MKS Instruments Reports Fourth Quarter and Full-Year 2024 Financial Results
MKS Instruments (NASDAQ: MKSI) reported strong Q4 2024 financial results with quarterly revenue of $935 million, exceeding guidance midpoint. The company achieved quarterly GAAP net income of $90 million ($1.33 per diluted share) and Adjusted EBITDA of $237 million. Non-GAAP earnings per diluted share reached $2.15, also above guidance midpoint.
For Q1 2025, MKS projects revenue of $910 million (±$40M), GAAP net income of $43 million (±$19M), and Adjusted EBITDA of $217 million (±$23M). The company expects GAAP net income per diluted share of $0.63 (±$0.28) and Non-GAAP earnings of $1.40 (±$0.27) per diluted share.
The company highlighted strong customer engagement in World Class Optics solutions and positive trends in its chemistry business. Management also noted proactive leverage management, including a term loan B repricing and a $100 million voluntary principal prepayment in January.
MKS Instruments (NASDAQ: MKSI) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con un fatturato trimestrale di 935 milioni di dollari, superando il punto medio delle previsioni. L'azienda ha registrato un utile netto GAAP trimestrale di 90 milioni di dollari (1,33 dollari per azione diluita) e un EBITDA rettificato di 237 milioni di dollari. Gli utili per azione diluita non-GAAP hanno raggiunto i 2,15 dollari, anch'essi superiori al punto medio delle previsioni.
Per il primo trimestre del 2025, MKS prevede un fatturato di 910 milioni di dollari (±40 milioni di dollari), un utile netto GAAP di 43 milioni di dollari (±19 milioni di dollari) e un EBITDA rettificato di 217 milioni di dollari (±23 milioni di dollari). L'azienda si aspetta un utile netto GAAP per azione diluita di 0,63 dollari (±0,28 dollari) e utili non-GAAP di 1,40 dollari (±0,27 dollari) per azione diluita.
L'azienda ha evidenziato un forte coinvolgimento dei clienti nelle soluzioni di ottica di classe mondiale e tendenze positive nel suo business chimico. La direzione ha anche notato una gestione proattiva della leva finanziaria, inclusa una riqualificazione del prestito a termine B e un rimborso anticipato volontario di 100 milioni di dollari a gennaio.
MKS Instruments (NASDAQ: MKSI) informó resultados financieros sólidos para el cuarto trimestre de 2024, con ingresos trimestrales de 935 millones de dólares, superando el punto medio de las proyecciones. La compañía logró un ingreso neto GAAP trimestral de 90 millones de dólares (1,33 dólares por acción diluida) y un EBITDA ajustado de 237 millones de dólares. Las ganancias por acción diluida no-GAAP alcanzaron los 2,15 dólares, también por encima del punto medio de las proyecciones.
Para el primer trimestre de 2025, MKS proyecta ingresos de 910 millones de dólares (±40 millones de dólares), un ingreso neto GAAP de 43 millones de dólares (±19 millones de dólares) y un EBITDA ajustado de 217 millones de dólares (±23 millones de dólares). La compañía espera un ingreso neto GAAP por acción diluida de 0,63 dólares (±0,28 dólares) y ganancias no-GAAP de 1,40 dólares (±0,27 dólares) por acción diluida.
La compañía destacó un fuerte compromiso de los clientes en soluciones de Óptica de Clase Mundial y tendencias positivas en su negocio químico. La dirección también mencionó una gestión proactiva de la palanca financiera, incluida una revalorización del préstamo a plazo B y un pago anticipado voluntario de 100 millones de dólares en enero.
MKS Instruments (NASDAQ: MKSI)는 2024년 4분기 재무 결과를 발표하며 분기 매출이 9억 3천5백만 달러에 달해 가이던스 중간치를 초과했다고 밝혔습니다. 회사는 분기 GAAP 순이익으로 9천만 달러 (희석 주당 1.33 달러)를 기록했으며 조정 EBITDA는 2억 3천7백만 달러에 달했습니다. 비-GAAP 희석 주당 순이익은 2.15 달러로, 가이던스 중간치를 초과했습니다.
2025년 1분기 동안 MKS는 9억 1천만 달러 (±4천만 달러)의 매출, GAAP 순이익 4천3백만 달러 (±1천9백만 달러), 조정 EBITDA 2억 1천7백만 달러 (±2천3백만 달러)를 예상하고 있습니다. 회사는 희석 주당 GAAP 순이익이 0.63 달러 (±0.28 달러)이고 비-GAAP 순이익이 1.40 달러 (±0.27 달러)로 예상하고 있습니다.
회사는 세계적 수준의 광학 솔루션에 대한 강력한 고객 참여와 화학 사업에서의 긍정적인 추세를 강조했습니다. 경영진은 또한 B형 대출의 재가격 책정 및 1월에 1억 달러의 자발적 원금 조기 상환을 포함한 사전 조치를 언급했습니다.
MKS Instruments (NASDAQ: MKSI) a annoncé des résultats financiers solides pour le quatrième trimestre 2024, avec des revenus trimestriels de 935 millions de dollars, dépassant le point médian des prévisions. L'entreprise a réalisé un bénéfice net GAAP trimestriel de 90 millions de dollars (1,33 dollar par action diluée) et un EBITDA ajusté de 237 millions de dollars. Les bénéfices par action diluée non-GAAP ont atteint 2,15 dollars, également au-dessus du point médian des prévisions.
Pour le premier trimestre 2025, MKS projette des revenus de 910 millions de dollars (±40 millions de dollars), un bénéfice net GAAP de 43 millions de dollars (±19 millions de dollars) et un EBITDA ajusté de 217 millions de dollars (±23 millions de dollars). L'entreprise s'attend à un bénéfice net GAAP par action diluée de 0,63 dollar (±0,28 dollar) et des bénéfices non-GAAP de 1,40 dollar (±0,27 dollar) par action diluée.
L'entreprise a mis en avant un fort engagement des clients dans des solutions d'optique de classe mondiale et des tendances positives dans son activité chimique. La direction a également noté une gestion proactive de l'effet de levier, y compris une revalorisation d'un prêt à terme B et un remboursement anticipé volontaire de 100 millions de dollars en janvier.
MKS Instruments (NASDAQ: MKSI) berichtete über starke finanzielle Ergebnisse im vierten Quartal 2024 mit einem Quartalsumsatz von 935 Millionen US-Dollar, der den Mittelwert der Prognose übertraf. Das Unternehmen erzielte einen quartalsweisen GAAP-Nettoertrag von 90 Millionen US-Dollar (1,33 US-Dollar pro verwässerter Aktie) und ein bereinigtes EBITDA von 237 Millionen US-Dollar. Der Gewinn pro verwässerter Aktie nach Non-GAAP betrug 2,15 US-Dollar, ebenfalls über dem Mittelwert der Prognose.
Für das erste Quartal 2025 rechnet MKS mit einem Umsatz von 910 Millionen US-Dollar (±40 Millionen US-Dollar), einem GAAP-Nettoergebnis von 43 Millionen US-Dollar (±19 Millionen US-Dollar) und einem bereinigten EBITDA von 217 Millionen US-Dollar (±23 Millionen US-Dollar). Das Unternehmen erwartet einen GAAP-Nettoertrag pro verwässerter Aktie von 0,63 US-Dollar (±0,28 US-Dollar) und Non-GAAP-Gewinne von 1,40 US-Dollar (±0,27 US-Dollar) pro verwässerter Aktie.
Das Unternehmen hob das starke Kundenengagement in Weltklasse-Optiklösungen und positive Trends im Chemiebereich hervor. Das Management wies auch auf eine proaktive Hebelverwaltung hin, einschließlich einer Neupreisgestaltung eines Terminkredits B und einer freiwilligen vorzeitigen Rückzahlung von 100 Millionen US-Dollar im Januar hin.
- Q4 revenue of $935M exceeded guidance midpoint
- Strong quarterly GAAP net income of $90M
- Healthy gross margin and earnings growth in 2024
- Increased operating cash flow in 2024
- $100M voluntary debt prepayment showing financial strength
- Q1 2025 guidance shows sequential revenue decline to $910M
- Projected Q1 2025 GAAP net income decrease to $43M from Q4's $90M
- Mixed demand backdrop noted in business environment
Insights
The Q4 2024 results demonstrate MKS Instruments' operational resilience and strategic execution in a challenging market environment. The $935 million revenue achievement, surpassing guidance midpoint, reflects strong market positioning across semiconductor, electronics, and industrial applications. The $237 million adjusted EBITDA indicates robust operational efficiency and pricing power.
The company's proactive financial management deserves particular attention. The voluntary
Looking forward, the Q1 2025 guidance suggests a measured outlook with $910 million projected revenue, representing a modest sequential decline of
The mention of "immaterial impact" from recent U.S. import tariffs warrants attention, as it suggests effective supply chain management and pricing flexibility. However, investors should monitor potential escalation of trade tensions and their impact on margins and customer demand patterns.
- Quarterly revenue of
$935 million , above the midpoint of guidance - Quarterly GAAP net income of
$90 million and net income per diluted share of$1.33 - Quarterly Adjusted EBITDA of
$237 million and Non-GAAP net earnings per diluted share of$2.15 , above the midpoint of guidance
ANDOVER, Mass., Feb. 12, 2025 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported fourth quarter and full year 2024 financial results.
“MKS delivered revenue and adjusted EBITDA above the midpoint of our outlook, closing out 2024 on an impressive note against a mixed demand backdrop,” said John T.C. Lee, President and Chief Executive Officer. “Our broad and deep technology portfolio serving an array of semiconductor, electronics and industrial applications enables us to address key demand opportunities as broader end market recovery begins to develop.”
Mr. Lee added, “We enter 2025 in a strong position, highlighted by increasing customer engagement with our World Class Optics solutions, as well as solid trends in our chemistry business as we demonstrate the pivotal role we play in advanced electronics.”
“Our revenue and profitability remained robust in the fourth quarter as our team executed well,” said Ram Mayampurath, Executive Vice President, Chief Financial Officer and Treasurer.
Mr. Mayampurath added, “We delivered continued healthy gross margin, earnings per share growth and increased operating cash flow in 2024. This underscores the value customers see in our technology portfolio as well as our strong focus on both cost management and cash generation. We also continue to make good progress proactively managing our leverage, completing another repricing of our term loan B and making a voluntary principal prepayment of
First Quarter 2025 Guidance
For the first quarter of 2025, the Company expects revenue of
Conference Call Details
A conference call with management will be held on Thursday, February 13, 2025 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.
About MKS Instruments
MKS Instruments 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. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. 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. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. 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. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.
Selected GAAP and Non-GAAP Financial Measures
(In millions, except per share data)
| Quarter | Full Year | ||||||||||||||||||
| Q4 2024 | Q3 2024 | Q4 2023 | 2024 | 2023 | |||||||||||||||
| Net Revenues | |||||||||||||||||||
| Semiconductor | $ | 400 | $ | 378 | $ | 362 | $ | 1,498 | $ | 1,479 | |||||||||
| Electronics & Packaging | 254 | 231 | 226 | $ | 922 | $ | 916 | ||||||||||||
| Specialty Industrial | 281 | 287 | 305 | $ | 1,166 | $ | 1,227 | ||||||||||||
| Total net revenues | $ | 935 | $ | 896 | $ | 893 | $ | 3,586 | $ | 3,622 | |||||||||
| GAAP Financial Measures | |||||||||||||||||||
| Gross margin | 47.2 | % | 48.2 | % | 46.0 | % | 47.6 | % | 45.3 | % | |||||||||
| Operating margin | 14.5 | % | 14.3 | % | 2.7 | % | 13.9 | % | (42.9 | %) | |||||||||
| Net income (loss) | $ | 90 | $ | 62 | $ | (68 | ) | $ | 190 | $ | (1,841 | ) | |||||||
| Diluted income (loss) per share | $ | 1.33 | $ | 0.92 | (1.02 | ) | $ | 2.81 | $ | (27.54 | ) | ||||||||
| Non-GAAP Financial Measures | |||||||||||||||||||
| Gross margin | 47.2 | % | 48.2 | % | 46.0 | % | 47.6 | % | 45.7 | % | |||||||||
| Operating margin | 21.3 | % | 21.8 | % | 20.3 | % | 21.3 | % | 19.5 | % | |||||||||
| Net earnings | $ | 146 | $ | 116 | $ | 78 | $ | 444 | $ | 297 | |||||||||
| Diluted earnings per share | $ | 2.15 | $ | 1.72 | $ | 1.17 | $ | 6.58 | $ | 4.43 | |||||||||
Additional Financial Information
At December 31, 2024, the Company had
In January 2025, the Company completed the repricing of its USD term loan B and EUR term loan B and made a voluntary principal prepayment of
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; our entry into the chemicals technology business through our acquisition of Atotech Limited (“Atotech”) in August 2022 (the “Atotech Acquisition”), which has exposed us to significant additional liabilities; the risk that we are unable to realize the anticipated benefits of the Atotech Acquisition; legal, reputational, financial and contractual risks resulting from the ransomware incident we identified in February 2023, and other risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business, including through growth of the Atotech business and growth of the Electro Scientific Industries, Inc. business, which we acquired in February 2019, and financial risks associated with those and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand; the impact of a pandemic or other widespread health crisis; risks associated with doing business internationally, including geopolitical conflicts, such as the conflict in the Middle East, trade compliance, trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning global operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent Quarterly Reports on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Annual Report on Form 10-K for the year ended December 31, 2024.
Company Contact:
Paretosh Misra
Vice President, Investor Relations
Telephone: (978) 284-4705
Email: paretosh.misra@mks.com
| MKS Instruments, Inc. | |||||||||||||||||||
| Unaudited Consolidated Statements of Operations | |||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net revenues: | |||||||||||||||||||
| Products | $ | 824 | $ | 776 | $ | 785 | $ | 3,124 | $ | 3,200 | |||||||||
| Services | 111 | 120 | 108 | 462 | 422 | ||||||||||||||
| Total net revenues | 935 | 896 | 893 | 3,586 | 3,622 | ||||||||||||||
| Cost of revenues: | |||||||||||||||||||
| Products | 443 | 410 | 423 | 1,662 | 1,748 | ||||||||||||||
| Services | 51 | 54 | 59 | 216 | 232 | ||||||||||||||
| Total cost of revenues (exclusive of amortization shown separately below) | 494 | 464 | 482 | 1,878 | 1,980 | ||||||||||||||
| Gross profit | 441 | 432 | 411 | 1,708 | 1,642 | ||||||||||||||
| Research and development | 65 | 70 | 70 | 271 | 288 | ||||||||||||||
| Selling, general and administrative | 176 | 167 | 160 | 674 | 675 | ||||||||||||||
| Acquisition and integration costs | 3 | 3 | 3 | 9 | 16 | ||||||||||||||
| Restructuring and other | 1 | 1 | 7 | 6 | 20 | ||||||||||||||
| Fees and expenses related to the repricing of Term Loan Facility | — | 2 | 2 | 5 | 2 | ||||||||||||||
| Amortization of intangible assets | 61 | 61 | 70 | 245 | 295 | ||||||||||||||
| Goodwill and intangible asset impairment | — | — | 75 | — | 1,902 | ||||||||||||||
| Gain on sale of long-lived assets | — | — | — | — | (2 | ) | |||||||||||||
| Income (loss) from operations | 135 | 128 | 24 | 498 | (1,554 | ) | |||||||||||||
| Interest income | (5 | ) | (6 | ) | (7 | ) | (21 | ) | (17 | ) | |||||||||
| Interest expense | 54 | 64 | 90 | 284 | 356 | ||||||||||||||
| Loss on extinguishment of debt | 4 | 5 | 8 | 57 | 8 | ||||||||||||||
| Other expense (income), net | 3 | 5 | 12 | (2 | ) | 27 | |||||||||||||
| Income (loss) before income taxes | 79 | 60 | (79 | ) | 180 | (1,928 | ) | ||||||||||||
| (Benefit) provision for income taxes | (11 | ) | (2 | ) | (11 | ) | (10 | ) | (87 | ) | |||||||||
| Net income (loss) | $ | 90 | $ | 62 | $ | (68 | ) | $ | 190 | $ | (1,841 | ) | |||||||
| Net income (loss) per share: | |||||||||||||||||||
| Basic | $ | 1.34 | $ | 0.92 | $ | (1.02 | ) | $ | 2.82 | $ | (27.54 | ) | |||||||
| Diluted | $ | 1.33 | $ | 0.92 | $ | (1.02 | ) | $ | 2.81 | $ | (27.54 | ) | |||||||
| Cash dividends per common share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.88 | $ | 0.88 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 67.4 | 67.4 | 66.9 | 67.3 | 66.8 | ||||||||||||||
| Diluted | 67.7 | 67.6 | 66.9 | 67.6 | 66.8 | ||||||||||||||
| MKS Instruments, Inc. | |||||||
| Unaudited Consolidated Balance Sheets | |||||||
| (In millions) | |||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 714 | $ | 875 | |||
| Trade accounts receivable, net | 615 | 603 | |||||
| Inventories | 893 | 991 | |||||
| Other current assets | 252 | 227 | |||||
| Total current assets | 2,474 | 2,696 | |||||
| Property, plant and equipment, net | 771 | 784 | |||||
| Right-of-use assets | 238 | 225 | |||||
| Goodwill | 2,479 | 2,554 | |||||
| Intangible assets, net | 2,272 | 2,619 | |||||
| Other assets | 356 | 240 | |||||
| Total assets | $ | 8,590 | $ | 9,118 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Short-term debt | $ | 50 | $ | 93 | |||
| Accounts payable | 341 | 327 | |||||
| Other current liabilities | 384 | 428 | |||||
| Total current liabilities | 775 | 848 | |||||
| Long-term debt, net | 4,488 | 4,696 | |||||
| Non-current deferred taxes | 504 | 640 | |||||
| Non-current accrued compensation | 141 | 151 | |||||
| Non-current lease liabilities | 211 | 205 | |||||
| Other non-current liabilities | 149 | 106 | |||||
| Total liabilities | 6,268 | 6,646 | |||||
| Stockholders' equity: | |||||||
| Common stock | — | — | |||||
| Additional paid-in capital | 2,067 | 2,195 | |||||
| Retained earnings | 503 | 373 | |||||
| Accumulated other comprehensive loss | (248 | ) | (96 | ) | |||
| Total stockholders' equity | 2,322 | 2,472 | |||||
| Total liabilities and stockholders' equity | $ | 8,590 | $ | 9,118 | |||
| MKS Instruments, Inc. | |||||||||||||||||||
| Unaudited Consolidated Statements of Cash Flows | |||||||||||||||||||
| (In millions) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income (loss) | $ | 90 | $ | 62 | $ | (68 | ) | $ | 190 | $ | (1,841 | ) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation and amortization | 87 | 87 | 95 | 348 | 397 | ||||||||||||||
| Goodwill and intangible asset impairments | — | — | 75 | — | 1,902 | ||||||||||||||
| Unrealized loss (gain) on derivatives not designated as hedging instruments | 11 | 2 | 10 | 13 | 32 | ||||||||||||||
| Amortization of debt issuance costs and original issue discount | 7 | 7 | 10 | 30 | 33 | ||||||||||||||
| Loss on extinguishment of debt | 4 | 5 | 8 | 57 | 8 | ||||||||||||||
| Gain on sale of long-lived assets | — | — | — | — | (2 | ) | |||||||||||||
| Stock-based compensation | 11 | 11 | 11 | 48 | 54 | ||||||||||||||
| Provision for excess and obsolete inventory | 15 | 16 | 10 | 56 | 64 | ||||||||||||||
| Deferred income taxes | (58 | ) | (72 | ) | (61 | ) | (226 | ) | (234 | ) | |||||||||
| Other | 2 | 2 | — | 8 | 5 | ||||||||||||||
| Changes in operating assets and liabilities, net of acquired assets and liabilities | 7 | 43 | 90 | 4 | (99 | ) | |||||||||||||
| Net cash provided by operating activities | 176 | 163 | 180 | 528 | 319 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Proceeds from sale of long-lived assets | — | 1 | — | 1 | 3 | ||||||||||||||
| Purchases of property, plant and equipment | (51 | ) | (22 | ) | (34 | ) | (118 | ) | (87 | ) | |||||||||
| Net cash used in investing activities | (51 | ) | (21 | ) | (34 | ) | (117 | ) | (84 | ) | |||||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Proceeds from borrowings | — | — | 214 | 2,161 | 216 | ||||||||||||||
| Payments of borrowings | (229 | ) | (123 | ) | (336 | ) | (2,427 | ) | (403 | ) | |||||||||
| Purchase of capped calls related to Convertible Notes | — | — | — | (167 | ) | — | |||||||||||||
| Payments of deferred financing fees | — | — | (9 | ) | (33 | ) | (9 | ) | |||||||||||
| Dividend payments | (15 | ) | (15 | ) | (15 | ) | (59 | ) | (59 | ) | |||||||||
| Net proceeds (payments) related to employee stock awards | 3 | (1 | ) | 4 | (9 | ) | (1 | ) | |||||||||||
| Other financing activities | (5 | ) | (5 | ) | (1 | ) | (15 | ) | (3 | ) | |||||||||
| Net cash used in financing activities | (246 | ) | (144 | ) | (143 | ) | (549 | ) | (259 | ) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (26 | ) | 13 | 13 | (23 | ) | (10 | ) | |||||||||||
| (Decrease) increase in cash and cash equivalents | (147 | ) | 11 | 16 | (161 | ) | (34 | ) | |||||||||||
| Cash and cash equivalents at beginning of period | 861 | 850 | 859 | 875 | 909 | ||||||||||||||
| Cash and cash equivalents at end of period | $ | 714 | $ | 861 | 875 | $ | 714 | $ | 875 | ||||||||||
| The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results: | |||||||||||||||||||
| MKS Instruments, Inc. | |||||||||||||||||||
| Schedule Reconciling Selected Non-GAAP Financial Measures | |||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net income (loss) | $ | 90 | $ | 62 | $ | (68 | ) | $ | 190 | $ | (1,841 | ) | |||||||
| Acquisition and integration costs (Note 1) | 3 | 3 | 3 | 9 | 16 | ||||||||||||||
| Restructuring and other (Note 2) | 1 | 1 | 7 | 6 | 20 | ||||||||||||||
| Amortization of intangible assets | 61 | 61 | 70 | 245 | 295 | ||||||||||||||
| Loss on debt extinguishment (Note 3) | 4 | 5 | 8 | 57 | 8 | ||||||||||||||
| Amortization of debt issuance costs (Note 4) | 5 | 5 | 7 | 21 | 24 | ||||||||||||||
| Fees and expenses related to repricing of Term Loan Facility (Note 5) | — | 2 | 2 | 5 | 2 | ||||||||||||||
| Goodwill and intangible asset impairment (Note 6) | — | — | 75 | — | 1,902 | ||||||||||||||
| Gain on sale of long-lived assets (Note 7) | — | — | — | — | (2 | ) | |||||||||||||
| Ransomware incident (Note 8) | — | — | 1 | — | 15 | ||||||||||||||
| Excess and obsolete charge from discontinued product line (Note 9) | — | — | — | — | 13 | ||||||||||||||
| Tax effect of Non-GAAP adjustments (Note 10) | (18 | ) | (23 | ) | (26 | ) | (89 | ) | (156 | ) | |||||||||
| Non-GAAP net earnings | $ | 146 | $ | 116 | $ | 78 | $ | 444 | $ | 297 | |||||||||
| Non-GAAP net earnings per diluted share | $ | 2.15 | $ | 1.72 | $ | 1.17 | $ | 6.58 | $ | 4.43 | |||||||||
| Weighted average diluted shares outstanding | 67.7 | 67.6 | 67.1 | 67.6 | 67.0 | ||||||||||||||
| Net cash provided by operating activities | $ | 176 | $ | 163 | $ | 180 | $ | 528 | $ | 319 | |||||||||
| Purchases of property, plant and equipment | (51 | ) | (22 | ) | (34 | ) | (118 | ) | (87 | ) | |||||||||
| Free cash flow | $ | 125 | $ | 141 | $ | 146 | $ | 410 | $ | 232 | |||||||||
| MKS Instruments, Inc. | |||||||||||||||||||
| Schedule Reconciling Selected Non-GAAP Financial Measures | |||||||||||||||||||
| (In millions) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Gross profit | $ | 441 | $ | 432 | $ | 411 | $ | 1,708 | $ | 1,642 | |||||||||
| Gross margin | 47.2 | % | 48.2 | % | 46.0 | % | 47.6 | % | 45.3 | % | |||||||||
| Excess and obsolete charge from discontinued product line (Note 9) | — | — | — | — | 13 | ||||||||||||||
| Non-GAAP gross profit | $ | 441 | $ | 432 | $ | 411 | $ | 1,708 | $ | 1,655 | |||||||||
| Non-GAAP gross margin | 47.2 | % | 48.2 | % | 46.0 | % | 47.6 | % | 45.7 | % | |||||||||
| Operating expenses | $ | 306 | $ | 304 | $ | 387 | $ | 1,210 | $ | 3,196 | |||||||||
| Acquisition and integration costs (Note 1) | 3 | 3 | 3 | 9 | 16 | ||||||||||||||
| Restructuring and other (Note 2) | 1 | 1 | 7 | 6 | 20 | ||||||||||||||
| Amortization of intangible assets | 61 | 61 | 70 | 245 | 295 | ||||||||||||||
| Fees and expenses related to repricing of Term Loan Facility (Note 5) | — | 2 | 2 | 5 | 2 | ||||||||||||||
| Goodwill and intangible asset impairment (Note 6) | — | — | 75 | — | 1,902 | ||||||||||||||
| Gain on sale of long-lived assets (Note 7) | — | — | — | — | (2 | ) | |||||||||||||
| Ransomware incident (Note 8) | — | — | 1 | — | 15 | ||||||||||||||
| Non-GAAP operating expenses | $ | 242 | $ | 237 | $ | 229 | $ | 945 | $ | 948 | |||||||||
| Income (loss) from operations | $ | 135 | $ | 128 | $ | 24 | $ | 498 | $ | (1,554 | ) | ||||||||
| Operating margin | 14.5 | % | 14.3 | % | 2.7 | % | 13.9 | % | (42.9 | %) | |||||||||
| Acquisition and integration costs (Note 1) | 3 | 3 | 3 | 9 | 16 | ||||||||||||||
| Restructuring and other (Note 2) | 1 | 1 | 7 | 6 | 20 | ||||||||||||||
| Amortization of intangible assets | 61 | 61 | 70 | 245 | 295 | ||||||||||||||
| Fees and expenses related to repricing of Term Loan Facility (Note 5) | — | 2 | 2 | 5 | 2 | ||||||||||||||
| Goodwill and intangible asset impairment (Note 6) | — | — | 75 | — | 1,902 | ||||||||||||||
| Gain on sale of long-lived assets (Note 7) | — | — | — | — | (2 | ) | |||||||||||||
| Ransomware incident (Note 8) | — | — | 1 | — | 15 | ||||||||||||||
| Excess and obsolete charge from discontinued product line (Note 9) | — | — | — | — | 13 | ||||||||||||||
| Non-GAAP income from operations | $ | 199 | $ | 195 | $ | 182 | $ | 763 | $ | 707 | |||||||||
| Non-GAAP operating margin | 21.3 | % | 21.8 | % | 20.3 | % | 21.3 | % | 19.5 | % | |||||||||
| Interest expense, net | $ | 49 | $ | 58 | $ | 83 | $ | 263 | $ | 339 | |||||||||
| Amortization of debt issuance costs (Note 4) | 5 | 5 | 7 | 21 | 24 | ||||||||||||||
| Non-GAAP interest expense, net | $ | 45 | $ | 53 | $ | 76 | $ | 242 | $ | 315 | |||||||||
| Net income (loss) | $ | 90 | $ | 62 | $ | (68 | ) | $ | 190 | $ | (1,841 | ) | |||||||
| Interest expense, net | 49 | 58 | 83 | 263 | 339 | ||||||||||||||
| Other expense (income), net | 3 | 5 | 12 | (2 | ) | 27 | |||||||||||||
| (Benefit) provision for income taxes | (11 | ) | (2 | ) | (11 | ) | (10 | ) | (87 | ) | |||||||||
| Depreciation | 26 | 26 | 25 | 103 | 102 | ||||||||||||||
| Amortization | 61 | 61 | 70 | 245 | 295 | ||||||||||||||
| Stock-based compensation | 11 | 11 | 11 | 48 | 54 | ||||||||||||||
| Acquisition and integration costs (Note 1) | 3 | 3 | 3 | 9 | 16 | ||||||||||||||
| Restructuring and other (Note 2) | 1 | 1 | 7 | 6 | 20 | ||||||||||||||
| Loss on debt extinguishment (Note 3) | 4 | 5 | 8 | 57 | 8 | ||||||||||||||
| Fees and expenses related to repricing of Term Loan Facility (Note 5) | — | 2 | 2 | 5 | 2 | ||||||||||||||
| Goodwill and intangible asset impairment (Note 6) | — | — | 75 | — | 1,902 | ||||||||||||||
| Gain on sale of long-lived assets (Note 7) | — | — | — | — | (2 | ) | |||||||||||||
| Ransomware incident (Note 8) | — | — | 1 | — | 15 | ||||||||||||||
| Excess and obsolete charge from discontinued product line (Note 9) | — | — | — | — | 13 | ||||||||||||||
| Adjusted EBITDA | $ | 237 | $ | 232 | $ | 218 | $ | 914 | $ | 863 | |||||||||
| Adjusted EBITDA margin | 25.3 | % | 25.9 | % | 24.4 | % | 25.5 | % | 23.8 | % | |||||||||
| MKS Instruments, Inc. | ||||||||||||||||||||
| Reconciliation of GAAP Income Tax Rate to Non-GAAP Income Tax Rate | ||||||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | |||||||||||||||||||
| Income Before | (Benefit) Provision | Effective | (Loss) Income Before | (Benefit) Provision | Effective | |||||||||||||||
| Income Taxes | for Income Taxes | Tax Rate | Income Taxes | for Income Taxes | Tax Rate | |||||||||||||||
| GAAP | $ | 79 | $ | (11 | ) | (14.5 | %) | $ | (79 | ) | $ | (11 | ) | 14.2 | % | |||||
| Acquisition and integration costs (Note 1) | 3 | — | 3 | — | ||||||||||||||||
| Restructuring and other (Note 2) | 1 | — | 7 | — | ||||||||||||||||
| Amortization of intangible assets | 61 | — | 70 | — | ||||||||||||||||
| Loss on debt extinguishment (Note 3) | 4 | — | 8 | — | ||||||||||||||||
| Amortization of debt issuance costs (Note 4) | 5 | — | 7 | — | ||||||||||||||||
| Fees and expenses related to repricing of Term Loan Facility (Note 5) | — | — | 2 | — | ||||||||||||||||
| Goodwill and intangible asset impairment (Note 6) | — | — | 75 | — | ||||||||||||||||
| Ransomware incident (Note 8) | — | — | 1 | — | ||||||||||||||||
| Tax effect of Non-GAAP adjustments (Note 10) | — | 18 | — | 26 | ||||||||||||||||
| Non-GAAP | $ | 153 | $ | 7 | 4.0 | % | $ | 94 | $ | 15 | 15.6 | % | ||||||||
| Three Months Ended September 30, 2024 | |||||||||
| Income Before | (Benefit) Provision | Effective | |||||||
| Income Taxes | for Income Taxes | Tax Rate | |||||||
| GAAP | $ | 60 | $ | (2 | ) | (4.0 | %) | ||
| Acquisition and integration costs (Note 1) | 3 | — | |||||||
| Restructuring and other (Note 2) | 1 | — | |||||||
| Amortization of intangible assets | 61 | — | |||||||
| Loss on debt extinguishment (Note 3) | 5 | — | |||||||
| Amortization of debt issuance costs (Note 4) | 5 | — | |||||||
| Fees and expenses related to repricing of Term Loan Facility (Note 5) | 2 | — | |||||||
| Tax effect of Non-GAAP adjustments (Note 10) | — | 23 | |||||||
| Non-GAAP | $ | 137 | $ | 21 | 15.1 | % | |||
| Twelve Months Ended December 31, 2024 | Twelve Months Ended December 31, 2023 | |||||||||||||||||||
| Income Before | (Benefit) Provision | Effective | (Loss) Income Before | (Benefit) Provision | Effective | |||||||||||||||
| Income Taxes | for Income Taxes | Tax Rate | Income Taxes | for Income Taxes | Tax Rate | |||||||||||||||
| GAAP | $ | 180 | $ | (10 | ) | (5.7 | %) | $ | (1,928 | ) | $ | (87 | ) | 4.5 | % | |||||
| Acquisition and integration costs (Note 1) | 9 | — | 16 | — | ||||||||||||||||
| Restructuring and other (Note 2) | 6 | — | 20 | — | ||||||||||||||||
| Amortization of intangible assets | 245 | — | 295 | — | ||||||||||||||||
| Loss on debt extinguishment (Note 3) | 57 | — | 8 | — | ||||||||||||||||
| Amortization of debt issuance costs (Note 4) | 21 | — | 24 | — | ||||||||||||||||
| Fees and expenses related to repricing of Term Loan Facility (Note 5) | 5 | — | 2 | — | ||||||||||||||||
| Goodwill and intangible asset impairment (Note 6) | — | — | 1,902 | — | ||||||||||||||||
| Gain on sale of long-lived assets (Note 7) | — | — | (2 | ) | — | |||||||||||||||
| Ransomware incident (Note 8) | — | — | 15 | — | ||||||||||||||||
| Excess and obsolete charge from discontinued product line (Note 9) | — | — | 13 | — | ||||||||||||||||
| Tax effect of Non-GAAP adjustments (Note 10) | — | 89 | — | 156 | ||||||||||||||||
| Non-GAAP | $ | 523 | $ | 78 | 14.8 | % | $ | 366 | $ | 69 | 18.9 | % | ||||||||
| MKS Instruments, Inc. | ||||||||
| Schedule Reconciling Selected Non-GAAP Financial Measures - Q1’25 Guidance | ||||||||
| (In millions, except per share data) | ||||||||
| Three Months Ending March 31, 2025 | ||||||||
| $ Amount | Per Share | |||||||
| GAAP net income and net income per share | $ | 43 | $ | 0.63 | ||||
| Amortization of intangible assets | 60 | |||||||
| Loss on debt extinguishment | 3 | |||||||
| Amortization of debt issuance costs | 4 | |||||||
| Fees and expenses related to repricing of Term Loan Facility | 2 | |||||||
| Tax effect of Non-GAAP adjustments | (17 | ) | ||||||
| Non-GAAP net earnings and net earnings per share | $ | 95 | $ | 1.40 | ||||
| Estimated weighted average diluted shares | 67.8 | |||||||
| GAAP operating expenses | $ | 317 | ||||||
| Amortization of intangible assets | (60 | ) | ||||||
| Fees and expenses related to repricing of Term Loan Facility | (2 | ) | ||||||
| Non-GAAP operating expenses | $ | 255 | ||||||
| GAAP net income | 43 | |||||||
| Interest expense, net | 50 | |||||||
| Provision for income taxes | 10 | |||||||
| Depreciation | 26 | |||||||
| Amortization of intangible assets | 60 | |||||||
| Stock-based compensation | 23 | |||||||
| Loss on debt extinguishment | 3 | |||||||
| Fees and expenses related to repricing of Term Loan Facility | 2 | |||||||
| Adjusted EBITDA | $ | 217 | ||||||
MKS Instruments, Inc.
Notes on Our Non-GAAP Financial Information
Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. 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. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.
Note 1: Acquisition and integration costs related to the Atotech Acquisition.
Note 2: Restructuring costs primarily related to severance costs due to global cost-saving initiatives. Other costs related to certain legal matters.
Note 3: During the three and twelve months ended December 31, 2024, we recorded charges to write-off deferred financing fees and original issue discount costs related to voluntary principal prepayments on our USD term loan B. During the three months ended September 30, 2024 and the twelve months ended December 31, 2024, we recorded charges to write-off deferred financing fees and original issue discount costs related to the repricing of our USD term loan B and EUR term loan B. Additionally, during the twelve months ended December 31, 2024, we recorded charges to (i) write-off deferred financing fees and original issue discount costs related to voluntary principal prepayments on our EUR term loan B and (ii) write-off deferred financing fees related to the extinguishment of our term loan A. During the three and twelve months ended December 31, 2023, we recorded a charge to write-off deferred financing fees and original issue discount costs related to the repricing of our USD term loan B and the voluntary prepayment on our USD Tranche A loan.
Note 4: We recorded additional interest expense related to the amortization of deferred financing costs associated with our term loan facility.
Note 5: During the twelve months ended December 31, 2024 and the three months ended September 30, 2024, we recorded fees and expenses related to the repricing of our USD term loan B and EUR term loan B. During the twelve months ended December 31, 2024, we also recorded fees and expenses related to an amendment to our term loan facility where we borrowed additional amounts under our USD term loan B and EUR term loan B and fully repaid our term loan A. During the three and twelve months ended December 31, 2023, we recorded fees and expenses related to the repricing of our USD term loan B.
Note 6: During the twelve months ended December 31, 2023, we noted softer industry demand, particularly in the personal computer and smartphone markets and concluded there was a triggering event at our Materials Solutions Division, which represents the former Atotech business, and Equipment Solutions Business, which represents the former Electro Scientific Industries business and is a reporting unit of our Photonics Solutions Division. We performed a quantitative assessment which resulted in an impairment of
Note 7: We recorded a gain on the sale of a minority interest investment in a private company.
Note 8: We recorded costs, net of recoveries, associated with the ransomware incident we identified on February 3, 2023. These costs were primarily comprised of various third-party consulting services, including forensic experts, restoration experts, legal counsel, and other information technology and accounting professional expenses, enhancements to our cybersecurity measures, and costs to restore our systems and access our data.
Note 9: We recorded an excess and obsolescence inventory charge related to a product line that was discontinued.
Note 10: Non-GAAP adjustments are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates.
FAQ
What was MKS Instruments (MKSI) Q4 2024 revenue and earnings?
What is MKSI's revenue guidance for Q1 2025?
How much voluntary debt prepayment did MKSI make in January 2025?
What is MKSI's projected Adjusted EBITDA for Q1 2025?
What were the key business segments performing well for MKSI in Q4 2024?
