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Second Quarter 2026 Financial Results MKS Inc. August 6 , 2026 mks
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2 Safe Harbor for Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not st atements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; risks related to pursuing, completing, and/or failing to realize the benefits of acquisitions and other strategic transactions critical to our growth strategy; risks related to cybersecurity, data privacy and intellectual property; manufacturing and sourcing risks, including supply chain disruptions, component shortages and price increases, the use of limited, sole source and international suppliers, the relocation of manufacturing operations, and product defects; risks associated with doing business internationally, including geopolitical conflicts, trade compliance, trade protection measures, such as import tariffs by the United States and/or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations; conditions affecting the markets in which we operate, including intense competition, rapid technological and market changes, dependence on new product development, the ability to anticipate and meet customer demand, fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks associated with artificial intelligence (“AI”); financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission and any subsequent Quarterly Reports on Form 10-Q. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward- looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our v iews to change, after the date of this presentation. Amounts reported in this presentation are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.
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Notes on Presentation 3 Use of Non-GAAP Financial Measures This presentation includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non- GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS' reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding non-GAAP financial measures, please refer to the appendix at the end of this presentation. MKS is not providing a quantitative reconciliation of forward-looking full-year Non-GAAP income tax rate to GAAP income tax rate because it is unable to estimate with reasonable certainty the ultimate timing or amount of certain significant items without unreasonable efforts. These items include, but are not limited to, restructuring expense, goodwill and intangible asset impairments, debt refinancing fees, debt extinguishment costs, and the income tax effect of these items as well as tax planning strategies, legislation and other discrete items. For a detailed breakout of net revenues by end-market and division, please visit the Net Revenues by End Market & Division presentation available under Events & Presentations on the Investor Relations section of MKS' website at investor.mks.com.
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Q2 2026 Results: Building Momentum ● Revenue and key profitability metrics came in at the high end or above our guidance ranges ● Results reflect strong performance across all MKS end markets ● Performance demonstrates MKS’ foundational role as an enabler of advanced electronics 4 $3.30 NON-GAAP NET EARNINGS PER DILUTED SHARE $358M ADJUSTED EBITDA $1.2B REVENUE 47.6% GROSS MARGIN
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1 For further information regarding estimated impact of FX, refer to appendix at the end of this presentation. Semiconductor ● Strong broad-based growth across dep & etch applications across device types ● Photonics and optics solutions gaining momentum in lithography, metrology and inspection market 5 $554M REVENUE Q2 2026 Q2 Highlights Business Trends $630M REVENUE GuidanceQ/Q CHANGE +19% Excluding FX Y/Y CHANGE +28% Y/Y CHANGE1 +30% ● Q3 revenue growth expected to accelerate, growing over 50% year-over year ● Strong order activity and very healthy backlog provides good visibility through second half of the year Q3 2026 +/- $15M
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1 For further information regarding estimated impact of FX and Ransomware, refer to appendix at the end of this presentation. Electronics & Packaging ● Accelerating revenue growth driven by strong AI-related demand for advanced PCBs and continued demand for flex PCB drilling equipment for advanced smartphones ● Order activity for chemistry equipment is strongest it has ever been, reflecting continued demand for AI server investments, driving investment in capacity addition at Guangzhou factory 6 $381M REVENUE Q2 2026 Q2 Highlights Business Trends $385M REVENUE Q3 2026 Q/Q CHANGE +19% Excluding FX & Palladium Y/Y CHANGE +44% Y/Y CHANGE1 +36% ● Q3 revenue expected to grow modestly sequentially and over 30% year-over-year as AI- related demand offsets flex equipment seasonality following a strong 1H 2026 ● Growth in E&P highlights how same trends driving device scaling in semi are coming to the advanced PCB market as device integration complexities increase 1 For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of this presentation. Guidance +/- $15M
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Specialty Industrial ● Sequential growth reflects strong momentum in datacom and seasonal pickup following Lunar New Year ● Accelerating year-over-year growth driven by datacom and defense applications, as remaining end markets were stable 7 $313M REVENUE Q2 2026 Q2 Highlights Business Trends $335M REVENUE GuidanceQ/Q CHANGE +8% Excluding FX & Palladium Y/Y CHANGE +14% Y/Y CHANGE1 +14% ● Expect strong performance in datacom and defense markets in Q3 ● Specialty Industrial market leverages proprietary technologies to deliver attractive margins and incremental cash flows 1 For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of this presentation. Q3 2026 +/- $10M
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Q2’26 Revenue & Select Financial Measures ● Revenue above the high end of guidance, driven by strength across all end markets ● Gross margin at high end of guidance on higher volumes and benefit from certain discrete items, partially offset by modest headwinds for investments to address rising demand and unfavorable product mix ● Non-GAAP operating margin well above guidance mid-point and prior year, reflecting healthy operating leverage ● Adjusted EBITDA and Non-GAAP net earnings per diluted share above high end of guidance reflecting strong revenue, gross margin flow through and operating leverage Q2’26 SUMMARY 8 1 For further information regarding estimated impact of FX and Palladium, refer to appendix at the end of this presentation. Q2'26 Q1'26 Q2'25 Y/Y Change Excl. FX and Pd(1) Semiconductor $554M $466M $432M 30% Electronics & Packaging $381M $321M $266M 36% Specialty Industrial $313M $291M $275M 14% Revenue $1,248M $1,078M $973M 27% Non-GAAP Financial Measures Gross Margin 47.6% 47.0% 46.6% Operating Margin 25.6% 21.8% 20.8% Interest Expense, Net $33M $37M $46M Income Tax Rate 19.6% 20.9% 18.2% Net Earnings $232M $157M $119M Net Earnings per Diluted Share $3.30 $2.30 $1.77 Adjusted EBITDA $358M $277M $240M Adjusted EBITDA Margin 28.6% 25.7% 24.7% GAAP Financial Measures Gross Margin 47.6% 47.0% 46.6% Operating Margin 20.1% 13.8% 13.9% Interest Expense, Net $36M $43M $51M Income Tax Rate 17.8% 17.7% 13.6% Net Income $175M $84M $62M Net Income per Diluted Share $2.41 $1.18 $0.92
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Balance Sheet & Cash Flow ● Liquidity of over $1.6 billion, consisting of $611 million of cash and cash equivalents and an undrawn revolving credit facility of $1.0 billion ● Strong free cash flow representing 15% of revenue ● Net leverage ratio of 3.0x with continued de- leveraging and trailing twelve months Adjusted EBITDA of over $1.1 billion ● Voluntary principal prepayment of $100 million in May and another $100 million prepayment earlier this week Q2’26 SUMMARY 9 Q2'26 Q1'26 Cash and Cash Equivalents $611M $569M Trade Accounts Receivable, Net $830M $775M Inventories $1,033M $949M Total Current Assets $2,774M $2,545M Total Assets $8,941M $8,728M Debt Principal $4,023M $4,134M Total Liabilities $5,953M $5,917M Stockholders' Equity $2,988M $2,811M Operating Cash Flow $243M $53M Capex $55M $25M Free Cash Flow $188M $29M Unlevered Free Cash Flow $211M $46M
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Outlook ● Revenue outlook by end-market: ‒ Semiconductor – $630M +/- $15M ‒ Electronics & Packaging – $385M +/- $15M ‒ Specialty Industrial – $335M +/- $10M ● Gross margin reflects higher volumes primarily across semiconductor and chemistry equipment products ● Non-GAAP operating income, adjusted EBITDA and Non-GAAP net earnings per diluted share up sequentially reflecting strong revenue and operating leverage ● Non-GAAP tax rate of approximately 20% in the third quarter and lower end of 18% to 20% range for the year Outlook 10 Q2'26 Actual Revenue $1,350M +/- $40M $1,248M Non-GAAP Financial Measures Gross Margin 47.0% +/- 100 bps 47.6% Operating Expenses $280M +/- $5M $275M Operating Income $355M $320M Operating Margin 26.3% 25.6% Interest Expense, Net $33M $33M Income Tax Rate 20% 19.6% Net Earnings $257M +/- $22M $232M Net Earnings per Diluted Share $3.58 +/- $0.31 $3.30 Adjusted EBITDA $395M +/- $28M $358M Diluted Share Count 71.8M 70.3M Q3'26
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Positioned to Win in Robust Demand Environment ● Our business momentum continues to increase ● Semiconductor subsystems support leading - edge deposition and etch applications across logic and memory ● Electronics & Packaging momentum in AI - related applications driven by proprietary chemistry and chemistry equipment ● Capacity and investments well - aligned with customers’ anticipated demand growth ● Continued focus on execution and strong cash generation to support investment in growth and continued proactive de - leveraging 11
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Q&A
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Electronics & Packaging 31% Semi 44% Specialty Industrial 25% Q2’26 Revenue Q2’26 Consumables & Service 39% 13 1 "Total Change” represents the percentage change in net revenues. “FX” and “Pd” reflect the estimated impact of foreign exchange rates and palladium prices on net revenues, respectively. “Change Excluding FX & Pd” is the difference between (i) “Total Change” and (ii) “FX” and “Pd.” in millions except percentages Q1 Q2 Q3 Q4 FY'25 Q1 Q2 Total Change FX Pd Change Excluding FX & Pd Semiconductor 413$ 432$ 415$ 435$ 1,696$ 466$ 554$ 28% -1% - 30% Electronics & Packaging 253 266 289 303 1,111 321 381 44% 2% 6% 36% Specialty Industrial 270 275 284 295 1,124 291 313 14% 0% 0% 14% 936$ 973$ 988$ 1,033$ 3,931$ 1,078$ 1,248$ 28% 0% 2% 27% Q2'26 vs Q2'25(1)2025 2026
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Appendix – GAAP to Non-GAAP Reconciliations in millions, other than per diluted share amounts and percentages 14 Q3'26E Q2'26 Q1'26 Q2'25 Net income 201$ 175$ 84$ 62$ Restructuring and other 5 6 3 5 Legal Settlement — — 3 — Amortization of intangible assets 61 62 63 62 Loss on extinguishment of debt 6 4 5 2 Amortization of debt issuance costs 3 3 4 5 Loss from de-designation of interest rate hedges — — 2 Fees and expenses related to debt activities — — 18 — Tax effect of Non-GAAP adjustments (19) (18) (23) (17) Non-GAAP net earnings 257$ 232$ 157$ 119$ Non-GAAP net earnings per diluted share 3.58$ 3.30$ 2.30$ 1.77$ Net income per share 2.73$ 2.41$ 1.18$ 0.92$ Weighted average diluted shares outstanding 73.6 72.7 71.1 67.4 Convertible debt capped calls (1.8) (2.4) (2.9) — Non-GAAP weighted average diluted shares outstanding 71.8 70.3 68.2 67.4 Gross profit 635$ 595$ 507$ 453$ Gross margin 47.0% 47.6% 47.0% 46.6%
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Appendix – GAAP to Non-GAAP Reconciliations in millions, except percentages 15 Q3'26E Q2'26 Q1'26 Q2'25 Operating expenses 346$ 344$ 358$ 318$ Restructuring and other 5 6 3 5 Legal Settlement — — 3 — Amortization of intangible assets 61 62 63 62 Fees and expenses related to debt activities — — 18 — Non-GAAP operating expenses 280$ 275$ 271$ 251$ Income from operations 290$ 251$ 149$ 135$ Operating margin 21.4% 20.1% 13.8% 13.9% Restructuring and other 5 6 3 5 Legal Settlement — — 3 — Amortization of intangible assets 61 62 63 62 Fees and expenses related to debt activities — — 18 — Non-GAAP income from operations 355$ 320$ 235$ 202$ Non-GAAP operating margin 26.3% 25.6% 21.8% 20.8% Interest expense, net 36$ 36$ 43$ 51$ Amortization of debt issuance costs 3 3 4 5 Loss from de-designation of interest rate hedges — — 2 Non-GAAP interest expense, net 33$ 33$ 37$ 46$
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Appendix – GAAP to Non-GAAP Reconciliations in millions, except percentages and net leverage ratio 16 Q3'26E Q2'26 Q1'26 Q4'25 Q3'25 Net income 201$ 175$ 84$ 108$ 74$ Interest expense, net 36 36 43 47 50 Other expense (income), net — (2) (1) 6 2 Provision (benefit) for income taxes 46 38 18 (19) 10 Depreciation 25 23 22 24 23 Restructuring and other 5 6 3 11 4 Amortization of intangible assets 61 62 63 62 63 Stock-based compensation 15 15 19 8 12 Legal Settlement — — 3 — — Loss on extinguishment of debt 6 4 5 2 2 Fees and expenses related to debt activities — — 18 — — Adjusted EBITDA 395$ 358$ 277$ 249$ 240$ Adjusted EBITDA margin 29.3% 28.6% 25.7% 24.1% 24.3% Debt principal outstanding as of June 30, 2026 4,023$ Cash and cash equivalents as of June 30, 2026 611 Net debt as of June 30, 2026 3,412$ Adjusted EBIT DA for the trailing twelve months ended June 30, 2026 1,124$ Net leverage ratio at June 30, 2026 3.0x
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Appendix – GAAP to Non-GAAP Reconciliations in millions 17 1Tax effect of cash paid for interest was calculated at the US Federal Statutory rate of 21% Q2'26 Q1'26 Net cash provided by operating activities 243$ 53$ Purchases of property, plant and equipment (55) (25) Free cash flow 188$ 29$ Q2'26 Q1'26 Free cash flow 188$ 29$ Cash paid for interest 29 22 Tax effect on cash paid for interest 1 (6) (5) Unlevered free cash flow 211$ 46$
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Appendix – GAAP to Non-GAAP Reconciliations in millions, except percentages 18 Income Before In come Tax Provision for Income Taxes Effective Tax Rate Income Before In come Tax Provision for Income Taxes Effective Tax Rate GAAP 213$ 38$ 17.8% 102$ 18$ 17.7% Restructuring and other 6 — 3 — Legal Settlement — — 3 — Amortization of intangible assets 62 — 63 — Loss on extinguishment of debt 4 — 5 — Amortization of debt issuance costs 3 — 4 — Loss from de-designation of interest rate hedges — — 2 — Fees and expenses related to debt activities — — 18 — Tax effect of Non-GAAP adjustments — 18 — 23 Non-GAAP 288$ 56$ 19.6% 198$ 41$ 20.9% Income Before In come Tax Provision for Income Taxes Effective Tax Rate Income Before In come Tax Provision for Income Taxes Effective Tax Rate GAAP 72$ 10$ 13.6% 248$ 46$ 18.7% Restructuring and other 5 — 5 — Amortization of intangible assets 62 — 61 — Loss on extinguishment of debt 2 — 6 — Amortization of debt issuance costs 5 — 3 — Fees and expenses related to debt activities — — — — Tax effect of Non-GAAP adjustments — 17 — 18 Non-GAAP 146$ 27$ 18.2% 322$ 64$ 20.0% Q2'26 Q1'26 Q2'25 Q3'26E
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Appendix – GAAP to Non-GAAP Reconciliations Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding. 19 Restructuring and other includes incremental expenses incurred in connection with restructuring programs and other strategic initiatives, primarily related to changes in business and/or cost structure. Such costs may include third-party services, one-time termination benefits, facility-related costs, contract termination fees and other items that have no direct correlation to our future business operations. Legal settlement includes charges related to the resolution of legal matters. Amortization of intangible assets includes non-cash amortization expense associated with intangible assets acquired in acquisitions. Loss on extinguishment of debt includes the non-cash write-off of unamortized debt issuance costs and original issue discount costs incurred from voluntary prepayments, refinancings and/or repricings of our term loan facility. Amortization of debt issuance costs includes non-cash additional interest expense related to the amortization of debt issuance costs associated with our debt. Loss from de-designation of interest rate hedges includes a cash loss from the de-designation of certain interest rate hedges in connection with the voluntary prepayment of the USD term loan B. Fees and expenses related to debt activities includes direct third-party costs related to repricings or refinancings of our term loan facility and the issuance of our €1.0 billion of senior notes due 2034 in February 2026. Convertible debt capped calls includes the antidilutive impact of the capped call transactions entered into in connection with the issuance of $1.4 billion of convertible senior notes in May 2024. The capped calls are designed to reduce potential dilution to the Company’s common stock and/or offset cash payments in excess of the principal upon conversion of the notes, subject to a cap. Because the capped calls are excluded from GAAP diluted share calculations, GAAP and Non-GAAP diluted share counts will differ. Tax effect of Non-GAAP adjustments includes the impact of Non-GAAP adjustments that are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates.