MKS Inc. Reports Second Quarter 2026 Financial Results
Andover, MA, August 5, 2026 — MKS Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported its financial results for the second quarter of 2026.
- Revenue of $1,248 million, above the high end of guidance
- GAAP net income of $175 million and net income per diluted share of $2.41, each above the high end of guidance
- Adjusted EBITDA of $358 million and Non-GAAP net earnings per diluted share of $3.30, each above the high end of guidance
“MKS delivered accelerated double-digit year-over-year revenue growth across each of our end markets in the second quarter, demonstrating our foundational role as an enabler of advanced electronics,” said John T.C. Lee, President and Chief Executive Officer. “As AI-driven investment levels intensify across semiconductor and advanced packaging applications, our momentum is continuing to build, including rapidly growing order volumes. With the industry’s broadest technology capabilities, deep relationships in the electronics ecosystem, and enhanced capacity to deliver to customer demand, we are confident in MKS’ near- and long-term growth prospects.”
“Our second quarter revenue and key profitability metrics once again came in at or above the high end of our guided ranges, underscoring our strong execution and favorable position in a robust demand environment,” said Ram Mayampurath, Executive Vice President and Chief Financial Officer. “We are demonstrating our ability to drive profitable growth and healthy free cash flow as we further strengthen our balance sheet and invest for the future.”
Selected GAAP and Non-GAAP Financial Measures
| (In millions, except per share data) | Q2 2026 | Q1 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|---|
| Net Revenues — Semiconductor | $554 | $466 | $432 | $1,019 | $846 |
| Net Revenues — Electronics & Packaging | 381 | 321 | 266 | 703 | 519 |
| Net Revenues — Specialty Industrial | 313 | 291 | 275 | 604 | 545 |
| Total net revenues | $1,248 | $1,078 | $973 | $2,326 | $1,910 |
| Gross Margin | 47.6% | 47.0% | 46.6% | 47.3% | 47.0% |
| GAAP operating margin | 20.1% | 13.8% | 13.9% | 17.2% | 12.9% |
| GAAP net income | $175 | $84 | $62 | $258 | $114 |
| GAAP net income per diluted share | $2.41 | $1.18 | $0.92 | $3.60 | $1.69 |
| Non-GAAP operating margin | 25.6% | 21.8% | 20.8% | 23.9% | 20.5% |
| Non-GAAP net earnings | $232 | $157 | $119 | $389 | $235 |
| Non-GAAP net earnings per diluted share | $3.30 | $2.30 | $1.77 | $5.61 | $3.48 |
Additional Financial Information
At June 30, 2026, the Company had $611 million in cash and cash equivalents, $1.5 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding, €1.0 billion of senior notes outstanding and up to $1.0 billion of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. The trading price of our common stock during the second quarter of 2026 resulted in the satisfaction of the stock price conversion condition under the indenture governing our convertible senior notes. As a result, the convertible senior notes are convertible, in whole or in part, at the option of the noteholders at any time during the third quarter of 2026, and were classified as short-term debt, net of issuance costs, at June 30, 2026.
In August 2026, the Company made a voluntary principal prepayment of $100 million on its USD term loan B.
Third Quarter 2026 Guidance
- Revenue of $1,350 million, plus or minus $40 million
- Gross margin of 47.0%, plus or minus 1.0%
- GAAP operating expenses of $346 million, plus or minus $5 million and Non-GAAP operating expenses of $280 million, plus or minus $5 million
- GAAP net income of $201 million, plus or minus $23 million and Non-GAAP net earnings of $257 million, plus or minus $22 million
- GAAP net income per diluted share of $2.73, plus or minus $0.31 and Non-GAAP net earnings per diluted share of $3.58, plus or minus $0.31
- Adjusted EBITDA of $395 million, plus or minus $28 million
The guidance for the third quarter is based on the current business environment, including the impact of U.S. import tariffs and the imposition of retaliatory actions taken by other countries up through but not including the date of this release. The Company will continue to monitor and adapt to changes in the business environment as needed.
Unaudited Consolidated Statements of Operations
| (In millions, except per share data) — Three Months Ended June 30 | 2026 | March 31, 2026 | 2025 |
|---|---|---|---|
| Products | $1,104 | $954 | $848 |
| Services | 144 | 124 | 125 |
| Total net revenues | 1,248 | 1,078 | 973 |
| Total cost of revenues | 653 | 571 | 520 |
| Gross profit | 595 | 507 | 453 |
| Research and development | 76 | 81 | 76 |
| Selling, general and administrative | 200 | 190 | 175 |
| Restructuring and other | 6 | 3 | 5 |
| Legal settlement | — | 3 | — |
| Fees and expenses related to debt activities | — | 18 | — |
| Amortization of intangible assets | 62 | 63 | 62 |
| Income from operations | 251 | 149 | 135 |
| Interest income | (2) | (2) | (4) |
| Interest expense | 38 | 45 | 55 |
| Loss on extinguishment of debt | 4 | 5 | 2 |
| Other (income) expense, net | (2) | (1) | 10 |
| Income before income taxes | 213 | 102 | 72 |
| Provision for income taxes | 38 | 18 | 10 |
| Net income | $175 | $84 | $62 |
| Net income per common share — Basic | $2.59 | $1.24 | $0.92 |
| Net income per common share — Diluted | $2.41 | $1.18 | $0.92 |
Unaudited Consolidated Statements of Cash Flows (key items)
| (In millions) — Three Months Ended June 30 | 2026 | March 31, 2026 | 2025 |
|---|---|---|---|
| Net cash provided by operating activities | $243 | $53 | $165 |
| Purchases of property, plant and equipment | (55) | (25) | (29) |
| Net cash used in investing activities | (55) | (25) | (27) |
| Repurchase of common stock | — | — | (45) |
| Payments of borrowings | (104) | (1,274) | (113) |
| Dividend payments | (17) | (17) | (15) |
Free Cash Flow and Adjusted EBITDA
| (In millions) | Q2 2026 | Q1 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|---|
| Net cash provided by operating activities | $243 | $53 | $165 | $296 | $306 |
| Purchases of property, plant and equipment | (55) | (25) | (29) | (79) | (47) |
| Free cash flow | $188 | $29 | $136 | $217 | $259 |
| (In millions) | Q2 2026 | Q1 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|---|
| Adjusted EBITDA | $358 | $277 | $240 | $635 | $476 |
| Adjusted EBITDA margin | 28.6% | 25.7% | 24.7% | 27.3% | 24.9% |
About MKS Inc.
MKS Inc. (NASDAQ: MKSI) enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Additional information can be found at www.mks.com.
Use of Non-GAAP Financial Results
This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.