Financial Data and Key Metrics Changes - First quarter revenue was $936 million, up 8% year over year and at the high end of guidance [13][6] - Gross margin for the first quarter was 47.4%, also at the high end of guidance [17] - Net earnings per diluted share were $1.71, exceeding the high end of guidance [19] - Free cash flow for the first quarter was strong at $123 million, over 100% of net earnings [19] Business Line Data and Key Metrics Changes - Semiconductor revenue was $413 million, up 3% sequentially and 18% year over year [14] - Electronics and packaging revenue was $253 million, similar to the previous quarter and up 22% year over year [15] - Specialty industrial revenue was $270 million, down 4% sequentially and 13% year over year [17] Market Data and Key Metrics Changes - Semiconductor market showed modest increases in demand, particularly for NAND products [8] - Electronics and packaging market saw increased sales driven by flexible PCB drilling equipment and chemistry equipment [9] - Specialty industrial market faced softness, particularly in automotive applications [11] Company Strategy and Development Direction - Company is focused on managing through uncertainties related to trade policies while capitalizing on market recovery [12] - Emphasis on maintaining strong customer relationships and leveraging a broad portfolio of technologies [12] - Continued investment in organic growth opportunities and debt reduction strategies [21] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of improvement in demand across end markets despite trade policy uncertainties [6] - Anticipated near-term impact on margins due to supply chain optimization in response to geopolitical changes [7] - Confidence in the ability to outperform as market recovery gains momentum [9] Other Important Information - Company closed the quarter with approximately $1.3 billion in liquidity [20] - Plans for a voluntary prepayment on term loans in the current quarter [20] - Dividend of $0.22 per share was paid during the quarter [21] Q&A Session Summary Question: System upgrades for memory tools - Management indicated that inventory burn for the NAND market has normalized, leading to increased upgrades [27][28] Question: Impact of tariffs on gross margins - Management stated that tariffs could impact gross margins by up to 100 basis points, but no top-line impact has been observed yet [36][38] Question: Outlook for the second half of the year - Management expressed optimism for stable demand and potential growth, but noted macroeconomic uncertainties due to tariffs [40][41] Question: Strength in NAND upgrades - Management clarified that upgrades are the primary driver of strength in the NAND market, with inventory normalization contributing positively [45][46] Question: Specialty industrial market trends - Management highlighted that the automotive sector remains muted, with uncertainty due to tariffs affecting customer behavior [90][91] Question: Growth rate expectations for chemistry business - Management indicated that the PCB industry is expected to grow at GDP plus 300 basis points, with AI driving incremental growth [93][94]

First Quarter 2025 Financial Results MKS Instruments, Inc. May 8, 2025 Safe Harbor for Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. ("MKS," the "Company," "our," or "we"). These statements are only pred ...

Core Viewpoint - MKS Instruments reported strong financial results for the quarter ended March 2025, with revenue and EPS exceeding both year-over-year figures and Wall Street expectations [1][3]. Financial Performance - Revenue for the quarter was $936 million, reflecting a year-over-year increase of 7.8% and a surprise of +0.27% over the Zacks Consensus Estimate of $933.5 million [1]. - EPS was reported at $1.71, compared to $1.18 in the same quarter last year, resulting in a surprise of +20.42% against the consensus estimate of $1.42 [1]. Segment Performance - Semiconductor segment revenues were $413 million, exceeding the average estimate of $403.45 million, with a year-over-year increase of 17.7% [4]. - Electronics and Packaging segment revenues reached $253 million, surpassing the average estimate of $242.64 million, marking a year-over-year growth of 21.6% [4]. - Specialty Industrial segment revenues were $270 million, slightly above the average estimate of $268.58 million, but showing a year-over-year decline of 12.6% [4]. - Total product revenues were $819 million, compared to the average estimate of $798.27 million, indicating an 8.6% year-over-year increase [4]. - Service revenues were $117 million, slightly below the average estimate of $118.75 million, with a year-over-year increase of 2.6% [4]. Stock Performance - MKS Instruments shares have returned +23.6% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3]. - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3].

Group 1 - MKS Instruments reported quarterly earnings of $1.71 per share, exceeding the Zacks Consensus Estimate of $1.42 per share, and up from $1.18 per share a year ago, indicating a strong performance [1][2] - The company achieved revenues of $936 million for the quarter, surpassing the Zacks Consensus Estimate by 0.27% and showing an increase from $868 million year-over-year [3] - MKS Instruments has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating a positive trend in financial performance [2][3] Group 2 - Despite the strong earnings report, MKS Instruments shares have declined approximately 30.4% since the beginning of the year, contrasting with the S&P 500's decline of 4.7%, suggesting underperformance in the market [4] - The current consensus EPS estimate for the upcoming quarter is $1.65, with expected revenues of $932.12 million, while the fiscal year estimate is $6.78 on $3.77 billion in revenues, indicating cautious future expectations [8] - The Electronics - Manufacturing Machinery industry, to which MKS Instruments belongs, is currently ranked in the bottom 6% of Zacks industries, which may negatively impact the stock's performance [9]

EXHIBIT 99.1 MKS Instruments Reports First Quarter 2025 Financial Results Andover, MA, May 7, 2025 -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported first quarter 2025 financial results. "We maintained our recent momentum in the first quarter with solid revenue performance that was at the high end of our guidance, led by strong year-over-year growth in both our Semiconductor and Electronics & Packaging end markets," said John T.C. Le ...

Core Insights - MKS Instruments, Inc. reported strong first quarter 2025 financial results, achieving revenue at the high end of guidance, driven by growth in Semiconductor and Electronics & Packaging markets [2][6][8] - The company is actively managing the impacts of new trade policies while maintaining confidence in its global manufacturing and supply chain capabilities [2][3] Financial Performance - Total net revenues for Q1 2025 were $936 million, compared to $935 million in Q4 2024 and $868 million in Q1 2024, reflecting a year-over-year increase of 7.8% [5][6] - GAAP net income was $52 million, with net income per diluted share at $0.77, both exceeding the midpoint of guidance [6][7] - Non-GAAP net earnings were $116 million, with non-GAAP net earnings per diluted share at $1.71, also above the high end of guidance [6][25] Margins and Guidance - GAAP gross margin was 47.4%, slightly up from 47.2% in Q4 2024, while operating margin was 11.9%, down from 14.5% in the previous quarter [5][6] - The company provided guidance for Q2 2025, anticipating stable demand and strong business fundamentals, while considering potential impacts from evolving trade policies [3][9] Cash Flow and Capital Management - As of March 31, 2025, MKS had $655 million in cash and cash equivalents, with total debt of $4.1 billion [7][20] - The company repurchased approximately 546,000 shares for about $45 million and paid a cash dividend of $15 million during the first quarter [7][24] Market Outlook - MKS Instruments is seeing pockets of demand improvement in its key markets, particularly in memory and foundry sectors, which are essential for supporting AI applications [2][3] - The company remains focused on managing profitability and cash generation to strengthen its balance sheet amid a dynamic market environment [3][6]

Core Insights - MKS Instruments has announced the groundbreaking of a new chemical manufacturing and TechCenter facility in Thailand, aimed at enhancing its presence in Southeast Asia and supporting the growing PCB industry [1][2] - The facility will focus on producing process chemicals and providing specialized services for advanced electronics and industrial markets, with a production capacity of 18,500 tons per year [3][6] - This strategic investment of over $40 million reflects MKS' long-term vision for growth and innovation in the electronics and plating industries [3][2] Company Overview - MKS Instruments provides foundational technology solutions for semiconductor manufacturing, electronics, and specialty industrial applications, focusing on improving process performance and enabling innovations [5] - The Atotech brand within MKS specializes in advanced surface modification and plating technologies, offering a comprehensive portfolio that includes chemistry, equipment, software, and services [7][8] Facility Details - The new facility will occupy an 11.7-acre plot, approximately 27,000 square meters, located 30 minutes from Bangkok International Airport [2] - It will feature state-of-the-art manufacturing spaces, advanced plating equipment, fully equipped laboratories, and comprehensive technical service capabilities [6]

Company Overview - MKS Instruments, Inc. is a global provider of enabling technologies that transform various industries [3] - The company delivers foundational technology solutions for semiconductor manufacturing, electronics, packaging, and specialty industrial applications [3] - MKS Instruments focuses on improving process performance, optimizing productivity, and enabling innovations for leading technology and industrial companies [3] Upcoming Event - John T.C. Lee, President and CEO of MKS Instruments, will participate in a fireside chat at JP Morgan's Annual Global Technology, Media and Communications Conference on May 14, 2025, at 11:20 a.m. EDT [1] - A live webcast of the session will be available on the company's Investor Relations website, with a replay accessible for a limited time thereafter [2]

Core Viewpoint - MKS Instruments, Inc. will release its first quarter 2025 financial results on May 7, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results for the first quarter of 2025 will be disclosed after market close on May 7, 2025 [1] - A conference call with management is scheduled for May 8, 2025, at 8:30 a.m. Eastern Time [2] - Participants are encouraged to register at least 15 minutes prior to the call [2] Group 2: Company Overview - MKS Instruments provides enabling technologies that transform various industries, focusing on semiconductor manufacturing, electronics, and specialty industrial applications [3] - The company develops instruments, subsystems, systems, process control solutions, and specialty chemicals technology to enhance process performance and productivity [3] - MKS Instruments addresses challenges in advanced device manufacturing, including miniaturization and complexity, by improving power, speed, feature enhancement, and connectivity [3]

Core Insights - MKS Instruments, Inc. will participate in a fireside chat at the Cantor Fitzgerald Global Technology Conference on March 11, 2025 [1] - The session will be available via live webcast and a replay will be accessible for a limited time [2] Company Overview - MKS Instruments provides enabling technologies that transform various industries, focusing on semiconductor manufacturing, electronics, and specialty industrial applications [3] - The company develops instruments, subsystems, systems, process control solutions, and specialty chemicals technology to enhance process performance and productivity [3] - MKS Instruments addresses challenges in advanced device manufacturing, including miniaturization and complexity, by improving power, speed, feature enhancement, and connectivity [3]