MKS Inc. Reports Third Quarter 2025 Financial Results

• Revenue of $988 million, at the high end of guidance
• GAAP net income of $74 million and net income per diluted share of $1.10, each in the upper half of guidance
• Adjusted EBITDA of $240 million and Non-GAAP net earnings per diluted share of $1.93, each in the upper half of guidance
• Operating cash flow of $197 million and free cash flow of $147 million, enabling continued focus on the prepayment of debt and reducing net leverage ratio to 3.9x
  
  
  
  

ANDOVER, Mass., Nov. 05, 2025 (GLOBE NEWSWIRE) -- MKS Inc. (NASDAQ:MKSI), a global provider of enabling technologies that transform our world, today reported its financial results for the third quarter of 2025.

"We executed yet another solid quarter of financial performance, with revenues in each of our end markets as well as non-GAAP EPS in the upper half of our guidance," said John T.C. Lee, President and Chief Executive Officer. "Our strong results quarter after quarter are a testament to the dedication and discipline of the global MKS team. Our investments to expand our portfolio over the past several years are paying off, with both our Semiconductor and Electronics & Packaging businesses poised to deliver double-digit revenue growth in 2025. Our broad portfolio of enabling technologies for advanced logic and memory nodes as well as advanced packaging position us as a critical supplier for customers addressing the complex challenges of electronic device manufacturing in the AI era."

"Solid revenue growth, combined with continued execution in managing our costs, has put us firmly on pace for another strong year of free cash flow," said Ram Mayampurath, Executive Vice President and Chief Financial Officer. "In addition to investing in our industry-leading technologies and infrastructure, we are prioritizing debt reduction, exiting the quarter with a net leverage ratio below 4.0x and making another voluntary prepayment of $100 million in October."

Selected GAAP and Non-GAAP Financial Measures (In millions, except per share data)
	Three Months Ended												Nine Months Ended
	Q3 2025				Q2 2025				Q3 2024				Q3 2025				Q3 2024
Net Revenues
Semiconductor	$	415			$	432			$	378			$	1,261			$	1,098
Electronics & Packaging		289				266				231				809				669
Specialty Industrial		284				275				287				828				885
Total net revenues	$	988			$	973			$	896			$	2,898			$	2,652
Gross Margin		46.6	%			46.6	%			48.2	%			46.9	%			47.8	%
GAAP Financial Measures
Operating margin		14.0	%			13.9	%			14.3	%			13.3	%			13.7	%
Net income	$	74			$	62			$	62			$	188			$	99
Net income per diluted share	$	1.10			$	0.92			$	0.92			$	2.78			$	1.47
Non-GAAP Financial Measures
Operating margin		20.8	%			20.8	%			21.8	%			20.6	%			21.2	%
Net earnings	$	130			$	119			$	116			$	365			$	299
Net earnings per diluted share	$	1.93			$	1.77			$	1.72			$	5.41			$	4.42

Additional Financial Information

At September 30, 2025, the Company had $697 million in cash and cash equivalents, $3.0 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 August 2025, the Company made a voluntary principal prepayment of $100 million on its USD term loan B. In October 2025, the Company made an additional voluntary principal prepayment of $100 million on its USD term loan B.

Fourth Quarter 2025 Guidance

• Revenue of $990 million, plus or minus $40 million
• Gross margin of 46.0%, plus or minus 1.0%
• GAAP operating expenses of $325 million, plus or minus $5 million and Non-GAAP operating expenses of $255 million, plus or minus $5 million
• GAAP net income of $96 million, plus or minus $29 million and Non-GAAP net earnings of $154 million, plus or minus $23 million
• GAAP net income per diluted share of $1.42, plus or minus $0.42 and Non-GAAP net earnings per diluted share of $2.27, plus or minus $0.34
• Adjusted EBITDA of $235 million, plus or minus $24 million
  
  
  
  

The guidance for the fourth 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, November 6, 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. (NASDAQ:MKSI) 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 September 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												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
		2025				2025				2024				2025				2024
Net revenues:
Products	$	860			$	848			$	776			$	2,528			$	2,301
Services		128				125				120				370				351
Total net revenues		988				973				896				2,898				2,652
Cost of revenues:
Products		466				463				410				1,367				1,220
Services		61				57				54				173				165
Total cost of revenues (exclusive of amortization shown separately below)		527				520				464				1,540				1,385
Gross profit		461				453				432				1,358				1,267
Research and development		76				76				70				222				206
Selling, general and administrative		180				175				167				539				498
Acquisition and integration costs		—				—				3				—				6
Restructuring and other		4				5				1				26				6
Fees and expenses related to amendments to the Term Loan Facility		—				—				2				2				5
Amortization of intangible assets		63				62				61				184				184
Income from operations		138				135				128				385				362
Interest income		(3	)			(4	)			(6	)			(11	)			(17	)
Interest expense		53				55				64				162				230
Loss on extinguishment of debt		2				2				5				8				52
Other (income) expense, net		2				10				5				11				(3	)
Income before income taxes		84				72				60				215				100
Provision (benefit) for income taxes		10				10				(2	)			27				1
Net income	$	74			$	62			$	62			$	188			$	99
Net income per share:
Basic	$	1.10			$	0.92			$	0.92			$	2.79			$	1.48
Diluted	$	1.10			$	0.92			$	0.92			$	2.78			$	1.47
Cash dividends per common share	$	0.22			$	0.22			$	0.22			$	0.66			$	0.66
Weighted average shares outstanding:
Basic		67.3				67.2				67.4				67.3				67.2
Diluted		67.6				67.4				67.6				67.6				67.5

MKS Inc.
Unaudited Consolidated Balance Sheet
(In millions)
		September 30,				December 31,
			2025				2024
ASSETS
Cash and cash equivalents		$	697			$	714
Trade accounts receivable, net			611				615
Inventories			934				893
Other current assets			294				252
Total current assets			2,536				2,474
Property, plant and equipment, net			769				771
Right-of-use assets			275				238
Goodwill			2,563				2,479
Intangible assets, net			2,196				2,272
Other assets			438				356
Total assets		$	8,777			$	8,590
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term debt		$	51			$	50
Accounts payable			382				341
Other current liabilities			453				384
Total current liabilities			886				775
Long-term debt, net			4,253				4,488
Non-current deferred taxes			483				504
Non-current accrued compensation			154				141
Non-current lease liabilities			250				211
Other non-current liabilities			151				149
Total liabilities			6,177				6,268
Stockholders' equity:
Common stock			—				—
Additional paid-in capital			2,090				2,067
Retained earnings			618				503
Accumulated other comprehensive loss			(108	)			(248	)
Total stockholders' equity			2,600				2,322
Total liabilities and stockholders' equity		$	8,777			$	8,590

MKS Inc.
Unaudited Consolidated Statements of Cash Flows
(In millions)
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
		2025				2025				2024				2025				2024
Cash flows from operating activities:
Net income	$	74			$	62			$	62			$	188			$	99
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		85				87				87				258				262
Unrealized (gain) loss on foreign currency and derivative instruments		(8	)			2				2				(4	)			2
Amortization of debt issuance costs and original issue discounts		7				7				7				20				23
Loss on extinguishment of debt		2				2				5				8				52
Stock-based compensation		12				12				11				46				37
Provision for excess and obsolete inventory		10				10				16				37				41
Deferred income taxes		(44	)			(44	)			(72	)			(125	)			(168	)
Other		1				(1	)			2				—				5
Changes in operating assets and liabilities		58				28				43				75				(1	)
Net cash provided by operating activities		197				165				163				503				352
Cash flows from investing activities:
Purchases of investments		(1	)			—				—				(1	)			—
Proceeds from sale of long-lived assets		—				2				1				3				1
Purchases of property, plant and equipment		(50	)			(29	)			(22	)			(98	)			(67	)
Net cash used in investing activities		(51	)			(27	)			(21	)			(96	)			(66	)
Cash flows from financing activities:
Repurchase of common stock		—				—				—				(45	)			—
Proceeds from borrowings		—				—				—				—				2,161
Payments of borrowings		(113	)			(113	)			(123	)			(338	)			(2,198	)
Purchase of capped calls related to Convertible Notes		—				—				—				—				(167	)
Payments of deferred financing fees		—				—				—				—				(33	)
Dividend payments		(15	)			(15	)			(15	)			(44	)			(44	)
Net payments related to employee stock awards		—				—				(1	)			(6	)			(12	)
Other financing activities		(1	)			(1	)			(5	)			(4	)			(10	)
Net cash used in financing activities		(129	)			(129	)			(144	)			(437	)			(303	)
Effect of exchange rate changes on cash and cash equivalents		6				10				13				13				3
Increase (decrease) in cash and cash equivalents		23				19				11				(17	)			(14	)
Cash and cash equivalents at beginning of period		674				655				850				714				875
Cash and cash equivalents at end of period	$	697			$	674			$	861			$	697			$	861

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												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
		2025				2025				2024				2025				2024
Net income	$	74			$	62			$	62			$	188			$	99
Acquisition and integration costs		—				—				3				—				6
Restructuring and other		4				5				1				26				6
Amortization of intangible assets		63				62				61				184				184
Loss on extinguishment of debt		2				2				5				8				52
Amortization of debt issuance costs		5				5				5				14				16
Fees and expenses related to amendments to the Term Loan Facility		—				—				2				2				5
Tax effect of Non-GAAP adjustments		(18	)			(17	)			(23	)			(57	)			(69	)
Non-GAAP net earnings	$	130			$	119			$	116			$	365			$	299
Non-GAAP net earnings per diluted share	$	1.93			$	1.77			$	1.72			$	5.41			$	4.42
Weighted average diluted shares outstanding		67.6				67.4				67.6				67.6				67.5
Net cash provided by operating activities	$	197			$	165			$	163			$	503			$	352
Purchases of property, plant and equipment		(50	)			(29	)			(22	)			(98	)			(67	)
Free cash flow	$	147			$	136			$	141			$	405			$	285
Gross profit	$	461			$	453			$	432			$	1,358			$	1,267
Gross margin		46.6	%			46.6	%			48.2	%			46.9	%			47.8	%
Operating expenses	$	323			$	318			$	304			$	973			$	905
Acquisition and integration costs		—				—				3				—				6
Restructuring and other		4				5				1				26				6
Amortization of intangible assets		63				62				61				184				184
Fees and expenses related to amendments to the Term Loan Facility		—				—				2				2				5
Non-GAAP operating expenses	$	256			$	251			$	237			$	761			$	704
Income from operations	$	138			$	135			$	128			$	385			$	362
Operating margin		14.0	%			13.9	%			14.3	%			13.3	%			13.7	%
Acquisition and integration costs		—				—				3				—				6
Restructuring and other		4				5				1				26				6
Amortization of intangible assets		63				62				61				184				184
Fees and expenses related to amendments to the Term Loan Facility		—				—				2				2				5
Non-GAAP income from operations	$	205			$	202			$	195			$	597			$	563
Non-GAAP operating margin		20.8	%			20.8	%			21.8	%			20.6	%			21.2	%
Interest expense, net	$	50			$	51			$	58			$	151			$	213
Amortization of debt issuance costs		5				5				5				14				16
Non-GAAP interest expense, net	$	45			$	46			$	53			$	137			$	197
Net income	$	74			$	62			$	62			$	188			$	99
Interest expense, net		50				51				58				151				213
Other (income) expense, net		2				10				5				11				(3	)
Provision (benefit) for income taxes		10				10				(2	)			27				1
Depreciation		23				26				26				74				77
Amortization of intangible assets		63				62				61				184				184
Stock-based compensation		12				12				11				46				37
Acquisition and integration costs		—				—				3				—				6
Restructuring and other		4				5				1				26				6
Loss on extinguishment of debt		2				2				5				8				52
Fees and expenses related to amendments to the Term Loan Facility		—				—				2				2				5
Adjusted EBITDA	$	240			$	240			$	232			$	717			$	677
Adjusted EBITDA margin		24.3	%			24.7	%			25.9	%			24.7	%			25.5	%

MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)
	Three Months Ended
	September 30,			June 30,			March 31,				December 31,
		2025			2025			2025				2024
Net income	$	74		$	62		$	52			$	90
Interest expense, net		50			51			50				49
Other (income) expense, net		2			10			(1	)			3
Provision (benefit) for income taxes		10			10			7				(11	)
Depreciation		23			26			25				26
Amortization of intangible assets		63			62			60				61
Stock-based compensation		12			12			22				11
Acquisition and integration costs		—			—			—				3
Restructuring and other		4			5			16				1
Loss on extinguishment of debt		2			2			3				4
Fees and expenses related to amendments to the Term Loan Facility		—			—			2				—
Adjusted EBITDA	$	240		$	240		$	236			$	237
Adjusted EBITDA for the trailing twelve months ended September 30, 2025		953
Principal outstanding on Term Loan Facility and Convertible Notes as of September 30, 2025	$	4,390
Less: Cash & cash equivalents as of September 30, 2025		697
Net debt as of September 30, 2025	$	3,693
Adjusted EBITDA for the trailing twelve months ended September 30, 2025	$	953
Net leverage ratio as of September 30, 2025	3.9x

MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)
	Three Months Ended September 30, 2025									Three Months Ended June 30, 2025
	Income Before Income Taxes			Provision for Income Taxes			Effective Tax Rate			Income  Before Income Taxes			Provision for Income Taxes				Effective Tax Rate
GAAP	$	84		$	10		12.3%			$	72		$	10			13.6%
Restructuring and other		4			—						5			—
Amortization of intangible assets		63			—						62			—
Loss on extinguishment of debt		2			—						2			—
Amortization of debt issuance costs		5			—						5			—
Tax effect of Non-GAAP adjustments		—			18						—			17
Non-GAAP	$	158		$	28		17.9%			$	146		$	27			18.2%
										Three Months Ended September 30, 2024
										Income Before Income Taxes			(Benefit) Provision for Income Taxes				Effective Tax Rate
GAAP										$	60		$	(2	)		(4.0%)
Acquisition and integration costs											3			—
Restructuring and other											1			—
Amortization of intangible assets											61			—
Loss on extinguishment of debt											5			—
Amortization of debt issuance costs											5			—
Fees and expenses related to amendments to the Term Loan Facility											2
Tax effect of Non-GAAP adjustments											—			23
Non-GAAP										$	137		$	21			15.1%
	Nine Months Ended September 30, 2025									Nine Months Ended September 30, 2024
	Income Before Income Taxes			Provision for Income Taxes			Effective Tax Rate			Income  Before Income Taxes			Provision for Income Taxes				Effective Tax Rate
GAAP	$	215		$	27		12.7%			$	100		$	1			1.2%
Acquisition and integration costs		—			—						6			—
Restructuring and other		26			—						6			—
Amortization of intangible assets		184			—						184			—
Loss on extinguishment of debt		8			—						52			—
Amortization of debt issuance costs		14			—						16			—
Fees and expenses related to amendments to the Term Loan Facility		2			—						5			—
Tax effect of Non-GAAP adjustments		—			57						—			69
Non-GAAP	$	449		$	84		18.7%			$	369		$	70			19.3%

MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures - Q4'25 Guidance
(In millions, except per share data)
	Three Months Ending December 31, 2025
	$ Amount				Per Share
GAAP net income and net income per share	$	96			$	1.42
Restructuring and other		8
Amortization of intangible assets		62
Loss on extinguishment of debt		2
Amortization of debt issuance costs		5
Tax effect of Non-GAAP adjustments		(19	)
Non-GAAP net earnings and net earnings per share	$	154			$	2.27
Weighted average diluted shares		67.7
GAAP operating expenses	$	325
Restructuring and other		(8	)
Amortization of intangible assets		(62	)
Non-GAAP operating expenses	$	255
GAAP net income		96
Interest expense, net		48
Benefit for income taxes		(16	)
Depreciation		24
Restructuring and other		8
Amortization of intangible assets		62
Stock-based compensation		11
Loss on extinguishment of debt		2
Adjusted EBITDA	$	235

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.