MKS Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results

Core Insights - MKS Inc. reported strong financial performance for Q4 and full year 2025, highlighting the success of investments in advanced electronics and semiconductor manufacturing, with a focus on AI-driven growth opportunities [2][11]. Financial Performance - Q4 2025 net revenues reached $1,033 million, a 10.1% increase from Q3 2025 ($988 million) and a 10.5% increase from Q4 2024 ($935 million) [2][21]. - Full year 2025 net revenues totaled $3,931 million, up 9.6% from $3,586 million in 2024 [2][21]. - Semiconductor segment revenues for Q4 2025 were $435 million, up from $400 million in Q4 2024, while Electronics & Packaging revenues increased to $303 million from $254 million [2][21]. - Gross margin for Q4 2025 was 46.4%, slightly down from 47.2% in Q4 2024, while the full year gross margin was 46.7%, compared to 47.6% in 2024 [2][21]. Profitability Metrics - Q4 2025 GAAP net income was $108 million, compared to $90 million in Q4 2024, resulting in a net income per diluted share of $1.58, up from $1.33 [2][21]. - Full year 2025 GAAP net income was $295 million, significantly higher than $190 million in 2024, with net income per diluted share increasing to $4.37 from $2.81 [2][21]. - Non-GAAP net earnings for Q4 2025 were $168 million, with a non-GAAP net earnings per diluted share of $2.47, compared to $2.15 in Q4 2024 [2][21]. Cash Flow and Capital Structure - The company generated strong cash flow in 2025, allowing for proactive investments and debt management, including a $100 million voluntary principal prepayment on its USD term loan B [2][4]. - As of December 31, 2025, MKS had $675 million in cash and cash equivalents, with total liabilities of $6,077 million [4][23]. - The company completed a private offering of €1.0 billion senior notes and refinanced existing term loans, which diversified its capital structure and reduced interest rates [5][4]. Guidance and Market Outlook - The guidance for Q1 2026 reflects the current business environment, including the impact of U.S. import tariffs and retaliatory actions from other countries [8]. - MKS is positioned to capitalize on growth opportunities in the semiconductor and electronics markets, driven by advancements in AI technology [2][11].