MKS Q4 Earnings Call Highlights

• The 3 Favored Machinery Stocks To Buy In August

For the 4th quarter, MKS reported gross of $1.03 billion, up 5% sequentially and 10% twelvemonth implicit year. Gross borderline was 46.4%, and nett net were $168 million, oregon $2.47 per diluted share, which absorption said was supra the midpoint of its guidance range.

Mayampurath said gross borderline show came contempt “ongoing interaction from higher tariffs,” higher palladium prices that are passed done astatine “zero margins,” and a higher chemistry instrumentality mix. Operating expenses were $263 million, somewhat supra the company’s guidance range, chiefly owed to higher adaptable compensation tied to stronger-than-expected results. Operating income was astir $217 million (a 21% operating margin), and adjusted EBITDA was $249 million (a 24.1% margin).

→ Whale Watching: BlackRock’s Massive Bet connected Nebius Group

Liquidity astatine quarter-end was astir $1.4 billion, consisting of $675 million of currency and currency equivalents and a $675 million undrawn revolving recognition facility. Net indebtedness ended the twelvemonth astatine $3.6 billion, with a nett leverage ratio of 3.7x, based connected full-year 2025 adjusted EBITDA of $966 million.

MKS reported maturation crossed each 3 extremity markets successful the quarter.

• Semiconductor: Revenue was $435 million, up 5% sequentially and 9% twelvemonth implicit year, driven by strengthening request successful DRAM and logic/foundry applications. Management highlighted subsystems serving etch and deposition, on with continued momentum successful plasma and reactive gases. Lee said NAND-related enactment was unchangeable sequentially, “as expected,” portion orders remained robust successful dissolved gases for precocious logic and successful back-end applications tied to high-bandwidth memory.

• Electronics and packaging: Revenue was $303 million, up 5% sequentially and 19% twelvemonth implicit year, chiefly reflecting accrued flexible PCB drilling and chemistry instrumentality sales. Mayampurath said chemistry income were up 16% twelvemonth implicit twelvemonth successful the 4th excluding overseas speech and palladium pass-through.

• Specialty industrial: Revenue was $295 million, up 4% sequentially and 5% twelvemonth implicit year, with betterment successful probe and defence and definite concern applications, partially offset by softness successful automotive.