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: paretosh.misra@mks.com

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.