand total addressable market.
• Negative Sentiment: Near-term timing risk as 2026 is expected to start slower with revenue concentrated in H2; management also plans higher R&D spend in H1, which could weigh on near-term operating expense trajectory and margin progression.
• Positive Sentiment: Capacity and readiness: Camtek says current operational capacity exceeds prior levels (citing >$700M potential), has optimized inventory and receivables, and is adding manufacturing capacity (Europe expansion expected to come online late 2026) to support upside demand.

Presentation

[Kenny Green, VP of Investor Relations at Camtek]

Ladies and gentlemen, thank you for standing by. I would like to welcome all of you to Camtek's result Zoom webinar. My name is Kenny Green, and I'm part of the Investor Relations team at Camtek. All participants other than the presenters are currently muted. Following the formal presentation, I will provide some instructions for participating in the live question and answer session. I would like to remind everyone that this conference call is being recorded, and the recording will be available from the link in the earnings press release and on Camtek's website from tomorrow. You should have all received by now the company's press release. If not, please view it on the company's website. With me today on the call, we have Mr. Rafi Amit, CEO, Mr. Moshe Eisenberg, CFO, and Mr. Ramy Langer, COO.

[Kenny Green, VP of Investor Relations at Camtek]

Rafi has a cold and has lost his voice, so Ramy will be providing the opening remarks, followed by Moshe, who will then summarize the financial results of the quarter. Following that, we will open the call for the question-and-answer session. Before we begin, I'd like to remind you that the statements made by management on this call will contain forward-looking statements within the meaning of the Federal Securities laws. Those statements are subject to a range of changes, risks, and uncertainties that can cause actual results to vary materially. For more information regarding the risk factors that may impact Camtek's results, please review Camtek's earnings release and SEC filings, and specifically, the forward-looking statements and risk factors identified in the results press release issued earlier today, and such other factors discussed in Camtek's most recent annual report on SEC Form 20-F.

[Kenny Green, VP of Investor Relations at Camtek]

Camtek does not undertake the obligation to update these forward-looking statements in light of new information or future events. Today's discussion of the financial results will be presented on a non-GAAP financial basis, unless otherwise specified. As a reminder, a detailed reconciliation between GAAP and non-GAAP financial results can be found in today's earnings release. Now, I'd like to hand the call over to Mr. Ramy Langer, Camtek's COO. Ramy, please go ahead.

[Ramy Langer, COO at Camtek]

Thanks, Kenny. Hello, everyone. Camtek concluded the fourth quarter and full year with record results. Fourth quarter revenues reached a quarterly record of $128 million, representing an increase of 9% year-over-year. Gross margin was 51%, and operating margin was 29%. For the full year, I'm excited with our revenues, which totaled $496 million, reflecting 16% year-over-year growth. Gross margin was 51.6%, and operating margin reached 30%. These results bring us to our milestone of $500 million in revenues. In terms of revenue mix for the full year, approximately 50% was driven by AI-related products. 20% came from the other advanced packaging applications. The remaining revenue was distributed across CMOS Image Sensors, Compound Semiconductors, Front-end, and general 2D applications.

[Ramy Langer, COO at Camtek]

Regarding our outlook for the first quarter of 2026, in our previous meeting, we indicated that we expect our revenues to be more second-half weighted, following a somewhat slower start to the year, and that we expect 2026 to be a growth year compared to 2025. In line with this, our revenue guidance for the first quarter is to be around $120 million. At the same time, I'm pleased to share that the months passed since our previous guidance significantly reinforced our confidence in our forecast regarding the strength of the second half and in our ability to achieve a full year growth in 2026. Moreover, at this point of time, we expect 2026 to be another double-digit growth year for Camtek.

[Ramy Langer, COO at Camtek]

This confidence is derived from our pipeline of order and backlog, as well as ongoing interaction with our customers. As you are aware, key customer of ours have made public announcements regarding their investments plans for the coming year and are discussing with us about their plans for the latter part of the year in this respect. Customers have been verifying with us ability to ship and install a double-digit number of systems within a relatively short timeframe. Certain customers are finalizing development of their next generation devices and want clarity on which of our system models best fit their requirements. The primary growth engine of the semiconductor industry continues to be high-performance computing components designed for AI applications. As I said, the growth curve expected in 2026 is largely linked to the pace of which device manufacturers, particularly memory suppliers, plan to expand their production capacity.

[Ramy Langer, COO at Camtek]

As an example, last week we announced a $25 million order received from an IDM customer for multiple Hawk systems. This order is in addition to previous orders placed in recent months by this customer, bringing the total to approximately $45 million. The customer continues to expand its manufacturing capacity by building new fabs to meet growing demand for components produced for AI applications, and we expect additional orders from this customer. We expect additional major customers of ours to expand their production capacity after this year to meet rising demand for their products. Another major factor supporting our outlook is the proven exceptional performance of our systems, particularly the Hawk and the Eagle G5. Both models were launched about a year ago, and we've already installed dozens of systems of each over the past year.

[Ramy Langer, COO at Camtek]

Moreover, since this introduction, we have continued to invest efforts in our R&D and completed the development of new capabilities to meet the requirements of our customers' next generation products. We have already demonstrated these new capabilities to several customers and received strong validation and interest. The transition to HBM4 is already in process and represents a major opportunity for us. We are the tool of reference for 3D metrology at all major players. We have a significant market share in 2D inspection, which we expect to expand in 2026. We therefore expect to not only maintain our market share in AI-related applications, but to increase it meaningfully. Moreover, as our products introduce to the market superior new capabilities, we expect them to enable us to penetrate additional production steps and expand our total available market. To summarize, two major developments coincided during the last several months.

[Ramy Langer, COO at Camtek]

We have experienced a significantly increased orders flow and pipeline, thus improving our visibility. In parallel, we have completed the development of new capabilities to meet the requirements of our customers' next generation products, which we expect to enable us to increase our market share and our total available market. We are excited with what we can achieve in 2026. Now, Moshe will review the financial results.

[Moshe Eisenberg, CFO at Camtek]

Thank you, Ramy. Revenue for the fourth quarter came in at a record $128.1 million, an increase of 9% compared with the fourth quarter of 2024. For the full year, revenues came in at $496.9 million, an increase of 16% compared with 2024. The geographic revenue split for the quarter was as follows: Asia was 89%, and the rest of the world accounted for the remainder, 11%. Gross profit for the quarter was $65.4 million. The gross margin for the quarter was 51.1%, similar to the previous quarter, and slightly better than the 50.6% reported in the fourth quarter of last year.

[Moshe Eisenberg, CFO at Camtek]

Operating expenses in the quarter were $28.7 million, compared to $23.1 million in the fourth quarter of last year and $27.2 million in the previous quarter. Operating profit in the quarter was $36.7 million, compared to the $36.3 million reported in the fourth quarter of last year and $37.6 million in the third quarter. Operating margin was 28.6%, compared to 30.9% and 29.9%, respectively. For the year, operating margin was 30%, similar to 2024. Financial income for the quarter was $8.2 million, compared to $6.2 million reported last year and $6.5 million in the previous quarter.

[Moshe Eisenberg, CFO at Camtek]

Within that, interest income increased due to the increased cash balance from the strong cash generation and the convertible notes issued towards the end of the third quarter. Net income for the fourth quarter of 2025 was $40.7 million, or $0.81 per diluted share. This is compared to a net income of $37.7 million, or $0.77 per share in the fourth quarter of last year. Total diluted number of shares as of the end of the fourth quarter was 51.3 million. Turning to some high-level balance sheet and cash flow metrics. Cash and cash equivalents, including short and long-term deposits and marketable securities, as of December 31, 2025, were $851.1 million. This compared with $794 million at the end of the third quarter.

[Moshe Eisenberg, CFO at Camtek]

The fourth quarter was characterized by a very strong cash generation of $61.2 million from operations. This is a result of a strong collection and reduction in account receivables, as well as optimization in our inventory levels. Accounts receivables were down by $22 million to $90.8 million, compared to $112.5 million in the previous quarter. Our days sales outstanding decreased to 65 days from 81 days last quarter.

[Moshe Eisenberg, CFO at Camtek]

Inventory level is down by $15 million. Having increased our inventory level in the last few quarters to support the launch of the Hawk and the Eagle G5, it is now back to the right level to support the expected revenues in the coming quarters. As for guidance, as Ramy said before, we expect revenues of around $120 million in the first quarter, with growth expected in the second quarter and more significant growth in the second half of 2026. And with that, Ramy and I will be open to take your questions. Kenny?

[Kenny Green, VP of Investor Relations at Camtek]

Thank you, Moshe. At this time, we'll begin the analyst question-and-answer session. If you have a question, please raise your hand via the Zoom platform. I will introduce you and ask you to unmute, after which you may ask your question. Our first question will be from Brian Chin of Stifel. Brian, please go ahead. Brian, you can unmute as well.

[Brian Chin, Director at Stifel]

Great. Great, thank you. Can you hear me?

[Kenny Green, VP of Investor Relations at Camtek]

Yeah.

[Brian Chin, Director at Stifel]

Good afternoon. Thanks for letting us ask a few questions. Maybe firstly, just to reference the, you know, the big accelerating increase in demand that you referenced. Where is that more prevalent? Is it more concentrated on HBM or on the Chiplet logic side? And at this time, is the larger step-up occurring in Q3 or Q4?

[Ramy Langer, COO at Camtek]

Well, hi, Brian. So, so first of all, I would say it's the, what we call high-performance computing or the AI-relating products that are all ramping up. And I would say that I can't go at this stage to the resolution, whether it's Q3 or Q4. This is really customer-dependent. I can say that it's in the second half, you will- we will see the step.

[Brian Chin, Director at Stifel]

Got it. Can you still hear me?

[Ramy Langer, COO at Camtek]

Yes.

[Kenny Green, VP of Investor Relations at Camtek]

Yeah, yeah.

[Brian Chin, Director at Stifel]

Maybe for a follow-up, I think in the past, you've noted that you expected 50% plus of your system shipments this year to be either one of the newer platforms, Hawk or Eagle G5. Is that still the case, or is there an update to that? And, you know, this year we'll have HBM4 sort of coexist alongside HBM3E. Can you maybe outline sort of that decision point that some of your customers are having, either moving to Hawk or potentially sticking with the latest Eagle? And also, are you seeing any reuse of existing systems? Is that any factor why shipments are lower in first half?

[Ramy Langer, COO at Camtek]

So, let me start to talk about the Eagle versus the Hawk. I think the Hawk is going primarily to people that want very high throughputs and long-term capability. The Hawk can reach accuracies, performance that is much higher than the Eagle, the G5. The G5 is a fantastic machine, very high flexibility, very popular in the OSATs world, so therefore, there is room for both of them. But definitely, when you go to very high volumes, these customers will gradually move to the Hawk. Now, the Hawk and the G5 accounted for about 30% of our revenues this year. We expect it to be at least 50% in 2026. Did I answer your question, Brian?

[Brian Chin, Director at Stifel]

Yeah, that was helpful. Is there any reuse that you're seeing as sort of HBM4 and 3E both coexist, or just the fact that 3E is still pretty strong and prevalent, limiting the amount of reuse your customers can have?

[Ramy Langer, COO at Camtek]

Well, you know, it's very hard for us to really know, you know, the 3E versus the HBM4. But I think gradually the industry will go to HBM4, and this will be the product that most people will be using. And definitely, the move to HBM4 is a very important opportunity for us. As we've discussed in previous calls, there is a lot more dense structures. The requirements are much higher. It is more metrology and inspection intensive. So all in all, this move is very positive for us.

[Brian Chin, Director at Stifel]

Great. Great. Thank you, Ramy.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Brian. Our next question will be from Charles Shi of Needham. Charles, please go ahead.

[Charles Shi, Senior Analyst at Needham]

Hi, thanks for taking my questions. Maybe the first one, I want to dig a little bit deeper into the Hawk versus G5. The question here, Eagle G5. I remember Hawk was more positioned for high-end logic type of applications, and Eagle G5, you also mentioned it's a good productivity, good cost of ownership, and I thought that you probably more positioned the G5 as maybe more for the memory, for High Bandwidth Memory, of course, for the OSAT market. Is some of that changing right now?

[Charles Shi, Senior Analyst at Needham]

'Cause I'm getting the sense maybe Hawk is seeing more of the adoption or maybe a faster adoption by your customers, maybe also including the memories. Thank you.

[Ramy Langer, COO at Camtek]

No, no, this is not the case. What we are seeing, and this is the Hawk is targeted for those applications that are high-end applications. You know, if you go to a very large number of, of bumps, let's say 150 million and more, people, and with low structures, you know, with the bumps comparatively shallow, these applications will definitely go to the Hawk. The accuracies that are required there, and definitely the throughputs that are required there, are very high. So we will see these kind of applications go towards the Hawk. The second applications that will go to Hawk in general will be to those application people that are looking to go to 100 nm.

[Ramy Langer, COO at Camtek]

So when we look at applications that are more related to Front-end, related to Hybrid Bonding, those people that will want down the road to use the machine for Hybrid Bonding, those people will naturally adopt the Hawk. And, and the G5, obviously it is. You know, we've got thousands of machines in the market. So you would see some customers using the, the Eagle platform, you know, adopt the G5 because they know it, they feel more comfortable with it. But I think the strength of the G5 is very, very, I would say, high flexibility, very good accuracy, very good ROI. So all in all, it will continue to be a very popular machine.

[Ramy Langer, COO at Camtek]

Definitely, on the other hand, you know, when you go to the High Bandwidth Memory, the higher ones, the 4 and the 5, definitely those customers will, to a certain extent, use the Hawk.

[Charles Shi, Senior Analyst at Needham]

Okay, so is it fair to say, for, for memory market, especially for HBM market, we still should consider G5 as the workhorse, and, Hawk is more deployed more selectively at this point? Just a quick-

[Ramy Langer, COO at Camtek]

So, the way you should look at it, we have hundreds of Eagles, many hundreds of Eagles already doing these applications. But I think some of the future capacity that will be built will be more tended towards the Hawk.

[Charles Shi, Senior Analyst at Needham]

Thanks. That was very clear. Wanted checking with you guys, what's the expectation for China this year? If there's any number you can give to us, maybe a percentage of total revenue expected or year-on-year growth, what's the China expectation for this year? Thanks.

[Ramy Langer, COO at Camtek]

Well, first of all, the China expectation this year is all in all positive. We do not see any signs of weakness, and we expect to see the revenues in China, you know, they are gonna be, I would say, stable. And keep in mind that, you know, most of the sales to China are OSATs, and which are engaged in a lot of applications. So it's a primarily stable market. I think there is growth in OSATs in general in China, so I don't see any changes compared to previous years.

[Charles Shi, Senior Analyst at Needham]

Thanks.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Charles. Our next question will be from Jim Schneider of Goldman Sachs. Jim, you may unmute and ask your question.

[Jim Schneider, Senior Equity Analyst at Goldman Sachs]

Hello. Thanks for taking my question. Relative to the double-digit growth outlook you talked about for the year, and some of your competitors who have cited 15%-20% WFE growth for 2026, can you maybe frame for us where you expect your overall revenue to fall this year, relative to some of those broader WFE forecasts? Would you expect the inspection market to sort of undergrow the broader WFE envelope this year? And if not, would you expect, you know, this is more of a timing issue, where you have a little bit weaker first half of the year, and then you sort of catch up in terms of revenue growth in 2027?

[Ramy Langer, COO at Camtek]

Yes.

[Jim Schneider, Senior Equity Analyst at Goldman Sachs]

Thank you.

[Ramy Langer, COO at Camtek]

So first of all, you know, we said in the prepared notes that we are going to achieve double digits this year, in 2026. Now, it's too early to quantify at this time, but looking at our results in the last few years, we always did better than the WFE, because we are focused on the fastest-growing segments. But if I want to give you a little bit, a more color on what we are seeing this year, so, you know, compared to what we discussed here a quarter ago, we are seeing a much better visibility, and this is resulting from the new orders that we have received. A much better pipeline following our discussions with customer and understanding the forecast much better.

[Ramy Langer, COO at Camtek]

We understand today the timing of the expected orders, so the full visibility and our confidence in 2026, and specifically in the second half, is very high.

[Jim Schneider, Senior Equity Analyst at Goldman Sachs]

Okay. Thank you. And then, could you maybe just talk about how we should expect your gross margin trajectory to go throughout the year? I think you previously cited that the improving ASPs on Hawk, et cetera, would drive gross margin expansion. Is this something you can expect that, you know, the gross margins, you know, to continue to increase throughout the year as you build volume?

[Moshe Eisenberg, CFO at Camtek]

Yes, absolutely. You know, we are looking into an improved gross margin throughout the year, and as we expect to grow the revenue in the second half of the year, we expect to improve the margins. We did take certain measures to improve the bill of material. We took other measures in terms of supply chain, and we believe that we are positioned well to benefit from this and improve the gross margin later in the year.

[Jim Schneider, Senior Equity Analyst at Goldman Sachs]

Thank you.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Jim. Our next question is from Shane Brett of Morgan Stanley. Shane, please go ahead and ask your question.

[Shane Brett, Equity Research Analyst at Morgan Stanley]

Thank you for allowing me to ask a question. I have a question on the competitive dynamics. Just, has there been any change to the competitive dynamics for HBM sockets? Just how should I think about your share at these memory customers? Thank you.

[Ramy Langer, COO at Camtek]

Thank you for the question, Shane. I want to make it very clear, we have not lost any market share to competitors. We also estimate that we will be able to increase our market share this year. You know, I talked in the prepared notes about our efforts in the R&D that yielded exceptional solutions and capabilities, and these capabilities will enable us to increase our market share by penetrating into more inspection and metrology steps.

[Shane Brett, Equity Research Analyst at Morgan Stanley]

Great. That's very encouraging to hear. And for my follow-up, so some OSATs have mentioned pretty monstrous CapEx numbers throughout this earnings period. Just can you talk about your business with these customers, and just how a broadening of advanced packaging beyond, you know, the leading foundries benefits Camtek? Thank you.

[Ramy Langer, COO at Camtek]

So definitely we see what is called the CoWoS technology moving to OSAT. Some of it call it CoWoS, some of it call it CoWoS-like technologies. All in all, I would say that the OSAT, this is our home ground. This is where we are very strong, and we, we dominate this market. We have hundreds of machines in this, in this, in this area. It's about 50% of our business. So definitely the move to these technologies are very important in the OSATs. This will definitely benefit Camtek. And I would say, I would say one more thing, that, of course, the OSATs are very important to our business, but on the other side, we have a very strong position at all the big players.

[Ramy Langer, COO at Camtek]

When we talk about the HBM, when we talk about the CoWoS, we talk about TSMC, all of these are our customers, and we have a very good market position, and we plan to continue and grow with them.

[Shane Brett, Equity Research Analyst at Morgan Stanley]

Great. Thank you very much.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Shane. Our next question will be from Craig Ellis of B. Riley. Craig, you may go ahead.

[Craig Ellis, Senior Managing Director at B. Riley]

Yeah, thanks for taking the question. I wanted to start stitching together a couple of earlier answers and implications for the year's growth. So it sounds like what you're saying, guys, with the real strong uptake you're getting across OSATs, IDMs, and foundry for Hawk and Eagle, that this year there should be real strong IDM growth, since that's where you've got your HBM exposure, good growth in OSAT, and I suspect good growth in foundry with 2.5D. Is that a fair characterization of how we should look at growth across your different customer classes?

[Ramy Langer, COO at Camtek]

I think it's an excellent view, and, you know, I totally agree with your comment. This is how we see the market. As you said, there are the big customers, the HBM, the foundries, that definitely are going to be very dominant this year, and we expect growth there. But the OSATs, which is give or take 50% of our business, are continuing to invest, on one side, in advanced packaging applications, but moreover, are starting to adopt the CoWoS of the AI technologies, and this is for real. I mean, this is real. I mean, I think they are talking about it openly, and they are also talking about significant growth this year, and we have real. In this respect, we already have P- you know, POs on hand. We have it in the backlog, and definitely the focus is very positive.

[Craig Ellis, Senior Managing Director at B. Riley]

That's helpful. Thanks, Ramy. And then the follow-up is related to one of Jim's questions, but also tying in some further color on gross margin. So, can you just identify, guys, if we were to see demand go from double digits, low end, you know, 10%, towards something that was more WFE-like, do you feel like you have the materials, the production capacity, the shift flexibility to meet that degree of upside through the year? And then, Moshe, are there any things we should be aware of on gross margin if you were to be chasing demand that was near WFE-like? And can you just clarify what we should expect with gross margin in the first quarter, given the decline in volume? Are we going to stay at 51%+, or do we go down to 50%?

[Craig Ellis, Senior Managing Director at B. Riley]

And then what about the OpEx contour through the year? Thanks very much, guys.

[Ramy Langer, COO at Camtek]

Before you answer, so I just want to answer regarding the operational aspects. So we are ready to respond to any demand that will come from the customer, from the market. So whether it will be very high teens or mid-teens or whatever the number will end up, from the operational point of view, we are ready.

[Moshe Eisenberg, CFO at Camtek]

Yeah, I mean, we do have, you know, just to complete, you know, we do have the capacity, we have the inventory, and all the supply chain ready for the growth. So from operational perspective, we are all aligned. In terms of gross margin, as I said, we do expect an improvement in the second half of the year. The first half of the year will still, you know, will still be around the same level, between 50.5%-51.5%. That's the current level of gross margin in the business. With respect to OpEx, we do expect to see some increase in the first half of the year, as a result of R&D investment. We see a lot of opportunities ahead of us.

[Moshe Eisenberg, CFO at Camtek]

I think we've made it very clear that we are expecting a strong second half, and as a result, we plan to invest in R&D in the first half of the year in order to capture these opportunities, and we will see some increase in operating expenses as a result of that.

[Craig Ellis, Senior Managing Director at B. Riley]

That's very helpful, guys. Good luck.

[Moshe Eisenberg, CFO at Camtek]

Thank you.

[Ramy Langer, COO at Camtek]

Thank you.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Craig. Our next question will be from Edward Yang of Oppenheimer. Ed, please go ahead.

[Edward Yang, Stock Analyst at Oppenheimer]

Hi, good morning, and thanks for the time. Ramy, you talked about, you know, maintaining market share and expanding it. Are you watching any specific timeframes or decision points? You know, do you have any systems under qualification? Just wondering if there are any specific catalysts you have in mind.

[Ramy Langer, COO at Camtek]

So, in general, you know, I cannot disclose exactly the, the timeframe and the decision times. What I can tell you, that there are, several steps, different customers that we are already confirmed, and, we're already, you know, shipping machines to those steps or will ship, as we move into the year. We are in a very good position at other places to capture additional steps, and, and these are based on work that has been done already and been confirmed by the customer, and we are more going into the validation process. So definitely we are very confident that not only we will maintain our market share, we will be able to increase it and go to additional steps in 2026 as the year progresses.

[Edward Yang, Stock Analyst at Oppenheimer]

Got it. And just for my follow-up, you also mentioned you do. You always do better than WFE. We've heard some diverging views on WFE growth for 2026. A couple of larger Dep and Etch players are pointing to above 20% growth. One of your process control peers are looking for something more like low double-digit growth. Just curious where you lean.

[Ramy Langer, COO at Camtek]

I said before in one of the previous questions that from our point of view, it's too early to quantify the number. We will start with the year, and we'll see how things progress, and then we will meet every quarter, and I think we will be far more knowledgeable as we go ahead. But definitely, it's too early to quantify a number.

[Edward Yang, Stock Analyst at Oppenheimer]

Fair enough. Thank you very much.

[Ramy Langer, COO at Camtek]

Thank you.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Ed. Our next question will be from Gus Richard of Northland. Gus, please go ahead.

[Gus Richard, Managing Director at Northland]

Yes, thanks for taking the questions. When I look at test and probe, those companies expect to be up sequentially in Q1. You're down sequentially in Q1. They're different applications, I know they're different things, but they tend to move together, and could you sort of help explain why there's this divergence in the current quarter?

[Ramy Langer, COO at Camtek]

Hi, Gus. You know, the slow start of 2026 is primarily driven by the timing of the orders of our customers. A big part of their capacity expansion, and especially the big ones, is planned for the second half, and this is the reason for the slow start.

[Gus Richard, Managing Director at Northland]

Okay. Sort of looking at KLA's results, they talked about their packaging-related revenue being up 70% in last year, and I'm wondering, you know, are they, and I don't believe your packaging revenue in advanced packaging was that strong. Are they addressing different markets? You know, what's the disconnect between their growth rate and yours?

[Ramy Langer, COO at Camtek]

So first of all, I don't know from which baseline they're counting, so, you know, I, I don't want to, to make a mistake here. But I, I suspect that we're not talking here apples to apples, but we are comparing here some different steps in some areas that we do not play in with. From our point of view and what we see in the segments, in what we call, you know, in our markets, in our applications, and the customers, and we serve everybody, we have not lost any market share. On the contrary, we expect to gain, and we expect even to, you know, to increase our total available market. So from that point of view, we, we, we feel comfortable. I think we discussed in previous calls how we see the competition with KLA.

[Ramy Langer, COO at Camtek]

You know, we understand the strength of KLA, but definitely, we have a lot of advantages in the fact that we are well-entrenched in the market that we're playing in. You know, we have an inherent advantage by offering on our tools the 3D metrology and the 2D inspection, which is very important to the advanced packaging. And I think in general, the unique combination of technology, scale, and flexibility is a key reason why we're performing so well in this market, and I don't expect this to change.

[Gus Richard, Managing Director at Northland]

Got it. Thanks for the explanation.

[Ramy Langer, COO at Camtek]

Thank you, Gus.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Gus. Our next question will be from Michael Mani of Bank of America. Michael, please go ahead.

[Michael Mani, Equity Research Associate at Bank of America]

Hi, thanks so much for taking my questions. I wanted to ask on the chiplet business. So, first off, and I know you don't really segment this out anymore, but just in general for last year, how much of the growth, especially in AI, came from the chiplet side of the house? And then, as you look out to this year, especially as it pertains to your lead customer in the chiplet business, how do you feel about your share position there? I think you said you felt good about your position, but if you could just elaborate on that, like, what applications are you potentially gaining share in, especially on the 2D side of the business? Is that part of the reason you're seeing more strength in the second half?

[Michael Mani, Equity Research Associate at Bank of America]

Just any kind of clarity there would be great. Thank you.

[Ramy Langer, COO at Camtek]

So, hi, Michael. So first of all, we did not in the past, and I cannot break down whether it's chiplets on HBM. We refer to the business as high-performance computing, which is about 50% of the business. But of course, you know, and I think it is well known, and I think TSMC made a comment in one of their previous announcements, that Camtek is a significant vendor to them. So it's not a secret. Yes, we are there. We have a share of the chiplet business. We are doing a few steps there, and this is where, further on, obviously, I cannot comment on exactly which of the steps, but it's not only one step, it's multiple steps.

[Ramy Langer, COO at Camtek]

I expect this business is a healthy business, and as I said in my comments before, and also in the prepared notes, we did not lose any market share. We expect to gain market share, and this is the case also related to chiplets, we don't see it differently. So we're very optimistic about, obviously, the HBM market, but the chiplet or the high-performance computing as a whole.

[Michael Mani, Equity Research Associate at Bank of America]

Great, thank you. For my follow-up, I was hoping you could provide a finer point on your capacity. I know you talked about this in response to a previous question, but in the past, you've talked about, I think, up to $650 million in capacity potential from a revenue perspective. As you look out over the next couple of years into what is definitely a materially, significantly stronger demand environment, it seems do you feel like that's still the right size of a footprint

[Michael Mani, Equity Research Associate at Bank of America]

to address all that demand? And if you were in a position where you needed to add capacity, how quickly, from a lead time perspective, would you be able to build that out? Or given your strong cash position, would you seek to acquire that, from some other, vendor?

[Ramy Langer, COO at Camtek]

So-

[Michael Mani, Equity Research Associate at Bank of America]

Thank you.

[Ramy Langer, COO at Camtek]

Yeah. So, so Michael, let me, let me answer your question. So, so first of all, at this stage, we don't have limitation on our current capacity. We've made some changes internally. We changed the process. You know, as we go on and we're becoming far more efficient from year to year, we, we're doing things better and more efficiently. So we've increased the capacity that we have on hand today. I think it is well over $700 million in capacity, so I don't foresee any issues. In parallel, we started already to expand our capacity. I cannot give comments at this stage, but we will have additional capacity in Europe. I believe it will happen late 2026, we will start to be able to use this capacity.

[Ramy Langer, COO at Camtek]

So all in all, we are in a good position from the capacity and the whole, I would say, operational organization. It is well organized, the performance is very well. We have enough buffers in place in case that the business will be even better than we think. So from that point of view, I feel very comfortable.

[Michael Mani, Equity Research Associate at Bank of America]

Thank you very much.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Michael. Our next question will be from Vedvati Shrotre of Evercore. Vedvati, please go ahead.

[Vedvati Shrotre, Director at Evercore]

Yeah. Thanks for taking my question. So, I kind of wanted to understand how far your visibility is going now. You know, we all understand it's a strong demand environment. Your backlog is growing, you're seeing the orders come in. So do you have visibility going beyond, like, for Q26 now?

[Ramy Langer, COO at Camtek]

Hi, Vedvati. So thank you for the question. So I alluded more in my discussion previously to 2026, but I think we're starting to see also signs of 2027. I would say it's obviously not the backlog, but it's definitely customers are talking to us about shipping machines in the first and second quarter of 2027. So yes, the industry is ramping up, and it's starting to think not just 2026, 2027. So I would say, you know, I haven't gone into the numbers very thoroughly, but definitely we're seeing signs of 2027, people thinking about 2027, and putting some numbers, some initial numbers. And so it's a positive answer.

[Vedvati Shrotre, Director at Evercore]

Understood. Thank you. And for my follow-up, so I know this was asked a couple of times on the call back, on the call, and so I'll try it again. But you know, the advanced packaging growth by some of the Dep and Etch players is in, like, 40% levels, and then if you listen to your bigger peer on process control, they think it's, like, high teens kind of levels. So there's a big disparity on how the advanced packaging market would look. And since you guys, I think, have the highest exposure, like, I-

[Vedvati Shrotre, Director at Evercore]

Could you give us a sense of where that, that lands for you and, and what you're seeing?

[Ramy Langer, COO at Camtek]

So it's, you know, I think the main applications today, when you talk about advanced packaging, I think the leading applications is fan-out. There is a lot of fan-out.

[Ramy Langer, COO at Camtek]

There are many variations on it, you know, from high-resolution fan-out, regular fan-out, but definitely this is a big market. Of course, you know, what's called the regular bump inspection in the old sense, as you know, everything today is advanced packaging. The growth of this market, it's definitely double digits. How far in the double digits, I can't pull this number from my sleeve now, but it's too soon to quantify how it will be in 2026, but definitely it's a good growth number.

[Vedvati Shrotre, Director at Evercore]

Understood. Thank you.

[Ramy Langer, COO at Camtek]

Thank you, Vedvati.

[Kenny Green, VP of Investor Relations at Camtek]

Thanks, Vedvati. So that will end the Q&A session. Before I hand over to Rafi for his closing statement, in the coming hours, we will upload the recording of the conference call to the IR section of Camtek's website at www.camtek.com. I'd also like to thank everybody for joining this call, and, Ramy, please go ahead with the closing statement.

[Ramy Langer, COO at Camtek]

I want to express my gratitude to all our investors for your ongoing interest and support in our business. Special thanks goes to our employees all over the world, and management team for their outstanding performance. I want to mention the Chinese New Year, that celebrated by many of our customers and many of our employees around the world. I would like to extend our best wishes for them, and for a successful and prosperous Year of the Fire Horse. I look forward to our next conversation in the upcoming quarter. Thank you, and goodbye.

Participants

Executives

• Kenny Green, VP of Investor Relations
• Moshe Eisenberg, CFO
• Ramy Langer, COO

Analysts

• Brian Chin, Director at Stifel
• Charles Shi, Senior Analyst at Needham
• Craig Ellis, Senior Managing Director at B. Riley
• Edward Yang, Stock Analyst at Oppenheimer
• Gus Richard, Managing Director at Northland
• Jim Schneider, Senior Equity Analyst at Goldman Sachs
• Michael Mani, Equity Research Associate at Bank of America
• Shane Brett, Equity Research Analyst at Morgan Stanley
• Vedvati Shrotre, Director at Evercore