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Mar 31
MKS Q1 2025 Earnings Report
MKS Instruments reported Q1 2025 results with revenue of $936 million and growth in semiconductor and electronics end markets.
Key Takeaways
MKS Instruments delivered solid Q1 2025 results, hitting the high end of revenue guidance with $936 million in sales, while net income reached $52 million and free cash flow totaled $123 million.
Q1 revenue reached $936 million, led by growth in semiconductor and electronics markets.
GAAP net income was $52 million, or $0.77 per diluted share.
Non-GAAP EPS was $1.71, exceeding the high end of guidance.
Free cash flow was strong at $123 million, reflecting disciplined capital and operational management.
MKS
MKS
MKS Revenue by Segment
Forward Guidance
MKS expects Q2 2025 revenue of $925 million ± $40 million, and GAAP net income of $55 million ± $21 million, reflecting stable demand and caution on trade policy impacts.
Positive Outlook
- Revenue guidance for Q2 2025 set at $925 million with upside of $40 million.
- Strong GAAP and non-GAAP gross margin projections around 46.5%.
- Adjusted EBITDA forecasted at $216 million ± $23 million.
- Stable business fundamentals cited despite trade policy uncertainties.
- Operational focus remains on profitability and deleveraging.
Challenges Ahead
- Continued exposure to volatile trade policy environments.
- Sequential decline in specialty industrial revenue.
- Ongoing restructuring costs impacting operating expenses.
- Rising debt service costs with $3.2B term loan and $1.4B convertible notes outstanding.
- Potential headwinds from macroeconomic and geopolitical factors in global markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income