Camtek Guides 2027 Revenue Above $800 Million, Says Gross Margin Was 'A Bit Disappointed'-Level Low
Camtek's CFO blamed parts costs and a stronger shekel for a 51.1% gross margin, while customers book delivery slots through 2027.
Camtek expects 2027 revenue above $800 million, but its finance chief said on the company's Wednesday earnings call that the third-quarter gross margin fell short of what management wanted. Chief Financial Officer Moshe Eisenberg blamed higher parts costs and a stronger Israeli shekel.
Margin held flat, but below plan
Camtek, which makes machines that inspect and measure semiconductor wafers during chip production, reported third-quarter revenue of $161.3 million, up 28% from a year earlier and 21% from the second quarter. Operating income reached $47.5 million, and net income was $50.3 million, or $0.99 per diluted share.
Gross margin was 51.1%, against 51.4% in the second quarter. "We were a bit disappointed by the gross margin level," Eisenberg said, pointing to "slightly higher parts and material costs" that offset cost cuts and a favorable product mix.
He added that the shekel "got much stronger against the US dollars," an overhang on cost of goods that is "beyond our control." He hopes it will balance out next year.
Asked by a Goldman Sachs analyst whether margins can recover, Eisenberg said they should "gradually improve starting from the first quarter of 27," helped by higher prices, richer mix and early software sales.
Slots booked a year out
CEO Rafi Amit said many customers have spent several months securing delivery slots through 2027, including in China. He said Camtek now has visibility about a year ahead for the first time in its history.
Management guided fourth-quarter revenue of about $180 million, bringing 2026 to about $595 million. It also set a target of $1.2 billion in annual revenue within about three years, with operating margin of 34% to 36%, largely organic.
Camtek ended September with $877.1 million in cash, deposits and marketable securities, and generated $71.1 million in cash from operations in the quarter. Roughly 80% of revenue came from advanced packaging, most of it tied to AI demand.
Component shortages and a stock drop
Pressed by a Needham analyst on shortages, Chief Operating Officer Ramy Langer said memory chips and CPUs are scarce and costlier. He expects a fix "within three to six months," then added: "We're not sure about it."
Camtek shares were down about 8% at $103.73 in Wednesday trading, as of 10:27 a.m. ET.
Eisenberg's marker is the first quarter of 2027, when he said gross margin should start to improve gradually.
Sources
- Camtek Q3 2026 Earnings Call Transcript — benzinga.com
- Camtek (CAMT) Earnings Are Here Following Oversold Reset But Is The Valuation Already Priced In — Yahoo Finance
- Camtek: Q3 Earnings Snapshot – WTOP News — wtop.com
- Camtek: Q3 Earnings Snapshot | wusa9.com — Associated Press
- Camtek: Q3 Earnings Snapshot | kare11.com — Associated Press
