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VAT Group sees 2027 sales well above its guidance as AI demand surges

Investing.com-- Swiss vacuum valve maker VAT Group (SIX:VACN) said on Thursday it expects 2027 sales to significantly exceed its forecasts, as surging demand for advanced semiconductors and artificial intelligence infrastructure drives investment in manufacturing capacity.

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VAT now expects sales to "significantly" exceed the upper end of its previous forecast of 1.5 billion to 1.7 billion francs.

The company reported record third-quarter order intake of 696.6 million francs, up 193% from a year earlier. Sales rose 46% year on year to 376.4 million francs.

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VAT said the imbalance between supply and demand for advanced logic and memory chips persisted, driven by heavy data centre spending by major cloud computing companies and the ramp-up of production of next-generation chips.

Its order backlog climbed to a record 979.5 million francs, up 279% year on year, while its book-to-bill ratio, which compares orders received with sales, reached 1.9.

VAT expects fourth-quarter sales of 420 million to 450 million francs and a book-to-bill ratio above one.

The company reiterated its 2026 outlook, expecting orders, sales, net income and free cash flow to exceed 2025 levels.

VAT said strong semiconductor investment was likely to continue into 2027 and beyond, adding that it was expanding production capacity to meet demand. It aims to reach quarterly factory output of 450 million francs by the end of 2026.

Original Article

VAT Group sees 2027 sales well above its guidance as AI demand surges

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