Vishay Intertechnology reported a second-quarter book-to-bill ratio of 1.32, including 1.40 for passive components and 1.23 for semiconductors, while backlog reached 6.1 months as demand continued to strengthen. The company also passed approximately $30 million of U.S. tariff refunds through to customers, reducing reported revenue without affecting gross profit.
The book-to-bill ratio above 1 indicates that orders entering the business during the period exceeded shipments, while the particularly strong 1.40 ratio for passive components suggests the order recovery was even more pronounced in that part of Vishay’s portfolio. Quarter-end backlog represented 6.1 months of demand.
Adjusted Q2 revenue reached $918.6 million, representing 9.5% sequential growth and exceeding the top end of the company’s prior guidance. GAAP revenue was $888.6 million because of the treatment of the tariff refunds.
The approximately $30 million refund was recorded as an equal reduction to net revenue and cost of products sold. Consequently, the pass-through lowered GAAP revenue but had no effect on gross profit, which totaled $207.4 million.
Operating results improved substantially alongside the demand recovery. GAAP gross margin increased to 23.3% from 21% sequentially and 19.5% a year earlier, while operating margin reached 6% compared with 2.6% in Q1 and 2.9% in Q2 2025.
Operating income increased to $53.5 million from approximately $22.1 million in both comparison periods. Net earnings reached $28.1 million, compared with $7.2 million sequentially and $2 million a year earlier.
Adjusted EBITDA rose to $104.8 million from $63.5 million in the prior-year quarter, while adjusted EBITDA margin expanded to 11.4% from 8.3%.
Cash generation also improved. Q2 operating cash flow reached $105.4 million compared with a negative $8.8 million a year earlier, while free cash moved to positive $10.3 million from a $73.2 million outflow despite continued capital investment.
Vishay spent approximately $205.9 million on capital expenditures during the first half, up from $126.2 million a year earlier, as it continues investing in capacity to support the multi-year demand opportunity management sees across its markets.
Liquidity expanded substantially after Vishay raised approximately $830.3 million of net proceeds through a follow-on public offering. Cash and equivalents reached $1.30 billion at June 30, compared with $515 million at year-end.
The company expects the sequential revenue recovery to continue in Q3, forecasting $945 million to $975 million of revenue and gross margin of approximately 24%, plus or minus 50 basis points.
KEY QUOTES:
“For the second quarter, Vishay delivered 9.5% sequential growth to adjusted revenue of $919 million, exceeding the top end of our revenue guidance and representing continued strengthening demand across all end markets, channels and regions. Executing as a new company, Vishay 3.0 is focused on supplying our increasing customer count and taking full advantage of the upcycle, outpacing industry growth, while laying the foundation to leverage multi-year demand across all end markets for sustained growth, expanded margins and enhanced stockholder returns.”
Joel Smejkel, President and CEO of Vishay Intertechnology
