Vishay Intertechnology Reports First Quarter 2025 Results

Rhea-AI Summary

Vishay Intertechnology (NYSE: VSH) reported its Q1 2025 financial results with revenues of $715.2 million. The company posted a loss per share of ($0.03) and achieved a gross margin of 19.0%, which included a negative impact of approximately 200 basis points from the Newport addition. The Q1 2025 book-to-bill ratio was 1.08, with semiconductors at 1.12 and passive components at 1.04. The company's backlog stands at 4.7 months.

For Q2 2025, Vishay expects revenues between $740 million to $780 million and projects a gross profit margin of 19.0% ±50 basis points, including a 175-200 basis point negative impact from Newport. Management noted that channel inventory has normalized and expressed confidence in navigating tariff policies and demand uncertainties.

Positive

• Book-to-bill ratio above 1.0 (1.08) indicates strong future demand
• Healthy backlog of 4.7 months shows solid order pipeline
• Projected 6% sequential revenue growth for Q2 2025
• Channel inventory has normalized, improving market conditions

Negative

• Q1 2025 resulted in a loss per share of ($0.03)
• Newport acquisition negatively impacting gross margins by 200 basis points
• Ongoing challenges from tariff policies and demand uncertainties
• Gross margin remains pressured at 19.0%

Insights

Financial Analyst

Vishay posts Q1 loss but signals recovery with strong book-to-bill ratio and 6% sequential growth forecast for Q2.

Vishay Intertechnology's Q1 2025 results reflect a company in transition, with revenues of $715.2 million and a loss per share of ($0.03). The gross margin of 19.0% included a 200 basis point negative impact related to the Newport addition, highlighting current profitability challenges.

The forward indicators, however, paint a more encouraging picture. The book-to-bill ratio of 1.08 (1.12 for semiconductors and 1.04 for passive components) indicates that incoming orders exceeded shipments—a positive signal for future revenue growth. The 4.7-month backlog represents substantial secured future business.

Management's commentary on inventory normalization is particularly significant. The statement that "much of the channel inventory that overhung the market has normalized" suggests that a key industry headwind is dissipating, potentially allowing for more direct correlation between end-market demand and manufacturer orders.

For Q2 2025, Vishay expects revenues of $760 million ±$20 million—representing approximately 6% sequential growth—while maintaining similar gross margin levels. This guidance incorporates anticipated tariff effects, demonstrating management's proactive approach to trade policy challenges.

The investments in production capacity over the past two years appear strategically timed, positioning Vishay to capitalize on improving market conditions. While the current quarter shows a loss, the positive book-to-bill ratio coupled with management's sequential growth guidance suggests the company may be at an inflection point between challenging conditions and potential recovery.

MALVERN, Pa., May 07, 2025 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal first quarter ended March 29, 2025.

Highlights

• 1Q 2025 revenues of $715.2 million
• Gross margin was 19.0% and included the negative impact of approximately 200 basis points related to the addition of Newport
• 1Q 2025 loss per share of ($0.03)
• 1Q 2025 book-to-bill of 1.08 with book-to-bill of 1.12 for semiconductors and 1.04 for passive components
• Backlog at quarter end was 4.7 months
  
  

“Market signals, which continued from the fourth quarter, indicate that much of the channel inventory that overhung the market has normalized. We executed well during the first quarter on our strategic levers to drive faster revenue growth and improve profitability. We are prepared to navigate evolving tariff policies and any demand uncertainties, staying in close contact with our customers to assure them of reliable supply and making adjustments to our spending as necessary,” said Joel Smejkal, president and CEO. “The investments we have made in capacity over the past two years better position Vishay for a market upturn and support our decision to guide for a sequential revenue increase of 6%.”

2Q 2025 Outlook
For the second quarter of 2025, management expects revenues in the range of $760 million +/- $20 million and a gross profit margin in the range of 19.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport. Second quarter guidance includes the anticipated effect of tariffs.

Conference Call
A conference call to discuss Vishay’s first quarter financial results is scheduled for Wednesday, May 7, 2025 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI5b9245def09d4423aad8a7d7a5526751. Upon registering, you will be emailed a dial-in number, and unique PIN.

A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.

There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days.

About Vishay
Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech^®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com.

This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net earnings; adjusted earnings per share; adjusted gross margin; adjusted operating margin; free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); adjusted EBITDA; and adjusted EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, adjusted gross margin, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Although the terms "free cash" and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. Reconciling items to calculate adjusted gross margin, adjusted operating margin and adjusted EBITDA represent those same items used in computing adjusted net earnings, as relevant. Furthermore, the presented calculation of adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay's revolving credit facility. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in the Company's financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q.

Statements contained herein that relate to the Company's future performance, including forecasted revenues and margins, capital investment, capacity expansion, stockholder returns, tariff effects, and the performance of the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words and expressions such as “guide,” “will,” “expect,” “indicate,” “anticipate,” “committed” or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; manufacturing or supply chain interruptions or changes in customer demand; delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The DNA of tech^® is a trademark of Vishay Intertechnology.

Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Executive Vice President, Corporate Development
+1-610-644-1300

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
	Fiscal quarters ended
	March 29, 2025				December 31, 2024				March 30, 2024
Net revenues	$	715,236			$	714,716			$	746,279
Costs of products sold		579,682				572,584				575,872
Gross profit		135,554				142,132				170,407
Gross margin		19.0	%			19.9	%			22.8	%
Selling, general, and administrative expenses		134,739				132,330				127,736
Impairment of goodwill		-				66,487				-
Operating income (loss)		815				(56,685	)			42,671
Operating margin		0.1	%			-7.9	%			5.7	%
Other income (expense):
Interest expense		(8,790	)			(7,731	)			(6,496	)
Other		3,747				5,563				8,087
Total other income (expense) - net		(5,043	)			(2,168	)			1,591
Income (loss) before taxes		(4,228	)			(58,853	)			44,262
Income tax expense (benefit)		(136	)			7,232				12,819
Net earnings (loss)		(4,092	)			(66,085	)			31,443
Less: net earnings attributable to noncontrolling interests		-				223				519
Net earnings (loss) attributable to Vishay stockholders	$	(4,092	)		$	(66,308	)		$	30,924
Basic earnings (loss) per share attributable to Vishay stockholders	$	(0.03	)		$	(0.49	)		$	0.22
Diluted earnings (loss) per share attributable to Vishay stockholders	$	(0.03	)		$	(0.49	)		$	0.22
Weighted average shares outstanding - basic		135,799				136,050				137,726
Weighted average shares outstanding - diluted		135,799				136,050				138,476
Cash dividends per share	$	0.10			$	0.10			$	0.10

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(Unaudited - In thousands)
	March 29, 2025				December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	609,402			$	590,286
Short-term investments		10,197				16,130
Accounts receivable, net		427,634				401,901
Inventories:
Finished goods		177,202				175,176
Work in process		314,752				296,393
Raw materials		220,484				217,812
Total inventories		712,438				689,381
Prepaid expenses and other current assets		215,891				217,809
Total current assets		1,975,562				1,915,507
Property and equipment, at cost:
Land		84,827				84,124
Buildings and improvements		784,132				766,058
Machinery and equipment		3,336,823				3,259,213
Construction in progress		377,095				367,564
Allowance for depreciation		(3,008,308	)			(2,931,221	)
		1,574,569				1,545,738
Right of use assets		117,445				117,953
Deferred income taxes		162,126				159,769
Goodwill		179,388				179,005
Other intangible assets, net		85,962				87,223
Other assets		105,190				105,501
Total assets	$	4,200,242			$	4,110,696

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(Unaudited - In thousands)
	March 29, 2025				December 31, 2024
Liabilities and equity
Current liabilities:
Trade accounts payable	$	211,378			$	216,313
Payroll and related expenses		153,201				137,101
Lease liabilities		26,179				25,901
Other accrued expenses		262,649				264,471
Income taxes		51,994				64,562
Total current liabilities		705,401				708,348
Long-term debt less current portion		988,235				905,019
Deferred income taxes		99,777				96,363
Long-term lease liabilities		93,150				94,218
Other liabilities		103,968				104,086
Accrued pension and other postretirement costs		177,579				173,700
Total liabilities		2,168,110				2,081,734
Equity:
Common stock		13,411				13,361
Class B convertible common stock		1,210				1,210
Capital in excess of par value		1,308,366				1,306,245
Retained earnings		937,833				955,500
Treasury stock (at cost)		(224,600	)			(212,062	)
Accumulated other comprehensive income (loss)		(4,088	)			(35,292	)
Total equity		2,032,132				2,028,962
Total liabilities and equity	$	4,200,242			$	4,110,696

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
	Three fiscal months ended
	March 29, 2025				March 30, 2024
Operating activities
Net earnings (loss)	$	(4,092	)		$	31,443
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		53,773				49,527
(Gain)/loss on disposal of property and equipment		189				(625	)
Inventory write-offs for obsolescence		9,030				8,179
Stock compensation expense		6,051				5,344
Deferred income taxes		1,573				4,376
Other		(1,380	)			426
Changes in operating assets and liabilities, net of effects of business acquired		(49,046	)			(18,459	)
Net cash provided by operating activities		16,098				80,211
Investing activities
Capital expenditures		(61,569	)			(53,084	)
Proceeds from sale of property and equipment		279				751
Purchase of businesses, net of cash acquired		-				(168,616	)
Purchase of short-term investments		(21,899	)			(19,232	)
Maturity of short-term investments		27,832				17,611
Other investing activities		(661	)			(1,219	)
Net cash used in investing activities		(56,018	)			(223,789	)
Financing activities
Net proceeds on revolving credit facility		82,000				-
Dividends paid to common stockholders		(12,352	)			(12,542	)
Dividends paid to Class B common stockholders		(1,210	)			(1,210	)
Repurchase of common stock held in treasury		(12,538	)			(12,538	)
Cash withholding taxes paid when shares withheld for vested equity awards		(3,893	)			(4,053	)
Net cash provided by (used in) financing activities		52,007				(30,343	)
Effect of exchange rate changes on cash and cash equivalents		7,029				(2,257	)
Net increase (decrease) in cash and cash equivalents		19,116				(176,178	)
Cash and cash equivalents at beginning of period		590,286				972,719
Cash and cash equivalents at end of period	$	609,402			$	796,541

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share amounts)
	Fiscal quarters ended
	March 29, 2025				December 31, 2024				March 30, 2024
GAAP net earnings (loss) attributable to Vishay stockholders	$	(4,092	)		$	(66,308	)		$	30,924
Reconciling items affecting operating income:
Impairment of goodwill	$	-			$	66,487			$	-
Adjusted net earnings (loss)	$	(4,092	)		$	179			$	30,924
Adjusted weighted average diluted shares outstanding		135,799				136,883				138,476
Adjusted earnings (loss) per diluted share	$	(0.03	)		$	0.00			$	0.22

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Free Cash
(Unaudited - In thousands)
	Fiscal quarters ended
	March 29, 2025				December 31, 2024				March 30, 2024
Net cash provided by operating activities	$	16,098			$	67,656			$	80,211
Proceeds from sale of property and equipment		279				1,618				751
Less: Capital expenditures		(61,569	)			(144,904	)			(53,084	)
Free cash	$	(45,192	)		$	(75,630	)		$	27,878

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of EBITDA and Adjusted EBITDA
(Unaudited - In thousands)
	Fiscal quarters ended
	March 29, 2025				December 31, 2024				March 30, 2024
GAAP net earnings (loss) attributable to Vishay stockholders	$	(4,092	)		$	(66,308	)		$	30,924
Net earnings attributable to noncontrolling interests		-				223				519
Net earnings (loss)	$	(4,092	)		$	(66,085	)		$	31,443
Interest expense	$	8,790			$	7,731			$	6,496
Interest income		(3,877	)			(4,533	)			(9,053	)
Income taxes		(136	)			7,232				12,819
Depreciation and amortization		53,773				55,373				49,527
EBITDA	$	54,458			$	(282	)		$	91,232
Reconciling items
Impairment of goodwill	$	-			$	66,487			$	-
Adjusted EBITDA	$	54,458			$	66,205			$	91,232
Adjusted EBITDA margin**		7.6	%			9.3	%			12.2	%
** Adjusted EBITDA as a percentage of net revenues

FAQ

What were Vishay Intertechnology's (VSH) Q1 2025 earnings results?

Vishay reported Q1 2025 revenues of $715.2 million, a loss per share of ($0.03), and a gross margin of 19.0%. The quarter's book-to-bill ratio was 1.08.

What is Vishay's (VSH) revenue guidance for Q2 2025?

Vishay expects Q2 2025 revenues in the range of $760 million ±$20 million, representing a 6% sequential increase.

How did the Newport acquisition impact VSH's gross margins in Q1 2025?

The Newport acquisition negatively impacted Vishay's gross margins by approximately 200 basis points in Q1 2025.

What is Vishay's (VSH) current book-to-bill ratio for semiconductors and passive components?

In Q1 2025, Vishay's book-to-bill ratio was 1.12 for semiconductors and 1.04 for passive components, with an overall ratio of 1.08.

What is VSH's current backlog status?

Vishay reported a backlog of 4.7 months at the end of Q1 2025.