Swiss chip equipment maker VAT Group reported CHF 7.15 EPS and a 12% dividend hike to CHF 7 per share, signaling confidence in AI-driven demand despite 2025's mixed performance.

Sales surged 14% to CHF 1.07 billion, yet EBITDA margins narrowed to 30% from 31.2% as R&D and inventory costs rose. CHF 1.03 billion in 2025 orders matched 2024 levels, but like-for-like orders jumped 6% as chipmakers expanded AI manufacturing capacity. The order backlog ended the year at CHF 304.3 million, up 17.6% from Q3 but below 2024.

The company attributed late-year order strength to investments in advanced logic and HBM production, noting DRAM fab utilization approached 100% and advanced logic utilization exceeded 80%. Sales in the Semiconductors unit grew 15%, while Global Service revenue rose 19% to CHF 199 million. VAT expects 2026 to exceed 2025 levels, projecting sales of CHF 240-260 million in Q1 2026 with a book-to-bill ratio above one.

VAT's dividend increase reflects its cash flow strength, generating CHF 299 million in operating cash flow and CHF 230.4 million in free cash flow—a 26% rise from 2024. The board will propose the hike at the April 28 meeting, backed by continued high fab utilization and capacity expansions in Malaysia and Romania.