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

Swiss vacuum valve manufacturer VAT Group anticipates 2027 sales to surpass its preliminary guidance due to a surge in demand for advanced semiconductors and artificial intelligence infrastructure. The company now foresees sales exceeding the previous estimated range of 1.5 billion to 1.7 billion francs. VAT Group reported record third-quarter order intake of 696.6 million francs, representing a 193% increase from the same period last year.

Overall sales saw a 46% year-on-year growth, reaching 376.4 million francs. The company highlighted a persistent mismatch between supply and demand for advanced logic and memory chips, fueled by substantial data centre expenditure by leading cloud computing firms and the expansion of production of next-generation chips. VAT Group's order backlog has reached a record 979.5 million francs, up 279% year on year, and its book-to-bill ratio, which compares received orders with sales, has hit 1.9.

The company projects fourth-quarter sales between 420 million and 450 million francs, along with a book-to-bill ratio exceeding one. VAT Group reaffirmed its 2026 outlook, projecting orders, sales, net income, and free cash flow to outpace the previous year's figures. The company emphasized that robust semiconductor investment will likely persist into 2027 and beyond, and it is expanding production capacity to meet the growing demand. By the end of 2026, VAT Group aims to achieve a quarterly factory output of 450 million francs.