Camtek Ltd. (NASDAQ: CAMT) reported record financial results for the fourth quarter and full fiscal year of 2025, driven by demand for semiconductor inspection and metrology equipment. The company achieved annual revenues of $496.1 million, a 16% increase over the prior year, while maintaining non-GAAP gross margins above 51%.

Key Development

The primary driver of the reported results was the company’s expansion within the artificial intelligence market. Camtek reached a significant milestone by achieving approximately half a billion dollars in annual revenue for the period ending December 31, 2025. This growth was further evidenced by a series of new equipment orders, including $45 million in contracts announced in the week preceding the earnings release.

Financial Performance

For the fourth quarter of 2025, revenue rose 9% year-over-year to $128.1 million. Non-GAAP net income for the quarter was $40.7 million, or $0.81 per diluted share, compared to $37.7 million in the final quarter of 2024. Full-year non-GAAP net income reached $159.0 million, representing a 15% increase from the previous year.

While non-GAAP metrics showed growth, GAAP net income for the full year declined 43% to $50.7 million, or $1.05 per diluted share. The company’s liquidity position strengthened significantly over the fiscal year; cash, deposits, and marketable securities totaled $851.1 million at year-end, an increase from $448.6 million at the close of 2024. Operating cash flow for the full year was $142.6 million.

Business Outlook and Strategy

Management has issued guidance for 2026 indicating an expected year of double-digit revenue growth based on current backlogs and order pipelines. Revenue for the first quarter of 2026 is projected to be approximately $120 million. The company anticipates sequential growth in the second quarter, followed by more significant expansion in the second half of 2026. The operational priority remains capturing demand from manufacturers who are currently expanding their production capacity to meet market requirements.

Sector and Macro Context

Camtek’s performance is situated within a broader environment of aggressive capacity expansion across the semiconductor ecosystem. The company is positioned in the artificial intelligence market, which is currently experiencing high demand levels. This macroeconomic trend has resulted in an accelerating pipeline of orders and ongoing discussions for further equipment placements with major industry participants.