MKS Inc. Reports First Quarter 2026 Financial Results

MKS Inc. Reports First Quarter 2026 Financial Results MKS Inc. Reports First Quarter 2026 Financial Results GlobeNewswire May 06, 2026

ANDOVER, Mass., May 06, 2026 (GLOBE NEWSWIRE) -- MKS Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported its financial results for the first quarter of 2026.

“Our robust first quarter performance and second quarter outlook reflect accelerating, broad-based demand, fueled by ramping investment in AI-related applications,” said John T.C. Lee, President and Chief Executive Officer. “Our deep, foundational product portfolio is leading to strong bookings and revenue growth as we enable customers to address the fast-rising complexity of semiconductor and advanced circuit board manufacturing. From AI data centers to the latest consumer electronics innovations, MKS is well positioned to drive attractive growth in a strengthening demand environment.”

“First quarter revenue and key profitability metrics came in at or above the high end of our guided ranges, demonstrating both business momentum and outstanding execution,” said Ram Mayampurath, Executive Vice President and Chief Financial Officer. “Our solid gross margins and operating discipline set the stage for attractive cash generation as we execute on revenue opportunities this year, giving us the resources to invest in innovation and further strengthen our balance sheet.”

 
Selected GAAP and Non-GAAP Financial Measures
(In millions, except per share data)
      
 Q1 2026 Q4 2025 Q1 2025
Net Revenues     
Semiconductor$466  $435  $413 
Electronics & Packaging 321   303   253 
Specialty Industrial 291   295   270 
Total net revenues$1,078  $1,033  $936 
Gross Margin 47.0%  46.4%  47.4%
GAAPFinancial Measures     
Operating margin 13.8%  13.9%  11.9%
Net income$84  $108  $52 
Net income per diluted share$1.18  $1.58  $0.77 
Non-GAAPFinancial Measures     
Operating margin 21.8%  21.0%  20.2%
Net earnings$157  $168  $116 
Net earnings per diluted share$2.30  $2.47  $1.71 
            

Additional Financial Information

During the first quarter of 2026, the Company completed a private offering of €1.0 billion aggregate principal amount of 4.25% senior notes due 2034. The Company used the net proceeds from the offering, together with the net proceeds from the partial refinancing of its then-existing USD term loan B and refinancing of its then-existing EUR term loan B, both of which were also completed during the first quarter of 2026, and cash on hand to prepay approximately $1.3 billion of, and refinance in full, its existing USD term loan B and refinance in full its existing EUR term loan B. The Company also upsized its revolving credit facility from $675 million to $1.0 billion. In addition, the Company increased its dividend from $0.22 per share to $0.25 per share and paid a cash dividend of $17 million.

At March 31, 2026, the Company had $569 million in cash and cash equivalents, $1.6 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding, €1.0 billion of senior notes outstanding and up to $1.0 billion of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. The appreciation of our stock price during the first quarter of 2026 resulted in the satisfaction of the stock price conversion condition under the indenture governing our convertible senior notes. As a result, the convertible senior notes are convertible, in whole or in part, at the option of the noteholders at any time during the second quarter of 2026, and were classified as short-term debt, net of issuances costs, at March 31, 2026.

In May 2026, the Company made a voluntary principal prepayment of $100 million on its USD term loan B.

Second Quarter 2026 Guidance

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.

Conference Call Details

A conference call with management will be held on Thursday, May 7, 2026 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

About MKS Inc.

MKS Inc. (NASDAQ: MKSI) enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world's leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

Use of Non-GAAP Financial Results

This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; risks related to pursuing, completing, and/or failing to realize the benefits of acquisitions and other strategic transactions critical to our growth strategy; risks related to cybersecurity, data privacy and intellectual property; manufacturing and sourcing risks, including supply chain disruptions, component shortages and price increases, the use of limited, sole source and international suppliers, the relocation of manufacturing operations, and product defects; risks associated with doing business internationally, including geopolitical conflicts, trade compliance, trade protection measures, such as import tariffs by the United States and/or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations; conditions affecting the markets in which we operate, including intense competition, rapid technological and market changes, dependence on new product development, the ability to anticipate and meet customer demand, fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks associated with artificial intelligence (“AI”); financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission and any subsequent Quarterly Reports on Form 10-Q. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

Company Contact:
Paretosh Misra
Vice President, Investor Relations
Telephone: (978) 284-4705
Email: paretosh.misra@mks.com

 
MKS Inc.
Unaudited Consolidated Statements of Operations
(In millions, except per share data)
      
 Three Months Ended
 March 31, December 31, March 31,
 2026
 2025
 2025
Net revenues:     
Products$954  $907  $819 
Services 124   126   117 
Total net revenues 1,078   1,033   936 
Cost of revenues:     
Products 514   491   437 
Services 57   62   55 
Total cost of revenues (exclusive of amortization shown separately below) 571   553   492 
Gross profit 507   480   444 
Research and development 81   78   70 
Selling, general and administrative 190   185   185 
Restructuring and other 3   11   16 
Legal settlement 3   —   — 
Fees and expenses related to debt activities 18   —   2 
Amortization of intangible assets 63   62   60 
Income from operations 149   144   111 
Interest income (2)  (3)  (3)
Interest expense 45   50   53 
Loss on extinguishment of debt 5   2   3 
Other (income) expense, net (1)  6   (1)
Income before income taxes 102   89   59 
Provision (benefit) for income taxes 18   (19)  7 
Net income$84  $108  $52 
Net income per share:     
Basic$1.24  $1.60  $0.77 
Diluted$1.18  $1.58  $0.77 
Cash dividends per common share$0.25  $0.22  $0.22 
Weighted average common shares outstanding:     
Basic 67.4   67.3   67.4 
Diluted 71.1   68.0   67.7 
      


 
MKS Inc.
Unaudited Consolidated Balance Sheets
(In millions)
    
    
 March 31, December 31,
 2026
 2025
ASSETS   
Cash and cash equivalents$569  $675 
Trade accounts receivable, net 775   651 
Inventories 949   921 
Other current assets 252   263 
Total current assets 2,545   2,510 
Property, plant and equipment, net 795   810 
Right-of-use assets 267   270 
Goodwill 2,565   2,574 
Intangible assets, net 2,065   2,140 
Other assets 491   492 
Total assets$8,728  $8,796 
LIABILITIES AND STOCKHOLDERS' EQUITY   
Short-term debt$1,398  $51 
Accounts payable 448   407 
Other current liabilities 445   469 
Total current liabilities 2,291   927 
Long-term debt, net 2,650   4,150 
Non-current deferred taxes 450   474 
Non-current accrued compensation 146   149 
Non-current lease liabilities 244   246 
Other non-current liabilities 136   131 
Total liabilities 5,917   6,077 
Stockholders' equity:   
Common stock —   — 
Additional paid-in capital 2,104   2,101 
Retained earnings 778   711 
Accumulated other comprehensive loss (71)  (93)
Total stockholders' equity 2,811   2,719 
Total liabilities and stockholders' equity$8,728  $8,796 
    


 
MKS Inc.
Unaudited Consolidated Statements of Cash Flows
(In millions)
      
 Three Months Ended
 March 31, December 31, March 31,
 2026
 2025
 2025
Cash flows from operating activities:     
Net income$84  $108  $52 
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization 85   86   85 
Unrealized (gain) loss on foreign currency and derivative instruments —   (6)  2 
Amortization of debt issuance costs and original issue discounts 4   6   6 
Loss on extinguishment of debt 5   2   3 
Stock-based compensation 19   8   22 
Provision for excess and obsolete inventory 13   8   17 
Deferred income taxes (24)  (71)  (37)
Other 1   2   1 
Changes in operating assets and liabilities (134)  (1)  (10)
Net cash provided by operating activities 53   142   141 
Cash flows from investing activities:     
Net purchases of investments —   1   — 
Proceeds from sale of long-lived assets —   1   — 
Purchases of property, plant and equipment (25)  (51)  (18)
Net cash used in investing activities (25)  (49)  (18)
Cash flows from financing activities:     
Repurchase of common stock —   —   (45)
Proceeds from borrowings 1,192   —   — 
Payments of borrowings (1,274)  (113)  (113)
Payments of deferred financing fees (22)  —   — 
Dividend payments (17)  (15)  (15)
Net (payments) proceeds related to employee stock awards (16)  3   (5)
Other financing activities —   —   (2)
Net cash used in financing activities (137)  (125)  (180)
Effect of exchange rate changes on cash and cash equivalents 3   10   (2)
Decrease in cash and cash equivalents (106)  (22)  (59)
Cash and cash equivalents at beginning of period 675   697   714 
Cash and cash equivalents at end of period$569  $675  $655 
      


      
The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:
 
MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)
      
 Three Months Ended
 March 31, December 31, March 31,
 2026
 2025
 2025
Net income$84  $108  $52 
Restructuring and other 3   11   16 
Legal settlement 3   —   — 
Amortization of intangible assets 63   62   60 
Loss on extinguishment of debt 5   2   3 
Amortization of debt issuance costs 4   5   5 
Loss from de-designation of interest rate hedges 2   —   — 
Fees and expenses related to debt activities 18   —   2 
Tax effect of Non-GAAP adjustments (23)  (20)  (22)
Non-GAAP net earnings$157  $168  $116 
Non-GAAP net earnings per diluted share$2.30  $2.47  $1.71 
Weighted average diluted shares outstanding 71.1   68.0   67.7 
Convertible debt capped calls 2.9   —   — 
Non-GAAP weighted average diluted shares outstanding 68.2   68.0   67.7 
Net cash provided by operating activities$53  $142  $141 
Purchases of property, plant and equipment (25)  (51)  (18)
Free cash flow$29  $91  $123 
Operating expenses$358  $336  $332 
Restructuring and other 3   11   16 
Legal settlement 3   —   — 
Amortization of intangible assets 63   62   60 
Fees and expenses related to debt activities 18   —   2 
Non-GAAP operating expenses$271  $263  $254 
Income from operations$149  $144  $111 
Operating margin 13.8%  13.9%  11.9%
Restructuring and other 3   11   16 
Legal settlement 3   —   — 
Amortization of intangible assets 63   62   60 
Fees and expenses related to debt activities 18   —   2 
Non-GAAP income from operations$235  $217  $189 
Non-GAAP operating margin 21.8%  21.0%  20.2%
Interest expense, net$43  $47  $50 
Amortization of debt issuance costs 4   5   5 
Loss from de-designation of interest rate hedges 2   —   — 
Non-GAAP interest expense, net$37  $42  $45 
Net income$84  $108  $52 
Interest expense, net 43   47   50 
Other (income) expense, net (1)  6   (1)
Provision (benefit) for income taxes 18   (19)  7 
Depreciation 22   24   25 
Amortization of intangible assets 63   62   60 
Stock-based compensation 19   8   22 
Restructuring and other 3   11   16 
Legal settlement 3   —   — 
Loss on extinguishment of debt 5   2   3 
Fees and expenses related to debt activities 18   —   2 
Adjusted EBITDA$277  $249  $236 
Adjusted EBITDA margin 25.7%  24.1%  25.2%
      


 
MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)
               
               
 Three Months Ended March 31, 2026 Three Months Ended December 31, 2025
 Income  Before Income Taxes
 Provision for Income Taxes
 Effective Tax Rate Income Before Income Taxes
 (Benefit) Provision for Income Taxes Effective Tax Rate
GAAP$102  $18  17.7% $89  $(19) (20.8%)
Restructuring and other 3   —     11   —   
Legal settlement 3   —     —   —   
Amortization of intangible assets 63   —     62   —   
Loss on extinguishment of debt 5   —     2   —   
Amortization of debt issuance costs 4   —     5   —   
Loss from de-designation of interest rate hedges 2   —     —   —   
Fees and expenses related to debt activities 18   —     —   —   
Tax effect of Non-GAAP adjustments —   23     —   20   
Non-GAAP$198  $41  20.9% $169  $1  0.9%
               
               
         Three Months Ended March 31, 2025
         Income Before Income Taxes
 Provision for Income Taxes Effective Tax Rate
GAAP        $59  $7  12.3%
Restructuring and other         16   —   
Amortization of intangible assets         60   —   
Loss on extinguishment of debt         3   —   
Amortization of debt issuance costs         5   —   
Fees and expenses related to debt activities         2   —   
Tax effect of Non-GAAP adjustments         —   22   
Non-GAAP        $145  $29  19.9%
               


 
MKS Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures - Q2’26 Guidance
(In millions, except per share data)
     
     
 Three Months Ending June 30, 2026
 $ Amount Per Share
GAAP net income and net income per share$151  $2.09 
Restructuring and other 1    
Amortization of intangible assets 61    
Loss on extinguishment of debt 3    
Amortization of debt issuance costs 3    
Tax effect of Non-GAAP adjustments (17)   
Non-GAAP net earnings and net earnings per share$202  $2.90 
     
Weighted average diluted shares 72.3    
Convertible debt capped calls (2.7)   
Non-GAAP weighted average diluted shares 69.6    
     
GAAP operating expenses$337    
Restructuring and other (1)   
Amortization of intangible assets (61)   
Non-GAAP operating expenses$275    
     
GAAP net income 151    
Interest expense, net 38    
Provision for income taxes 35    
Depreciation 24    
Restructuring and other 1    
Amortization of intangible assets 61    
Stock-based compensation 15    
Loss on extinguishment of debt 3    
Adjusted EBITDA$328    
     

MKS Inc.
Notes on Our Non-GAAP Financial Information

Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Restructuring and other includes incremental expenses incurred in connection with restructuring programs and other strategic initiatives, primarily related to changes in business and/or cost structure. Such costs may include third-party services, one-time termination benefits, facility-related costs, contract termination fees and other items that have no direct correlation to our future business operations.

Legal settlement includes charges related to the resolution of legal matters.

Amortization of intangible assets includes non-cash amortization expense associated with intangible assets acquired in acquisitions.

Loss on extinguishment of debt includes the non-cash write-off of unamortized debt issuance costs and original issue discount costs incurred from voluntary prepayments, refinancings and/or repricings of our term loan facility.

Amortization of debt issuance costs includes non-cash additional interest expense related to the amortization of debt issuance costs associated with our debt.

Loss from de-designation of interest rate hedges includes a cash loss from the de-designation of certain interest rate hedges in connection with the voluntary prepayment of the USD term loan B.

Fees and expenses related to debt activities includes direct third-party costs related to repricings or refinancings of our term loan facility and the issuance of our €1.0 billion of senior notes due 2034 in February 2026.

Convertible debt capped calls includes the antidilutive impact of the capped call transactions entered into in connection with the issuance of $1.4 billion of convertible senior notes in May 2024. The capped calls are designed to reduce potential dilution to the Company’s common stock and/or offset cash payments in excess of the principal upon conversion of the notes, subject to an initial cap of $237.42 per share (a 100% premium to the May 13, 2024 closing price of $118.71), subject to customary adjustments. Because the capped calls are excluded from GAAP diluted share calculations, GAAP and Non-GAAP diluted share counts will differ.

Tax effect of Non-GAAP adjustments includes the impact of Non-GAAP adjustments that are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates. 


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