Vishay Intertechnology (VSH) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $715.2 million, flat sequentially and down 4% year-over-year, with gross margin at 19.0% and net loss of $(4.1) million or $(0.03) per share, impacted by lower ASPs and Newport acquisition.

• Book-to-bill ratio was 1.08 overall, with semiconductors at 1.12 and passives at 1.04, indicating normalized channel inventory and positive order trends; backlog increased to $1.12B.

• Free cash flow was negative at $(45.2) million, with capital expenditures of $61.6 million and continued high capex planned for capacity expansion.

• Strategic plan execution continues, focusing on capacity expansion, innovation, and leveraging megatrends in e-mobility, AI, and smart grid.

• Distribution revenue grew 3% sequentially, while OEM and EMS revenues declined due to lower ASPs and market softness.

Financial highlights

• Gross profit was $135.6 million, with a gross margin of 19.0%, down from 22.8% year-over-year, mainly due to lower ASPs and Newport impact.

• Adjusted EBITDA was $54.5 million (7.6% margin), down from 12.2% a year ago.

• Operating margin was 0.1%, down from 5.7% a year ago; net loss attributable to stockholders was $(4.1) million.

• Free cash flow was $(45.2) million, with $16.1 million in operating cash flow.

• Cash and cash equivalents increased to $609.4 million at quarter end.

Outlook and guidance

• Q2 2025 revenue expected at $760 million ±$20 million, a 6% sequential increase, with gross margin guidance at 19.0% ±50 basis points, including a 175–200 bps negative impact from Newport.

• Tariff impacts are expected to be limited, with less than 4% of Q1 sales exposed to new China-U.S. tariffs and a ~30 bps gross margin impact.

• SG&A for Q2 expected at $136 million; full-year CapEx planned at $300–$350 million, mostly for capacity expansion.

• Negative free cash flow expected for 2025 due to ongoing capacity investments.

• Book-to-bill ratio above 1.0 and increased backlog suggest improving demand, though ASPs remain under pressure.