VAT Group AG

Reported H1 sales declined 8% year over year, gross profit declined 7%, gross margin was 66.6% versus 65.5% last year, and EBITDA margin was 29.0% versus 29.6% last year. Q2 order intake reached a record CHF 500 million, up 102% year over year and 40% sequentially; the book-to-bill ratio was 1.7x. VAT said it increased output 32% in Q2 and remains on track to reach a quarterly factory output run rate of more than CHF 450 million by year-end. For Q3 2026, management guided sales to CHF 355 million-CHF 385 million. The company also said 2026 should be another record year for orders, sales, free cash flow, higher EBITDA margin, and net income versus 2025, while 2027 is expected to be another growth year but is not yet quantified.

Urs Gantner said the business is benefiting from a structural semiconductor capacity buildout tied to AI and leading-edge chip demand, with more than 140 fabs being built or expanded. He emphasized that VAT is not just ramping for the current cycle, but also positioning for the next technology nodes through higher R&D, 60 specification wins in H1, and the Atonarp acquisition. His tone was confident and forward-looking, stressing that demand is strong, the ramp is progressing, and the long-term cycle remains intact.

Fabian Chiozza highlighted the numbers behind the ramp: record Q2 orders of CHF 500 million, H1 orders up 75%, gross margin at 66.6%, and EBITDA margin at 29.0%. He said margin pressure in H1 came mainly from frontloaded ramp costs, lower sales, FX headwinds, and working-capital-related effects, while continuous improvement programs helped offset inflation with a 150 to 200 basis point net positive contribution. He also said VAT has already added more than 700 people, does not expect significant further headcount additions beyond roughly 10%-15% more in production, and expects operating leverage to improve in H2 as sales rise. On Atonarp, he framed the deal as primarily technology/IP acquisition, noted about 0.5% of revenue in additional R&D, and said it should generate meaningful bottom-line contribution by the end of the decade.

Analysts pressed on whether VAT is seeing double ordering, why orders are running ahead of WFE growth, and when 2027 guidance might be provided. Management said the strong order intake reflects customers opening order windows earlier to secure supply during the ramp, not price-driven prebuying, and said 2027 is still hard to quantify because visibility is not yet sufficient. Questions also focused on capacity, with management saying the CHF 450 million run rate is needed for 2027, that the company can currently handle about CHF 2.5 billion-CHF 2.6 billion of revenue output, and that it sees no major near-term constraint from people or assets. On Atonarp, management said the deal is about creating a new technology platform for real-time molecular sensing, with ongoing customer qualification and future capital markets day detail to come.