VSH · Vishay Intertechnology, Inc.

Vishay Intertechnology's first quarter 2026 results reflect strengthening demand, with revenues rising 4.8% sequentially to $839.2 million from $800.9 million in the prior quarter, driven by the company's Vishay 3.0 strategy emphasizing capacity expansion in high-growth, high-margin products. Gross margin expanded 140 basis points to 21.0%, supported by improved product mix and operational efficiencies, while operating income surged to $22.1 million with a 2.6% margin, up from 1.8% last quarter. GAAP net earnings of $7.2 million delivered diluted EPS of $0.05, a significant improvement over $0.01 prior quarter and a loss last year. Book-to-bill of 1.34, with semiconductors at 1.47 and passives at 1.23, alongside a 5.7-month backlog, signals robust order intake and positions Vishay to capture market upcycle. CEO Joel Smejkal highlighted reliable scaling with customers and priority on increasing backlog turns for competitive lead times to drive revenue growth ahead of end markets and margin expansion. Q2 guidance projects revenues of $875-905 million and gross margin of 22.0% +/- 50 bps, indicating continued momentum. Balance sheet remains solid with $479.4 million in cash equivalents despite $110.7 million capex, and inventories up to $790.8 million. Operating cash flow of $63.7 million offset heavy investments, while $0.10 per share dividend was maintained. Free cash was negative at $(46.9) million due to capex, but overall liquidity supports strategic execution.