Vishay Intertechnology (VSH) investor relations material

Executive summary

• Adjusted Q2 2026 revenue was $919 million, up 9.5% sequentially and 20.5% year-over-year, surpassing guidance on robust demand across all product lines, markets, and regions; GAAP revenue was $888.6 million, reduced by $30 million in tariff refunds passed through to customers.

• Book-to-bill ratio was 1.32 overall, with 1.40 for passive components and 1.23 for semiconductors; backlog at quarter end was 6.1 months, reflecting strong forward visibility.

• Diluted EPS was $0.19 for Q2 2026, up from $0.05 in Q1 and a loss of $0.07 in Q2 2025.

• Major equity offering raised $830 million, used to repay revolver and fund growth initiatives.

• Price increases implemented for about one-third of part numbers, supporting margin expansion amid rising input costs.

Financial highlights

• Adjusted gross margin was 22.6%, up from prior quarter; GAAP gross margin was 23.3%.

• Adjusted operating margin improved to 5.8%; adjusted EBITDA margin rose to 11.4%.

• Free cash flow was $10.3 million in Q2, reversing a negative $47 million in Q1; operating cash flow was $105 million.

• Cash and cash equivalents at quarter end were $1.3 billion.

• Capital expenditures for the six months ended July 4, 2026, were $205.9 million; full-year guidance is $400–$440 million.

Outlook and guidance

• Q3 2026 revenue expected between $945 million and $975 million, with gross margin guidance at 24.0% ± 50 bps.

• CapEx for 2026 projected at $400–$440 million, with about half allocated to the new 12-inch fab in Germany.

• Effective tax rate for Q3 expected between 35% and 40%.

• Free cash flow for 2026 expected to be negative due to capacity expansion.

• Dividend and opportunistic share repurchases to continue in line with policy.