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MKS Inc., a global provider of enabling technologies that transform our world, reported its financial results for the second quarter of 2025.
“We delivered revenue and adjusted EBITDA above the high end of our guidance, driven by strong year over year growth in our Semiconductor and Electronics & Packaging end markets,” said John T.C. Lee, President and Chief Executive Officer. “Our results reflect growing demand for products and solutions addressing advanced packaging and AI-related applications, underscoring our strength in enabling technologies that help customers solve their biggest challenges.”
Mr. Lee added, “We continue to execute exceptionally well for our customers, exercise agility to mitigate trade policy instability and generate strong cash flows for debt prepayment. Looking ahead, we are focused on creating durable value for both our customers and shareholders.”
“We delivered a strong quarter with improved sales, profitability and cash generation,” said Ram Mayampurath, Executive Vice President and Chief Financial Officer. “We are also progressing well on deleveraging our balance sheet with a $100 million prepayment in June followed by another $100 million prepayment in August.”
At June 30, 2025, the Company had $674 million in cash and cash equivalents, $3.1 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 June 2025, the Company made a voluntary principal prepayment of $100 million on its USD term loan B. In August 2025, the Company made an additional voluntary principal prepayment of $100 million on its USD term loan B.
Third Quarter 2025 Guidance
- Revenue of $960 million, plus or minus $40 million
- Gross margin of 46.5%, plus or minus 1.0%
- GAAP operating expenses of $318 million, plus or minus $5 million and Non-GAAP operating expenses of $252 million, plus or minus $5 million
- GAAP net income of $67 million, plus or minus $21 million and Non-GAAP net earnings of $121 million, plus or minus $19 million
- GAAP net income per diluted share of $0.99, plus or minus $0.31 and Non-GAAP net earnings per diluted share of $1.80, plus or minus $0.29
- Adjusted EBITDA of $232 million, plus or minus $24 million
The guidance for the third 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.
