Camtek Delivers Record Quarter as Advanced Packaging Orders Surge Past $600 Million, Guides to 80% AP Mix by Year-End
Q2 2026 earnings call, August 10, 2026
Camtek's second-quarter results confirmed what management previewed last quarter: the second half of 2026 is turning into a genuine inflection point, not just a seasonal bounce. Revenue hit a record $133.2 million, up 8% year-over-year and 10% sequentially, beating guidance, while orders received year-to-date have crossed $600 million, with deliveries stretching into 2027. CEO Rafi Amit called it "exceptional momentum," and the numbers back that up — third-quarter guidance of $158 million to $160 million implies a 20% sequential jump, and management now expects overall second-half revenue to grow more than 30% versus the first half.
Advanced Packaging Mix Set to Hit 80% by Q4
The most important new data point from this call is the magnitude of the mix shift toward Advanced Packaging (AP). COO Ramy Langer confirmed that AP, which made up roughly 75% of revenue in Q2, is expected to reach approximately 80% of total revenue by the fourth quarter. Framed differently, management expects AP revenue in Q4 to be about 70% higher than in Q1 — a steep ramp that CFO Moshe Eisenberg attributed to a "lagging" effect between customer capacity decisions and Camtek's order book finally catching up. Within that AP bucket, HPC/AI-related demand — spanning HBM and CoWoS-like advanced packaging — now represents more than 55% of total company revenue and is growing faster than the broader AP segment, expected to approach 60% of revenue by year-end. Eisenberg quantified full-year AP growth at 35% to 45%, cautioning that the comparison is against an already record 2025.
HBM4 Transition and OSAT Strength Underpin Order Book
Roughly 80% of the $600 million in year-to-date orders came from Advanced Packaging applications, and OSATs alone accounted for more than half of total order intake — a signal of Camtek's entrenched position with outsourced assembly and test customers as they scale 2.5D and 3D IC capacity. HBM specifically contributed over 20% of the $600 million in orders, with Langer noting the transition to HBM4 is driving "significant orders from multiple leading HBM manufacturers," building on the $260 million in HBM-related purchase orders disclosed last quarter. Management declined to name customers, including whether China's CXMT is among the HBM players placing orders, citing confidentiality constraints. On the competitive front in OSATs, where rivals have been more vocal about inroads, Langer was direct: "We have a dominant position in the OSATs market, something that we've had for quite a few years... we feel very comfortable about the business and our market position there."
2027 Visibility Improving, But Full Picture Still Forming
Perhaps the most consequential forward-looking comment was on 2027. Management said most new orders now being booked are for 2027 delivery rather than 2026, and that visibility into next year — highly unusual for this point in the cycle — is already building. Langer noted, "It's a very good sign that at this stage of the year... we already have visibility into 2027... our customers are planning increased capacity in 2027. They are very optimistic." Eisenberg added that Camtek is "building a nice backlog already" for next year. That said, management was careful not to overcommit: Langer said it will take "at least one more quarter to two quarters" before the company has a complete picture of 2027 growth, and when asked whether Camtek would track or outgrow wafer fab equipment (WFE) spending, he suggested that on a trailing twelve-month view from Q2 2026 to Q2 2027, Camtek should perform "similar or better" than WFE — a more measured framing than the outsized growth rates seen this year.
New Products: Hawk, Eagle G5 and NanoProf Gaining Traction
Roughly 50% of systems revenue in Q2 came from Camtek's newer platforms, the Eagle G5 and the Hawk, and management expects that mix to keep climbing. Langer described the Hawk as purpose-built for high-volume HBM inspection, positioned to "go to the applications that will be required in one or two years," while the Eagle G5 is winning over existing Eagle customers on better cost of ownership and throughput. Camtek is also launching a new metrology platform, NanoProf, built on technology from its 2023 FRT acquisition in Germany, which began shipping to select customers in the first quarter. Langer said the product is central to expanding Camtek's metrology footprint in Advanced Packaging, though he declined to detail some newer applications still in development, saying only that beyond wafer topography and bow measurement, "there are a few new applications that it's still not time to discuss." The company is also rolling out application-specific modules, including high-resolution backside inspection and fluorescence illumination for detecting organic residue, aimed at hybrid bonding and other emerging process steps.
Photonics Emerging as a Real, If Still Small, Growth Vector
Silicon photonics and compound semiconductor applications — covering transceiver and receiver diodes — accounted for about 5% of the $600 million order book, which management flagged as an early but genuine growth avenue. Langer said the company has already received multisystem orders in this category and expects the photonics contribution to grow beyond 5% in 2027, calling it a market that "is just taking off now."
Margins Improving as Scale Kicks In
Profitability metrics moved in the right direction, with gross margin holding at 51.4% and operating margin expanding to 27% from 25.5% in Q1, driven by favorable mix shift toward Eagle G5 and Hawk. Management guided to gross margin of 52.5% to 53% and operating margin of 30% to 32% by year-end, driven by operating leverage as revenue scales. Operating expenses rose to $32.5 million from $30.9 million, primarily reflecting R&D investment tied to the Visual Layer acquisition, which Eisenberg said adds "a few hundred thousand dollars" to the R&D line — a cost the company says will not outpace revenue growth. Net income came in at $39.4 million, or $0.78 per diluted share, up from $35.5 million, or $0.70, in Q1. Cash and equivalents stood at $815.8 million, though accounts receivable climbed to $153.9 million and days sales outstanding rose to 105 days, reflecting the sharp ramp in business volume; inventory is also expected to build in coming quarters to support the growth trajectory.
China Exposure Steady, Not a Swing Factor
China revenue, which represented 49% of sales last year, is expected to moderate slightly to around 45% this year — not because of weakness, but because growth elsewhere in the business is outpacing it. Langer characterized China demand as "stable," with continued semiconductor investment supporting the business, while noting the competitive environment there remains manageable.