Vishay Intertechnology (VSH) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $790.6M, up 3.7% sequentially and 7.5% year-over-year, led by automotive, industrial, smart grid, AI, and aerospace/defense sectors, with Asia showing the strongest regional growth.

• Gross margin was 19.5%, negatively impacted by Newport by 150–175 basis points.

• Adjusted EPS was $0.04, while GAAP net loss per share was $(0.06); net loss attributable to stockholders was $(7.9)M.

• Book-to-bill ratio was 0.97, with backlog at 4.4 months; October run-rate improved to 1.15, signaling strengthening demand.

• Orders are up 19% year-over-year, with backlog building in automotive, smart grid, aerospace defense, and AI-related power.

Financial highlights

• Gross profit was $154M, with a gross margin of 19.5%, flat sequentially and down from 20.5% YoY.

• Adjusted EBITDA was $76M, with a margin of 9.6%; operating income was $19.1M, margin 2.4%.

• Free cash flow for Q3 was $(24.3)M, improved from Q2, but $(142.7)M for the nine months due to high capex.

• Global cash and short-term investments stood at $444M, with $189M outstanding on the revolver and $919.7M total debt.

• Cash dividends per share were $0.10 for Q3 and $0.30 for the nine months.

Outlook and guidance

• Q4 2025 revenue guidance is $790M ± $20M; gross margin expected at 19.5% ± 50 bps, with Newport impact of negative 150–175 bps.

• SG&A projected at $138M ± $2M; depreciation expense forecasted at $55M for Q4 and $212M for FY2025.

• Capex for 2025 guided at $300–$350M; negative free cash flow expected for 2025 due to capacity expansion, but dividend to be maintained.

• Book-to-bill ratio for Q3 was 0.97, indicating slightly declining demand, but October run-rate improved.