Executive Summary

Revenue was $0.715B, gross margin 19.0%, and diluted EPS was ($0.03); book-to-bill improved to 1.08 and backlog rose to 4.7 months .
Versus prior quarter: revenue was flat (+0.1%), gross margin fell 90 bps (19.0% vs 19.9%), and EPS improved from ($0.49) to ($0.03) as Q4 included a goodwill impairment .
Versus prior year: revenue declined ~4.2% (from $0.746B), gross margin fell 380 bps (22.8% → 19.0%), and EPS declined from $0.22 to ($0.03) .
Management guided Q2 revenue to $760M ± $20M and gross margin ~19.0% ± 50 bps, including a 175–200 bps Newport drag and ~30 bps tariff math impact; SG&A ~$136M ± $2M and depreciation ~$52M (FY ~$210M) .

What Went Well and What Went Wrong

What Went Well

Distribution POS and bookings strengthened; worldwide POS +4% QoQ, with Europe +10% and Americas +4%, and distributor inventory weeks fell from 27 to 26, supporting book-to-bill >1 across both semis (1.12) and passives (1.04) .
AI demand ramped: shipments more than doubled vs Q4 as Vishay leverages broad power components positions (MOSFETs, diodes, inductors) and reference designs with chipset partners and CMs; “we are continuing to leverage our AI reference design positions… to place a greater percentage of Vishay components on the board” .
Smart grid momentum: new wins in Europe/Asia and first U.S. HVDC program with 100% share; improving industrial demand/backlogs as customers address power needs for AI data centers and EV charging .

What Went Wrong

ASP pressure: revenue flat QoQ despite 2% volume increase due to ~1% ASP decline and FX headwinds; MOSFETs revenues down ~$5M QoQ on ASP resets tied to annual OEM negotiations .
Margin headwinds: Newport weighed ~200 bps on corporate gross margin and ~1000 bps on the MOSFET segment; tariff pass-through adds revenue but mechanically dilutes gross margin by ~30 bps, and metal/input costs are higher in Q2 guide .
Automotive softness: Q1 auto revenue down ~2% QoQ on lower ASPs as 2025 OEM contracts took effect; seasonal Asia softness around Chinese New Year and mixed medical/aerospace demand due to channel inventory management .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$735.353	$714.716	$715.236
Diluted EPS ($)	($0.14)	($0.49)	($0.03)
Gross Margin %	20.5%	19.9%	19.0%
Operating Margin %	(2.5%)	(7.9%)	0.1%
Adjusted EBITDA ($USD Millions)	$71.506	$66.205	$54.458
Book-to-Bill (Total)	0.88	1.01	1.08
Backlog (Months)	4.4	4.4	4.7

Segment book-to-bill by quarter:

Segment	Q3 2024	Q4 2024	Q1 2025
Semiconductors	0.79	0.99	1.12
Passive Components	0.97	1.03	1.04

Segment deltas and impacts (Q1 vs Q4):

Item	Q1 2025 Detail
Opto Revenues QoQ Δ ($USD Millions)	+$4
MOSFET Revenues QoQ Δ ($USD Millions)	($5)
MOSFET Segment Gross Margin Impact (bps, Newport)	~1,000 bps drag

KPIs (Q1 2025):

KPI	Q1 2025
DSO (days)	53
DPO (days)	34
Inventory Days Outstanding	110
Cash Conversion Cycle (days)	129
Distribution Revenue QoQ	+3%
POS QoQ (Worldwide)	+4% (Americas +4%, Europe +10%, Asia flat)
Dividend per share	$0.10 (declared for payment on Jun 27, 2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q1 2025	$710M ± $20M	Actual $715.236M	Raised vs midpoint (deliver above guide)
Gross Margin	Q1 2025	19.0% ± 50 bps; Newport drag 175–200 bps	Actual 19.0%; Newport ~200 bps	Maintained
Revenue	Q2 2025	n/a	$760M ± $20M	New
Gross Margin	Q2 2025	n/a	19.0% ± 50 bps; Newport drag 175–200 bps; tariffs ~30 bps math impact	New
SG&A	Q2 2025	n/a	~$136M ± $2M	New
Depreciation	Q2 2025 / FY 2025	n/a	~$52M (Q2); ~$210M (FY)	New
Dividend	Q2 2025	$0.10 (Q1 paid)	$0.10 declared; payable Jun 27, 2025	Maintained
Effective Tax Rate	Ongoing	Not meaningful at low pretax; normalized 30%–32% when profitability returns	Same	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q3 2024)	Previous Mentions (Q-1: Q4 2024)	Current Period (Q1 2025)	Trend
AI/technology initiatives	Industry downcycle; focus on cost actions; macro Europe worsening	“Initial shipments for A.I. servers” and positive book-to-bill after nine quarters	AI shipments more than doubled QoQ; expanding components on AI boards via reference designs and CMs	Accelerating adoption; broader design-in footprint
Supply chain & channel inventory	Prolonged de-stocking; slow industrial consumption	Promising indicators; positive book-to-bill	Channel inventory normalization; POS improving; distributor weeks down; book-to-bill >1 in both semis and passives	Improving normalization and demand signals
Tariffs/macro	—	—	Established pass-through systems since 2018; limited direct impact (<4% China→US origin); margin math ~30 bps	Manageable headwind; pricing and footprint flexibility
Product performance	—	—	Opto +$4M QoQ; MOSFET ($5M) QoQ on ASP pressure; Newport ~1000 bps segment drag	Mixed: opto up; MOSFET pressured by ASPs/Newport
Regional trends	Macro Europe worsening	—	Europe +8% QoQ; Americas −6%; Asia seasonally soft (CNY)	Europe recovering; Americas soft; Asia seasonal
R&D execution (SiC)	—	—	SiC MOSFET/diode roadmap: multiple product releases; trench MOSFET samples in Q3; mass production targeted Q4; Newport SiC tool installs ongoing	Steady execution toward 2026 scale-up
Smart grid	—	—	New programs in Europe/Asia; first U.S. HVDC program (100% share); continued multiyear projects	Strong secular tailwind

Management Commentary

“Market signals… indicate that much of the channel inventory that overhung the market has normalized… [and] support our decision to guide for a sequential revenue increase of 6%.” — Joel Smejkal, CEO .
“We are prepared to navigate evolving tariff policies… offering [customers] alternative manufacturing locations….” — Joel Smejkal .
“Gross margin is expected to be…inclusive of tariff impacts of 30 basis points and…higher input costs. Newport…175–200 bps drag….” — Dave McConnell, CFO .
“We are making good progress… commercialize the 1,200-volt planar [SiC]… plan to release additional 12 products… trench MOSFET samples in Q3… target full product release in Q4.” — Joel Smejkal .
“We generated $16 million in operating cash… CapEx $62 million… free cash flow negative $45 million… return at least 70% of free cash flow to stockholders; 2025 expected negative FCF due to capacity expansion.” — Dave McConnell .

Q&A Highlights

Distribution strategy: still adding SKUs; Europe inventory down 3 weeks, Americas down 2 weeks QoQ; POS improved; positioning for share gains with distributors .
Tariffs: Q2 revenue uplift assumed under April 9 rules; passives tariff adder ~170%, semis ~70%; pass-through yields ~0 gross profit, ~30 bps gross margin dilution; limited exposure (<4% China-origin to U.S.) .
Newport ramp/margins: Q1 utilization very low post legacy product cessation; volume to increase each quarter; target fab gross margin neutral by 1H’26 (aiming Q1) .
Cycle vs pull-ins: Smart grid multiyear projects, defense spend, and AI capex support genuine demand; auto schedules flat; building backlog into H2 vs last year .
Q2 gross margin: flattish despite higher revenue due to tariff math, residual ASP pockets, metal costs; ongoing cost reductions to help over time .

Estimates Context

Item	Consensus	Actual/Guide	Delta
Q1 2025 Revenue ($USD Millions)	$713.499*	$715.236	+$1.737
Q1 2025 EPS ($)	($0.0244)*	($0.03)	−$0.0056 (miss)
Q2 2025 Revenue ($USD Millions)	$763.111*	Guide $760 ± $20	In line (midpoint slightly below)
Q2 2025 EPS ($)	$0.0187*	n/a (pre-result)	n/a

Values retrieved from S&P Global.*

Implications: Slight revenue beat and modest EPS miss in Q1, driven by ASP pressure and Newport drag; Q2 revenue guide broadly aligns with consensus, with margin headwinds (tariffs/Newport) embedded .

Key Takeaways for Investors

Book-to-bill above 1 for second consecutive quarter and backlog rising suggest demand normalization and near-term growth inflection, particularly in Europe and distribution channels .
AI is a real and growing driver; shipments doubled QoQ and Vishay’s broad power component portfolio and reference designs expand content per board, making this a medium-term mix and volume tailwind .
Margin headwinds are understood and quantified: Newport drag (~175–200 bps) and tariff math (~30 bps) are incorporated in guidance; ASP pressure persists but is easing as cost reductions catch up .
Smart grid secular programs (including first U.S. HVDC win) and defense provide diversified backlog support independent of tariff dynamics, underpinning H2 improvement potential .
Liquidity and capital deployment: continued capacity expansion (SiC ramp, wafer fabs, passives in Mexico) with expected negative FCF in 2025; dividend maintained at $0.10/share with opportunistic buybacks based on U.S. cash availability .
Trading setup: Q2 guide step-up and AI narrative are catalysts; monitor ASP trajectory, tariff implementation effects, and Newport ramp milestones (neutral by 1H’26) for margin recovery timing .
Medium-term thesis: execution on Vishay 3.0 growth levers (capacity, solution selling, SiC portfolio) positions the company to capture e-mobility/sustainability and AI power demand; watch segment mix shift and regional recovery pacing .

VISHAY INTERTECHNOLOGY INC (VSH)·Q1 2025 Earnings Summary