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. ( MKSI ) 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/Mis Actual Consensu

s s

Estimate

Q3 Beat $988 mln $970.48

Revenue mln (12

Analysts

)

Q3 Miss $1.10 $1.85

Adjusted (13

EPS Analysts

)

Q3 EPS $1.10

Q3 Net $74 mln

Income

Q3 $84 mln

Pretax

Profit

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 ( MKSI ) 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:

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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.)