#Israel #financial results #Camtek #Migdal Haemek #Q2 2025

Camtek Reports Record Financial Results for Q2 2025

Camtek Ltd., a prominent player in the high-end inspection and metrology equipment sector, has announced outstanding financial results for the second quarter ending June 30, 2025. The company reported record revenues of $123.3 million, representing a significant 20% year-over-year increase compared to $102.6 million in the same quarter of the previous year.

The impressive performance is underpinned by a GAAP gross margin of 50.8%, while the non-GAAP gross margin reached 51.9%. Operating income also saw a notable rise, with GAAP operating income reaching $32.0 million, a 24% increase from last year. Non-GAAP operating income was even more robust at $37.4 million, reflecting a 21% increase. The company's net income on a GAAP basis was $33.7 million, up 20% year-over-year, translating to a GAAP diluted EPS of $0.69, a rise from $0.57.

A Bright Future Ahead

Looking toward the future, management is optimistic about the continued growth in the third quarter of 2025, anticipating revenues to approach approximately $125 million, putting the company on a trajectory to reach an annual run rate of half a billion dollars.

Rafi Amit, CEO of Camtek, commented on the achievements, emphasizing that the current year has marked significant milestones for the company. According to him, the growth has been primarily driven by a surge in demand for high-performance computing applications associated with artificial intelligence (AI).

Insights into Recent Innovations

Amit elaborated on the advancements within the Advanced Packaging segment, highlighting that rapid technological developments are focusing on accommodating the evolving needs of high-performance computers designed for AI tasks. The market for advanced packaging solutions, essential for AI capabilities, is projected for rapid growth, prompting an industry-wide upgrade cycle. This demand is expected to fuel a greater requirement for next-generation inspection and metrology tools. Camtek’s latest innovations, the Eagle G5 and Hawk systems, have been positively received, aligning with these new technological standards.

Strong Fundamentals

In addition to robust revenue figures, cash and cash equivalents, along with short-term and long-term deposits and marketable securities, amounted to $543.9 million as of June 30, 2025, up slightly from $522.6 million at the close of the previous quarter. During Q2, Camtek generated an operating cash flow of $23.5 million, further reassessing its financial solidity.

During analysts' discussions on the conference call held on August 5, 2025, Amit conveyed his confidence in maintaining a healthy order flow and pipeline extending into the fourth quarter. He also noted that Camtek has positioned itself as a leading market player, harnessing new packaging technologies which hold tremendous growth potential in forthcoming years.

Conclusion

As Camtek continues to thrive amid a transformative landscape in the semiconductor industry, all eyes remain on the firm's ability to innovate and meet the evolving demands of advanced packaging solutions for AI. With a solid financial foundation and a forward-looking strategy, Camtek is undoubtedly poised for growth as it heads into the next quarter and beyond.