MKSI Q2 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Rise

MKS Inc. MKSI reported second-quarter 2025 adjusted earnings of $1.77 per share, beating the Zacks Consensus Estimate by 9.94%. The figure increased 15.7% year over year.

Revenues of $973 million beat the consensus mark by 4.61% and increased 9.7% year over year.

MKSI shares jumped 6.6% in pre-market trading. The company lost 14.2% year to date, underperforming the Zacks Computer and Technology sector’s 12.2%.

MKSI Q2 Top-Line Details

Products revenues (87.2% of total revenues) were $848 million, up 10.1% year over year. Services revenues (12.8% of total revenues) increased 6.8% year over year to $125 million. 

Revenues from the Semiconductor market (44.4% of total revenues) increased 17.1% year over year to $432 million. Electronics & Packaging revenues (27.3% of total revenues) were $266 million, up 16.2% year over year. Specialty Industrial revenues (28.3% of total revenues) declined 4.8% year over year to $275 million. 
 

MKS Inc. Price, Consensus and EPS Surprise

MKS Inc. price-consensus-eps-surprise-chart | MKS Inc. Quote

Revenues from the Vacuum Solutions (41.8% of total revenues) increased 21.5% year over year to $407 million. Photonics Solutions revenues (25% of total revenues) were $243 million, down 4.3% year over year. Materials Solutions revenues (33.2% of total revenues) climbed up 8.4% year over year to $323 million.

MKSI’s Q2 Operating Details

In the second quarter, the adjusted gross margin contracted 70 basis points (bps) on a year-over-year basis to 46.6%.

Adjusted EBITDA increased 5.3% year over year to $240 million. Adjusted EBITDA margin contracted 100 bps year over year to 24.7%.

Total operating expenses increased 10.6% year over year to $251 million in the reported quarter.

MKS reported a non-GAAP operating income of $202 million, up 5.2% year over year. The adjusted operating margin contracted 90 bps year over year to 20.8%.

MKSI’s Balance Sheet

As of June 30, 2025, MKS Instruments had cash and cash equivalents of $674 million compared with $655 million as of March 31.

As of June 30, 2025, long-term debt was $4.36 billion.

Cash flow from operations was $165 million in the second quarter of 2025 compared with $141 million reported in the first quarter of 2025.

Free cash flow was $136 million compared with $123 million reported in the first quarter of 2025.

MKSI Offers Q3 Guidance

MKSI expects third-quarter 2025 revenues of $960 million (+/- $40 million).

MKS expects gross margin of 46.5% (+/- 1%). The company expects an adjusted EBITDA of $232 million (+/- 24 million). 

On a non-GAAP basis, MKSI expects earnings of $1.80 (+/- 29 cents) per share.

MKSI’s Zacks Rank & Stocks to Consider

Currently, MKSI carries a Zacks Rank #3 (Hold).

OptimizeRx OPRX, StoneCo STNE and Vipshop VIPS are some stocks worth considering in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

OptimizeRx shares have jumped 156.8% year to date. OptimizeRx is set to report its second-quarter 2025 results on Aug. 7.

StoneCo shares have appreciated 68.2% year to date. StoneCo is set to report its second-quarter 2025 results on Aug. 7.

Vipshop shares are up 13.1% year to date. Vipshop is set to report its second-quarter 2025 results on Aug. 14.

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This article originally published on Zacks Investment Research (zacks.com).

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