MKSI 1Q'26 Earnings Call Presentation

MKS Inc.

May 7, 2026

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 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 non-GAAP financial measures, please refer to the appendix at the end of this presentation.

MKS is not providing a quantitative reconciliation of forward-looking full-year Non-GAAP income tax rate to GAAP income tax rate because it is unable to estimate with reasonable certainty the ultimate timing or amount of certain significant items without unreasonable efforts. These items include, but are not limited to, restructuring expense, goodwill and intangible asset impairments, debt refinancing fees, debt extinguishment costs, and the income tax effect of these items as well as tax planning strategies, legislation and other discrete items.

For a detailed breakout of net revenues by end-market and division, please visit the Net Revenues by End Market & Division presentation available under Events &

Presentations on the Investor Relations section of MKS' website at investor.mks.com.

3

$1.1B

REVENUE

47.0%

GROSS MARGIN

$277M

ADJUSTED

EBITDA

$2.30

NON-GAAP

NET EARNINGS PER

DILUTED SHARE

• Revenues, gross margin, adjusted EBITDA and Non-GAAP net earnings per share at high end or above guidance ranges

• Strong bookings across end markets indicate continued revenue momentum

• Excellent position to benefit from AI-related investment across Semiconductor and Electronics & Packaging end markets

4

Semiconductor

Q1 Highlights Business Trends

Q1 2026

$466M

REVENUE

• Strong broad-based revenue growth driven by products targeted to DRAM, NAND and Foundry/Logic applications

• Power solutions sequential growth reflects increasing NAND equipment upgrades

  Guidance Q2 2026

  $550M

  +/- $15M

  REVENUE

• Q2'26 revenue expected to accelerate, growing high-teens sequentially and over 25% year-over year

• Strong order activity, especially in remote plasma and microwave for advanced DRAM applications, dissolved gas for logic and lasers for back-end applications

  1 For further information regarding estimated impact of FX, refer to

  appendix at the end of this presentation.

  5

  
  
  

  Electronics & Packaging

  Q1 Highlights

  Business Trends

  Q1 2026

  $321M

  REVENUE

  Q/Q CHANGE +6%

  Y/Y CHANGE +27%

  Y/Y CHANGE1 +17%

  Excluding FX & Palladium

  Guidance Q2 2026

  $350M

  +/- $15M

  REVENUE

• Strong growth driven by flexible PCB drilling systems due to consumer electronics seasonality and strong performance in chemistry and chemistry equipment

• Very robust order environment for laser drilling

  equipment, chemistry and chemistry equipment

• Q2 revenue expected to grow in the high single digits sequentially and over 30% year over year with continued strength in chemistry and chemistry equipment

• Laser drilling orders remain very healthy and primarily in Flex for smartphones and wearables, but also rigid PCB laser applications related to the LEO satellite market

  1 For further information regarding estimated impact of FX and Ransomware, refer to appendix at the end of this presentation.

  1 For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of this presentation.

  6

  
  
  

  Specialty Industrial

  Q1 Highlights Business Trends

  Q/Q CHANGE	-2%
  Y/Y CHANGE	+8%
  Y/Y CHANGE1 Excluding FX & Palladium	+5%

  Q1 2026

  $291M

  REVENUE

• Sequential revenue decline primarily due to Lunar New Year seasonality

• Strong year-over-year growth driven by

  datacom and defense markets

  Guidance Q2 2026

  $300M

  +/- $10M

  REVENUE

• Expect modest sequential growth

• Specialty Industrial market leverages proprietary technologies to deliver attractive margins and incremental cash flows

  1 For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of this presentation.

  7

  
  
  Q1'26 Revenue & Select Financial Measures

  Q1'26 SUMMARY

  	Q1'26	Q4'25	Q1'25	Y/Y Change Excl. FX and Pd(1)
  Semiconductor	$466M	$435M	$413M	11%
  Electronics & Packaging	$321M	$303M	$253M	17%
  Specialty Industrial	$291M	$295M	$270M	5%
  Revenue	$1,078M	$1,033M	$936M	11%
  Non-GAAP Financial Measures
  Gross Margin	47.0%	46.4%	47.4%
  Operating Margin	21.8%	21.0%	20.2%
  Interest Expense, Net	$37M	$42M	$45M
  Income Tax Rate	20.9%	0.9%	19.9%
  Net Earnings	$157M	$168M	$116M
  Net Earnings per Diluted Share	$2.30	$2.47	$1.71
  Adjusted EBITDA	$277M	$249M	$236M
  Adjusted EBITDA Margin	25.7%	24.1%	25.2%
  GAAP Financial Measures
  Gross Margin	47.0%	46.4%	47.4%
  Operating Margin	13.8%	13.9%	11.9%
  Interest Expense, Net	$43M	$47M	$50M
  Income Tax Rate	17.7%	-20.8%	12.3%
  Net Income	$84M	$108M	$52M
  Net Income per Diluted Share	$1.18	$1.58	$0.77

  • Revenue above the high end of guidance in our Semiconductor and Electronics & Packaging markets

  • Gross margin at high end of guidance on higher volumes and favorable mix, including higher chemistry revenue. Year-over-year decline due to incremental tariff impacts.

  • Non-GAAP operating expenses include higher R&D investments and seasonal increase in stock-based compensation

  • Adjusted EBITDA and Non-GAAP net earnings per diluted share above high end of guidance reflecting strong revenue, gross margin flow through and operating leverage

    1 For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of this presentation.

    
    
    Balance Sheet & Cash Flow

    Q1'26 SUMMARY

    	Q1'26	Q4'25
    Cash and Cash Equivalents	$569M	$675M
    Trade Accounts Receivable, Net	$775M	$651M
    Inventories	$949M	$921M
    Total Current Assets	$2,545M	$2,510M
    Total Assets	$8,728M	$8,796M
    Debt Principal	$4,134M	$4,278M
    Total Liabilities	$5,917M	$6,077M
    Stockholders' Equity	$2,811M	$2,719M
    Operating Cash Flow	$53M	$142M
    Capex	$25M	$51M
    Free Cash Flow	$29M	$91M
    Unlevered Free Cash Flow	$46M	$131M

    • Liquidity of over $1.5 billion, consisting of $569 million of cash and cash equivalents and an undrawn revolving credit facility of $1.0 billion

    • Free cash flow lower in the first quarter due to variable compensation payments and increased working capital related to the ramp in demand

    • Net leverage ratio of 3.5x with continued de-leveraging and trailing twelve months Adjusted

    EBITDA of over $1.0 billion

    
    
    Outlook

    Outlook

    	Q2'26	Q1'26 Actual
    Revenue	$1,200M +/- $40M	$1,078M
    Non-GAAP Financial Measures
    Gross Margin	47.0% +/- 100 bps	47.0%
    Operating Expenses	$275M +/- $5M	$271M
    Operating Income	$289M	$235M
    Operating Margin	24.1%	21.8%
    Interest Expense, Net	$35M	$37M
    Income Tax Rate	20%	20.9%
    Net Earnings	$202M +/- $21M	$157M
    Net Earnings per Diluted Share	$2.90 +/- $0.30	$2.30
    Adjusted EBITDA	$328M +/- $26M	$277M
    Diluted Share Count	69.6M	68.2M

    • Revenue outlook by end-market:

      • Semiconductor - $550M +/- $15M

      • Electronics & Packaging - $350M +/- $15M

      • Specialty Industrial - $300M +/- $10M

    • Gross margin reflects higher volumes primarily across semiconductor and chemistry equipment products

    • Non-GAAP operating income, adjusted EBITDA and Non-GAAP net earnings per diluted share up sequentially reflecting strong revenue, gross margin flow through and operating leverage

    • Non-GAAP interest expense, net reflects reduction from Q1'26

      debt refinancing, EUR senior note offering and voluntary

      prepayments in Q1'26 and May 2026

    • Non-GAAP tax rate of approximately 20% in the second quarter and 18% to 20% range for the year

    
    
    Excellent Position and Focused on Execution
• Healthy order volumes across Semiconductor and Electronics & Packaging
• Strong position with manufacturing capacity and capabilities

  • Semiconductor subsystems support leading-edge deposition and etch applications across logic and memory

  • Electronics & Packaging momentum in AI-related applications driven by

  proprietary chemistry and chemistry equipment

• We continue to focus on strong cash generation to support

11

Q1'26

Specialty Industrial

27%

Semi 43%

Electronics & Packaging 30%

Consumables & Service 40%

2025 2026

Total

Q1'26 vs Q1'25(1)

Change Excluding

Q1 Q2 Q3 Q4 FY'25 Q1

Change FX Pd

FX & Pd

1 "Total Change" represents the percentage change in net revenues. "FX" and "Pd" reflect the estimated impact of foreign exchange rates and palladium prices on net revenues, respectively. "Change Excluding FX & Pd" is the difference between (i) "Total Change" and (ii) "FX" and "Pd."

in millions except percentages

in millions, other than per diluted share amounts and percentages

in millions, except percentages

in millions, except percentages and net leverage ratio

Q1'26 Q4'25

Net cash provided by operating activities

$ 53 $

142

Purchases of property, plant and equipment (25) (51)

Free cash flow $ 29 $ 91

Unlevered free cash flow $ 46 $ 131

1Tax effect of cash paid for interest was calculated at the US Federal Statutory rate of 21% in millions

Q1'26 Q4'25

(Benefit)

Income Before

Provision for

Effective Tax

Income Before

Provision for

Effective Tax

Tax effect of Non-GAAP adjustments - 23 - 20

Non-GAAP

$ 198 $ 41

20.9%

$ 169 $ 1

0.9%

Q1'25 Q2'26E

Income Before

Provision for

Effective Tax

Income Before

Provision for

Effective Tax

Tax effect of Non-GAAP adjustments - 22 - 17

Non-GAAP

$ 145 $ 29

19.9%

$ 254 $ 52

20.3%

in millions, except percentages

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.

Restructuring and other includes incremental expenses incurred in connection with restructuring programs and other strategic initiatives, primarily related to changes in business and/or cost structure. Such costs may include third-party services, one-time termination benefits, facility-related costs, contract termination fees and other items that have no direct correlation to our future business operations.

Legal settlement includes charges related to the resolution of legal matters.

Amortization of intangible assets includes non-cash amortization expense associated with intangible assets acquired in acquisitions.

Loss on extinguishment of debt includes the non-cash write-off of unamortized debt issuance costs and original issue discount costs incurred from voluntary prepayments, refinancings and/or repricings of our term loan facility.

Amortization of debt issuance costs includes non-cash additional interest expense related to the amortization of debt issuance costs associated with our term loan facility.

Loss from de-designation of interest rate hedges includes a cash loss from the de-designation of certain interest rate hedges in connection with the voluntary prepayment of the USD term loan B.

Fees and expenses related to debt activities includes direct third-party costs related to repricings or refinancings of our term loan facility and the issuance of our €1.0 billion of senior

notes due 2034 in February 2026.

Convertible debt capped calls includes the antidilutive impact of the capped call transactions entered into in connection with the issuance of $1.4 billion of convertible senior notes in May 2024. The capped calls are designed to reduce potential dilution to the Company's common stock and/or offset cash payments in excess of the principal upon conversion of the notes, subject to a cap of $237.42 per share (a 100% premium to the May 13, 2024 closing price of $118.71), subject to customary adjustments. Because the capped calls are excluded from GAAP diluted share calculations, GAAP and Non-GAAP diluted share counts will differ.

Tax effect of Non-GAAP adjustments includes the impact of Non-GAAP adjustments that are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates.