VAT Group stock dips despite strong guidance

Published 04/03/2025, 10:12
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Investing.com -- Shares of VAT Group fell by 1.5% despite the company’s optimistic financial guidance for the upcoming year. VAT’s fourth-quarter 2024 results and orders matched the expectations set by the company’s January trading update.

However, the first-quarter 2025 sales guidance is projected to be higher than both analysts’ forecasts and consensus, with expected figures ranging between CHF 275-295 million.

The company anticipates that its sales, EBITDA, EBITDA margin, net income, and free cash flow (FCF) will all see an increase in 2025 compared to 2024. VAT Group is also aiming to outperform the overall growth of the wafer fabrication equipment (WFE) market, which market research firms predict will grow by +5% this year.

The growth is anticipated to be driven by an increase in process steps at advanced nodes and a rising demand for the company’s sophisticated modules and motion components. Additionally, higher fab utilisation rates are expected to bolster the growth of VAT’s Services segment.

Despite the positive outlook, shares declined, reflecting a cautious stance among investors. Jefferies analysts commented on the company’s prospects, stating, "While we see demand from advanced logic GAA nodes as being a key driver of VAT’s growth this year, we continue to expect a loosening up of the AI supply chain this year, leading to potentially lower DRAM spend in 2026."

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