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SEC filingVishay's Q3 2025 revenues grew 7.5% YoY to $790.6M driven by higher volumes, but gross margin contracted 100 bps to 19.5% due to lower ASPs, tariffs, and higher input costs, resulting in a net loss.
Vishay Intertechnology reported net revenues of $790.6 million for the fiscal third quarter of 2025, a 7.5% increase YoY and a 3.7% increase QoQ. The YoY growth was primarily attributed to a 7.4% increase in sales volume and a 2.0% favorable foreign currency impact, partially offset by a 1.8% decline in average selling prices (ASPs). For the nine fiscal months ended September 27, 2025, revenues were $2,268.1 million, up 2.0% YoY.
Despite the top-line growth, profitability remained under pressure. Gross profit margin was 19.5%, flat QoQ but down 100 basis points from 20.5% in the prior year quarter. The margin contraction was driven by lower ASPs, higher metals and other input costs, and a 50 basis point negative impact from tariffs. The company reported a GAAP net loss attributable to Vishay stockholders of $(7.9) million, or $(0.06) per share, compared to a net loss of $(19.3) million, or $(0.14) per share, in the prior year period. The prior year loss included $40.6 million in restructuring and severance costs. On a non-GAAP adjusted basis, net earnings were $5.8 million, or $0.04 per diluted share, down from $11.0 million, or $0.08 per share, in the prior year quarter.
Segment performance was mixed, with Capacitors and MOSFETs leading revenue growth. The Capacitors segment saw a 20.2% YoY revenue surge driven by higher volumes to distribution and industrial customers, though its operating margin contracted to 15.2% from 17.4% due to higher material costs. MOSFETs revenue grew 13.6% YoY on strong volume, but the segment posted a negative operating margin of (3.8)%, impacted by lower ASPs and costs associated with the Newport wafer fab expansion.
Diodes and Resistors segments showed moderate revenue growth of 3.1% and 8.2% YoY, respectively, with stable operating margins. The Inductors segment, the company's most profitable, saw a slight revenue increase of 1.9% YoY and an operating margin expansion to 26.6%, benefiting from higher ASPs and lower materials costs. Optoelectronic Components was the only segment to post a YoY revenue decline, down 12.1%, though its operating margin improved significantly to 12.9% from 9.7% due to cost reductions.
Management remains committed to its long-term capacity expansion strategy, despite the slower-than-expected industry recovery. Capital expenditures are planned at $300 million to $350 million for fiscal year 2025, with at least 70% directed toward high-growth product lines. Consequently, the company expects negative free cash flow for the full year. Management intends to modulate spending in response to order flow and customer demand timing. The company expects to maintain its dividend and opportunistically repurchase shares under its Stockholder Return Policy, though no additional repurchases are anticipated for 2025. The long-term outlook remains positive, with the company positioned to capture early stages of end-market demand upturns.
Cash and cash equivalents decreased to $443.9M from $590.3M at year-end 2024. Short-term investments fell to $0.3M from $16.1M. Total debt increased to $919.7M from $905.0M, primarily due to $53M net borrowings on the credit facility, partially offset by the $41.9M repayment of the 2025 convertible notes. Shareholders' equity rose to $2.083B from $2.029B, driven by foreign currency translation gains of $102.9M. Inventory increased to $759.9M from $689.4M.
No purchase commitments were disclosed in the Notes. The restructuring liability related to the September 2024 program stood at $20.4M as of September 27, 2025, down from $30.6M at year-end 2024. Operating lease liabilities totaled $122.4M, with undiscounted future payments of $161.0M, including $7.1M for the remainder of 2025.
Under the Stockholder Return Policy, the company returned $53.2M in the first nine months of 2025 ($40.7M dividends, $12.5M buybacks). Dividends remained at $0.10 per share quarterly. Capital expenditures were $178.5M, up from $175.2M in the prior-year period. Debt activity included $53M in net proceeds from the revolving credit facility and $41.9M repayment of the 2025 convertible notes.
Segment operating income totaled $97.8M, down 1.7% from $99.5M in Q3 2024. MOSFETs posted a loss of $6.4M (vs. -$4.3M), while Inductors and Capacitors showed strong growth. Revenue by channel: distributors 56.4%, OEMs 37.2%, EMS 6.4%. Geographic revenue: Asia 43.0%, Europe 32.7%, Americas 24.2%. End markets: Automotive 36.2%, Industrial 34.4%, Military/Aerospace 10.0%, Medical 4.9%, Other 14.4%.
Nine-month operating cash flow of $34.9M was well below the $106.0M generated in the prior-year period and also trailed the modest net loss of $10.0M after large negative working-capital movements of $99.4M. Depreciation and amortization added $167.0M, while non-cash adjustments and tax payments (U.S. transition tax $47.0M, repatriation tax $9.4M) further shaped cash generation.
Capex intensity remained high at $178.5M, nearly identical to the prior year, producing negative free cash flow and a $163.4M investing outflow. Capital returns to shareholders totaled $53.2M ($40.7M dividends plus $12.5M treasury repurchases), covered only partially by operating cash flow. Net cash declined $146.4M to $443.9M. No material one-time anomalies beyond routine tax payments and working-capital swings were noted.