MKS Inc.

Good day and thank you for standing by. Welcome to the MKS Instruments first quarter 2025 earnings conference call. At this time, all participants, they are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask questions during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising you that your hand has been raised. To withdraw your question, please just press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Paritosh Mishra, Vice President of Investor Relations. Please, go ahead.

Good morning, everyone. I'm Paritosh Mishra, Vice President of Investor Relations, and I'm joined this morning by John Lee, President and Chief Executive Officer, and Ram Mayampurath, Executive Vice President, Chief Financial Officer, and Treasurer. Yesterday, after market closed, We released our financial results for the first quarter of 2025, which are posted to our investor website at investor.mks.com. As a reminder, various remarks about future expectations, plans, and prospects for MKS comprise forward-looking statements. Actual results may differ materially as a result of various important factors, including those discussed in yesterday's press release and in our most recent annual report on Form 10-K. These statements represent the company's expectations only as of today and should not be relied upon as representing the company's estimates or views as of any date subsequent to today and the company disclaims any obligation to update these statements. During the call, we will be discussing various non-GAAP financial measures. Unless otherwise noted, all income statement related financial measures will be non-GAAP other than revenue and gross margin. Please refer to our press release and the presentation materials posted to the investor relations sections of our website for information regarding our non-GAAP financial results and a reconciliation to our GAAP measures. Our investor website also provides a detailed breakout of revenues by end market and division. Now, I'll turn the call over to John.

Thanks, Paritosh, and good morning, everyone. MCAS delivered excellent results in the first quarter as we reported strong revenues, executed well on cost management, delivered to our customers' production demand, and continued our deep technology engagements with them. First quarter revenue of $936 million and gross margins of 47.4% were both at the high end of our guidance. Net earnings per dilute share of $1.71 exceeded the high end of our guidance. Our performance is a result of outstanding work by our team in a demand environment that has been showing early signs of improvement. The announcement of new and changing trade policies since February has injected uncertainty into our industry and our end markets. Our team is working closely with our suppliers and our customers to mitigate adverse impacts from these trade policies. At present, we do not expect a material impact to revenue, but we do anticipate some near-term impact on margins as we optimize supply chain and manufacturing activities in response to the dynamic geopolitical environment. Ron will provide more details later in the call. I'll turn now to Q1 performance in our three end markets. Starting with our semiconductor market, revenue came in at the high end of our guidance and improved sequentially driven by modest increases in demand for our vacuum product offerings for NAND. Specifically, our RF power solutions offerings and our plasma and reactive gas businesses performed well. NAN picked up from prior year levels as customer inventories have largely normalized and system upgrades have increased. We also saw notable order activity in thermal sensors for etch applications and reactive gases for advanced wet cleaning applications. In the second quarter, we expect semiconductor revenue to be consistent on a sequential basis. but up low double digits year over year, reflective of an environment that is steadily improving. We are confident in our ability to outperform as the market recovery gains momentum and as our history has repeatedly shown during these upturns. Electronics and packaging revenue were also at the high end of our guidance. The better than expected result during a quarter that included the Lunar New Year was driven by increased sales of flexible PCB drilling equipment as well as rigid PCB chemistry equipment. Some of our flexible PCB drilling equipment customers pulled forward purchases into Q1. We also saw continued momentum in orders for our chemistry and chemistry equipment for advanced multilayer boards, high-density interconnects, and packaged substrates related to AI applications. Our products and technologies play key roles in enabling the manufacturing of increasingly complex electronic devices in this era of heterogeneous integration. Additionally, we saw strong orders for laser equipment for low Earth orbit satellite applications, where we are the process tool record for multiple customers, validating our position as an innovator in advanced laser technologies. Looking ahead to Q2, we expect revenue from our electronics and packaging market to be down mid-single digits on a sequential basis, but up mid-single digits year over year. Consistent with prior years, we believe our chemistry revenue will increase sequentially. However, we anticipate this increase will likely be offset by lower sales in our flexible PCB drilling equipment business, given the pull forward of shipments I mentioned earlier. Our guidance implies a healthy low TEAMS year-over-year growth rate for electronics and packaging the first half of the year. Q2 is expected to be the third consecutive quarter of strong chemistry equipment revenue. which is a good leading indicator for our consumable chemistry products. Our specialty industrial revenue was above the midpoint of our guidance. Within this market, life and health sciences and research and defense end markets performed steadily, where we did see some softness across the broader industrial market, especially with automotive applications. As a reminder, our specialty industrial market consists of a variety of applications across multiple end markets that leverage existing MKS technologies. Looking ahead to Q2, we expect revenue in our specialty industrial market to remain flattish as the broader industrial market remains soft. Overall, we executed well and delivered strong financial results in Q1. Our Q2 end market outlook and overall financial guidance reflect the increased uncertainty of the trade policies against what otherwise appears to be an early stage recovery in the end markets we serve. While we are actively working on mitigation strategies in the near term, The situation remains fluid as our customers and the broader electronics ecosystem adapt to both tariffs and their potential macroeconomic implications. That said, we believe MKS is in a strong position to manage through these uncertainties with the industry's broadest portfolio of leading technologies, strong customer relationships, a strong financial operating model, and a team that is battle-tested. Now let me turn it over to Ram to run through the financial results and second quarter guidance in more detail. Ram?