Vishay Revenue Hits A Record $978.9 Million As Gross Margin Climbs To 25.5%
The chip and components maker swung to $0.37 a share from a loss and guided fourth-quarter revenue to $990 million, plus or minus $15 million.
Vishay Intertechnology, which makes discrete semiconductors and passive electronic components, posted $978.9 million of third-quarter revenue, the highest in its history and above the top of its own guidance, the company said Wednesday in its earnings release. Sales rose 24% from a year earlier, and a wider margin turned a loss into a profit.
Margin does the heavy lifting
Revenue was up from $790.6 million a year earlier and $888.6 million in the second quarter. Gross margin, the share of sales left after production costs, rose to 25.5% from 19.5% a year ago and 23.3% last quarter.
Operating income reached $92.2 million, against $19.1 million a year earlier. Net earnings were $59.0 million, or $0.37 per diluted share, compared with a net loss of $7.9 million, or $0.06 a share, in the year-earlier quarter.
CEO Joel Smejkal said the 600-basis-point margin gain "flowed through to earnings which surged to $0.37 per share." He added that all technologies delivered strong results.
For the first nine fiscal months, net earnings were $94.3 million, or $0.63 per diluted share, versus a loss of $10.0 million a year earlier.
Orders outrun shipments
Book-to-bill, the ratio of orders received to sales shipped, was 1.29: 1.28 for semiconductors and 1.31 for passive components. Backlog stood at 6.6 months at quarter end.
Vishay's products go into automotive, industrial, computing, consumer, telecommunications, military, aerospace and healthcare equipment. It reports results across MOSFETs (power switches), diodes, optoelectronics, resistors, inductors and capacitors.
Free cash, a measure the company defines itself, was $98.5 million in the quarter, against negative $24.3 million a year earlier. Operating cash flow for nine months was $314.8 million, with capital spending of $253.4 million.
A stronger balance sheet, a $990 million target
Cash and equivalents ended the quarter at $1.14 billion, up from $515.0 million at the end of 2025, helped by $830.3 million in net proceeds from a follow-on stock offering. Long-term debt fell to $735.5 million from $950.9 million, after the company repaid $219.0 million on its revolving credit facility.
For the fourth quarter, management expects revenue of $990 million, plus or minus $15 million, and a gross margin of 26.0%, plus or minus 50 basis points. In an accompanying disclosure, the company said it has about 153 million shares outstanding and $750 million of convertible notes due 2030, which add diluted shares only if the average stock price tops $30.16.
Vishay holds its earnings call at 9:00 a.m. ET Wednesday.
Smejkal said the company is focused on executing under what it calls Vishay 3.0, with incremental capacity and competitive lead times for customers.
