GAAP net income of $84 million and net income per diluted share of $1.18
Adjusted EBITDA of $277 million and Non-GAAP net earnings per diluted share of $2.30, each above the high end of guidance
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
Revenue of $1,200 million, plus or minus $40 million
Gross margin of 47.0%, plus or minus 1.0%
GAAP operating expenses of $337 million, plus or minus $5 million and Non-GAAP operating expenses of $275 million, plus or minus $5 million
GAAP net income of $151 million, plus or minus $21 million and Non-GAAP net earnings of $202 million, plus or minus $21 million
GAAP net income per diluted share of $2.09, plus or minus $0.29 and Non-GAAP net earnings per diluted share of $2.90, plus or minus $0.30
Adjusted EBITDA of $328 million, plus or minus $26 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.
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 MisraVice President, Investor RelationsTelephone: (978) 284-4705Email: [email protected]
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
