MKS Q3 revenue tops estimates driven by investments in technology portfolio expansion

MKS INCORPORATED

05/11/2025 22:03

Overview

MKS Q3 revenue beats analyst expectations, reaching high end of co's guidance

Adjusted EPS for Q3 misses analyst expectations

Company reduces net leverage ratio to 3.9x with debt prepayments

Outlook

Company expects Q4 2025 revenue of $990 mln, plus or minus $40 mln

MKS Inc. anticipates Q4 gross margin of 46%, plus or minus 1%

Company forecasts Q4 GAAP net income of $96 mln, plus or minus $29 mln

Result Drivers

SEMICONDUCTOR & ELECTRONICS - Double-digit revenue growth driven by investments in technology portfolio expansion, per CEO John T.C. Lee

COST MANAGEMENT - Solid revenue growth combined with cost management supports strong free cash flow, per CFO Ram Mayampurath

DEBT REDUCTION - Strategic debt reduction through voluntary prepayments lowers net leverage ratio to 3.9x, per CFO Ram Mayampurath

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$988 mln
$970.48 mln (12 Analysts)
Q3 Adjusted EPS
Miss
$1.10
$1.85 (13 Analysts)
Q3 EPS
$1.10
Q3 Net Income
$74 mln
Q3 Pretax Profit
$84 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for MKS Inc is $147.00, about 6.7% above its November 4 closing price of $137.20

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX6mK94J

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)