MKS (MKSI) investor relations material

Executive summary

• Q1 2026 revenue reached $1.078 billion, up 15% year-over-year and 4% sequentially, exceeding guidance and driven by strong demand in AI-related, semiconductor, and electronics markets.

• Profitability metrics, including gross margin and EPS, were at the high end of guidance, with robust bookings and operational execution across all end markets.

• Investments in R&D and collaborative development yielded advanced products and new design wins, strengthening market position.

• Adjusted EBITDA was $277 million, with strong cash generation and disciplined operations.

• Net income for Q1 2026 was $84 million (GAAP, $1.18 per diluted share); Non-GAAP net earnings were $157 million ($2.30 per diluted share).

Financial highlights

• Q1 2026 revenue was $1.078 billion, up 15% year-over-year and 4% sequentially.

• Gross margin was 47.0%, at the high end of guidance; operating margin was 21.8% (Non-GAAP) and 13.8% (GAAP).

• Adjusted EBITDA was $277 million (25.7% margin); net earnings were $157 million (Non-GAAP), $84 million (GAAP).

• Free cash flow was $29 million; liquidity exceeded $1.5 billion, including $569 million in cash and $1 billion undrawn credit.

• Dividend increased by 14% to $0.25 per share, totaling $17 million for the quarter.

Outlook and guidance

• Q2 2026 revenue expected at $1.2 billion ±$40 million; all segments projected to grow sequentially.

• Q2 gross margin guided at 47% ±1.0%; adjusted EBITDA $328 million ±$26 million; net EPS $2.90 ±$0.30 (Non-GAAP).

• CapEx for the year projected at 4%-5% of revenue; tax rate expected at 20% for Q2 and 18%-20% for the full year.

• Guidance reflects current business environment, including tariffs and global trade actions.

• Continued focus on cash generation, de-leveraging, and global facility investments.