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Investing.com -- VAT Group AG (SIX:VACN) shares fell more than 7% on Wednesday after the company reported second-quarter 2025 results that showed stronger-than-expected revenue but weaker order intake, profit margins, and earnings.
Revenue in the quarter reached CHF 283 million, exceeding Jefferies’ forecast by 4% and coming in CHF 8 million above consensus estimates.
However, orders totaled CHF 248 million, falling 8% short of the consensus estimate of CHF 271 million, despite slightly exceeding Jefferies’ projection of CHF 237 million.
Semiconductor valve orders declined 11% year over year and were lower than expected. The decrease was partially offset by stronger Global Service orders.
First-half 2025 EBITDA came in at CHF 165 million, missing both the consensus estimate of CHF 172 million and Jefferies’ forecast of CHF 188 million.
The EBITDA margin for the first half was 29.6%, below the expected range of 30% to 37%, according to Morgan Stanley (NYSE:MS).
Earnings per share for the first half were CHF 3.52, below consensus expectations of CHF 4.29 and Jefferies’ estimate of CHF 4.77, representing a 12% shortfall.
Morgan Stanley highlighted the order intake of CHF 248 million as well below the consensus forecast of CHF 275 million and slightly below its own estimate of CHF 249 million.
Despite the revenue beat, the firm noted that the 4% EBITDA miss and below-range margin contributed to the weaker financial picture.
For the third quarter, VAT Group provided revenue guidance of CHF 255 million to CHF 285 million.
The midpoint of that range, CHF 270 million, is in line with Jefferies’ forecast but below the consensus estimate of CHF 276 million.
Morgan Stanley noted the guidance implies a sequential revenue decline and is below consensus at the midpoint.
The company maintained its full-year 2025 guidance, stating that orders, sales, EBITDA, EBITDA margin, net income, and free cash flow are expected to exceed 2024 levels. VAT Group also expects to outperform estimated 5% growth in the wafer fab equipment market.
Jefferies projects VAT’s full-year 2025 revenue growth at 15%, below the consensus estimate of approximately 18%.
For 2026, Jefferies forecasts a 1% revenue decline, while consensus anticipates 14% growth.
The brokerage cited a book-to-bill ratio below 1 and a second-quarter backlog of CHF 294 million, down 15% year over year, as reasons for its more cautious outlook.
Jefferies also pointed to subdued order guidance from key customers, including ASML (AS:ASML) and ASM, as signaling continued softness in the second half of the year.