MKS Instruments MKSI reported first-quarter 2025 adjusted earnings of $1.71 per share, which beat the Zacks Consensus Estimate by 20.42% and jumped 45% year over year.

Revenues of $936 million beat the consensus mark by 0.27% and increased 7.8% year over year.

Products’ revenues (87.5% of total revenues) were $819 million, increased by 8.6% year over year. The figure beat the Zacks Consensus Estimate by 2.60%.

Services revenues (12.5% of total revenues) increased 2.6% year over year to $117 million. The figure missed the Zacks Consensus Estimate by 1.47%.

MKS Instruments, Inc. Price, Consensus and EPS Surprise

MKS Instruments, Inc. price-consensus-eps-surprise-chart | MKS Instruments, Inc. Quote

MKSI’s Q1 Details Update

Revenues from the Semiconductor market (44.1% of total revenues) increased 17.7% year over year to $413 million. The figure beat the Zacks Consensus Estimate by 2.37%.

Electronics & Packaging revenues (27% of total revenues) were $253 million, higher than the $208 million reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 10.36%.

Specialty Industrial revenues (28.8% of total revenues) declined 12.6% year over year to $270 million. The figure missed the Zacks Consensus Estimate by 1.42%.

MKSI’s Operating Details

In the first quarter of 2025, the adjusted gross margin contracted 40 basis points (bps) on a year-over-year basis to 47.4%.

Adjusted EBITDA was up 8.8% year over year to $236 million. Adjusted EBITDA margin expanded 20 bps year over year to 25.2%.

Research & development, as a percentage of revenues, declined 60 bps year over year. Sales, general & administrative expenses, as a percentage of revenues, increased 20 bps on a year-over-year basis.

MKS Instruments reported a non-GAAP operating income of $189 million, up 8% year over year. The adjusted operating margin remained constant year over year at 20.2%.

MKSI’s Balance Sheet

As of March 31, 2025, MKS Instruments had cash and cash equivalents of $655 million compared with $714 million as of Dec. 31, 2024.

Cash flow from operations was $141 million in the first quarter of 2025 compared with $176 million reported in the fourth quarter of 2024.

Free cash flow was $123 million compared with $125 million reported in the fourth quarter of 2024.

MKSI Offers Q2 Guidance

MKSI expects second-quarter 2025 revenues of $925 million (+/- $40 million).

The company expects an adjusted EBITDA of $216 million (+/- 23 million).

On a non-GAAP basis, MKSI expects earnings of $1.56 (+/- 28 cents) per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Story Continues

Zacks Rank & Stocks to Consider

Currently, MKSI carries a Zacks Rank #4 (Sell).

Magnachip Semiconductor MX, Chegg CHGG and TaskUs TASK are some better-ranked stocks in the broader Zacks Computer and Technology sector.

Magnachip Semiconductor sports a Zacks Rank #1 (Strong Buy) at present, while Chegg and TaskUs carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magnachip Semiconductor, Chegg and TaskUs are scheduled to report their respective first-quarter 2025 results on May 12.

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MKS Instruments, Inc. (MKSI):Free Stock Analysis Report

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