MKS Inc. reported its third‑quarter 2025 results on November 5, 2025, delivering a Non‑GAAP earnings per diluted share of $1.93—$0.13 above the consensus estimate of $1.80 and a 7.2% beat. The company’s revenue reached $988 million, up 10.3% year‑over‑year and $25 million above the $963 million consensus, driven by robust demand in its semiconductor and electronics & packaging businesses.
Revenue was broken down into three operating segments: Semiconductor revenue rose to $415 million, Electronics & Packaging to $289 million, and Specialty Industrial to $284 million. The semiconductor segment benefited from high‑margin advanced logic and memory node equipment, while the electronics & packaging segment saw strong growth in AI‑driven advanced packaging solutions. Specialty Industrial revenue remained flat, reflecting seasonal softness in legacy chemistry equipment sales.
Gross margin for the quarter was 46.6%, slightly below the 48.2% margin reported in Q3 2024. The modest compression was attributed to a higher mix of lower‑margin chemistry equipment and the impact of tariff adjustments, which the company expects to offset dollar‑for‑dollar starting in Q4. Operating income increased to $152 million, supported by disciplined cost management and the absence of significant one‑time charges.
Cash and cash equivalents stood at $697 million, giving the company a net leverage ratio of 3.9x—well below the 4.0x threshold it has targeted. In October, MKS made a voluntary prepayment of $100 million on its term loan B, adding to a $100 million prepayment in August and a $200 million prepayment in June, bringing total voluntary prepayments to $400 million for 2025.
Management guided for Q4 revenue of $990 million ± $40 million and Non‑GAAP EPS of $1.93–$2.61, maintaining the full‑year revenue outlook of $4.396 billion–$4.400 billion and adjusted operating income guidance of $2.151 billion–$2.155 billion. The guidance reflects confidence in continued AI‑related demand and the company’s ability to manage costs while investing in high‑return technology portfolios.
CEO John T.C. Lee said, “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.” CFO Ram Mayampurath added, “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.” These comments underscore MKS’s focus on leveraging AI demand, maintaining margin discipline, and accelerating debt reduction.
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