0001049502-26-000062
SEC filingSegment gross margins mixed; net debt decreased $82M after issuing €1B 2034 Notes and repaying $1.27B; cash down to $569M.
Cash and cash equivalents decreased $106M to $569M, primarily due to debt repayments and dividends. Total debt (net of issuance costs) stood at $4,048M, down from $4,201M at year-end, after issuing €1B 2034 Notes and repaying $1,274M of the USD Tranche B loan. The Convertible Notes of $1,400M are now classified as short-term due to conversion eligibility. Shareholders' equity increased to $2,811M from $2,719M, boosted by net income and other comprehensive income, partly offset by dividends and stock repurchases (none in Q1 2026).
No material purchase commitments were disclosed. Restructuring accrual of $4M and product warranty liabilities of $25M are recorded. Legal contingencies are not expected to be material. Deferred revenue and customer advances totaled $106M, of which $101M is current.
No share repurchases occurred in Q1 2026; remaining authorization is $28M. Cash dividends were $0.25 per share ($17M total), a 13.6% increase from the prior year's $0.22. Debt activity included the issuance of €1B 2034 Notes (4.25% coupon) and a $1,274M voluntary prepayment of the Term Loan, resulting in a net debt reduction of $82M. Capital expenditures of $25M were 2.32% of sales.
Segment gross profit is the primary performance measure. VSD revenue grew 10.1% to $425M but gross margin declined to 42.9% from 45.3%. PSD revenue increased 15.2% to $303M with margin expansion to 47.2% from 44.0%. MSD revenue rose 22.0% to $350M, yet margin slipped to 52.2% from 54.5%. Geographically, China remained the largest end-customer location at $252M (23.4% of revenue), followed by the U.S. at $195M, and South Korea at $129M. Semiconductor end market contributed $466M, Electronics and Packaging $321M, and Specialty Industrial $291M.
No cash flow statement data is present in the provided excerpt. The document covers notes on derivative instruments and hedging activities, including foreign exchange forward contracts, net investment hedges, and interest rate swaps. These notes describe the classification of cash flows from derivatives (operating activities) and the impact of hedging on OCI, but no numerical cash flow figures are disclosed. Therefore, analysis of CFO, capex, FCF, or capital returns is not possible. To proceed, the actual consolidated statement of cash flows is required.