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10-Q2026-05-13· merged:deepseek-chat|deepseek-v4-pro|x-ai/grok-4.3

VSH · Vishay Intertechnology, Inc.

0000103730-26-000038

SEC filing

Summary

Vishay's Q1 2026 revenue grew 17.3% YoY to $839.2M driven by higher sales volume, improving gross margin to 21.0% and returning to net profitability.

Key takeaways

Full analysis

Period Performance

Period Performance

Vishay Intertechnology reported net revenues of $839.2 million for the fiscal quarter ended April 4, 2026, a 17.3% increase compared to $715.2 million in the prior year quarter. This growth was primarily attributed to a 14.4% increase in sales volume, signaling a recovery from the prior year when distribution customers were digesting high channel inventories. Net earnings were $7.2 million, or $0.05 per diluted share, a significant improvement from a net loss of $(4.1) million, or $(0.03) per share, in the same period last year.

Gross profit margin expanded to 21.0% from 19.0% in the prior year quarter. Management attributed this 200 basis point improvement to higher sales volume and associated manufacturing efficiencies, which more than offset increased costs for metals and materials. Operating margin also improved, rising to 2.6% from 0.1% a year ago. Selling, general, and administrative (SG&A) expenses increased to 18.4% of revenues from 18.8% in the prior year, driven by higher stock-based compensation and general cost inflation. The effective tax rate for the quarter was 44.3%, a sharp increase from 3.2% in the prior year quarter, contributing to a lower net income margin than would otherwise be expected.

Free cash flow was negative $46.9 million, compared to negative $45.2 million in the prior year quarter. This was driven by a high level of capital expenditures totaling $110.7 million, which more than offset the $63.7 million in cash provided by operating activities.

Segment Dynamics

All six operating segments reported year-over-year revenue growth, with Capacitors leading at +25.0%, followed by MOSFETs at +22.4%. The revenue increases were broad-based, with management citing higher sales to OEM and distribution customers across automotive, industrial, and other end markets.

Segment operating margins generally improved year-over-year. The Inductors segment remained the most profitable with a 27.4% operating margin, up from 16.5% a year ago, driven by higher volume, lower logistics costs, and improved yield. The MOSFETs segment, while still the least profitable, saw its operating margin improve to 0.8% from (6.1)% in the prior year, benefiting from higher volume and reduced SG&A expenses associated with the Newport wafer fab. The Optoelectronic Components segment was an exception, with its operating margin declining to 8.0% from 10.6% due to lower average selling prices and unfavorable product mix.

Leading indicators were strong. The consolidated book-to-bill ratio was 1.34, up from 1.08 a year ago, and ending backlog reached $1,592.3 million, a significant increase from $1,124.3 million. This suggests the revenue momentum is likely to continue in the near term.

Forward View

Management's outlook is focused on capitalizing on improving market conditions and the mega trends of e-mobility, sustainability, and connectivity. The company plans to maintain elevated capital expenditures, guiding for $400 million to $440 million in 2026, with approximately half allocated to the new 12-inch wafer fab in Itzehoe, Germany. These investments are intended to assure customers of reliable supply and capture future demand.

While committed to these growth investments, management stated it will continue to modulate spending in response to order flow and demand timing. The company expects its free cash flow to remain negatively impacted by these high capital expenditure levels in the near term before generating increasingly higher levels of cash. Vishay also intends to continue its Stockholder Return Policy, which calls for returning at least 70% of free cash flow to stockholders through dividends and opportunistic share repurchases.

Notes & Operating Detail

Balance Sheet & Liquidity

Cash and cash equivalents decreased to $479.4 million from $515.0 million at year-end 2025. Short-term investments were negligible at $0.2 million. Total debt increased to $983.1 million, primarily due to $31.0 million in net borrowings under the credit facility. Shareholders' equity was $2,075.9 million, down slightly from $2,088.3 million. Inventory rose to $790.8 million, driven by increases in work in process and raw materials.

Commitments & Contractual Obligations

No purchase commitments or contractual obligations were disclosed in the Notes. The restructuring liability stood at $15.1 million as of April 4, 2026, down from $17.4 million at year-end 2025.

Capital Allocation (buybacks, dividends, debt, capex)

No stock repurchases occurred in Q1 2026, compared to $12.5 million in Q1 2025. Dividends paid totaled $13.6 million, consistent with the prior year. Capital expenditures surged to $110.7 million, up 80% from $61.6 million in Q1 2025, with the MOSFETs segment accounting for $94.7 million. Net debt increased by $32.2 million due to credit facility draws.

Segment / Geographic Mix (if disclosed at note level)

Segment operating income rose 42% YoY to $118.8 million, driven by strong performance in MOSFETs (swing from -$8.7M to $1.3M), Inductors (+82%), and Capacitors (+33%). Revenue by customer type: Distributors 55%, OEMs 38%, EMS 7%. Geographically, Asia contributed 40% of revenue, Europe 35%, Americas 25%. End markets: Industrial 36%, Automotive 34%, Military/Aerospace 11%, Healthcare 5%, Other 15%.

Cash Flow Quality

Cash Flow Quality

CFO of $63.7M significantly exceeded net earnings of $7.2M, supported by $58.2M depreciation and $12.3M stock compensation, offset by a $24.1M working-capital use. Capex intensity rose sharply to $110.7M (1.7x CFO), driving a large investing outflow. Financing provided $13.5M via revolver draws, fully covering the $13.6M dividend payout with zero share repurchases this quarter. No material one-time items noted. Prior-year CFO was only $16.1M with lower capex and active buybacks.