Slide 1: Fourth Quarter and Full Year 2024 Financial Results
Fourth Quarter and Full Year MKS Instruments, Inc. 2024 Financial Results February 13, 2025
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements This presentation 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 financi
Slide 3: Notes on Presentation
Notes on Presentation Use of Non-GAAP Financial Measures This presentation 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 subst
Slide 4: 2024 Results: Execution, Profitability, Resiliency
2024 Results: Execution, Profitability, Resiliency FY 2024 FY 2024 FY 2024 $3.6B 47.6% FY 2024 NON-GAAP $914M $6.58 NON-GAAP REVENUE ADJUSTED GROSS MARGIN EBITDA NET EARNINGS PER -1% vs 2023 DILUTED SHARE +1.9% vs 2023 +5.9% vs 2023 +49% vs 2023 ● Expanded gross margin and effectively managed operat
Slide 5: Q4 2024: Performance Above Expectations
Q4 2024: Performance Above Expectations Q4 2024 Q4 2024 Q4 2024 Q4 2024 $935M 47.2% $237M $2.15 NON-GAAP REVENUE NON-GAAP ADJUSTED NET EARNINGS PER GROSS MARGIN EBITDA DILUTED SHARE 5
Slide 6: Semiconductor
Semiconductor Q4 Highlights Business Trends Guidance Q4 2024 Q/Q CHANGE +6% Q1 2025 $400M Y/Y CHANGE +10% $400M+/- $15M REVENUE Y/Y CHANGE1 +11% REVENUE Excluding FX ● Revenue above high end of guidance range ● Well positioned for market recovery driven by in-quarter demand related to DRAM and achie
Slide 7: Electronics & Packaging
Electronics & Packaging Q4 Highlights Business Trends Q/Q CHANGE +10% Guidance Q4 2024 Q1 2025 $254M Y/Y CHANGE +13% $245M+/- $10M REVENUE Y/Y CHANGE1 +16% REVENUE Excluding FX & Palladium ● Our products and technologies play a key role ● Continued momentum in orders for chemistry by enabling the m
Slide 8: Specialty Industrial
Specialty Industrial Q4 Highlights Business Trends Q/Q CHANGE -2% Guidance Q4 2024 Q1 2025 $281M Y/Y CHANGE -8% $265M+/- $15M REVENUE Y/Y CHANGE1 -6% REVENUE Excluding FX and Palladium ● Steady performance in life and health sciences, ● Leverages our proprietary technologies and and research and de
Slide 9: Reflections on 2024
Reflections on 2024 ● Delivered solid financial performance ● Green shoots emerging in a few key areas ● Entering 2025 in a robust financial position America’s Best Most Responsible Companies Companies To Work For Newsweek and Statista US News and World Report 9
Slide 10: Q4'24 Revenue & Select Financial Measures
Q4’24 Revenue & Select Financial Measures Q4’24 SUMMARY Q4'24 Q3'24 Q4'23 2024 2023 ● Revenue above the midpoint of guidance driven by Semiconductor $400M $378M $362M $1,498M $1,479M Semiconductor and Electronics & Packaging Electronics & Packaging $254M $231M $226M $922M $916M markets Specialty Ind
Slide 11: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Q4’24 SUMMARY Q4'24 Q4'23 ● Free cash flow of $125 million after capital Cash and Cash Equivalents $714M $875M expenditures of $51 million Accounts Receivable, Net $615M $603M ● Liquidity of about $1.4 billion, consisting of $714 Inventories $893M $991M million of cash and
Slide 12: 2024 Revenue & Select Financial Measures
2024 Revenue & Select Financial Measures 2024 SUMMARY Change Total Excl. FX ● The 2024 revenue split among our Semiconductor, Electronics & 2024 2023 Change(1) and Pd(1) Packaging, and Specialty Industrial markets was 42%, 26%, and Semiconductor $1,498M $1,479M 1% 2% 32%, respectively Electronics &
Slide 13: Outlook
Outlook Q1'25 Q4'24 Actual Outlook Revenue $910M +/- $40M $935M ● Q1’25 Revenue outlook by end-market: Non-GAAP Financial Measures ‒ Semiconductor – $400M +/- $15M Gross Margin 46.5% +/- 100 bps 47.2% Operating Expenses $255M +/- $5M $242M ‒ Electronics & Packaging – $245M +/- $10M Operating Income
Slide 14: MKS is well-positioned for the next cyclical upturn
MKS is well-positioned for the next cyclical upturn ● Solid performance in 2024 ● Leveraged broad and deep product portfolio to capture opportunities ● Managed costs, maintained strong gross margins and deleveraged balance sheet ● Incrementally investing in growth and business continuity ● Maintaini
Slide 15: Q&A
Q&A
Slide 16: Q4'24 Revenue
Q4’24 Revenue Q4’24 Specialty Industrial 30% Semi 43% Electronics & Packaging 27% Consumables & Service 40% Q4'24 vs Q4'23(1) Change Total Excluding Q4'24 Q3'24 Q4'23 Change FX Pd FX & Pd Semiconductor $ 400 $ 378 $ 362 10% -1% 0% 11% Electronics & Packaging $ 254 231 226 13% -1% -3% 16% Specialty I
Slide 17: 2024 Revenue
2024 Revenue 2024 Specialty Industrial 32% Semi 42% Electronics & Packaging 26% Consumables & Service 42% 2024 vs 2023(1) Change Total Excluding 2024 2023 Change FX Pd FX & Pd Semiconductor $ 1,498 $ 1,479 1% -1% 0% 2% Electronics & Packaging $ 922 $ 916 1% -2% -5% 7% Specialty Industrial $ 1,166 $
Slide 18: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q1'25 Q4'24 Q3'24 Q4'23 2024 2023 Net income (loss) $ 43 $ 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 60 61 61 70 245 295 Loss on de
Slide 19: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q1'25 Q4'24 Q3'24 Q4'23 2024 2023 Operating expenses $ 317 $ 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 60 61 61 70 245 295 Fees an
Slide 20: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q1'25 Q4'24 Q3'24 Q4'23 2024 2023 Net income (loss) $ 43 $ 90 $ 62 $ (68) $ 190 $ (1,841) Interest expense, net 50 49 58 83 263 339 Other expense (income), net — 3 5 12 (2) 27 (Benefit) provision for income taxes 10 (11) (2) (11) (10) (87) Depreciation 26
Slide 21: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q4'24 Q3'24 Q4'23 2024 2023 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 Q4'24 Q3'24 Q4'23 2024 2023 Free cash flow
Slide 22: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations Q4'24 Q4'23 (Benefit) (Loss) Income (Benefit) Income Before Provision for Effective Tax Before Income Provision for Effective Tax Income Tax Income Taxes Rate Tax Income Taxes Rate GAAP $ 79 $ (11) -14.5% $ (79) $ (11) 14.2% Acquisition and integration cos
Slide 23: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations 2024 2023 (Benefit) (Loss) Income (Benefit) Income Before Provision for Effective Tax Before Income Provision for Effective Tax Income Tax Income Taxes Rate Taxes Income Taxes Rate GAAP $ 180 $ (10) -5.7% $ (1,928) $ (87) 4.5% Acquisition and integration c
Slide 24: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations 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
Slide 25: Appendix – GAAP to Non-GAAP Reconciliations
Appendix – GAAP to Non-GAAP Reconciliations 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