#Israel #Camtek #Migdal Haemek #Semiconductor #AI Demand

Introduction

On November 10, 2025, Camtek Ltd., a leader in the semiconductor inspection and metrology market, announced its impressive financial performance for the third quarter ending September 30, 2025. The company experienced significant growth, fueled by the increasing demand for high-performance computing solutions, particularly in artificial intelligence applications.

Financial Performance

Throughout the third quarter of 2025, Camtek's revenues hit a remarkable $126 million, signifying a 12% increase compared to the same quarter in 2024, where revenues were reported at $112.3 million. The company also highlighted a gross margin of 50% according to Generally Accepted Accounting Principles (GAAP), while its non-GAAP gross margin reached an even more impressive 51.5%. Overall operating income stood at $31.8 million, showcasing an 8% year-over-year growth.

In addition, the reported net income under GAAP was impacted by a one-time capital loss of $89 million, linked to the repurchase of convertible notes. This resulted in a net loss of $53.2 million for the quarter, or $1.16 per share. However, non-GAAP net income was recorded at $40.9 million with an EPS of $0.82, a 10% increase year over year.

Conversely, Camtek's cash generation from operating activities exceeded $34 million, demonstrating its strong cash flow capabilities amidst market challenges. The financial health of the company was further underscored by its total current assets, which reached approximately $899 million by the end of the third quarter.

Fourth Quarter Projections

Looking forward, Camtek's management anticipates a robust performance in the fourth quarter of 2025, projecting revenues around $127 million. This would mark a substantial annual revenue of approximately $495 million for the entire year, establishing a record growth trajectory of 15% compared to 2024.

Rafi Amit, the CEO of Camtek, expressed enthusiasm about the company’s results, stating that their continuous growth is largely attributed to the rising global demand for computational technologies related to AI. Amit indicated that with recent industry investments in data centers and advancements in AI applications, Camtek is well positioned for sustained growth into 2026.

Industry Context

Camtek's strategic positioning leverages its advanced technologies in semiconductor inspection and measurement, serving critical segments including advanced interconnect packaging and heterogeneous integration. As new technologies and market requirements evolve, Camtek aims to expand its footprint through strategic initiatives and cutting-edge innovations.

The increased focus on artificial intelligence is reshaping various sectors, and companies like Camtek are setting themselves up to harness the benefits of these advancements. The rise of AI capabilities has led to an upsurge in demand for semiconductor technologies, which are vital for powering new applications across multiple industries.

Conclusion

In summary, Camtek has reported a stellar financial quarter, reflecting its strategic success and ability to adapt to market demands, particularly in the fast-growing AI segment. As the company anticipates further growth with projected upcoming revenues and ongoing investments in technological enhancements, stakeholders and investors alike have much to look forward to.

Future Engagement

For those seeking to learn more about Camtek’s financial performance, a webinar featuring CEO Rafi Amit, CFO Moshe Eisenberg, and COO Ramy Langer will be held today at 9:00 AM ET. Interested participants can register online to access the conference call and gain further insights into the company’s strategy and future outlook.

Camtek’s operations span globally with facilities in Israel and Germany, ensuring the company maintains its competitive edge in meeting the demands of a dynamic semiconductor market. Stay tuned for further updates as Camtek continues to pioneer advancements in the semiconductor industry and cater to the growing demands of artificial intelligence technologies.