MKS (MKSI) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Company overview and strategic evolution

• Evolved from vacuum chamber instruments to a broad portfolio in semiconductors, photonics, optics, lasers, and advanced packaging through major acquisitions, including Newport, Electro Scientific Industries, and Atotech.

• Now present in 85% of semiconductor equipment globally, addressing 70% of steps in dense interconnect manufacturing.

• Early focus on packaging and heterogeneous integration positioned the company as foundational to both Moore’s Law and advanced packaging trends.

Financial performance and outlook

• Q1 exceeded guidance on all metrics, with gross margin above 47% for the fifth consecutive quarter.

• Achieved long-term gross margin target at a lower revenue base than projected, driven by pricing and operational efficiency.

• Q2 guidance is for a flat top line, with some impact from tariffs, but overall market conditions remain steady.

Tariff impacts and mitigation

• Tariffs have a 100 basis point gross margin impact, mainly affecting the vacuum business.

• Short-term mitigation actions are underway, with long-term plans to rewire the supply chain if tariffs persist.

• Committed to maintaining 47%+ gross margin regardless of tariff environment.