Core Insights - MKS Inc. operates in the technology sector, providing instruments, subsystems, and process control solutions across various industries, including semiconductor and life sciences [1] Insider Activity - Gerald G. Colella, a director at MKS Inc., sold 10,000 shares at approximately $253.97 each, retaining 40,017 shares post-sale [2] - John Edward Williams, Executive Vice President, sold 2,043 shares at an average price of $256.41, resulting in a 35.95% decrease in his ownership, leaving him with 3,640 shares valued at around $933,332 [3] Stock Performance - MKS Inc.'s stock opened at $253.71 with a market capitalization of $17.04 billion and a P/E ratio of 58.06, indicating high investor valuation [4] - The stock has a beta of 1.94, suggesting it is more volatile than the market [4] Financial Health - The company has a debt-to-equity ratio of 1.53, a current ratio of 2.71, and a quick ratio of 1.71, indicating its ability to meet short-term obligations [5] - The fifty-day moving average is $206.74, while the two-hundred-day moving average is $157.93, showing an upward trend over time [5]

Revenue Performance - Total net revenues for 2025 were $3,931 million, a 10% increase from $3,586 million in 2024[253] - Semiconductor market revenues increased by $198 million, or 13%, in 2025, driven by higher sales in logic and foundry applications[257] - Electronics and packaging market revenues rose by $189 million, or 20%, in 2025, primarily due to increased sales of chemistry and equipment[259] - Specialty industrial market revenues decreased by $42 million, or 4%, in 2025, mainly due to lower sales to industrial customers[265] - Approximately 81% of total net revenues in 2025 came from international markets, up from 78% in 2024[266] - International net revenues reached $3.2 billion in 2025, up from $2.8 billion in 2024, with a notable $155 million increase in sales to China[303] - Product revenues increased by $312 million (10.0%) to $3.436 billion in 2025, driven by a $206 million increase in the electronics and packaging market and a $146 million increase in the semiconductor market[301] - Service revenues rose by $33 million (7.1%) to $495 million in 2025, primarily due to increased revenues in the semiconductor market[302] Market Segment Analysis - The semiconductor market represented 43% of total net revenues in 2025, compared to 42% in 2024[256] - The electronics and packaging market accounted for 28% of total net revenues in 2025, up from 26% in 2024[259] - The specialty industrial market comprised 29% of total net revenues in 2025, down from 32% in 2024[265] Financial Management - Bad debt expense was immaterial in each period presented, indicating effective credit management despite potential customer payment issues[277] - A valuation allowance of $72 million was decreased in 2025, primarily related to foreign interest and net operating loss carryforwards, indicating improved realizability of deferred tax assets[294] - The company uses derivative instruments for risk management, including foreign exchange forward contracts and interest rate swaps, to mitigate market risks[296] - Changes in market conditions could increase the likelihood of recording impairment charges for goodwill and intangible assets, necessitating ongoing monitoring[293] Expenses and Profitability - Gross profit margin decreased to 46.7% in 2025 from 47.6% in 2024, primarily due to higher duty and tariff costs and unfavorable product mix[305] - Research and development expenses increased by $28 million (10.3%) to $299 million in 2025, mainly due to higher compensation-related costs[309] - Selling, general and administrative expenses rose by $50 million (7.4%) to $724 million in 2025, primarily driven by increased compensation-related costs[313] - Interest expense decreased by $65 million (24.7%) to $198 million in 2025, attributed to the issuance of $1.4 billion in Convertible Notes and lower interest rates from loan amendments[319] - Loss on extinguishment of debt was $10 million in 2025, a decrease from $57 million in 2024, due to voluntary prepayments and loan repricing[320] Cash Flow and Financing Activities - Net cash provided by operating activities for 2025 was $645 million, resulting from net income of $295 million, including non-cash charges of $275 million[335] - Net cash used in investing activities for 2025 was $145 million, primarily for capital expenditures of $148 million related to new facility additions in Malaysia and China[337] - Net cash used in financing activities for 2025 was $562 million, including normal quarterly debt payments and voluntary debt prepayments totaling $451 million[338] - The company repurchased approximately 546,000 shares of common stock for a total consideration of $45 million in 2025[341] - The Board of Directors declared a quarterly cash dividend of $0.25 per share to be paid on March 6, 2026, to shareholders of record as of February 23, 2026[343] Debt and Credit Facilities - As of December 31, 2025, the principal outstanding on the Term Loan Facility was $2.9 billion, with a weighted average interest rate of 5.4%[347] - The company made a voluntary prepayment of approximately $1.3 billion on the USD Tranche B loan, reducing the principal from $2.2 billion to $914 million[355] - The company completed a private offering of $1.4 billion in convertible senior notes due 2030, with a coupon rate of 1.25% per annum[356][358] - The company issued €1.0 billion in senior notes due 2034, with an interest rate of 4.250% per annum[367][370] - As of December 31, 2025, the notional value of interest rate swap agreements was $1.9 billion[382] Inventory and Asset Management - Excess and obsolete inventory expense was $45 million, $56 million, and $64 million for 2025, 2024, and 2023, respectively, with 2023 charges partly due to a product line discontinuation[278] - Warranty costs are estimated based on historical repair costs, with obligations ranging from 12 to 36 months, impacting short-term and long-term liabilities[279] - The company has purchase commitments for certain inventory components and other equipment totaling approximately $490 million as of December 31, 2025[389] Taxation - The provision for income taxes for 2025 was $9 million, with an effective tax rate of 2.9%, while 2024 had a benefit of $(10) million with an effective tax rate of (5.7)%[323] - Total gross unrecognized tax benefits as of December 31, 2025, were $95 million, up from $94 million in 2024, mainly due to income tax reserves related to intercompany transactions[325]

ANDOVER, Mass., Feb. 23, 2026 (GLOBE NEWSWIRE) -- MKS Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today announced that John T.C. Lee, President and Chief Executive Officer, will participate in a fireside chat at Morgan Stanley’s Technology, Media & Telecom Conference on Monday, March 2, 2026 at 3:20 p.m. EST.A live webcast of the session will be available in the Investor Relations section of the company's website at https://investor.mksinst.com/events-and-presen ...

ANDOVER, Mass., Feb. 23, 2026 (GLOBE NEWSWIRE) -- MKS Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today announced that John T.C. Lee, President and Chief Executive Officer, will participate in a fireside chat at Morgan Stanley’s Technology, Media & Telecom Conference on Monday, March 2, 2026 at 3:20 p.m. EST.A live webcast of the session will be available in the Investor Relations section of the company's website at https://investor.mksinst.com/events-and-presen ...

Core Insights - MKS Inc. (MKSI) reported fourth-quarter 2025 adjusted earnings of $2.47 per share, missing the Zacks Consensus Estimate by 1.59%, but showing a year-over-year increase of 14.9% [1][9] - Revenues reached $1.03 billion, surpassing the consensus mark by 1.2% and reflecting a 10.5% year-over-year growth [1][9] Revenue Breakdown - Product revenues, which accounted for 87.8% of total revenues, totaled $907 million, marking a 10.1% year-over-year increase [3] - Services revenues, making up 12.2% of total revenues, increased by 13.5% year over year to $126 million [3] - Semiconductor market revenues, representing 42.1% of total revenues, rose 8.7% year over year to $435 million [4] - Electronics & Packaging revenues, comprising 29.3% of total revenues, amounted to $303 million, up 19.3% year over year [4] - Specialty Industrial revenues, accounting for 28.6% of total revenues, increased by 5% year over year to $295 million [4] Operating Performance - Adjusted gross margin contracted by 70 basis points year over year to 46.5% [5] - Adjusted EBITDA increased by 5.1% year over year to $249 million, with the adjusted EBITDA margin contracting by 120 basis points to 24.1% [5] - Total operating expenses rose by 8.7% year over year to $263 million [5] - Non-GAAP operating income was reported at $217 million, up 9% year over year, with the adjusted operating margin contracting by 30 basis points to 21% [6] Balance Sheet Overview - As of December 31, 2025, cash and cash equivalents stood at $675 million, down from $697 million as of September 30 [7] - Long-term debt totaled $4.15 billion [7] - Cash flow from operations was $142 million in Q4 2025, compared to $197 million in the previous quarter [7] - Free cash flow was reported at $91 million, down from $147 million in the previous quarter [7] Q1 Guidance - For the first quarter of 2026, MKSI expects revenues of $1.04 billion, with a margin of +/- $40 million [8] - The company anticipates a gross margin of 46% (+/- 1%) and an adjusted EBITDA of $251 million (+/- $24 million) [8] - Non-GAAP earnings are expected to be $2.00 (+/- 28 cents) per share [8]

Core Insights - MKS reported strong financial performance for fiscal 2025, achieving revenue of $3.9 billion, a 10% increase year over year, with notable growth in semiconductor and electronics/packaging sectors, while specialty industrial revenue declined by 4% [9][10]. Financial Performance - Q4 revenue reached $1.03 billion, up 5% sequentially and 10% year over year, with a gross margin of 46.4% and net earnings of $168 million, or $2.47 per diluted share, exceeding guidance [6][8]. - For the full year, gross margin was 46.7%, down 90 basis points year over year, primarily due to tariff-related costs and product mix [11]. - Operating income for the year was approximately $217 million, reflecting a 21% operating margin, while adjusted EBITDA was $249 million, representing a 24.1% margin [5]. Market Segments - Specialty industrial revenue was $295 million in Q4, up 4% sequentially and 5% year over year, driven by improvements in research and defense, but offset by weakness in automotive [1]. - Electronics and packaging revenue was $303 million in Q4, up 5% sequentially and 19% year over year, mainly due to increased sales in flexible PCB drilling and chemistry equipment [2]. - Semiconductor revenue was $435 million in Q4, up 5% sequentially and 9% year over year, supported by strong demand in DRAM and logic/foundry applications [3]. Cash Flow and Debt Management - MKS generated operating cash flow of $645 million in 2025, an increase of $117 million year over year, with free cash flow rising 21% to $497 million [12]. - The company made significant debt repayments, totaling $400 million in 2025 and an additional $100 million in February 2026, reducing net debt to $3.6 billion with a net leverage ratio of 3.7x [4][12]. Future Outlook - For Q1, MKS projects revenue of $1.04 billion ± $40 million, with a gross margin of 46% ± 100 basis points, influenced by product mix and seasonal factors [15]. - The company anticipates continued demand growth in semiconductor and electronics markets, driven by increased capital expenditures from major chip manufacturers [7][17]. - MKS plans to ramp up its new "supercenter" factory in Malaysia in the second half of the year, aimed at enhancing capacity and supply chain resilience [18].

MKS (NasdaqGS:MKSI) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Company ParticipantsDavid Lu - Senior Research AssociateJohn Lee - President and CEOMelissa Weathers - Equity Research AssociateMichael Mani - Equity Research AssociateParetosh Misra - VP of Investor RelationsRam Mayampurath - EVP and CFOConference Call ParticipantsJames Schneider - Senior Equity AnalystJim Ricchiuti - AnalystJoe Quatrochi - Director and Equity Research AnalystPeter Peng - Equity Research AnalystShane Brett - Equity Res ...

MKS (NasdaqGS:MKSI) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Company ParticipantsDavid Lu - Senior Research AssociateJohn Lee - President and CEOMelissa Weathers - Equity Research AssociateMichael Mani - Equity Research AssociateParetosh Misra - VP of Investor RelationsRam Mayampurath - EVP and CFOConference Call ParticipantsJames Schneider - Senior Equity AnalystJim Ricchiuti - AnalystJoe Quatrochi - Director and Equity Research AnalystPeter Peng - Equity Research AnalystShane Brett - Equity Res ...

MKS (NasdaqGS:MKSI) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Speaker7I would now like to hand the conference over to your speaker today, Paretosh Misra. Please go ahead, sir.Speaker8Good morning, everyone. I'm Paretosh Misra, Vice President of Investor Relations, and I'm joined this morning by John Lee, President and Chief Executive Officer, and Ram Mayampurath, Executive Vice President and Chief Financial Officer. Yesterday, after market close, we released our financial results for the fourth qu ...

Core Insights - MKS Instruments Inc. reported fourth-quarter results that exceeded analyst expectations, but shares declined over 10% in after-hours trading [1] - The company posted adjusted earnings of $2.47 per share, surpassing the consensus estimate of $2.30, and revenue reached $1.03 billion, beating expectations of $995.32 million, marking a 10.5% year-over-year increase [1] Segment Performance - The Semiconductor segment led performance with revenue of $435 million, reflecting an 8.8% year-over-year increase [2] - Electronics & Packaging revenue rose 19.3% to $303 million, while Specialty Industrial revenue increased by 5% to $295 million [2] Future Guidance - For the first quarter of 2026, MKS guided revenue of $1.04 billion, plus or minus $40 million, above the consensus estimate of $1.01 billion [2] - The company forecast adjusted earnings of $2.00 per share, plus or minus $0.28, exceeding expectations of $1.87 per share [2]