MKS Instruments reported Q4 revenue of $1.03 billion, up 5% sequentially and 10% year-over-year, driven by semiconductor sales of $435 million (+9% YoY) and electronics and packaging revenue of $303 million (+19% YoY). Gross margin was 46.4%, operating income was $217 million (21% margin), and net earnings reached $168 million ($2.47 per diluted share).

At quarter-end, cash and equivalents totaled $675 million with an undrawn $675 million revolving credit facility. Net debt fell to $3.6 billion, yielding a 3.7× net leverage ratio based on 2025 adjusted EBITDA of $966 million. The company made a $100 million term-loan prepayment in February and has paid down over $1 billion of debt since February 2024.

For fiscal 2025, MKS Instruments posted revenue of $3.9 billion, up 10% year-over-year, with semiconductor revenue rising 13% to $1.7 billion, electronics and packaging up 20% to $1.1 billion, and specialty industrial down 4% to $1.1 billion. Free cash flow reached $497 million, up 21%, while gross margin was 46.7%, down 90 basis points due to tariffs and mix.

MKS Instruments guided Q1 revenue at $1.04 billion ± $40 million, with $450 million ± $15 million in semiconductors, $305 million ± $15 million in electronics and packaging, and $285 million ± $10 million in specialty industrial. It forecast a 46% ± 100 basis-point gross margin, operating expenses of $270 million ± $5 million, and $2.00 ± $0.28 in EPS.