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 distribution channels leading growth.

• Orders hit a three-year high, with a book-to-bill ratio of 1.2 overall, 1.27 for semiconductors, and 1.13 for passives; backlog at quarter end was 4.9 months, indicating strong demand momentum.

• 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).

• Strategic initiatives and capacity investments under the Vishay 3.0 plan and portfolio expansion are driving revenue and market share gains in automotive, AI server, industrial power, aerospace, and healthcare markets.

• Backlog grew nearly 14% sequentially, ending at $1.3 billion or 4.9 months of sales, positioning the company for continued growth.

Financial highlights

• Q4 2025 gross profit was $157 million, with a gross margin of 19.6%, modestly above guidance and Q3 levels, but negatively impacted by 130 basis points due to Newport.

• Q4 2025 GAAP EPS was $0.01; adjusted EPS was $0.01; full-year GAAP net loss attributable to stockholders was $8.98 million, or $(0.07) per share; adjusted EPS was $(0.05).

• 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; full-year free cash flow was ($87.8) million, reflecting high capital expenditures.

• Operating cash flow was $149 million in Q4, including $62 million from accounts receivable securitization.

Outlook and guidance

• Q1 2026 revenue guidance is $800–$830 million, with sequential growth in all five key segments and gross margin expected at 19.9% ±50 bps, including a 50–75 bps negative impact from Newport.

• SG&A expected at $153 million ±$2 million per quarter in 2026, reflecting higher incentive and stock compensation.

• CapEx for 2026 projected at $400–$440 million, peaking in the first half due to 12-inch fab investments.

• Free cash flow expected to be negative in 2026 due to capacity expansion.