Camtek's Q2 2025: Navigating Contradictions in HBM Growth, HPC Revenue, and Shipping Costs

HBM market growth and demand, impact of HBM 4 transition on revenue, contribution of HPC and China to revenue, market growth in the HPC segment, and impact of shipping costs are the key contradictions discussed in Camtek's latest 2025Q2 earnings call.



Revenue and Market Growth:
- Camtek Ltd. reported revenue of $123.3 million for Q2 2025, reflecting a 20% year-over-year growth.
- The growth was driven by increased demand in high-performance computing applications and advanced packaging segments, particularly in high-bandwidth memory (HBM) and hybrid bonding technologies.

Earnings and Financial Performance:
- The company maintained a gross margin of 51.9%, contributing to a record operating income of over $37 million.
- This financial performance was supported by strong demand for new products like the Hawk and Eagle G5 systems, which are expected to generate approximately 30% of total revenue this year.

Product Innovation and Market Position:
- Camtek launched the Hawk and Eagle 5 systems, which deliver breakthrough performance and significantly higher throughput than existing systems.
- These innovations have positioned Camtek as a leader in the advanced packaging market, poised to capitalize on the growing demand for HBM technologies and hybrid bonding capabilities.

Geographic Revenue Distribution:
- Camtek's revenue in Q2 2025 was primarily from Asia, accounting for 90% of total revenue, with the remainder from the rest of the world.
- The geographical split remained consistent with previous quarters, indicating stable market presence in key regions.