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Sep 30, 2025
MKS Q3 2025 Earnings Report
MKS Inc. reported solid financial results for the third quarter of 2025, with revenues and non-GAAP EPS at the upper end of guidance.
Key Takeaways
MKS Inc. delivered a strong third quarter in 2025, achieving $988 million in revenue, which was at the high end of their guidance. The company reported GAAP net income of $74 million and non-GAAP net earnings per diluted share of $1.93, both in the upper half of guidance. Strong operating cash flow of $197 million and free cash flow of $147 million enabled continued debt reduction, lowering the net leverage ratio to 3.9x.
Total net revenues reached $988 million, meeting the high end of the company's guidance.
GAAP net income was $74 million, with diluted EPS at $1.10, while non-GAAP net earnings per diluted share were $1.93.
The company generated significant operating cash flow of $197 million and free cash flow of $147 million.
MKS Inc. continued its focus on debt reduction, achieving a net leverage ratio of 3.9x and making a $100 million voluntary prepayment in October.
Revenue by Segment
Forward Guidance
For the fourth quarter of 2025, MKS Inc. anticipates revenues between $950 million and $1,030 million, with a gross margin of approximately 46.0%. GAAP net income is projected to be between $67 million and $125 million, and non-GAAP net earnings per diluted share are expected to be between $1.93 and $2.61. Adjusted EBITDA is forecasted to be between $211 million and $259 million.
Positive Outlook
- Revenue guidance of $990 million (plus or minus $40 million) indicates continued strong performance.
- Non-GAAP net earnings per diluted share guidance of $2.27 (plus or minus $0.34) suggests healthy profitability.
- Adjusted EBITDA guidance of $235 million (plus or minus $24 million) reflects sustained operational efficiency.
- Gross margin guidance of 46.0% (plus or minus 1.0%) shows stable profitability.
- The company's continued focus on managing costs is expected to contribute to strong free cash flow.
Challenges Ahead
- The guidance is subject to the current business environment, including the impact of U.S. import tariffs and retaliatory actions by other countries.
- Potential fluctuations in capital spending in the semiconductor, electronics manufacturing, and automotive industries could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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