•
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.

Total Revenue
$936M
Previous year: $868M
+7.8%
EPS
$1.71
Previous year: $1.18
+44.9%
Operating Margin
11.9%
Gross Profit
$444M
Previous year: $415M
+7.0%
Cash and Equivalents
$655M
Previous year: $845M
-22.5%
Free Cash Flow
$123M
Previous year: $49M
+151.0%
Total Assets
$8.56B
Previous year: $8.93B
-4.2%

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