We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MKS Instruments (MKSI - Free Report) reported first-quarter 2025 adjusted earnings of $1.71 per share, which beat the Zacks Consensus Estimate by 20.42% and jumped 45% year over year.
Revenues of $936 million beat the consensus mark by 0.27% and increased 7.8% year over year.
Products’ revenues (87.5% of total revenues) were $819 million, increased by 8.6% year over year. The figure beat the Zacks Consensus Estimate by 2.60%.
Services revenues (12.5% of total revenues) increased 2.6% year over year to $117 million. The figure missed the Zacks Consensus Estimate by 1.47%.
MKS Instruments, Inc. Price, Consensus and EPS Surprise
Revenues from the Semiconductor market (44.1% of total revenues) increased 17.7% year over year to $413 million. The figure beat the Zacks Consensus Estimate by 2.37%.
Electronics & Packaging revenues (27% of total revenues) were $253 million, higher than the $208 million reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 10.36%.
Specialty Industrial revenues (28.8% of total revenues) declined 12.6% year over year to $270 million. The figure missed the Zacks Consensus Estimate by 1.42%.
MKSI’s Operating Details
In the first quarter of 2025, the adjusted gross margin contracted 40 basis points (bps) on a year-over-year basis to 47.4%.
Adjusted EBITDA was up 8.8% year over year to $236 million. Adjusted EBITDA margin expanded 20 bps year over year to 25.2%.
Research & development, as a percentage of revenues, declined 60 bps year over year. Sales, general & administrative expenses, as a percentage of revenues, increased 20 bps on a year-over-year basis.
MKS Instruments reported a non-GAAP operating income of $189 million, up 8% year over year. The adjusted operating margin remained constant year over year at 20.2%.
MKSI’s Balance Sheet
As of March 31, 2025, MKS Instruments had cash and cash equivalents of $655 million compared with $714 million as of Dec. 31, 2024.
Cash flow from operations was $141 million in the first quarter of 2025 compared with $176 million reported in the fourth quarter of 2024.
Free cash flow was $123 million compared with $125 million reported in the fourth quarter of 2024.
MKSI Offers Q2 Guidance
MKSI expects second-quarter 2025 revenues of $925 million (+/- $40 million).
The company expects an adjusted EBITDA of $216 million (+/- 23 million).
On a non-GAAP basis, MKSI expects earnings of $1.56 (+/- 28 cents) per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Image: Bigstock
MKS Instruments Q1 Earnings Beat Estimates, Revenues Rise Y/Y
MKS Instruments (MKSI - Free Report) reported first-quarter 2025 adjusted earnings of $1.71 per share, which beat the Zacks Consensus Estimate by 20.42% and jumped 45% year over year.
Revenues of $936 million beat the consensus mark by 0.27% and increased 7.8% year over year.
Products’ revenues (87.5% of total revenues) were $819 million, increased by 8.6% year over year. The figure beat the Zacks Consensus Estimate by 2.60%.
Services revenues (12.5% of total revenues) increased 2.6% year over year to $117 million. The figure missed the Zacks Consensus Estimate by 1.47%.
MKS Instruments, Inc. Price, Consensus and EPS Surprise
MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. Quote
MKSI’s Q1 Details Update
Revenues from the Semiconductor market (44.1% of total revenues) increased 17.7% year over year to $413 million. The figure beat the Zacks Consensus Estimate by 2.37%.
Electronics & Packaging revenues (27% of total revenues) were $253 million, higher than the $208 million reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 10.36%.
Specialty Industrial revenues (28.8% of total revenues) declined 12.6% year over year to $270 million. The figure missed the Zacks Consensus Estimate by 1.42%.
MKSI’s Operating Details
In the first quarter of 2025, the adjusted gross margin contracted 40 basis points (bps) on a year-over-year basis to 47.4%.
Adjusted EBITDA was up 8.8% year over year to $236 million. Adjusted EBITDA margin expanded 20 bps year over year to 25.2%.
Research & development, as a percentage of revenues, declined 60 bps year over year. Sales, general & administrative expenses, as a percentage of revenues, increased 20 bps on a year-over-year basis.
MKS Instruments reported a non-GAAP operating income of $189 million, up 8% year over year. The adjusted operating margin remained constant year over year at 20.2%.
MKSI’s Balance Sheet
As of March 31, 2025, MKS Instruments had cash and cash equivalents of $655 million compared with $714 million as of Dec. 31, 2024.
Cash flow from operations was $141 million in the first quarter of 2025 compared with $176 million reported in the fourth quarter of 2024.
Free cash flow was $123 million compared with $125 million reported in the fourth quarter of 2024.
MKSI Offers Q2 Guidance
MKSI expects second-quarter 2025 revenues of $925 million (+/- $40 million).
The company expects an adjusted EBITDA of $216 million (+/- 23 million).
On a non-GAAP basis, MKSI expects earnings of $1.56 (+/- 28 cents) per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Zacks Rank & Stocks to Consider
Currently, MKSI carries a Zacks Rank #4 (Sell).
Magnachip Semiconductor (MX - Free Report) , Chegg (CHGG - Free Report) and TaskUs (TASK - Free Report) are some better-ranked stocks in the broader Zacks Computer and Technology sector.
Magnachip Semiconductor sports a Zacks Rank #1 (Strong Buy) at present, while Chegg and TaskUs carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Magnachip Semiconductor, Chegg and TaskUs are scheduled to report their respective first-quarter 2025 results on May 12.