MKS Inc.
February 18, 2026
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 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 Non-GAAP net earnings, Non-GAAP net earnings per diluted share, Non-GAAP operating expenses, Non-GAAP operating income, Non-GAAP operating margin, Non-GAAP interest expense, net, Non-GAAP income tax rate and Adjusted EBITDA to their most directly comparable GAAP financial measures 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, fees and expenses related to amendments to the Term Loan Facility and Revolving Credit Facility, amortization of debt issuance costs, interest expense, and the income tax effect of these items. These items are uncertain, depend on various factors, including, but not limited to, our recently completed private offering of €1.0 billion principal amount of 4.25% senior notes and refinancing of our Term Loan Facility and Revolving Credit Facility on February 4, 2026, and could have a material impact on GAAP reported results for the relevant period.
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 & Presentation on the Investor Relations section of MKS' website at investor.mks.com.
3
2025 Results: A Year of Impressive Execution
FY 2025
$3.9B
REVENUE
+10% vs 2024
FY 2025
$497M
Free Cash Flow
+21% vs 2024
FY 2025
$7.88
NON-GAAP NET EARNINGS PER
DILUTED SHARE
+20% vs 2024
Improving demand environment driving growth in Semiconductor and Electronics & Packaging markets
Delivering broadest portfolio of differentiated solutions foundational to advanced electronics applications in AI era
Deploying strong free cash flow to invest in growth of our business and reduce our leverage
4
Q4 2025: Strong Performance with Growth Across End Markets
Q4 2025
$1B
REVENUE
Q4 2025
46.4%
NON-GAAP GROSS MARGIN
Q4 2025
$249M
ADJUSTED EBITDA
Q4 2025
$2.47
NON-GAAP NET EARNINGS PER
DILUTED SHARE
5
Semiconductor
Q4 Highlights Business Trends
Q/Q CHANGE | +5% |
Y/Y CHANGE | +9% |
Y/Y CHANGE1 Excluding FX | +8% |
Q4 2025
$435M
REVENUE
Revenue growth year over year led by subsystems serving deposition and etch applications in DRAM, Logic/Foundry
Higher sequential demand for plasma and reactive gas systems; maintained momentum in dissolved gases for advanced logic
NAND-related activity remained stable sequentially
Guidance Q1 2026
$450M
+/- $15M
REVENUE
Q1'26 revenue guidance up sequentially and consistent with market improvement
Well-positioned for potential WFE acceleration with global footprint and broadest portfolio of products and technologies to enable our industry's increasingly complex technology roadmaps
1 For further information regarding estimated impact of FX, refer to appendix at the end of this presentation.
6
Electronics & Packaging
Q4 Highlights
Business Trends
Q/Q CHANGE
+5%
Y/Y CHANGE
+19%
Y/Y CHANGE1
Excluding FX & Palladium
+15%
Q4 2025
$303M
REVENUE
Revenue driven by higher flexible PCB drilling for smartphone/PC applications, and chemistry equipment demand for AI-related applications
Strong year-over-year sales growth includes higher chemistry and chemistry equipment demand for advanced PCBs
Record year for chemistry equipment sales,
a favorable indicator for long-term chemistry revenue
Guidance Q1 2026
$305M
+/- $15M
REVENUE
Q1 guidance implies low 20% range increase year over year including higher palladium pass through revenue
Expect continued strength in chemistry equipment supported by AI investments, offset by typical seasonal declines in chemistry due to Lunar New Year holiday
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.
7
Specialty Industrial
Q4 Highlights Business Trends
Q/Q CHANGE
+4%
Y/Y CHANGE
+5%
Y/Y CHANGE1
Excluding FX & Palladium
+3%
Q4 2025
$295M
REVENUE
Revenue reflects sequential improvement led by Research & Defense and certain Industrial applications, despite softness in automotive
Performance has remained steady over 2025
Guidance Q1 2026
$285M
+/- $10M
REVENUE
Expect modest year-over-year growth led by Research & Defense and Industrial,
with sequential decline mainly due to Lunar New Year holiday
Specialty Industrial market includes attractive businesses that leverage our proprietary technologies to deliver steady performance and incremental cash flows
1 For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of this presentation.
8
MKS is Well-Positioned as End Market Demand ImprovesCritical enabler at the intersection of advanced device manufacturing
Semiconductor: Supporting leading-edge Logic/Foundry and HBM investment; poised to benefit from NAND upgrades
Electronics & Packaging: Delivering proprietary chemistry and equipment for AI applications and advanced electronic devices
Ready to deliver to customer demand
Resilient global footprint
Broad portfolio of leading technologies
Robust financial position
Strong margins that reflect the value we deliver
Strong cash flow to invest in our business and proactively de-leverage
9
Q4'25 Revenue & Select Financial Measures
Q4'25 SUMMARY
8%
$400M
$415M
$435M
Semiconductor
Q4'25 Change
Excl. FX and Pd(1)
Q4'24
Q3'25
Q4'25
Non-GAAP Financial Measures
Gross Margin 46.4% 46.6% 47.2%
Specialty Industrial $295M $284M $281M 3%
Electronics & Packaging $303M $289M $254M 15% Revenue $1,033M $988M $935M 9%
Operating Margin 21.0% 20.8% 21.3%
Interest Expense, Net $42M $45M $45M
Adjusted EBITDA $249M $240M $237M
Net Earnings $168M $130M $146M
Income Tax Rate 0.9% 17.9% 4.0% Net Earnings per Diluted Share $2.47 $1.93 $2.15 Adjusted EBITDA Margin 24.1% 24.3% 25.3%
Revenue exceeded the high end of initial guidance driven by strong demand in Semiconductor and Electronics & Packaging markets
Gross margin above the midpoint of guidance and slightly down year over year due to higher mix of chemistry equipment sales, higher palladium prices and ongoing tariff impacts
Non-GAAP operating expenses increased primarily from higher variable compensation costs due to stronger business performance
Adjusted EBITDA and Non-GAAP net earnings above midpoint of guidance reflecting strong revenue and gross margin flow through
GAAP Financial Measures
Gross Margin 46.4% 46.6% 47.2%
Operating Margin 13.9% 14.0% 14.5%
Interest Expense, Net $47M $50M $49M
Income Tax Rate -20.8% 12.3% -14.5%
Net Income $108M $74M $90M
Net Income per Diluted Share $1.58 $1.10 $1.33
1 For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of this presentation.
10
Balance Sheet & Cash Flow
Q4'25 SUMMARY
Q4'25 | Q4'24 | |
Cash and Cash Equivalents | $675M | $714M |
Trade Accounts Receivable, Net | $651M | $615M |
Inventories | $921M | $893M |
Total Current Assets | $2,510M | $2,474M |
Total Assets | $8,796M | $8,590M |
Debt Principal | $4,278M | $4,649M |
Total Liabilities | $6,077M | $6,268M |
Stockholders' Equity | $2,719M | $2,322M |
Operating Cash Flow | $142M | $176M |
Capex | $51M | $51M |
Free Cash Flow | $91M | $125M |
Unlevered Free Cash Flow | $131M | $171M |
Strong free cash flow of $91 million
Ended 2025 with liquidity of approximately $1.4 billion, consisting of $675 million of cash and cash equivalents and an undrawn revolving credit facility of
$675 million
Made another $100 million voluntary principal prepayment in October, bringing total to $400 million for full year 2025
Net leverage continues to improve, declining to 3.7x due to proactive de-leveraging efforts and Adjusted EBITDA growth
11
2025 Revenue & Select Financial Measures
2025 SUMMARY
2025 | 2024 | Y/Y Change | Y/Y Change Excl. FX and Pd(1) | |
Semiconductor | $1,696M | $1,498M | 13% | 13% |
Electronics & Packaging | $1,111M | $922M | 20% | 19% |
Specialty Industrial | $1,124M | $1,166M | -4% | -4% |
Revenue | $3,931M | $3,586M | 10% | 9% |
Non-GAAP Financial Measures | ||||
2025 | 2024 | |||
Gross Margin | 46.7% | 47.6% | ||
Operating Margin | 20.7% | 21.3% | ||
Adjusted EBITDA | $966M | $914M | ||
Adjusted EBITDA Margin | 24.6% | 25.5% | ||
Cash Flow Measures | ||||
2025 | 2024 | |||
Operating Cash Flow | $645M | $528M | ||
Capex | $148M | $118M | ||
Free Cash Flow | $497M | $410M | ||
Unlevered Free Cash Flow | $648M | $624M |
Semiconductor revenue higher, driven by Plasma and Reactive Gases, Vacuum products and service business
Electronics & Packaging chemistry sales increased 11% when excluding the impact of FX and palladium
Specialty Industrial lower primarily driven by softness in the industrial market, including automotive
Non-GAAP gross margin decreased 90 basis points due to product mix, including record chemistry equipment sales, higher palladium prices and additional tariff costs
Free cash flow increased 21% reflective of healthy conversion rate of Non-GAAP net earnings
1 "For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of the presentation."
12
OutlookOutlook
Q1'26
Q4'25 Actual
Revenue
$1,040M +/- $40M
$1,033M
Non-GAAP Financial Measures
Gross Margin
46.0% +/- 100 bps
46.4%
Operating Expenses
$270M +/- $5M
$263M
Operating Income
$209M
$217M
Operating Margin
20.0%
21.0%
Interest Expense, Net
$36M
$42M
Income Tax Rate
21%
0.9%
Net Earnings
$136M +/- $19M
$168M
Net Earnings per Diluted Share
$2.00 +/- $0.28
$2.47
Adjusted EBITDA
$251M +/- $24M
$249M
Diluted Share Count
68.1M
68.0M
Revenue outlook by end-market:
Semiconductor - $450M +/- $15M
Electronics & Packaging - $305M +/- $15M
Specialty Industrial - $285M +/- $10M
Gross Margin includes sequentially lower chemistry sales due to expected seasonality
Non-GAAP operating expenses up sequentially due to higher variable compensation
Non-GAAP Tax Rate of approximately 21% in first quarter and 18% to 20% range for the year
In February 2026, closed a repricing of term loans, made another $100 million voluntary prepayment and completed a €1 billion senior notes offering. These combined actions are expected to reduce annual interest expense by approximately
$27 million based on current interest rates.
13
Q&A
Q4'25 Revenue
Q4'25
Specialty Industrial
29%
Semi 42%
Electronics & Packaging 29%
Consumables & Service 41%
Q4'25 vs Q4'24(1)
Total | Change Excluding | ||||||||
Q4'25 | Q3'25 | Q4'24 | Change | FX | Pd | FX & Pd | |||
Semiconductor | $ 435 | $ 415 | $ 400 | 9% | 1% | - | 8% | ||
Electronics & Packaging | 303 | 289 | 254 | 19% | 2% | 2% | 15% | ||
Specialty Industrial | 295 | 284 | 281 | 5% | 1% | 0% | 3% | ||
$ 1,033 | $ 988 | $ 935 | 10% | 1% | 1% | 9% | |||
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
15
2025 Revenue
2025
Specialty Industrial
29%
Semi 43%
Electronics & Packaging 28%
Consumables & Service 41%
Total
2025 vs 2024(1)
Change Excluding
2025 2024
Change FX Pd
FX & Pd
Semiconductor | $ 1,696 $ | 1,498 | 13% | 0% | - | 13% |
Electronics & Packaging | 1,111 | 922 | 20% | 1% | 0% | 19% |
Specialty Industrial | 1,124 1,166 | -4% | 0% | 0% | -4% | |
$ 3,931 $ 3,586 | 10% | 0% | 0% | 9% | ||
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
16
Appendix - GAAP to Non-GAAP Reconciliations
Q4'25 | Q3'25 | Q4'24 | 2025 | 2024 | |
Net income | $ 108 | $ 74 | $ 90 | $ 295 | $ 190 |
Acquisition and integration costs | - | - | 3 | $ - | 9 |
Restructuring and other | 11 | 4 | 1 | 37 | 6 |
Amortization of intangible assets | 62 | 63 | 61 | 247 | 245 |
Loss on extinguishment of debt | 2 | 2 | 4 | 10 | 57 |
Amortization of debt issuance costs | 5 | 5 | 5 | 19 | 21 |
Fees and expenses related to amendments to the Term Loan Facility | - | - | - | 2 | 5 |
Tax effect of Non-GAAP adjustments | (20) | (18) | (18) | (77) | (89) |
Non-GAAP net earnings | $ 168 $ 130 $ 146 $ 533 $ 444 | ||||
Non-GAAP net earnings per diluted share | $ 2.47 $ 1.93 $ 2.15 $ 7.88 $ 6.58 | ||||
Net income per share | $ 1.58 $ 1.10 $ 1.33 $ 4.37 $ 2.81 | ||||
Weighted average diluted shares outstanding | 68.0 | 67.6 | 67.7 | 67.7 | 67.6 |
Gross profit $ 480 $ 461 $ 441 $ 1,837 $ 1,708
Gross margin 46.4% 46.6% 47.2% 46.7% 47.6%
in millions, other than per diluted share amounts and percentages
17
Appendix - GAAP to Non-GAAP Reconciliations
Q4'25 | Q3'25 | Q4'24 | 2025 | 2024 | |
Operating expenses | $ 336 | $ 323 | $ 306 | $ 1,309 | $ 1,210 |
Acquisition and integration costs | - | - | 3 | - | 9 |
Restructuring and other | 11 | 4 | 1 | 37 | 6 |
Amortization of intangible assets | 62 | 63 | 61 | 247 | 245 |
Fees and expenses related to amendments to the Term Loan Facility | - | - | - | 2 | 5 |
Non-GAAP operating expenses | $ 263 | $ 256 | $ 242 | $ 1,023 | $ 945 |
Income from operations | $ 144 | $ 138 | $ 135 | $ 528 | $ 498 |
Operating margin | 13.9% | 14.0% | 14.5% | 13.4% | 13.9% |
Acquisition and integration costs | - | - | 3 | - | 9 |
Restructuring and other | 11 | 4 | 1 | 37 | 6 |
Amortization of intangible assets | 62 | 63 | 61 | 247 | 245 |
Fees and expenses related to amendments to the Term Loan Facility | - | - | - | 2 | 5 |
Non-GAAP income from operations | $ 217 | $ 205 | $ 199 | $ 814 | $ 763 |
Non-GAAP operating margin | 21.0% | 20.8% | 21.3% | 20.7% | 21.3% |
Interest expense, net | $ 47 | $ 50 | $ 49 | $ 198 | $ 263 |
Amortization of debt issuance costs | 5 | 5 | 5 | 19 | 21 |
Non-GAAP interest expense, net | $ 42 | $ 45 | $ 45 | $ 179 | $ 242 |
in millions, except percentages
18
Appendix - GAAP to Non-GAAP Reconciliations
Q4'25 | Q3'25 | Q4'24 | 2025 | 2024 | |
Net income | $ 108 | $ 74 | $ 90 | $ 295 | $ 190 |
Interest expense, net | 47 | 50 | 49 | 198 | 263 |
Other (income) expense, net | 6 | 2 | 3 | 16 | (2) |
Provision (benefit) for income taxes | (19) | 10 | (11) | 9 | (10) |
Depreciation | 24 | 23 | 26 | 97 | 103 |
Amortization of intangible assets | 62 | 63 | 61 | 247 | 245 |
Stock-based compensation | 8 | 12 | 11 | 55 | 48 |
Acquisition and integration costs | - | - | 3 | - | 9 |
Restructuring and other | 11 | 4 | 1 | 37 | 6 |
Loss on extinguishment of debt | 2 | 2 | 4 | 10 | 57 |
Fees and expenses related to amendments to the Term Loan Facility | - | - | - | 2 | 5 |
Adjusted EBITDA | $ 249 | $ 240 | $ 237 | $ 966 | $ 914 |
Adjusted EBITDA margin | 24.1% | 24.3% | 25.3% | 24.6% | 25.5% |
Debt principal outstanding as of December 31, 2025 | $ 4,278 | ||||
Cash and cash equivalents as of December 31, 2025 | 675 | ||||
Net debt as of December 31, 2025 | $ 3,603 | ||||
Adjusted EBITDA for the trailing twelve months ended December 31, 2025 | $ 966 | ||||
Net leverage ratio at December 31, 2025 | 3.7x |
in millions, except percentages and net leverage ratio
19
Appendix - GAAP to Non-GAAP Reconciliations
Q4'25 Q3'25 Q4'24 2025 2024
Net cash provided by operating activities
$ 142 $
197 $
176 $
645 $
528
Purchases of property, plant and equipment (51) (50) (51) (148) (118)
Free cash flow $ 91 $ 147 $ 125 $ 497 $ 410
Q4'25 | Q3'25 | Q4'24 | 2025 | 2024 | |
Free cash flow | $ 91 | $ 147 | $ 125 | $ 497 | $ 410 |
Cash paid for interest | 50 | 44 | 58 | 192 | 270 |
Tax effect on cash paid for interest1 | (10) | (9) | (12) | (40) | (57) |
Unlevered free cash flow $ 131 $ 182 $ 171 $ 648 $ 624
1Tax effect of cash paid for interest was calculated at the US Federal Statutory rate of 21% in millions
20
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