ANDOVER, Mass., June 17, 2025 (GLOBE NEWSWIRE) -- MKS Inc. (NASDAQ: MKSI) (“MKS”), a global provider of enabling technologies that transform our world, was again recognized by U.S. News & World Report (“U.S. News”) as one of the 2025-2026 Best Companies to Work For. MKS was rated as a top company in the Manufacturing and Agriculture Industries category based on factors contributing to job seekers’ decision-making when choosing a workplace that best meets their needs. “Receiving this prestigious recognition ...

Core Viewpoint - MKS Instruments, Inc. has announced a name change to "MKS Inc." effective May 16, 2025, reflecting its expanded business scope beyond industrial instruments to include subsystems, systems, process control solutions, and specialty chemicals technology [1][2]. Company Overview - MKS Instruments, Inc. was founded in 1961 and has grown through organic development and strategic acquisitions, including Newport in 2016, ESI in 2019, and Atotech in 2022 [2]. - The company provides foundational technology solutions for semiconductor manufacturing, electronics, packaging, and specialty industrial applications [3]. - MKS's solutions address challenges in advanced device manufacturing, focusing on miniaturization, complexity, power, speed, feature enhancement, and optimized connectivity [3]. Name Change Implications - The name change to MKS Inc. aims to better represent the company's current and future business scope [2]. - The stock will continue to trade on Nasdaq under the symbol "MKSI," and the corporate structure and subsidiary names will remain unchanged [2].

Leadership Changes - Jim Schreiner will conclude his role as the leader of the Materials Solutions Division on August 1, 2025, and will return to his position as Executive Vice President & Chief Operating Officer of MKS Instruments [1] - David P. Henry will take over as Executive Vice President, Global Strategic Marketing, and General Manager of the Materials Solutions Division on August 1, 2025, succeeding Schreiner [2] Company Recognition - John T.C. Lee, President and CEO of MKS, acknowledged the significant contributions of both Jim Schreiner and Dave Henry, highlighting Schreiner's leadership post-acquisition of Atotech in August 2022 and Henry's strategic capabilities [3] Company Overview - MKS Instruments, Inc. provides enabling technologies for semiconductor manufacturing, electronics, packaging, and specialty industrial applications, focusing on improving process performance and productivity [4]

Summary of MKS Instruments Conference Call Company Overview - MKS Instruments is a nearly 65-year-old company that started in the semiconductor market, focusing on instruments for vacuum chambers, which are critical in semiconductor equipment [2][3] - The company has expanded its portfolio through multiple acquisitions, including Newport Corporation in 2015, which broadened its technology offerings beyond just semiconductor equipment to include lithography, metrology, and inspection [4][7] Financial Performance - MKS exceeded guidance in all metrics for Q1, achieving a gross margin of over 47% for the fifth consecutive quarter, despite a higher proportion of lower-margin equipment revenue [10][11] - The company reported Q1 semi revenue guidance indicating a 15% increase year-over-year, driven by strategic investments in semiconductor technology [24][25] Market Dynamics - The semiconductor market remains stable, with no significant changes due to tariffs affecting strategic investments in node migrations and AI accelerated compute [14][16] - The automotive and industrial segments have shown weakness, impacted by tariffs, but the semiconductor and packaging markets have remained steady [15][16] Tariff Impact and Mitigation Strategies - MKS has accounted for a potential 100 basis points impact on gross margin due to tariffs, primarily affecting the vacuum business [18][20] - The company is exploring supply chain adjustments and commercial actions to mitigate tariff impacts while maintaining a long-term gross margin target of 47% [21][22] Semiconductor Business Insights - MKS is positioned to outperform the semiconductor market, with expectations of a 200 basis points premium to wafer fabrication equipment (WFE) growth due to its strong market position [23][27] - The company faces headwinds from restrictions on sales to certain Chinese companies, which has impacted revenue [27] NAND Technology Upgrades - Customers are transitioning from 100+ layers to 200+ layers in NAND technology, which is expected to drive significant spending [29][34] - MKS's vacuum portfolio typically represents 1.5% to 2.5% of the bill of materials (BOM) for customers, indicating substantial revenue opportunities from these upgrades [35][36] Electronics and Packaging Market - The electronics and packaging market is driven by high-density interconnect (HDI) and package substrate applications, particularly in AI and advanced PCBs [65][67] - MKS has seen strong bookings for chemistry equipment, which is closely tied to its equipment sales, indicating a healthy future revenue stream [68][70] Specialty Industrial Business - The specialty industrial segment, which includes defense, healthcare, and automotive, has been impacted by macroeconomic conditions but remains a high-margin business that generates cash flow [75][77] Long-term Growth Initiatives - MKS is investing in long-term growth initiatives, particularly in lithography, metrology, and chemistry equipment, while maintaining a focus on operational efficiency [80][82] - The company aims to maintain a net leverage ratio of 2.0 over the next several years, supported by strong cash generation and debt repayment strategies [84][85] Conclusion - MKS Instruments is well-positioned in the semiconductor and electronics markets, with a strong focus on innovation and strategic growth initiatives, despite facing some macroeconomic challenges and tariff impacts. The company continues to leverage its broad portfolio to capitalize on emerging opportunities in advanced technologies and applications.

Group 1 - The article discusses MKS Instruments, Inc. (NASDAQ: MKSI) and its role in technological advancements, particularly following the Atotech deal announcement nearly three years ago [1] - It highlights that leverage remains very elevated in the industry, indicating potential financial risks for MKS Instruments [1] - The investing group "Value In Corporate Events" provides members with opportunities to capitalize on significant corporate events such as IPOs, mergers & acquisitions, and earnings reports [1] Group 2 - The service covers 10 major events a month, focusing on identifying the best investment opportunities within the corporate landscape [1]

Part I. Financial Information [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) For Q1 2025, MKS Instruments reported $936 million in net revenues, an 8% year-over-year increase, and net income of $52 million, significantly up from $15 million in the prior year, with total assets slightly decreasing to $8.56 billion and operating cash flow increasing to $141 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $8.56 billion, a slight decrease from $8.59 billion at year-end 2024, primarily due to reduced cash and cash equivalents, while total liabilities decreased and stockholders' equity increased Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $655 | $714 | | Total current assets | $2,426 | $2,474 | | Goodwill | $2,496 | $2,479 | | Intangible assets, net | $2,238 | $2,272 | | **Total assets** | **$8,556** | **$8,590** | | **Liabilities & Equity** | | | | Total current liabilities | $781 | $775 | | Long-term debt, net | $4,409 | $4,488 | | **Total liabilities** | **$6,202** | **$6,268** | | **Total stockholders' equity** | **$2,354** | **$2,322** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For the three months ended March 31, 2025, net revenues increased to $936 million from $868 million, with gross profit rising to $444 million from $415 million, and net income substantially improving to $52 million, or $0.77 per diluted share, driven by higher revenues and lower interest expense Q1 2025 vs. Q1 2024 Statement of Operations (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total net revenues | $936 | $868 | | Gross profit | $444 | $415 | | Income from operations | $111 | $106 | | Interest expense | $53 | $87 | | **Net income** | **$52** | **$15** | | **Diluted EPS** | **$0.77** | **$0.22** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash provided by operating activities more than doubled to $141 million, while net cash used in financing activities was $180 million, primarily due to debt repayments and common stock repurchases, resulting in a $59 million decrease in cash and cash equivalents Q1 2025 vs. Q1 2024 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $141 | $67 | | Net cash used in investing activities | ($18) | ($18) | | Net cash used in financing activities | ($180) | ($72) | | **Decrease in cash and cash equivalents** | **($59)** | **($30)** | [Notes to Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail revenue disaggregation, debt structure, and segment performance, with Semiconductor market revenue growing 18% year-over-year to $413 million, total debt comprising a $3.2 billion Term Loan Facility and $1.4 billion in Convertible Notes, and a Q1 2025 restructuring initiative incurring $16 million in severance costs Revenue by End Market (in millions) | End Market | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Semiconductor | $413 | $351 | | Electronics and Packaging | $253 | $208 | | Specialty Industrial | $270 | $309 | | **Total net revenues** | **$936** | **$868** | Debt Outstanding (in millions) | Debt Instrument | March 31, 2025 (Net) | December 31, 2024 (Net) | | :--- | :--- | :--- | | Term Loan Facility, net | $3,034 | $3,114 | | Convertible Notes, net | $1,375 | $1,374 | | **Total long-term debt, net** | **$4,409** | **$4,488** | - The company recorded restructuring charges of **$16 million** in Q1 2025 related to severance costs from a cost-saving initiative, primarily in the general metal finishing business within the MSD segment[103](index=103&type=chunk) [Management's Discussion and Analysis (MD&A)](index=33&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the 8% year-over-year revenue growth to strength in the Semiconductor and Electronics & Packaging markets, offsetting a decline in the Specialty Industrial market, while maintaining a relatively stable gross margin of 47.4% and continuing deleveraging efforts through debt prepayments and refinancing [Market and Segment Performance](index=35&type=section&id=Market%20and%20Segment%20Performance) In Q1 2025, Semiconductor market revenue grew 18% year-over-year to $413 million, Electronics and Packaging increased 22% to $253 million, while Specialty Industrial declined 13% to $270 million, with segment revenues showing VSD up 16%, PSD up 4%, and MSD up 2% year-over-year Net Revenues by End Market - YoY Change (in millions) | End Market | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Semiconductor | $413 | $351 | 18% | | Electronics and Packaging | $253 | $208 | 22% | | Specialty Industrial | $270 | $309 | (13)% | Net Revenues by Reportable Segment - YoY Change (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Vacuum Solutions Division (VSD) | $386 | $332 | 16% | | Photonics Solutions Division (PSD) | $263 | $254 | 4% | | Materials Solutions Division (MSD) | $287 | $282 | 2% | [Results of Operations Analysis](index=39&type=section&id=Results%20of%20Operations%20Analysis) Total gross margin for Q1 2025 slightly decreased to 47.4% due to higher inventory charges and freight costs, while R&D expenses remained flat at $70 million, SG&A expenses increased by $15 million primarily from compensation costs, and net interest expense significantly decreased by $31 million due to debt repayments and refinancing - VSD gross margin increased to **45.3%** from 43.5% year-over-year due to higher volumes and operational efficiencies[145](index=145&type=chunk) - PSD margin decreased to **44.0%** from 46.4% year-over-year due to unfavorable product mix and higher costs[146](index=146&type=chunk) - MSD margin decreased to **54.5%** from 55.6% year-over-year due to higher inventory charges and unfavorable mix[147](index=147&type=chunk) - SG&A expenses increased by **$15 million** year-over-year, primarily due to a **$13 million** increase in compensation-related costs, mainly from stock and other variable incentive compensation[154](index=154&type=chunk) - Net interest expense decreased by **$31 million** year-over-year, mainly due to the May 2024 issuance of **$1.4 billion** of 1.25% Convertible Notes used to repay higher-rate term loans, and subsequent amendments that lowered loan margins[160](index=160&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 2025 with $655 million in cash and cash equivalents, having made a $100 million voluntary debt prepayment, $45 million in share repurchases, and $15 million in dividend payments, while also refinancing its Term Loan Facility to reduce interest rates, with total principal debt outstanding at approximately $4.6 billion - Generated **$141 million** in cash from operations in Q1 2025[170](index=170&type=chunk) - Financing activities in Q1 2025 included **$113 million** in debt payments (including a **$100 million** voluntary prepayment), **$45 million** in share repurchases, and **$15 million** in dividends[171](index=171&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) - In January 2025, the company entered into the Fifth Amendment to its Credit Agreement, which refinanced its term loans and decreased the applicable interest margin for the USD Tranche B to **2.00%** (Term SOFR) and the Euro Tranche B to **2.50%**[55](index=55&type=chunk)[175](index=175&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company states that as of March 31, 2025, there were no material changes in its exposure to market risk from the levels disclosed at year-end December 31, 2024 - There were no material changes in the company's exposure to market risk from December 31, 2024 to March 31, 2025[204](index=204&type=chunk) [Controls and Procedures](index=39&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[205](index=205&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[206](index=206&type=chunk) Part II. Other Information [Risk Factors](index=40&type=section&id=ITEM%201A.%20RISK%20FACTORS) A new significant risk factor was disclosed regarding tariffs and trade restrictions, including a 145% U.S. tariff on Chinese imports and a 125% retaliatory tariff from China, expanded U.S. export controls (BIS Rules) impacting semiconductor-related products, and China's export curbs on critical raw materials, all of which could disrupt supply chains, increase costs, and adversely affect business results - In April 2025, the U.S. government imposed a **145%** tariff on Chinese imports, and China responded with a **125%** tariff on U.S. goods, creating significant risk[209](index=209&type=chunk) - The U.S. Department of Commerce's BIS Rules have resulted in an estimated annual loss in net revenues of approximately **$200 million to $250 million**, mostly realized in 2023, due to restrictions on sales to China[211](index=211&type=chunk) - China has implemented export curbs on critical materials, including a new ban in April 2025 on certain rare earth minerals like yttrium, a critical component for the company's lasers, which is expected to create sourcing challenges and higher costs[214](index=214&type=chunk) [Use of Proceeds and Issuer Purchases of Equity Securities](index=41&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the three months ended March 31, 2025, the company repurchased 546,142 shares of its common stock for a total of $45 million under its publicly announced program, with approximately $28 million remaining for future purchases as of the end of the quarter Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (in millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | — | — | | Feb 2025 | — | — | — | | Mar 2025 | 546,142 | $82.81 | ~$45 | | **Total Q1** | **546,142** | **$82.81** | **$45** | - As of March 31, 2025, approximately **$28 million** remained available for repurchase under the company's share repurchase program[218](index=218&type=chunk) [Other Information](index=42&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the first quarter of 2025, three company executives and directors adopted Rule 10b5-1 trading arrangements for the potential sale of company securities - Three insiders adopted Rule 10b5-1 trading plans in Q1 2025: Elizabeth A. Mora (Director), David P. Henry (EVP), and James A. Schreiner (EVP & COO)[219](index=219&type=chunk)

MKS Instruments (MKSI) reported first-quarter 2025 adjusted earnings of $1.71 per share, which beat the Zacks Consensus Estimate by 20.42% and jumped 45% year over year.Revenues of $936 million beat the consensus mark by 0.27% and increased 7.8% year over year.Products’ revenues (87.5% of total revenues) were $819 million, increased by 8.6% year over year. The figure beat the Zacks Consensus Estimate by 2.60%.Services revenues (12.5% of total revenues) increased 2.6% year over year to $117 million. The figu ...

Core Viewpoint - MKS Instruments, Inc. reported its financial results for Q1 2025, highlighting key performance metrics and future expectations [3]. Financial Results - The financial results for Q1 2025 were released after market close on the previous day and are available on the company's investor website [3]. Conference Call Details - The earnings conference call included participants from various financial institutions, indicating strong interest from analysts and investors [1][2]. - The call was led by Paretosh Misra, along with John Lee (President and CEO) and Ram Mayampurath (EVP, CFO and Treasurer) [3].

MKS Instruments (MKSI) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Company Participants Paretosh Misra - VP - Investor RelationsJohn Lee - President and Chief Executive OfficerRamakumar Mayampurath - EVP, CFO & TreasurerSteve Barger - Managing Director, Equity ResearchKrish Sankar - Managing DirectorMichael Mani - Equity Research AssociateMatthew Prisco - DirectorMelissa Weathers - Director - Equity ResearchDavid Liu - Senior Research Associate Conference Call Participants Shane Brett - Equity Research A ...

MKS Instruments (MKSI) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Speaker0 Good day, and thank you for standing by. Welcome to the MKS Instruments first quarter twenty twenty five earnings conference call. At this time, all participants, they are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask questions during the session, you will need to press 11 on your telephone. You will then hear an automated message advising you that your hand has been ...