Key Takeaways:
Camtek Ltd. reported record second-quarter revenue of $133.2 million, up 8 percent from a year earlier, but GAAP net income fell 31 percent as operating expenses and a one-time tax charge outpaced sales growth.
"Since the beginning of 2026 we have experienced a growing momentum of order intake bringing the total amount of orders received since the beginning of the year to about $600 million, with deliveries scheduled for 2026 and 2027," Rafi Amit, chief executive officer at Camtek, said. "This exceptional order intake coupled with our strong market position in the AP segment is expected to result in phenomenal growth in our AP business of 45 percent half over half."
GAAP diluted earnings per share dropped to $0.46 from $0.69 a year earlier, while non-GAAP EPS slipped one cent to $0.78 even as adjusted net income edged up 2 percent to $39.4 million. GAAP operating income fell 15 percent to $27.2 million, with the operating margin narrowing 5.5 percentage points to 20.4 percent, as operating expenses climbed 29 percent to $39.5 million. Research and development spending rose to $16.7 million from $11.5 million, and selling, general and administrative costs increased to $22.8 million from $19.2 million. Income tax expense jumped to $10.9 million from $3.2 million, including a $7.7 million one-time charge.
The Israeli inspection and metrology equipment maker guided third-quarter revenue of $158 million to $160 million, roughly 19 percent to 20 percent above the second quarter, and expects second-half revenue to grow more than 30 percent from the first half. The outlook rests on a record backlog and about $600 million of orders booked since January, though deliveries stretch into 2027. Operating cash flow was $12.2 million, about 52 percent of GAAP net income, while cash, deposits and marketable securities totaled $815.8 million at June 30, down from $849.7 million three months earlier. Trade receivables rose to $153.9 million from $90.8 million at year-end, and the company completed its acquisition of Visual Layer during the quarter.
The record top line and aggressive second-half guidance signal management expects AI-driven demand for advanced packaging and high-bandwidth memory inspection to accelerate, with the AP business projected to grow 45 percent half over half. Investors will watch whether the expanded cost base and lower cash conversion narrow margins as the company works through its order backlog, with the next test coming in the third-quarter report.
This article is for informational purposes only and does not constitute investment advice.
