MKS Instruments (NASDAQ: MKSI) stock surged 9.61% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results. The company, which provides instruments, systems, and process control solutions for advanced manufacturing processes, reported mixed results that nonetheless impressed investors with strong revenue growth and an optimistic future outlook.
For the third quarter, MKS Instruments announced revenue of $988 million, significantly beating analyst expectations of $970.5 million and representing a 10.27% increase from the same period last year. While the adjusted earnings per share (EPS) of $1.93 fell short of the $1.85 analyst estimate, it still marked a 12.21% improvement over the previous year's $1.72 per share.
John T.C. Lee, President and Chief Executive Officer of MKS, commented on the results, saying, "We executed yet another solid quarter of financial performance, with revenues in each of our end markets as well as non-GAAP EPS in the upper half of our guidance." Lee also highlighted the company's strong positioning in key growth areas, stating, "Our investments to expand our portfolio over the past several years are paying off, with both our Semiconductor and Electronics & Packaging businesses poised to deliver double-digit revenue growth in 2025."
The company's financial health also showed improvement, with $197 million in operating cash flow and $147 million in free cash flow during the quarter. This strong cash performance allowed MKS to reduce its net leverage ratio to 3.9x, enhancing its financial flexibility. The positive results and outlook, particularly in the semiconductor and electronics packaging sectors, appear to have resonated well with investors, driving the significant pre-market stock price increase.
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