VAT Group: Ballooning backlog

Research evidence excerpt

VAT Group: Ballooning backlog

Deutsche Bank

Research

Rating Company Date

Hold VAT Group 23 July 2026

Results

Europe

Switzerland

Reuters Bloomberg Exchange Ticker Price at 21 Jul 2026 (CHF) 700.40

VACN.S VACN SW SWX VACN

Price Target (CHF) 750.00

Technology

709.40 -

Semiconductors 52-week range (CHF) 257.70

Ballooning backlog

Valuation & Risks

George Brown

Record Q2 orders (+30% beat) & backlog, with clear upside to the 2027 outlook Research Associate

Despite record Q2 orders of CHF500m (+30% vs cons), up +102% yoy, VAT +44-20-754-74893

introduced a broadly in-line guide for Q3 sales between CHF355-385m, up 27%

Robert Sanders

qoq, as VAT continues to ramp more capacity (>700 employees added over H1-26). Research Analyst

With the shares pressured, strong orders were however not enough in a nervous +44-20-754-58394

market (similar reactions with ASML, TSMC, etc). Whilst demand is clearly

Johannes Schaller

strengthening at VAT, it is hard to rule out potential pre-ordering (eg order windows

Associate Director of Equity Research - Germany

are widening by +2-3 months) & price action (eg for earlier/larger allocations). With

+49-69-910-31731

VAT today challenged by its own supply chains ability to ramp capacity, the fear here

relates to potential double-ordering as OEMs race to restock inventories ahead of

Price/price relative

a major ramp. Here, it was interesting to hear that VAT expects orders to remain

stable into Q3-26, perhaps contrary to buyside expectations. Regarding capacity,

VAT will continue to ramp factory capacity +20-30% qoq in H2, providing total 500

quarterly sales capacity >CHF450m by year-end. With further upside to 2026 cons 250

therefore only limited, focus turns to 2027, with VAT now even reassessing its 0

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