MKSI Q2 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Rise

MKS Inc. MKSI reported second-quarter 2025 adjusted earnings of $1.77 per share, beating the Zacks Consensus Estimate by 9.94%. The figure increased 15.7% year over year.Revenues of $973 million beat the consensus mark by 4.61% and increased 9.7% year over year.MKSI shares jumped 6.6% in pre-market trading. The company lost 14.2% year to date, underperforming the Zacks Computer and Technology sector’s 12.2%.MKSI Q2 Top-Line DetailsProducts revenues (87.2% of total revenues) were $848 million, up 10.1% year over year. Services revenues (12.8% of total revenues) increased 6.8% year over year to $125 million. Revenues from the Semiconductor market (44.4% of total revenues) increased 17.1% year over year to $432 million. Electronics & Packaging revenues (27.3% of total revenues) were $266 million, up 16.2% year over year. Specialty Industrial revenues (28.3% of total revenues) declined 4.8% year over year to $275 million.  MKS Inc. Price, Consensus and EPS Surprise MKS Inc. price-consensus-eps-surprise-chart | MKS Inc. Quote Revenues from the Vacuum Solutions (41.8% of total revenues) increased 21.5% year over year to $407 million. Photonics Solutions revenues (25% of total revenues) were $243 million, down 4.3% year over year. Materials Solutions revenues (33.2% of total revenues) climbed up 8.4% year over year to $323 million.MKSI’s Q2 Operating DetailsIn the second quarter, the adjusted gross margin contracted 70 basis points (bps) on a year-over-year basis to 46.6%.Adjusted EBITDA increased 5.3% year over year to $240 million. Adjusted EBITDA margin contracted 100 bps year over year to 24.7%.Total operating expenses increased 10.6% year over year to $251 million in the reported quarter.MKS reported a non-GAAP operating income of $202 million, up 5.2% year over year. The adjusted operating margin contracted 90 bps year over year to 20.8%.MKSI’s Balance SheetAs of June 30, 2025, MKS Instruments had cash and cash equivalents of $674 million compared with $655 million as of March 31.As of June 30, 2025, long-term debt was $4.36 billion.Cash flow from operations was $165 million in the second quarter of 2025 compared with $141 million reported in the first quarter of 2025.Free cash flow was $136 million compared with $123 million reported in the first quarter of 2025.MKSI Offers Q3 GuidanceMKSI expects third-quarter 2025 revenues of $960 million (+/- $40 million).MKS expects gross margin of 46.5% (+/- 1%). The company expects an adjusted EBITDA of $232 million (+/- 24 million). On a non-GAAP basis, MKSI expects earnings of $1.80 (+/- 29 cents) per share.MKSI’s Zacks Rank & Stocks to ConsiderCurrently, MKSI carries a Zacks Rank #3 (Hold).OptimizeRx OPRX, StoneCo STNE and Vipshop VIPS are some stocks worth considering in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.OptimizeRx shares have jumped 156.8% year to date. OptimizeRx is set to report its second-quarter 2025 results on Aug. 7.StoneCo shares have appreciated 68.2% year to date. StoneCo is set to report its second-quarter 2025 results on Aug. 7.Vipshop shares are up 13.1% year to date. Vipshop is set to report its second-quarter 2025 results on Aug. 14.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MKS Inc. (MKSI): Free Stock Analysis Report OptimizeRx Corp. (OPRX): Free Stock Analysis Report Vipshop Holdings Limited (VIPS): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks