MKS Inc. Reports First Quarter 2026 Financial Results

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  • Revenue of $1,078 million, at the high end of guidance
  • 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 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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Source: MKS Inc.