Vishay Intertechnology(VSH) - 2025 Q1 - Quarterly Results

Report Overview Introduction & Performance Highlights Vishay Intertechnology reported Q1 FY2025 results with revenue of $715.2 million, a gross margin of 19.0%, and a loss per share of $0.03, alongside a book-to-bill ratio of 1.08 and a 4.7-month backlog Q1 2025 Performance Highlights (in millions, except per share data and ratios) | Metric | Q1 2025 | Notes on Change | | :--- | :--- | :--- | | Revenue | $715.2 | | | Gross Margin | 19.0% | Includes approximately 200 basis points negative impact from Newport acquisition | | Loss Per Share | ($0.03) | | | Book-to-Bill Ratio | 1.08 | Semiconductors at 1.12, Passive Components at 1.04 | | Quarter-End Backlog | 4.7 months | | CEO Commentary & Market Outlook CEO Joel Smejkal noted market signals indicate channel inventory oversupply has largely normalized, with the company executing strategic levers to drive revenue growth and profitability - Market signals indicate channel inventory oversupply has normalized[2] - The company effectively executed strategic levers in Q1 to drive revenue growth and improve profitability[2] - Investments in capacity over the past two years position the company favorably for market improvement[2] - Q2 revenue is projected to increase by 6% sequentially[2] Q2 2025 Outlook Management projects Q2 2025 revenue between $760 million +/- $20 million, with a gross margin of 19.0% +/- 50 basis points, accounting for Newport acquisition impacts and tariffs Q2 2025 Outlook (in millions, except basis points) | Metric | Q2 2025 Outlook | | :--- | :--- | | Revenue Range | $760 +/- $20 | | Gross Margin Range | 19.0% +/- 50 basis points | | Newport Acquisition Negative Impact | Approximately 175 to 200 basis points (included in gross margin) | | Tariff Impact | Included in guidance | Company Information About Vishay Vishay Intertechnology, a Fortune 1000 company, is a leading global manufacturer of discrete semiconductors and passive electronic components for diverse markets - Vishay is one of the world's largest manufacturers of discrete semiconductors and passive electronic components[7] - Products are widely used in automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets[7] - Vishay Intertechnology, Inc. is a NYSE-listed company (NYSE: VSH) and a Fortune 1000 company[7] Non-GAAP Financial Measures Disclosure This press release includes several non-GAAP financial measures, such as adjusted net earnings and free cash, which supplement GAAP measures by providing insights into intrinsic operating performance - Non-GAAP financial measures include adjusted net earnings, adjusted EPS, adjusted gross margin, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin[8] - These non-GAAP measures supplement GAAP performance or liquidity measures and should not be considered substitutes[8] - Management believes these measures are meaningful to investors as they provide insight into the company's intrinsic operating performance[8] Forward-Looking Statements Forward-looking statements concern future performance, including revenue and profit forecasts, subject to various risks, uncertainties, and assumptions that may cause actual results to differ materially - Forward-looking statements involve the company's future performance, including projected revenue and profit, capital investments, capacity expansion, shareholder returns, tariff impacts, and overall economic performance[9] - These statements are based on current expectations and are subject to various risks, uncertainties, and assumptions, many of which are beyond the company's control[9] - The company undertakes no obligation to publicly update or revise any forward-looking statements[9] Conference Call & Contact Information Vishay will host a conference call on May 7, 2025, to discuss Q1 financial results, with pre-registration and replay available on the investor relations website - The conference call is scheduled for May 7, 2025, at 9:00 AM ET[4] - Pre-registration via a designated link is required to obtain dial-in numbers and a PIN[4] - A live audio webcast and the press release are available on Vishay's investor relations website, with a 30-day replay[5] - Contact: Peter Henrici, Executive Vice President, Corporate Development, Phone: +1-610-644-1300[11][12] Financial Performance Summary of Operations (Income Statement) In Q1 2025, Vishay reported net revenue of $715.2 million, gross profit of $135.5 million, and a 19.0% gross margin, resulting in a net loss of $4.1 million and $0.03 loss per share Consolidated Condensed Statements of Operations (in thousands, except per share data) | Metric | Quarter Ended March 29, 2025 | Quarter Ended December 31, 2024 | Quarter Ended March 30, 2024 | | :--- | :--- | :--- | :--- | | Net Revenue | $715,236 | $714,716 | $746,279 | | Cost of Products Sold | $579,682 | $572,584 | $575,872 | | Gross Profit | $135,554 | $142,132 | $170,407 | | Gross Margin | 19.0% | 19.9% | 22.8% | | Selling, General and Administrative Expenses | $134,739 | $132,330 | $127,736 | | Operating Income (Loss) | $815 | ($56,685) | $42,671 | | Operating Margin | 0.1% | -7.9% | 5.7% | | Net Earnings (Loss) | ($4,092) | ($66,085) | $31,443 | | Net Earnings (Loss) Attributable to Vishay Stockholders | ($4,092) | ($66,308) | $30,924 | | Basic Earnings (Loss) Per Share | ($0.03) | ($0.49) | $0.22 | | Diluted Earnings (Loss) Per Share | ($0.03) | ($0.49) | $0.22 | | Cash Dividends Per Share | $0.10 | $0.10 | $0.10 | Consolidated Condensed Balance Sheets As of March 29, 2025, Vishay's total assets increased to $4.200 billion, with total liabilities rising to $2.168 billion and total equity slightly increasing to $2.032 billion Consolidated Condensed Balance Sheets (in thousands) | Metric | March 29, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and Cash Equivalents | $609,402 | $590,286 | | Total Inventories | $712,438 | $689,381 | | Total Current Assets | $1,975,562 | $1,915,507 | | Property, Plant and Equipment, Net | $1,574,569 | $1,545,738 | | Goodwill | $179,388 | $179,005 | | Total Assets | $4,200,242 | $4,110,696 | | Liabilities and Equity | | | | Total Current Liabilities | $705,401 | $708,348 | | Long-Term Debt (Less Current Portion) | $988,235 | $905,019 | | Total Liabilities | $2,168,110 | $2,081,734 | | Total Equity | $2,032,132 | $2,028,962 | | Total Liabilities and Equity | $4,200,242 | $4,110,696 | Consolidated Condensed Statements of Cash Flows Net cash provided by operating activities in Q1 2025 was $16.1 million, a significant decrease from $80.2 million in the prior year, with $56.0 million used in investing activities Consolidated Condensed Statements of Cash Flows (in thousands) | Metric | Three Months Ended March 29, 2025 | Three Months Ended March 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $16,098 | $80,211 | | Net Cash Used in Investing Activities | ($56,018) | ($223,789) | | Net Cash Provided by (Used in) Financing Activities | $52,007 | ($30,343) | | Effect of Exchange Rate Changes | $7,029 | ($2,257) | | Net Increase (Decrease) in Cash and Cash Equivalents | $19,116 | ($176,178) | | Cash and Cash Equivalents at End of Period | $609,402 | $796,541 | Non-GAAP Reconciliations Reconciliation of Adjusted Earnings Per Share In Q1 2025, GAAP net loss attributable to Vishay shareholders was $4.092 million, with adjusted net loss matching this figure due to no goodwill impairment, resulting in an adjusted diluted loss per share of $0.03 Reconciliation of Adjusted Earnings Per Share (in thousands, except per share data) | Metric | Quarter Ended March 29, 2025 | Quarter Ended December 31, 2024 | Quarter Ended March 30, 2024 | | :--- | :--- | :--- | :--- | | GAAP Net Earnings (Loss) Attributable to Vishay Stockholders | ($4,092) | ($66,308) | $30,924 | | Adjustments Impacting Operating Income: | | | | | Goodwill Impairment | - | $66,487 | - | | Adjusted Net Earnings (Loss) | ($4,092) | $179 | $30,924 | | Adjusted Diluted Weighted Average Shares Outstanding | 135,799 | 136,883 | 138,476 | | Adjusted Diluted Earnings (Loss) Per Share | ($0.03) | $0.00 | $0.22 | Reconciliation of Free Cash Free cash was negative $45.192 million in Q1 2025, primarily due to reduced cash from operating activities and capital expenditures, contrasting with positive $27.878 million in the prior year Reconciliation of Free Cash (in thousands) | Metric | Quarter Ended March 29, 2025 | Quarter Ended December 31, 2024 | Quarter Ended March 30, 2024 | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $16,098 | $67,656 | $80,211 | | Proceeds from Sale of Property, Plant and Equipment | $279 | $1,618 | $751 | | Less: Capital Expenditures | ($61,569) | ($144,904) | ($53,084) | | Free Cash | ($45,192) | ($75,630) | $27,878 | Reconciliation of EBITDA and Adjusted EBITDA EBITDA for Q1 2025 was $54.458 million, with adjusted EBITDA matching this figure due to no goodwill impairment, resulting in an adjusted EBITDA margin of 7.6% Reconciliation of EBITDA and Adjusted EBITDA (in thousands) | Metric | Quarter Ended March 29, 2025 | Quarter Ended December 31, 2024 | Quarter Ended March 30, 2024 | | :--- | :--- | :--- | :--- | | GAAP Net Earnings (Loss) Attributable to Vishay Stockholders | ($4,092) | ($66,308) | $30,924 | | Net Earnings (Loss) | ($4,092) | ($66,085) | $31,443 | | Interest Expense | $8,790 | $7,731 | $6,496 | | Interest Income | ($3,877) | ($4,533) | ($9,053) | | Income Taxes | ($136) | $7,232 | $12,819 | | Depreciation and Amortization | $53,773 | $55,373 | $49,527 | | EBITDA | $54,458 | ($282) | $91,232 | | Adjustments: | | | | | Goodwill Impairment | - | $66,487 | - | | Adjusted EBITDA | $54,458 | $66,205 | $91,232 | | Adjusted EBITDA Margin | 7.6% | 9.3% | 12.2% |