Vishay Intertechnology (VSH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $839.2 million, up 17.3% year-over-year and 4.8% sequentially, driven by broad-based growth across all end markets, channels, and regions.

• Net earnings were $7.2 million ($0.05 per diluted share), reversing a net loss of $4.1 million in Q1 2025 and up from $0.01 in Q4.

• Gross margin improved to 21.0%, up from 19.0% a year ago and 19.6% in the previous quarter.

• Book-to-bill ratio was 1.34 overall, with semiconductors at 1.47 and passives at 1.23; backlog at quarter end stood at 5.7 months, reflecting strong order momentum.

• Strategic investments in capacity, customer engagement, and product portfolio expansion are fueling market share gains, especially in automotive, industrial, and AI-related applications.

Financial highlights

• Operating income was $22.1 million (2.6% margin), up from $0.8 million (0.1%) in Q1 2025.

• EBITDA reached $78 million (9.3% margin), up from 8.8% in Q4 and $54.5 million (7.6%) in Q1 2025.

• Free cash flow was negative at $(47) million, impacted by high capital expenditures.

• Cash and cash equivalents at quarter end were $479.4 million; net cash and short-term investments (debt) stood at $(503.5) million.

• Dividend of $0.10 per share was maintained, with $13.6 million paid in Q1.

Outlook and guidance

• Q2 2026 revenue expected between $875 million and $905 million.

• Gross margin guidance for Q2 is 22.0% ±50 bps, factoring in higher logistics and input costs.

• SG&A expected at $155 million ±$3 million; depreciation at ~$54 million for Q2.

• Effective tax rate for Q2 expected between 40% and 50%.

• 2026 capex guidance: $400–440 million, with negative free cash flow anticipated due to ongoing capacity expansion.