Overview

* MKS Q2 revenue of $973 mln beats analyst expectations, per LSEG data

* Adjusted EBITDA of $240 mln exceeds high end of co's guidance

* Co attributes growth to demand in Semiconductor and Electronics & Packaging markets

Outlook

* Company forecasts Q3 revenue of $960 mln, plus or minus $40 mln

* MKS sees Q3 GAAP net income of $67 mln, plus or minus $21 mln

* Company expects Q3 gross margin of 46.5%, plus or minus 1.0%

* MKS anticipates Q3 adjusted EBITDA of $232 mln, plus or minus $24 mln

* Company to monitor U.S. import tariffs and retaliatory actions

Result Drivers

* SEMICONDUCTOR DEMAND - Strong year-over-year growth in Semiconductor market drove revenue above guidance, per CEO John T.C. Lee

* ELECTRONICS & PACKAGING - Increased demand for products addressing advanced packaging and AI applications boosted results

* TRADE POLICY AGILITY - Co exercised agility to mitigate trade policy instability, contributing to strong cash flows for debt prepayment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $973 mln $930.70

Revenue mln (12

Analysts

)

Q2 Net $62 mln

Income

Q2 $72 mln

Pretax

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "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 $119.11, about 22.7% above its August 5 closing price of $92.02

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(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.)