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# Vishay Plans To Shrink Receivables Sales In Fourth Quarter, Warns Of Negative Free Cash Flow
- URL: https://www.bullished.co/vishay-plans-to-shrink-receivables-sales-in-fourth-quarter-warns-of-negative-free-cash-15c7562f/
- Published: 2026-11-04T12:48:44.000Z
- Updated: 2026-11-04T12:48:44.000Z
- Description: The chipmaker's record $978.9 million quarter got help from a receivables program it now plans to cut sharply.
- Author: Matteo Parrino
- Tags: Earnings, VSH, Industry: Technology

[Vishay Intertechnology](https://www.bullished.co/tag/vsh/), which makes discrete semiconductors and passive electronic components, said in its [10-Q](https://www.sec.gov/Archives/edgar/data/0000103730/000010373026000080/form10q.htm?ref=bullished.co) that it plans to "significantly reduce" its accounts receivable securitization program in the fourth quarter, which "will result in negative free cash flow in the quarter." The program, which sells receivables to banks for cash up front, helped lift free cash flow in a quarter of record revenue of $978.9 million.

## A cash driver set to reverse

Free cash flow for the first nine months rose from a year earlier, helped by higher net earnings and what the company called "additional net cash inflows" from the securitization program. Free cash was $98,475 thousand in the third quarter and $61,862 thousand for the nine months, against a negative $142,691 thousand a year earlier.

The program had $134,349 thousand outstanding at October 3, versus $62,175 thousand at December 31, 2025\. The [prior quarter's 10-Q](https://www.sec.gov/Archives/edgar/data/0000103730/000010373026000065/form10q.htm?ref=bullished.co) put the balance at $140,873 thousand at July 4 and credited tariff refunds as well as the program for cash gains; the new filing is the first to state a plan to shrink it.

Receivables stood at 35 days of sales in the third quarter, down from 53 a year earlier.

## Record quarter, lower capital spending

Third-quarter revenue rose 23.8% from a year earlier to $978.9 million, and net earnings were $59.0 million, or $0.37 per diluted share, versus a $7.9 million loss a year ago. Gross margin reached 25.5%. Backlog stood at $2,156.1 million.

Vishay now expects full-year 2026 capital spending of $350 million to $400 million, down from a plan of $400 million to $440 million last quarter. The filing blames extended lead times on equipment deliveries and installation. About half of the earlier plan was for a 12-inch wafer fab in Itzehoe, Germany.

Vishay makes MOSFETs (power switches), diodes, optoelectronics, resistors, inductors and capacitors for automotive, industrial, computing, military and other markets.

## Balance sheet after the stock sale

A July 1 stock offering of 17.25 million shares at $50.00 each brought in $830.25 million net. Vishay used part of it to bring its revolving credit facility to zero, and cash stood at $1,139,887 thousand at October 3.

The company expects high capital spending to keep weighing on free cash flow near term, after which it expects "increasingly higher levels of free cash." It also warned there is no assurance it can sustain historical cash generation if the economy worsens.

For the fourth quarter, the company guides to revenue of $990 million, plus or minus $15 million, and a gross margin of 26.0%, plus or minus 50 basis points.

### Sources

- [10-Q Filing — Vishay Intertechnology (VSH)](https://www.sec.gov/Archives/edgar/data/0000103730/000010373026000080/form10q.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Vishay Intertechnology (VSH), Q2 FY2026 filed 2026-08-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000103730/000010373026000065/form10q.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, exhibit99-1.htm) — Vishay Intertechnology, filed 2026-11-04](https://www.sec.gov/Archives/edgar/data/0000103730/000010373026000079/exhibit99-1.htm?ref=bullished.co) — SEC EDGAR

### More on Vishay Intertechnology

- [Vishay Revenue Hits A Record $978.9 Million As Gross Margin Climbs To 25.5%](https://www.bullished.co/vishay-revenue-hits-a-record-978-9-million-as-gross-margin-climbs-to-25-5-e116b0e3/)

[All Vishay Intertechnology (VSH) coverage →](https://www.bullished.co/tag/vsh/)