Vishay Intertechnology(VSH) - 2025 Q2 - Quarterly Results

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 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] - The company is investing in capacity expansion to be prepared for a market upturn, as market indicators remain directionally positive[3] 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] 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] 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) 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 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 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 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 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 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 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 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 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% |