MKS Reports Q3 2025 Financial Results

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MKS Inc., a global provider of enabling technologies that transform our world, reported its financial results for the third quarter of 2025.

“We executed yet another solid quarter of financial performance, with revenues in each of our end markets as well as non-GAAP EPS in the upper half of our guidance,” said John T.C. Lee, President and Chief Executive Officer. “Our strong results quarter after quarter are a testament to the dedication and discipline of the global MKS team. Our investments to expand our portfolio over the past several years are paying off, with both our Semiconductor and Electronics & Packaging businesses poised to deliver double-digit revenue growth in 2025. Our broad portfolio of enabling technologies for advanced logic and memory nodes as well as advanced packaging position us as a critical supplier for customers addressing the complex challenges of electronic device manufacturing in the AI era.”

“Solid revenue growth, combined with continued execution in managing our costs, has put us firmly on pace for another strong year of free cash flow,” said Ram Mayampurath, Executive Vice President and Chief Financial Officer. “In addition to investing in our industry-leading technologies and infrastructure, we are prioritizing debt reduction, exiting the quarter with a net leverage ratio below 4.0x and making another voluntary prepayment of $100 million in October.”

Additional Financial Information

At September 30, 2025, the Company had $697 million in cash and cash equivalents, $3.0 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 August 2025, the Company made a voluntary principal prepayment of $100 million on its USD term loan B. In October 2025, the Company made an additional voluntary principal prepayment of $100 million on its USD term loan B.

Fourth Quarter 2025 Guidance

• Revenue of $990 million, plus or minus $40 million
• Gross margin of 46.0%, plus or minus 1.0%
• GAAP operating expenses of $325 million, plus or minus $5 million and Non-GAAP operating expenses of $255 million, plus or minus $5 million
• GAAP net income of $96 million, plus or minus $29 million and Non-GAAP net earnings of $154 million, plus or minus $23 million
• GAAP net income per diluted share of $1.42, plus or minus $0.42 and Non-GAAP net earnings per diluted share of $2.27, plus or minus $0.34
• Adjusted EBITDA of $235 million, plus or minus $24 million

The guidance for the fourth 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.