Vishay Intertechnology (VSH) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached $800.9 million, up 1.3% sequentially and 12% year-over-year, driven by strong demand in industrial power and AI-related applications, with Asia and distribution channels leading growth.

• Book-to-bill ratio improved to 1.2 overall, with semiconductors at 1.27 and passives at 1.13; backlog at quarter end was 4.9 months, reflecting strong order momentum.

• Strategic initiatives and capacity investments under the five-year plan are driving increased market share and operational improvements, positioning for growth in automotive, AI server, industrial power, aerospace, and healthcare markets.

• Newport acquisition negatively impacted gross margin by 130–160 basis points in Q4 and FY 2025.

• Full-year 2025 net revenues totaled $3.07 billion, with a gross margin of 19.4% and operating income of $56.9 million (1.9% margin).

Financial highlights

• Q4 2025 gross profit was $157 million, with a gross margin of 19.6%, slightly above guidance, aided by higher volumes despite Newport's negative impact.

• Q4 2025 GAAP EPS was $0.01; adjusted EPS was $0.01; full-year adjusted EPS was $(0.05) due to Newport's margin impact.

• Adjusted EBITDA for Q4 2025 was $70.3 million (8.8% margin); full-year adjusted EBITDA was $264.2 million (8.6% margin).

• Q4 2025 free cash flow was $54.9 million, rebounding from negative free cash in prior quarters; full-year free cash flow was ($87.8) million, reflecting high capital expenditures.

• CapEx for Q4 was $95 million, with $75 million for capacity expansion; full-year CapEx was $273.3 million, below guidance due to equipment delays.

Outlook and guidance

• Q1 2026 revenue expected between $800 million and $830 million, with sequential growth in all five key segments.

• Gross margin guidance is 19.9% ±50 bps, with Newport expected to negatively impact by 50–75 bps; SG&A projected at $153 million ±$2 million.

• CapEx for 2026 planned at $400–$440 million, peaking in H1 due to 12-inch fab investments, then tapering in H2.

• Free cash flow expected to be negative in 2026 due to high CapEx; dividend to be maintained.