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MKS Inc. Reports Second Quarter 2025 Financial Results

By MKS Inc. | August 06, 2025, 4:30 PM
  • Revenue of $973 million, above the high end of guidance
  • GAAP net income of $62 million and net income per diluted share of $0.92, each above the midpoint of guidance
  • Adjusted EBITDA of $240 million, above the high end of guidance, and Non-GAAP net earnings per diluted share of $1.77, at the high end of guidance

ANDOVER, Mass., Aug. 06, 2025 (GLOBE NEWSWIRE) -- MKS Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported its financial results for the second quarter of 2025.

“We delivered revenue and adjusted EBITDA above the high end of our guidance, driven by strong year over year growth in our Semiconductor and Electronics & Packaging end markets,” said John T.C. Lee, President and Chief Executive Officer. “Our results reflect growing demand for products and solutions addressing advanced packaging and AI-related applications, underscoring our strength in enabling technologies that help customers solve their biggest challenges.”

Mr. Lee added, “We continue to execute exceptionally well for our customers, exercise agility to mitigate trade policy instability and generate strong cash flows for debt prepayment. Looking ahead, we are focused on creating durable value for both our customers and shareholders.”

“We delivered a strong quarter with improved sales, profitability and cash generation,” said Ram Mayampurath, Executive Vice President and Chief Financial Officer. “We are also progressing well on deleveraging our balance sheet with a $100 million prepayment in June followed by another $100 million prepayment in August.”

Selected GAAP and Non-GAAP Financial Measures
(In millions, except per share data)
 
 Three Months Ended Six Months Ended
 Q2 2025 Q1 2025 Q2 2024 Q2 2025 Q2 2024
Net Revenues         
Semiconductor$432  $413  $369  $846  $720 
Electronics & Packaging 266   253   229   519   437 
Specialty Industrial 275   270   289   545   598 
Total net revenues$973  $936  $887  $1,910  $1,755 
GAAP Financial Measures         
Gross margin 46.6%  47.4%  47.3%  47.0%  47.5%
Operating margin 13.9%  11.9%  14.4%  12.9%  13.3%
Net income$62  $52  $23  $114  $37 
Net income per diluted share$0.92  $0.77  $0.33  $1.69  $0.55 
Non-GAAP Financial Measures         
Gross margin 46.6%  47.4%  47.3%  47.0%  47.5%
Operating margin 20.8%  20.2%  21.7%  20.5%  21.0%
Net earnings$119  $116  $103  $235  $183 
Diluted earnings per diluted share$1.77  $1.71  $1.53  $3.48  $2.71 

Additional Financial Information

At June 30, 2025, the Company had $674 million in cash and cash equivalents, $3.1 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding and up to $675 million of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. In June 2025, the Company made a voluntary principal prepayment of $100 million on its USD term loan B. In August 2025, the Company made an additional voluntary principal prepayment of $100 million on its USD term loan B.

Third Quarter 2025 Guidance

  • Revenue of $960 million, plus or minus $40 million
  • Gross margin of 46.5%, plus or minus 1.0%
  • GAAP operating expenses of $318 million, plus or minus $5 million and Non-GAAP operating expenses of $252 million, plus or minus $5 million
  • GAAP net income of $67 million, plus or minus $21 million and Non-GAAP net earnings of $121 million, plus or minus $19 million
  • GAAP net income per diluted share of $0.99, plus or minus $0.31 and Non-GAAP net earnings per diluted share of $1.80, plus or minus $0.29
  • Adjusted EBITDA of $232 million, plus or minus $24 million

The guidance for the third quarter is based on the current business environment, including the impact of U.S. import tariffs and the imposition of retaliatory actions taken by other countries up through but not including the date of this release. The Company will continue to monitor and adapt to changes in the business environment as needed.

Conference Call Details

A conference call with management will be held on Thursday, August 7, 2025 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

About MKS Inc.

MKS Inc. enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world's leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

Use of Non-GAAP Financial Results

This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release 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 Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; our entry into the chemicals technology business through our acquisition of Atotech Limited (“Atotech”) in August 2022 (the “Atotech Acquisition”), which has exposed us to significant additional liabilities; the risk that we are unable to realize the anticipated benefits of the Atotech Acquisition; risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business, including through growth of the Atotech business, and financial risks associated with that acquisition and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand; risks associated with doing business internationally, including geopolitical conflicts, such as the conflict in the Middle East, trade compliance, trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning global operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequent Quarterly Reports on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

Company Contact:
Paretosh Misra
Vice President, Investor Relations
Telephone: (978) 284-4705
Email: [email protected]

 

MKS Inc.
Unaudited Consolidated Statements of Operations
(In millions, except per share data)
          
 Three Months Ended Six Months Ended
 June 30, March 31, June 30, June 30, June 30,
  2025   2025   2024   2025   2024 
Net revenues:         
Products$848  $819  $770  $1,668  $1,524 
Services 125   117   117   242   231 
Total net revenues 973   936   887   1,910   1,755 
Cost of revenues:         
Products 463   437   412   900   810 
Services 57   55   56   113   111 
Total cost of revenues (exclusive of amortization shown separately below) 520   492   468   1,013   921 
Gross profit 453   444   419   897   834 
Research and development 76   70   66   145   136 
Selling, general and administrative 175   185   161   361   331 
Acquisition and integration costs       2      3 
Restructuring and other 5   16   2   21   5 
Fees and expenses related to amendments to the Term Loan Facility    2      2   3 
Amortization of intangible assets 62   60   61   122   123 
Income from operations 135   111   127   246   233 
Interest income (4)  (3)  (5)  (7)  (11)
Interest expense 55   53   79   108   166 
Loss on extinguishment of debt 2   3   38   5   47 
Other (income) expense, net 10   (1)  (7)  9   (10)
Income before income taxes 72   59   22   131   41 
Provision (benefit) for income taxes 10   7   (1)  17   4 
Net income$62  $52  $23  $114  $37 
Net income per share:         
Basic$0.92  $0.77  $0.34  $1.69  $0.56 
Diluted$0.92  $0.77  $0.33  $1.69  $0.55 
Cash dividends per common share$0.22  $0.22  $0.22  $0.44  $0.44 
Weighted average shares outstanding:         
Basic 67.2   67.4   67.3   67.3   67.2 
Diluted 67.4   67.7   67.5   67.5   67.5 



MKS Inc.
Unaudited Consolidated Balance Sheet
(In millions)
    
    
 June 30, December 31,
  2025   2024 
ASSETS   
Cash and cash equivalents$674  $714 
Trade accounts receivable, net 649   615 
Inventories 918   893 
Other current assets 243   252 
Total current assets 2,484   2,474 
Property, plant and equipment, net 801   771 
Right-of-use assets 283   238 
Goodwill 2,570   2,479 
Intangible assets, net 2,267   2,272 
Other assets 421   356 
Total assets$8,826  $8,590 
LIABILITIES AND STOCKHOLDERS' EQUITY   
Short-term debt$51  $50 
Accounts payable 355   341 
Other current liabilities 426   384 
Total current liabilities 832   775 
Long-term debt, net 4,357   4,488 
Non-current deferred taxes 504   504 
Non-current accrued compensation 152   141 
Non-current lease liabilities 258   211 
Other non-current liabilities 170   149 
Total liabilities 6,273   6,268 
Stockholders' equity:   
Common stock     
Additional paid-in capital 2,078   2,067 
Retained earnings 559   503 
Accumulated other comprehensive loss (84)  (248)
Total stockholders' equity 2,553   2,322 
Total liabilities and stockholders' equity$8,826  $8,590 



MKS Inc.
Unaudited Consolidated Statements of Cash Flows
(In millions)
          
 Three Months Ended Six Months Ended
 June 30, March 31, June 30, June 30, June 30,
  2025   2025   2024   2025   2024 
Cash flows from operating activities:         
Net income$62  $52  $23  $114  $37 
Adjustments to reconcile net income to net cash provided by operating activities:         
Depreciation and amortization 87   85   86   172   175 
Unrealized loss (gain) on derivatives not designated as hedging instruments 2   2   (3)  4    
Amortization of debt issuance costs and original issue discounts 7   6   8   13   16 
Loss on extinguishment of debt 2   3   38   5   47 
Stock-based compensation 12   22   11   34   26 
Provision for excess and obsolete inventory 10   17   14   27   25 
Deferred income taxes (44)  (37)  (59)  (80)  (95)
Other (1)  1   2      4 
Changes in operating assets and liabilities 28   (10)  2   17   (46)
Net cash provided by operating activities 165   141   122   306   189 
Cash flows from investing activities:         
Proceeds from sale of long-lived assets 2         2   1 
Purchases of property, plant and equipment (29)  (18)  (26)  (47)  (45)
Net cash used in investing activities (27)  (18)  (26)  (45)  (44)
Cash flows from financing activities:         
Repurchase of common stock    (45)     (45)   
Proceeds from borrowings       1,400      2,161 
Payments of borrowings (113)  (113)  (1,269)  (225)  (2,075)
Purchase of capped calls related to Convertible Notes       (167)     (167)
Payments of deferred financing fees       (31)     (33)
Dividend payments (15)  (15)  (15)  (30)  (30)
Net payments related to employee stock awards    (5)  (2)  (5)  (11)
Other financing activities (1)  (2)  (3)  (4)  (4)
Net cash used in financing activities (129)  (180)  (87)  (309)  (159)
Effect of exchange rate changes on cash and cash equivalents 10   (2)  (4)  8   (11)
Increase (decrease) in cash and cash equivalents 19   (59)  5   (40)  (25)
Cash and cash equivalents at beginning of period 655   714   845   714   875 
Cash and cash equivalents at end of period$674  $655  $850  $674  $850 



The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:
          
MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)
          
 Three Months Ended Six Months Ended
 June 30, March 31, June 30, June 30, June 30,
  2025   2025   2024   2025   2024 
Net income$62  $52  $23  $114  $37 
Acquisition and integration costs       2      3 
Restructuring and other 5   16   2   21   5 
Amortization of intangible assets 62   60   61   122   123 
Loss on extinguishment of debt 2   3   38   5   47 
Amortization of debt issuance costs 5   5   5   9   11 
Fees and expenses related to amendments to the Term Loan Facility    2      2   3 
Tax effect of Non-GAAP adjustments (17)  (22)  (28)  (38)  (46)
Non-GAAP net earnings$119  $116  $103  $235  $183 
Non-GAAP net earnings per diluted share$1.77  $1.71  $1.53  $3.48  $2.71 
Weighted average diluted shares outstanding 67.4   67.7   67.5   67.5   67.5 
          
Net cash provided by operating activities$165  $141  $122  $306  $189 
Purchases of property, plant and equipment (29)  (18)  (26)  (47)  (45)
Free cash flow$136  $123  $96  $259  $144 
GAAP and Non-GAAP gross profit$453  $444  $419  $897  $834 
GAAP and Non-GAAP gross margin 46.6%  47.4%  47.3%  47.0%  47.5%
Operating expenses$318  $332  $292  $651  $601 
Acquisition and integration costs       2      3 
Restructuring and other 5   16   2   21   5 
Amortization of intangible assets 62   60   61   122   123 
Fees and expenses related to amendments to the Term Loan Facility    2      2   3 
Non-GAAP operating expenses$251  $254  $227  $505  $467 
Income from operations$135  $111  $127  $246  $233 
Operating margin 13.9%  11.9%  14.4%  12.9%  13.3%
Acquisition and integration costs       2      3 
Restructuring and other 5   16   2   21   5 
Amortization of intangible assets 62   60   61   122   123 
Fees and expenses related to amendments to the Term Loan Facility    2      2   3 
Non-GAAP income from operations$202  $189  $192  $392  $367 
Non-GAAP operating margin 20.8%  20.2%  21.7%  20.5%  21.0%
Interest expense, net$51  $50  $74  $101  $155 
Amortization of debt issuance costs 5   5   5   9   11 
Non-GAAP interest expense, net$46  $45  $69  $92  $144 
Net income$62  $52  $23  $114  $37 
Interest expense, net 51   50   74   101   155 
Other (income) expense, net 10   (1)  (7)  9   (10)
Provision (benefit) for income taxes 10   7   (1)  17   4 
Depreciation 26   25   25   51   52 
Amortization 62   60   61   122   123 
Stock-based compensation 12   22   11   34   26 
Acquisition and integration costs       2      3 
Restructuring and other 5   16   2   21   5 
Loss on extinguishment of debt 2   3   38   5   47 
Fees and expenses related to amendments to the Term Loan Facility    2      2   3 
Adjusted EBITDA$240  $236  $228  $476  $445 
Adjusted EBITDA margin 24.7%  25.2%  25.7%  24.9%  25.4%



MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)
            
            
 Three Months Ended June 30, 2025 Three Months Ended March 31, 2025
 Income Before Income Taxes Provision
for Income Taxes
 Effective
Tax Rate
 Income  Before Income Taxes Provision
for Income Taxes
 Effective
Tax Rate
GAAP$72  $10   13.6% $59  $7   12.3%
Restructuring and other 5        16      
Amortization of intangible assets 62        60      
Loss on extinguishment of debt 2        3      
Amortization of debt issuance costs 5        5      
Fees and expenses related to amendments to the Term Loan Facility         2      
Tax effect of Non-GAAP adjustments    17        22   
Non-GAAP$146  $27   18.2% $145  $29   19.9%
            
            
       Three Months Ended June 30, 2024
       Income Before Income Taxes (Benefit)
Provision
for Income Taxes
 Effective
Tax Rate
GAAP      $22  $(1)  (3.6%)
Acquisition and integration costs       2      
Restructuring and other       2      
Amortization of intangible assets       61      
Loss on extinguishment of debt       38      
Amortization of debt issuance costs       5      
Tax effect of Non-GAAP adjustments          28   
Non-GAAP      $130  $27   20.5%
            
            
 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024
 Income Before Income Taxes (Benefit)
Provision
for Income Taxes
 Effective
Tax Rate
 Income  Before Income Taxes Provision
for Income Taxes
 Effective
Tax Rate
GAAP$131  $17   13.0% $41  $4   8.9%
Acquisition and integration costs         3      
Restructuring and other 21        5      
Amortization of intangible assets 122        123      
Loss on extinguishment of debt 5        47      
Amortization of debt issuance costs 9        11      
Fees and expenses related to amendments to the Term Loan Facility 2        3      
Tax effect of Non-GAAP adjustments    38        46   
Non-GAAP$290  $55   19.1% $233  $50   21.7%



MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures - Q3’25 Guidance
(In millions, except per share data)
    
    
 Three Months Ending September 30, 2025
 $ Amount Per Share
GAAP net income and net income per share$67  $0.99 
Restructuring and other 4   
Amortization of intangible assets 62   
Loss on extinguishment of debt 2   
Amortization of debt issuance costs 4   
Tax effect of Non-GAAP adjustments (18)  
Non-GAAP net earnings and net earnings per share$121  $1.80 
Weighted average diluted shares 67.5   
    
GAAP operating expenses$318   
Restructuring and other (4)  
Amortization of intangible assets (62)  
Non-GAAP operating expenses$252   
    
GAAP net income 67   
Interest expense, net 49   
Other expense (income), net 1   
Provision for income taxes 9   
Depreciation 26   
Restructuring and other 4   
Amortization of intangible assets 62   
Stock-based compensation 12   
Loss on extinguishment of debt 2   
Adjusted EBITDA$232   
    

MKS Inc.
Notes on Our Non-GAAP Financial Information

Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Acquisition and integration costs include incremental expenses incurred to effect the Atotech Acquisition. Such acquisition costs may include advisory, legal, tax, accounting, valuation, and other professional or consulting fees. Such integration costs may include expenses directly related to integration of business and facility operations, information technology systems and infrastructure and other employee-related costs.

Restructuring and other include incremental expenses incurred in connection with restructuring programs and other strategic initiatives, primarily related to changes in business and/or cost structure. Such costs may include third-party services, one-time termination benefits, facility-related costs, contract termination fees and other items that have no direct correlation to our future business operations.

Amortization of intangible assets includes non-cash amortization expense associated with intangible assets acquired in acquisitions.

Loss on extinguishment of debt includes the non-cash write-off of unamortized debt issuance costs and original issue discount costs incurred from voluntary prepayments and/or repricing of our term loan facility.

Amortization of debt issuance costs includes non-cash additional interest expense related to the amortization of debt issuance costs associated with our term loan facility.

Fees and expenses related to amendments to the Term Loan Facility includes direct third-party costs related to repricings or refinancings of our term loan facility.

Tax effect of Non-GAAP adjustments includes the impact of Non-GAAP adjustments that are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates. 


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