Defense Speak Interpreted: Understanding What the Department of Defense Is, and Isn’t
American Made Advocacy: Rebuilding America’s Military Stockpiles Begins With Microelectronics
The Right Approach: The End of an Era—DoD Proposes MIL-PRF-31032 Cancellation
MKS Instruments, Inc., a global provider of enabling technologies that transform our world, today reported first quarter 2025 financial results.
“We maintained our recent momentum in the first quarter with solid revenue performance that was at the high end of our guidance, led by strong year-over-year growth in both our Semiconductor and Electronics & Packaging end markets,” said John T.C. Lee, President and Chief Executive Officer. “Our team is executing well and capturing opportunities across memory and foundry as well as advanced packaging necessary to support AI applications.”
Mr. Lee added, “We exited the quarter seeing pockets of demand improvement in our Semiconductor and Electronics and Packaging markets. We are taking active steps to mitigate the impacts from new trade policies. This situation remains dynamic, but we are confident in our ability to manage through, supported by our resilient global manufacturing and supply chain, strong customer relationships and broad, deep product portfolio.”
“MKS has a strong track record of financial discipline and execution which was once again reflected in our first quarter results,” said Ram Mayampurath, Executive Vice President, Chief Financial Officer and Treasurer.
Mr. Mayampurath added, “Our GAAP and Non-GAAP gross margins were at the high end of our guidance range and our GAAP and Non-GAAP operating income exceeded our guidance midpoints. Our second quarter guidance reflects an overall stable demand environment and strong business fundamentals while also factoring in our current view of potential impacts from evolving trade policies. We remain focused on managing profitability and cash generation to delever and strengthen our balance sheet.”
Additional Financial Information
At March 31, 2025, the Company had $655 million in cash and cash equivalents, $3.2 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. During the first quarter of 2025, the Company completed the repricing of its USD term loan B and EUR term loan B and made a voluntary principal prepayment of $100 million on its USD term loan B. Additionally, the Company repurchased approximately 546,000 shares of its common stock for approximately $45 million, and paid a cash dividend of $15 million or $0.22 per diluted share.
Second Quarter 2025 Guidance
- Revenue of $925 million, plus or minus $40 million
- Gross margin of 46.5%, plus or minus 1.0%
- GAAP operating expenses of $316 million, plus or minus $5 million and Non-GAAP operating expenses of $252 million, plus or minus $5 million
- GAAP net income of $55 million, plus or minus $21 million and Non-GAAP net earnings of $106 million, plus or minus $19 million
- GAAP net income per diluted share of $0.81, plus or minus $0.32 and Non-GAAP net earnings per diluted share of $1.56, plus or minus $0.28
- Adjusted EBITDA of $216 million, plus or minus $23 million
The guidance for the second 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.
