Core Insights - Vishay Intertechnology reported a quarterly loss of $0.07 per share, missing the Zacks Consensus Estimate of $0.02, and down from earnings of $0.17 per share a year ago, representing an earnings surprise of -450.00% [1] - The company posted revenues of $762.25 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.30%, and up from $741.24 million year-over-year [2] - Vishay shares have declined approximately 5.5% year-to-date, contrasting with the S&P 500's gain of 7.1% [3] Revenue and Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $752.4 million, and for the current fiscal year, it is $0.10 on revenues of $2.95 billion [7] - The estimate revisions trend for Vishay was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Semiconductor - Discretes industry, to which Vishay belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Wolfspeed, is expected to report a quarterly loss of $0.72 per share, with revenues projected at $189.25 million, down 5.7% year-over-year [9]

Financial Performance - 2Q 2025 revenues reached $762.3 million[26], compared to $715.2 million in 1Q 2025 and $741.2 million in 2Q 2024[27, 65] - Gross margin was 19.5%[26], including a negative impact of approximately 160 basis points related to Newport[26] - Adjusted EPS was ($0.07)[26], while GAAP EPS was $0.01[26] - Free cash flow was negative $73.2 million[68] Segment Results (2Q 2025) - MOSFETs revenues were $148.6 million with a gross margin of 6.3%[31] - Diodes revenues were $147.9 million with a gross margin of 20.0%[31] - Resistors revenues were $194.8 million with a gross margin of 22.8%[32] - Capacitors revenues were $121.1 million with a gross margin of 21.5%[32] Revenue Mix and Growth - Industrial end market increased by 9% QoQ and 2% YoY[16] - Automotive end market increased by 4% QoQ and remained flat YoY[16] - Distribution channel increased by 11% QoQ and 5% YoY, accounting for 56% of revenue[18, 19] - Asia region increased by 12% QoQ and 12% YoY, accounting for 42% of revenue[22, 23] Guidance - 3Q 2025 revenue is expected to be $775 million, +/- $20 million[46] - 3Q 2025 gross margin is guided at 19.7%, +/- 50 bps, with Newport impacting negatively by 160-185 bps[46]

[Q2 2025 Earnings Overview](index=1&type=section&id=Q2_2025_Earnings_Overview) Vishay Intertechnology reported a 7% sequential revenue increase in Q2 2025, with management highlighting growth across all segments and strategic capacity investments for future market upturns [Highlights and Management Commentary](index=1&type=section&id=Highlights_and_Management_Commentary) Vishay Intertechnology reported a 7% sequential revenue increase in Q2 2025 to $762.3 million, driven by growth across all end markets and regions, achieving a book-to-bill ratio of 1.02 despite a low GAAP EPS of $0.01 and an adjusted loss per share of $(0.07) - CEO Joel Smejkal highlighted a **7% sequential revenue increase** in Q2, with growth observed in semiconductors and passives across all end markets, regions, and customer types (distributors and EMS)[3](index=3&type=chunk) - The company is investing in capacity expansion to be prepared for a market upturn, as market indicators remain directionally positive[3](index=3&type=chunk) Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Revenues | $762.3 million | | Gross Margin | 19.5% | | EPS | $0.01 | | Adjusted Loss Per Share | $(0.07) | | Book-to-Bill Ratio | 1.02 | | Backlog | 4.6 months | - The Q2 gross margin of **19.5%** was negatively impacted by approximately **160 basis points** due to the addition of Newport[7](index=7&type=chunk) [Q3 2025 Outlook](index=1&type=section&id=Q3_2025_Outlook) For the third quarter of 2025, Vishay anticipates revenues to be in the range of $775 million, plus or minus $20 million, with a gross profit margin expected at 19.7%, plus or minus 50 basis points, including a negative impact from the Newport addition Q3 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenues | $775 million +/- $20 million | | Gross Profit Margin | 19.7% +/- 50 basis points | - The Q3 2025 gross margin guidance includes an anticipated negative impact of approximately **160 to 185 basis points** from the addition of Newport[4](index=4&type=chunk) [Financial Statements](index=4&type=section&id=Financial_Statements) Vishay's Q2 2025 financial statements show sequential revenue growth but year-over-year declines in profitability, with a net loss for the first six months and reduced operating cash flow [Summary of Operations (Income Statement)](index=4&type=section&id=Summary_of_Operations_(Income_Statement)) The income statement shows a sequential increase in revenue and gross profit for Q2 2025 compared to Q1 2025, but a decline compared to Q2 2024, with the first six months of 2025 reflecting slightly down revenues year-over-year and significant decreases in operating income and net earnings [Quarterly Results](index=4&type=section&id=Quarterly_Results) In Q2 2025, net revenues were $762.3 million, up from $715.2 million in Q1 2025 but down from $741.2 million in Q2 2024, with gross margin improving sequentially to 19.5% but remaining lower than the prior-year quarter, and net earnings attributable to Vishay stockholders significantly dropping to $2.0 million, or $0.01 per diluted share Quarterly Summary of Operations (in thousands, except per share amounts) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net revenues | $762,250 | $715,236 | $741,239 | | Gross profit | $148,683 | $135,554 | $162,870 | | Gross margin | 19.5% | 19.0% | 22.0% | | Operating income | $22,118 | $815 | $37,917 | | Net earnings (Vishay stockholders) | $2,004 | $(4,092) | $23,533 | | Diluted EPS | $0.01 | $(0.03) | $0.17 | [Six-Month Results](index=5&type=section&id=Six-Month_Results) For the first six months of 2025, net revenues were $1.477 billion, a slight decrease from $1.488 billion in the same period of 2024, with gross margin contracting to 19.2% from 22.4%, and the company recording a net loss attributable to stockholders of $2.1 million, or $(0.02) per share, compared to net earnings of $54.5 million, or $0.39 per share, in the first half of 2024 Six-Month Summary of Operations (in thousands, except per share amounts) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net revenues | $1,477,486 | $1,487,518 | | Gross profit | $284,237 | $333,277 | | Gross margin | 19.2% | 22.4% | | Operating income | $22,933 | $80,588 | | Net (loss) earnings (Vishay stockholders) | $(2,088) | $54,457 | | Diluted (loss) EPS | $(0.02) | $0.39 | [Consolidated Condensed Balance Sheets](index=6&type=section&id=Consolidated_Condensed_Balance_Sheets) As of June 28, 2025, Vishay's total assets stood at $4.22 billion, up from $4.11 billion at the end of 2024, primarily driven by higher inventories and property, plant, and equipment, while cash and cash equivalents decreased, total liabilities rose slightly to $2.13 billion, and total equity increased to $2.09 billion Key Balance Sheet Items (in thousands) | Account | June 28, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $473,860 | $590,286 | | Total inventories | $754,866 | $689,381 | | Total current assets | $1,912,082 | $1,915,507 | | Total assets | $4,221,655 | $4,110,696 | | **Liabilities & Equity** | | | | Total current liabilities | $707,294 | $708,348 | | Long-term debt | $914,504 | $905,019 | | Total liabilities | $2,126,664 | $2,081,734 | | Total equity | $2,094,991 | $2,028,962 | [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated_Condensed_Statements_of_Cash_Flows) For the first six months of 2025, net cash provided by operating activities was $7.3 million, a sharp decline from $55.5 million in the prior-year period, with investing activities using $115.4 million primarily for capital expenditures, and financing activities using $26.4 million mainly for dividends and stock repurchases, resulting in a net decrease in cash and cash equivalents of $116.4 million, ending the period with $473.9 million Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,307 | $55,481 | | Net cash used in investing activities | $(115,415) | $(295,316) | | Net cash used in financing activities | $(26,447) | $(56,670) | | Net decrease in cash and cash equivalents | $(116,426) | $(299,988) | | Cash and cash equivalents at end of period | $473,860 | $672,731 | [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Non-GAAP_Financial_Measures_Reconciliation) The company provides reconciliations for adjusted EPS, free cash, and adjusted EBITDA, revealing a Q2 2025 adjusted loss per share and negative free cash flow [Reconciliation of Adjusted Earnings Per Share](index=9&type=section&id=Reconciliation_of_Adjusted_Earnings_Per_Share) The company provides a reconciliation from GAAP to adjusted earnings per share (EPS), showing that for Q2 2025, GAAP net earnings of $2.0 million were adjusted for a favorable contingency resolution of $11.3 million, resulting in an adjusted net loss of $9.3 million, or an adjusted loss per diluted share of $(0.07), compared to a GAAP EPS of $0.01 Q2 2025 GAAP vs. Adjusted EPS Reconciliation | Metric | Value (in thousands, except per share) | | :--- | :--- | | GAAP net earnings (Vishay stockholders) | $2,004 | | Favorable resolution of contingency | $(11,293) | | Adjusted net loss | $(9,289) | | **Adjusted loss per diluted share** | **$(0.07)** | [Reconciliation of Free Cash](index=10&type=section&id=Reconciliation_of_Free_Cash) Free cash, a non-GAAP measure, was negative for Q2 2025 at $(73.2) million, calculated from net cash used in operating activities of $(8.8) million, less capital expenditures of $64.6 million, plus proceeds from asset sales, resulting in a significant increase in cash usage for the first six months of 2025 at $(118.4) million compared to $(58.9) million in the same period of 2024 Free Cash Calculation (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(8,791) | $16,098 | $(24,730) | | Less: Capital expenditures | $(64,598) | $(61,569) | $(62,564) | | **Free cash** | **$(73,174)** | **$(45,192)** | **$(86,780)** | [Reconciliation of EBITDA and Adjusted EBITDA](index=11&type=section&id=Reconciliation_of_EBITDA_and_Adjusted_EBITDA) For Q2 2025, EBITDA was $74.8 million, and after adjusting for a favorable contingency resolution of $11.3 million, the Adjusted EBITDA was $63.5 million, resulting in an Adjusted EBITDA margin of 8.3%, which is an improvement from 7.6% in Q1 2025 but a decline from 11.9% in Q2 2024 EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net earnings (loss) | $2,004 | $(4,092) | $23,880 | | EBITDA | $74,812 | $54,458 | $88,415 | | **Adjusted EBITDA** | **$63,519** | **$54,458** | **$88,415** | | **Adjusted EBITDA margin** | **8.3%** | **7.6%** | **11.9%** |

Core Insights - Vishay Intertechnology, Inc. reported a 7% sequential increase in revenue for the second quarter of fiscal 2025, driven by growth in semiconductors and passive components across all end markets and regions [3][9] - The company anticipates third-quarter revenues to be in the range of $775 million, with a gross profit margin of approximately 19.7%, factoring in the negative impact from the addition of Newport [4] Financial Performance - For the second quarter of 2025, net revenues were $762.3 million, with a gross margin of 19.5% [9] - The company recorded a net earnings of $2.0 million, translating to earnings per share of $0.01, while adjusted loss per share was $(0.07) [9][21] - The book-to-bill ratio was 1.02, with semiconductors at 0.98 and passive components at 1.06, indicating a healthy order flow [9] Operational Metrics - The backlog at the end of the quarter was equivalent to 4.6 months of revenue [9] - Selling, general, and administrative expenses for the second quarter were $134.7 million, which included a benefit of $11.3 million from the resolution of a contingency [12][21] Cash Flow and Investments - The company reported a net cash provided by operating activities of $7.3 million for the first half of 2025, compared to $55.5 million in the same period of the previous year [19][22] - Capital expenditures for the second quarter were $126.2 million, reflecting ongoing investments in capacity expansion [19][22] Balance Sheet Highlights - As of June 28, 2025, total assets were $4.22 billion, with current assets at $1.91 billion [16][18] - Total liabilities stood at $2.13 billion, while total equity was $2.09 billion [18]

Group 1: AI Stocks and Investment Trends - Most large AI stocks have negligible dividend yields, often below 1%, leading investors to choose between low-dividend growth stocks and higher dividend yields [1] - The Nasdaq 100 index is nearing its peak levels from 2021, with many stocks experiencing corrections due to high valuations [1] - The combination of high valuations and increasing pressure on the Federal Reserve to lower interest rates may make dividend stocks more attractive [1] Group 2: Key AI Stocks to Watch - Vishay Intertechnology (NYSE: VSH) is a major manufacturer of discrete semiconductors and passive components, crucial for AI supply chains, with a dividend yield of 2.32% and a P/E ratio of 15 times expected earnings for 2026 [1][2] - Booz Allen Hamilton (NYSE: BAH) derives 98% of its revenue from federal government contracts, with a backlog of $38 billion, and is expected to see revenue growth of 12.36% in FY2025 [3][4] - Lenovo (OTC: LNVGY) has seen a 63% year-over-year increase in its Infrastructure Solutions Group (ISG) revenue, driven by AI server sales, with a projected P/E ratio of less than 12 and a dividend yield of 3.69% [6][7]

Core Viewpoint - Most large AI stocks have negligible dividend yields, often below 1%, leading investors to choose between low-dividend growth stocks and higher dividend yields [1] - The Nasdaq 100 index is nearing its 2021 peak, with many stocks experiencing corrections due to high valuations, while the Federal Reserve faces increasing pressure to cut interest rates [1] - This combination of trends makes dividend stocks more attractive and prompts Wall Street to seek AI investment opportunities with better risk-reward ratios [1] Company Summaries Vishay Intertechnology (NYSE: VSH) - The company produces discrete semiconductors and passive components essential for power supplies, chargers, automotive applications, satellites, and AI server racks [1] - CEO Joel Smejkal noted strong order growth driven by smart grid infrastructure projects and initial AI server shipments, with a projected revenue increase of 6% to $760 million in Q2 2025 [2] - The stock has a P/E ratio of 15 times expected 2026 earnings, a price-to-sales ratio of 0.8, and a dividend yield of 2.32% [2] Booz Allen Hamilton (NYSE: BAH) - As a major government contractor, 98% of its revenue comes from the federal government, which has been a double-edged sword due to budget cuts [3] - The company has seen its backlog of uncompleted orders rise to $38 billion, a year-on-year increase of 11%, and is expected to convert these into sales and profits [3] - Revenue is projected to grow by 12.36% in FY2025, with EBITDA expected to increase by 17.83% [3] Lenovo (OTC: LNVGY) - Lenovo is a well-known player in the PC market, actively expanding its AI offerings and infrastructure solutions for large-scale data centers [5] - The ISG segment reported a record revenue of $15 billion, a 63% year-on-year increase, driven by AI servers equipped with NVIDIA H100 and AMD MI300 GPUs [5] - The stock has a projected P/E ratio of less than 12 times and offers a dividend yield of 3.69% [6]

Core Insights - Vishay Intertechnology has introduced a new series of AEC-Q101 qualified uni/bidirectional 1500 W surface-mount PAR transient voltage suppressors (TVS) designed for automotive applications, offering high temperature operation up to +185 °C [1][2] Product Features - The new Automotive Grade devices provide a 58% smaller footprint compared to SMC package TVS, which helps save board space and reduce system costs [2] - The unidirectional T15BxxA series features stable breakdown voltages ranging from 12 V to 51 V, while the bidirectional T15BxxCA series offers breakdown voltages from 12 V to 100 V [2] - Clamping capabilities are excellent, with the T15BxxA series clamping from 17.0 V to 70.1 V and the T15BxxCA series from 17.0 V to 137 V, along with very fast response times [2] Applications - The TVS devices are designed to protect sensitive electronics from voltage transients caused by inductive load switching and lightning, with typical applications including lighting, electro-mechanical brake (EMB), fuel pump control, 48 V DC/DC converters, inverters, integrated starter generators, battery management systems (BMS), vehicle control units (VCU), on-board chargers, and telematics control units (TCU) [3] Compliance and Availability - The devices meet MSL level 1 standards per J-STD-020, are RoHS-compliant, and halogen-free, with samples and production quantities currently available and lead times of 12 weeks [4] Company Overview - Vishay Intertechnology manufactures one of the largest portfolios of discrete semiconductors and passive electronic components, serving various markets including automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical [5]

Core Points - Vishay Intertechnology, Inc. has been awarded the 2025 North America Business Partner Award in the Value Leader category by DENSO, a leading mobility supplier [1][2] - The award recognizes companies that excel in supplier partnership across quality, service, technology, value, and sustainability [2] - Vishay's innovative components and exceptional supplier support contributed to this recognition, highlighting the importance of collaboration in the current industry landscape [2][3] Company Overview - Vishay manufactures a vast portfolio of discrete semiconductors and passive electronic components essential for various markets, including automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical [3] - The company is listed on the NYSE under the ticker VSH and is part of the Fortune 1000 [3]

Core Insights - Vishay Intertechnology, Inc. has launched a new industrial-grade 3/8 inch square single-turn cermet trimmer, the Vishay Sfernice M61, featuring various pin configurations and adjustment styles for optimized PCB placement [1][2] Product Features - The M61 offers a resistance range of 10 to 2 M and operates within a temperature range of -55 °C to +125 °C, with a low temperature coefficient of 100 ppm/°C [2] - It is fully sealed to endure standard board wash processing and has a power rating of 0.5 W at +85 °C, making it suitable for industrial applications such as welding equipment, power tools, 3D printers, and HVAC systems [2] Availability - Samples and production quantities of the M61 are currently available, with lead times of 15 weeks [3] Company Overview - Vishay Intertechnology manufactures a vast portfolio of discrete semiconductors and passive electronic components, serving various markets including automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical [4]

Core Viewpoint - Vishay Intertechnology, Inc. has launched a new tricolor LED, the VLMRGB6122, which delivers a luminous intensity of 2800 mcd at 20 mA, suitable for various automotive and consumer applications [1][2]. Group 1: Product Features - The VLMRGB6122 LED features separate anode and cathode connections for red, green, and blue chips, allowing for individual control and color mixing within the CIE 1931 color space [1]. - The device utilizes advanced AllnGaP and InGaN technologies, providing 70% higher brightness compared to previous generations while maintaining a 22% lower profile than competing products [2]. - It operates over a wide temperature range from -40 °C to +110 °C, which is 25 °C higher than standard solutions, and has Class B1 corrosion robustness [3]. Group 2: Technical Specifications - The luminous intensity specifications for the VLMRGB6122 are as follows: - Red: Min. 710 mcd, Typ. 900 mcd, Max. 1400 mcd - Green: Min. 1800 mcd, Typ. 2200 mcd, Max. 2800 mcd - Blue: Min. 280 mcd, Typ. 320 mcd, Max. 450 mcd [4]. - The forward voltage at 20 mA is specified as: - Red: Min. 1.75 V, Typ. 1.95 V, Max. 2.75 V - Green: Min. 2.5 V, Typ. 2.75 V, Max. 3.5 V - Blue: Min. 2.5 V, Typ. 3.0 V, Max. 3.5 V [4]. Group 3: Availability and Compliance - Samples and production quantities of the VLMRGB6122 are currently available, with lead times of 17 weeks [6]. - The LED is AEC-Q102 qualified, RoHS-compliant, halogen-free, and categorized per reel for luminous intensity, color, and forward voltage [3].