MKS (MKSI) investor relations material

Executive summary

• Q1 2026 revenue reached $1.078 billion, at the high end of guidance, with strong profitability and bookings across all end markets, driven by AI-related and semiconductor demand.

• Non-GAAP net earnings were $157 million ($2.30 per diluted share), and GAAP net income was $84 million ($1.18 per diluted share), both above guidance.

• Adjusted EBITDA was $277 million (25.7% margin), supported by robust gross margins and operational discipline.

• Investments in R&D and collaborative customer programs are yielding advanced products and new design wins.

• Capacity is sufficient for current and near-term demand, with a new Malaysia facility opening in June to support future growth.

Financial highlights

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

• Gross margin was 47.0%, at the high end of guidance.

• Operating income was $235 million (21.8% margin) non-GAAP; GAAP operating margin was 13.8%.

• Free cash flow was $29 million; liquidity exceeded $1.5 billion, including $569 million in cash and a $1.0 billion undrawn credit facility.

• Dividend per share increased to $0.25, with $17 million paid in Q1.

Outlook and guidance

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

• Q2 gross margin expected at 47% ±100 bps; Adjusted EBITDA at $328 million ±$26 million.

• Q2 net earnings per diluted share projected at $2.90 ±$0.30 (non-GAAP); GAAP net income projected at $151 million ±$21 million.

• Full-year CapEx expected at 4%-5% of revenue; tax rate 18%-20%.

• Guidance reflects current business environment, including U.S. tariffs and retaliatory actions.