Strong fourth-quarter 2025 order performance on technology transitions fueled by demand for AI applications; demand from China remains strong

• Preliminary fourth quarter orders around CHF 305 million increase 28% sequentially (30% at constant FX) and 14% year on year (25% at constant FX); includes CHF 30 – 35 million fourth quarter pre-orders
• Fourth-quarter 2025 sales of approximately CHF 257 million substantially ahead of top end of quarterly guidance of CHF 225 – 245 million; flat quarter on quarter (up 1% at constant FX) and down around 9% year on year (1% at constant FX)
• The business conditions during the fourth quarter and going into 2026 indicate that the trajectory toward a USD 1 trillion semiconductor market is on track

Fourth-quarter 2025 business summary

During the fourth quarter of 2025, demand for VAT products accelerated slightly, as VAT’s relevant semiconductor market continued growing over its 2024 levels. This growth was primarily driven by increasing demand for leading-edge logic and memory chips where VAT’s business unit Semiconductors actively leveraged its undisputed technology and market leadership. These chips are needed to build AI datacenters and, in this context, require high capex from hyperscalers, which are estimated to have been more than USD 400 billion in 2025, and expectations for 2026 are already exceeding these volumes. Memory prices have increased substantially during 2025. HBM and DRAM manufacturing capacities are now believed to be filled for 2026, and the capex of memory manufacturers in those vacuum applications relevant to VAT looks to have accelerated toward the end of 2025. This pickup in demand was also witnessed in the business unit Global Service, while activities in the business unit Advanced Industrials were only slightly higher.

Fourth quarter 2025 results

VAT recorded preliminary fourth-quarter orders of around CHF 305 million, up 28% sequentially and 14% year on year. Besides improved business activity from Western OEMs and ongoing strong demand from Chinese customers, VAT also observed approximately CHF 30–35 million in pre-order from customers ahead of price increases effective January 1, 2026. Preliminary fourth-quarter sales amounted to CHF 257 million, flat quarter on quarter and ahead of the Q4 guidance range of CHF 225 to 245 million. Fourth-quarter sales declined 9% year on year (adjusted for the CHF 22 million in sales shifted from the third-quarter 2024 to the fourth-quarter 2024, the change would have been minus 1%). The preliminary reported fourth-quarter book-to-bill ratio comes to 1.2x and around 1.1x when adjusting for the pre-order impact. Assuming constant FX rates, this would equate to fourth-quarter year-on-year growth rates of plus 25% for orders and minus 1% for sales respectively.

Full year 2025 results

Full-year 2025 preliminary orders amounted to approximately CHF 1,033 million, remaining flat year on year, and net sales increased by around 14% to approximately CHF 1,073 million. In constant currency terms, orders were up 6% (CHF 1,090 million) and net sales 20% year over year, equaling CHF 1,133 million.

Preliminary figures indicate that VAT achieved a full-year EBITDA margin around 30% as margin benefits from volume increases were partly erased by unfavorable foreign exchange developments, especially in the Swiss franc against the US dollar. Preliminary free cash flow for full-year 2025 is expected to be more than CHF 225 million, approximately 23% higher than the previous year’s level.

Detailed results and an update on the outlook for 2026 will be provided with the release of the company’s final full-year 2025 results on Tuesday, March 3, 2026.

Fourth quarter 2025

Full year 2025

1 Quarter on quarter; 2 Year on year