Vishay Intertechnology Reports Second Quarter 2025 Results

Rhea-AI Summary

Vishay Intertechnology (NYSE:VSH) reported its Q2 2025 financial results with revenues of $762.3 million. The company achieved a gross margin of 19.5%, which included a negative impact of approximately 160 basis points from the Newport addition. The quarter saw a 7% sequential revenue increase, with growth across all end markets, regions, and customer segments.

The company reported Q2 2025 EPS of $0.01 and an adjusted loss per share of $(0.07). The book-to-bill ratio stood at 1.02, with semiconductors at 0.98 and passive components at 1.06. For Q3 2025, Vishay expects revenues between $755-795 million with a gross margin of approximately 19.7% ±50 basis points.

Positive

• Sequential revenue growth of 7% across all segments and regions
• Book-to-bill ratio above 1.0 at 1.02, indicating healthy demand
• Strong passive components book-to-bill of 1.06
• Expected Q3 2025 revenue growth to $775M ±$20M

Negative

• Adjusted loss per share of $(0.07) in Q2 2025
• Newport acquisition negatively impacting gross margins by 160 basis points
• Semiconductor book-to-bill below 1.0 at 0.98
• Gross margin remains pressured at 19.5%

Insights

Semiconductor Industry Financial Analyst

Q2 shows 7% sequential revenue growth with positive book-to-bill ratio, but Vishay still posted adjusted loss despite revenue improvement.

Vishay Intertechnology's Q2 2025 results reveal a company in transition, showing early signs of recovery amid ongoing challenges. The $762.3 million revenue represents a 7% sequential increase, with growth across all end markets, regions, and customer segments. This broad-based improvement suggests the semiconductor cycle may be turning positive after a prolonged downturn.

The book-to-bill ratio of 1.02 (orders exceeding shipments) further supports this recovery narrative, though it's worth noting the divergence between semiconductors (0.98) and passive components (1.06). The 4.6-month backlog provides reasonable visibility and operational stability.

However, profitability remains challenged. The 19.5% gross margin includes a 160 basis point negative impact from the Newport acquisition. More concerning is the adjusted loss per share of $(0.07), indicating that despite revenue growth, Vishay hasn't reached the inflection point for earnings recovery. The GAAP EPS of $0.01 likely benefits from one-time items masking underlying operational challenges.

Management's Q3 guidance projects modest sequential growth with revenues of $775 million ±$20 million and slightly improved gross margins of 19.7% ±50 basis points, still dampened by Newport integration costs. This cautious outlook suggests a gradual rather than dramatic recovery trajectory.

The management's mention of "capacity expansion" investments positions the company to capitalize on the emerging upturn, but these investments may pressure margins in the near term before yielding returns. While directionally positive, Vishay still faces the challenge of translating revenue improvement into sustainable profitability.

MALVERN, Pa., Aug. 06, 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 second quarter ended June 28, 2025.

Highlights

• 2Q 2025 revenues of $762.3 million
• Gross margin was 19.5% and included the negative impact of approximately 160 basis points related to the addition of Newport
• 2Q 2025 EPS of $0.01
• 2Q 2025 Adjusted loss per share of $(0.07)
• 2Q 2025 book-to-bill of 1.02 with book-to-bill of 0.98 for semiconductors and 1.06 for passive components
• Backlog at quarter end was 4.6 months

“The promising signals we saw emerging at the beginning of the year contributed to a 7% sequential increase in revenue for the second quarter. We delivered growth for semis and passives, across each of our end markets, each region, and to distributors and EMS customers,” said Joel Smejkal, president and CEO. “With market indicators remaining directionally positive, our investments in capacity expansion positions Vishay to be ready to participate more fully in the market upturn.”

3Q 2025 Outlook
For the third quarter of 2025, management expects revenues in the range of $775 million +/- $20 million and a gross profit margin in the range of 19.7% +/- 50 basis points, including the negative impact of approximately 160 to 185 basis points from the addition of Newport.

Conference Call
A conference call to discuss Vishay’s second quarter financial results is scheduled for Wednesday, August 6, 2025 at 9:00 a.m. ET. To participate in the live conference call, please pre-register here. 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, 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,” “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
	June 28, 2025				March 29, 2025				June 29, 2024
Net revenues	$	762,250			$	715,236			$	741,239
Costs of products sold		613,567				579,682				578,369
Gross profit		148,683				135,554				162,870
Gross margin		19.5	%			19.0	%			22.0	%
Selling, general, and administrative expenses*		126,565				134,739				124,953
Operating income		22,118				815				37,917
Operating margin		2.9	%			0.1	%			5.1	%
Other income (expense):
Interest expense		(10,588	)			(8,790	)			(6,657	)
Other		747				3,747				5,011
Total other income (expense) - net		(9,841	)			(5,043	)			(1,646	)
Income (loss) before taxes		12,277				(4,228	)			36,271
Income tax expense (benefit)		10,273				(136	)			12,391
Net earnings (loss)		2,004				(4,092	)			23,880
Less: net earnings attributable to noncontrolling interests		-				-				347
Net earnings (loss) attributable to Vishay stockholders	$	2,004			$	(4,092	)		$	23,533
Basic earnings (loss) per share attributable to Vishay stockholders	$	0.01			$	(0.03	)		$	0.17
Diluted earnings (loss) per share attributable to Vishay stockholders	$	0.01			$	(0.03	)		$	0.17
Weighted average shares outstanding - basic		135,702				135,799				137,326
Weighted average shares outstanding - diluted		136,167				135,799				138,084
Cash dividends per share	$	0.10			$	0.10			$	0.10
* Selling, general, and administrative expenses for the fiscal quarter ended June 28, 2025 include a ($11,293) benefit recognized upon the favorable resolution of a contingency.

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
	Six fiscal months ended
	June 28, 2025				June 29, 2024
Net revenues	$	1,477,486			$	1,487,518
Costs of products sold		1,193,249				1,154,241
Gross profit		284,237				333,277
Gross margin		19.2	%			22.4	%
Selling, general, and administrative expenses*		261,304				252,689
Operating income		22,933				80,588
Operating margin		1.6	%			5.4	%
Other income (expense):
Interest expense		(19,378	)			(13,153	)
Other		4,494				13,098
Total other income (expense) - net		(14,884	)			(55	)
Income before taxes		8,049				80,533
Income tax expense		10,137				25,210
Net earnings (loss)		(2,088	)			55,323
Less: net earnings attributable to noncontrolling interests		-				866
Net earnings (loss) attributable to Vishay stockholders	$	(2,088	)		$	54,457
Basic earnings (loss) per share attributable to Vishay stockholders	$	(0.02	)		$	0.40
Diluted earnings (loss) per share attributable to Vishay stockholders	$	(0.02	)		$	0.39
Weighted average shares outstanding - basic		135,750				137,525
Weighted average shares outstanding - diluted		135,750				138,279
Cash dividends per share	$	0.20			$	0.20
* Selling, general, and administrative expenses for the six fiscal months ended June 28, 2025 include a ($11,293) benefit recognized upon the favorable resolution of a contingency.

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(Unaudited - In thousands)
	June 28, 2025				December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	473,860			$	590,286
Short-term investments		5,217				16,130
Accounts receivable, net		461,809				401,901
Inventories:
Finished goods		192,393				175,176
Work in process		326,575				296,393
Raw materials		235,898				217,812
Total inventories		754,866				689,381
Prepaid expenses and other current assets		216,330				217,809
Total current assets		1,912,082				1,915,507
Property and equipment, at cost:
Land		86,411				84,124
Buildings and improvements		813,274				766,058
Machinery and equipment		3,433,596				3,259,213
Construction in progress		421,365				367,564
Allowance for depreciation		(3,124,035	)			(2,931,221	)
		1,630,611				1,545,738
Right of use assets		122,554				117,953
Deferred income taxes		179,215				159,769
Goodwill		180,348				179,005
Other intangible assets, net		86,195				87,223
Other assets		110,650				105,501
Total assets	$	4,221,655			$	4,110,696

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(Unaudited - In thousands)
	June 28, 2025				December 31, 2024
Liabilities and equity
Current liabilities:
Trade accounts payable	$	224,346			$	216,313
Payroll and related expenses		176,553				137,101
Lease liabilities		26,986				25,901
Other accrued expenses		268,101				264,471
Income taxes		11,308				64,562
Total current liabilities		707,294				708,348
Long-term debt less current portion		914,504				905,019
Deferred income taxes		98,320				96,363
Long-term lease liabilities		98,970				94,218
Other liabilities		119,573				104,086
Accrued pension and other postretirement costs		188,003				173,700
Total liabilities		2,126,664				2,081,734
Equity:
Common stock		13,415				13,361
Class B convertible common stock		1,210				1,210
Capital in excess of par value		1,314,066				1,306,245
Retained earnings		926,267				955,500
Treasury stock (at cost)		(224,592	)			(212,062	)
Accumulated other comprehensive income (loss)		64,625				(35,292	)
Total equity		2,094,991				2,028,962
Total liabilities and equity	$	4,221,655			$	4,110,696

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)
	Six fiscal months ended
	June 28, 2025				June 29, 2024
Operating activities
Net earnings (loss)	$	(2,088	)		$	55,323
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		109,743				101,677
(Gain)/loss on disposal of property and equipment		73				(1,091	)
Inventory write-offs for obsolescence		17,456				19,051
Stock compensation expense		11,736				9,293
Deferred income taxes		(6,034	)			5,589
Other		(3,606	)			(632	)
Change in U.S. transition tax liability		(47,027	)			(37,622	)
Change in repatriation tax liability		(9,375	)			(15,000	)
Changes in operating assets and liabilities, net of effects of businesses acquired		(63,571	)			(81,107	)
Net cash provided by operating activities		7,307				55,481
Investing activities
Capital expenditures		(126,167	)			(115,648	)
Proceeds from sale of property and equipment		494				1,265
Purchase of businesses, net of cash acquired		-				(200,185	)
Purchase of short-term investments		(28,481	)			(59,638	)
Maturity of short-term investments		39,400				80,110
Other investing activities		(661	)			(1,220	)
Net cash used in investing activities		(115,415	)			(295,316	)
Financing activities
Principal payments on long-term debt		(41,911	)			-
Net proceeds on revolving credit facility		49,000				-
Dividends paid to common stockholders		(24,700	)			(25,033	)
Dividends paid to Class B common stockholders		(2,419	)			(2,419	)
Repurchase of common stock held in treasury		(12,538	)			(25,160	)
Cash withholding taxes paid when shares withheld for vested equity awards		(3,957	)			(4,058	)
Other financing activities		10,078				-
Net cash used in financing activities		(26,447	)			(56,670	)
Effect of exchange rate changes on cash and cash equivalents		18,129				(3,483	)
Net decrease in cash and cash equivalents		(116,426	)			(299,988	)
Cash and cash equivalents at beginning of period		590,286				972,719
Cash and cash equivalents at end of period	$	473,860			$	672,731

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share amounts)
	Fiscal quarters ended												Six fiscal months ended
	June 28, 2025				March 29, 2025				June 29, 2024				June 28, 2025				June 29, 2024
GAAP net earnings (loss) attributable to Vishay stockholders	$	2,004			$	(4,092	)		$	23,533			$	(2,088	)		$	54,457
Reconciling items affecting operating income:
Favorable resolution of contingency	$	(11,293	)		$	-			$	-			$	(11,293	)		$	-
Adjusted net earnings (loss)	$	(9,289	)		$	(4,092	)		$	23,533			$	(13,381	)		$	54,457
Adjusted weighted average diluted shares outstanding		135,702				135,799				138,084				135,750				138,279
Adjusted earnings (loss) per diluted share	$	(0.07	)		$	(0.03	)		$	0.17			$	(0.10	)		$	0.39

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Free Cash
(Unaudited - In thousands)
	Fiscal quarters ended												Six fiscal months ended
	June 28, 2025				March 29, 2025				June 29, 2024				June 28, 2025				June 29, 2024
Net cash provided by (used in) operating activities	$	(8,791	)		$	16,098			$	(24,730	)		$	7,307			$	55,481
Proceeds from sale of property and equipment	$	215				279				514				494				1,265
Less: Capital expenditures	$	(64,598	)			(61,569	)			(62,564	)			(126,167	)			(115,648	)
Free cash	$	(73,174	)		$	(45,192	)		$	(86,780	)		$	(118,366	)		$	(58,902	)

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of EBITDA and Adjusted EBITDA
(Unaudited - In thousands)
	Fiscal quarters ended												Six fiscal months ended
	June 28, 2025				March 29, 2025				June 29, 2024				June 28, 2025				June 29, 2024
GAAP net earnings (loss) attributable to Vishay stockholders	$	2,004			$	(4,092	)		$	23,533			$	(2,088	)		$	54,457
Net earnings attributable to noncontrolling interests		-				-				347				-				866
Net earnings (loss)	$	2,004			$	(4,092	)		$	23,880			$	(2,088	)		$	55,323
Interest expense	$	10,588			$	8,790			$	6,657			$	19,378			$	13,153
Interest income		(4,023	)			(3,877	)			(6,663	)			(7,900	)			(15,716	)
Income taxes		10,273				(136	)			12,391				10,137				25,210
Depreciation and amortization		55,970				53,773				52,150				109,743				101,677
EBITDA	$	74,812			$	54,458			$	88,415			$	129,270			$	179,647
Reconciling items
Favorable resolution of contingency		(11,293	)			-				-				(11,293	)			-
Adjusted EBITDA	$	63,519			$	54,458			$	88,415			$	117,977			$	179,647
Adjusted EBITDA margin**		8.3	%			7.6	%			11.9	%			8.0	%			12.1	%
** Adjusted EBITDA as a percentage of net revenues

FAQ

What were Vishay Intertechnology's (VSH) Q2 2025 earnings results?

Vishay reported Q2 2025 revenues of $762.3 million, EPS of $0.01, and adjusted loss per share of $(0.07). Gross margin was 19.5%.

What is Vishay's revenue guidance for Q3 2025?

Vishay expects Q3 2025 revenues in the range of $775 million ±$20 million with a gross margin of approximately 19.7% ±50 basis points.

How did the Newport acquisition impact Vishay's Q2 2025 results?

The Newport acquisition negatively impacted Vishay's gross margin by approximately 160 basis points in Q2 2025.

What was Vishay's book-to-bill ratio in Q2 2025?

Vishay's overall book-to-bill ratio was 1.02, with semiconductors at 0.98 and passive components at 1.06.

How much did Vishay's revenue grow sequentially in Q2 2025?

Vishay reported a 7% sequential revenue increase in Q2 2025, with growth across all end markets, regions, and customer segments.