Vishay Intertechnology, Inc.

Q2 GAAP revenue was $889 million and adjusted revenue was $919 million. Revenue increased 9.5% sequentially and 21% year over year on an adjusted basis, with volume up 7% sequentially and 18% year over year; ASPs contributed 2% sequentially and 2% year over year, and foreign currency added 1% year over year. Gross profit was $177 million; GAAP gross margin was 23.3% and adjusted gross margin was 22.6%. GAAP operating margin was 6.0% and adjusted operating margin was 5.8%; adjusted EBITDA margin was 11.4%. EPS was $0.19 on both GAAP and adjusted basis, versus $0.05 in Q1 and an adjusted loss of $0.07 a year ago. For Q3 2026, revenue is expected to be $945 million to $975 million, gross margin about 24.0% +/- 50 bps, SG&A about $155 million +/- $3 million, interest expense about $7 million, and tax rate 35% to 40%. Management also said full-year 2026 free cash flow is expected to remain negative due to capacity expansion, while CapEx for 2026 is planned at $400 million to $440 million.

Joel Smejkal framed the quarter as evidence that Vishay 3.0 is working, saying the company is gaining share, improving customer mix, and benefiting from a broader upcycle across products, channels, and regions. He emphasized strong demand in industrial, AI, automotive, aerospace defense, and distribution, along with longer customer lead times and replenishment activity as supply tightens. Strategically, he highlighted capacity expansion, foundry usage, the 12-inch fab in Germany, polymer capacity, and a more active approach to pricing, channel management, and product mix to drive revenue growth and long-term margin expansion.

Dave McConnell said Q2 adjusted revenue of $919 million exceeded guidance and that margin improved from the prior quarter, with gross profit of $177 million, adjusted gross margin of 22.6%, and adjusted EBITDA margin of 11.4%. He noted SG&A was $154 million, depreciation was $53 million, operating cash was $105 million, free cash flow was $10 million, and CapEx was $95 million, including about $66 million for the new 12-inch wafer fab in Germany. He also pointed to working-capital improvement with cash conversion cycle at 110 days and cash plus short-term investments at $1.3 billion, while reiterating that 2026 free cash flow should be negative because of expansion spending and that capital intensity should trend down over time even if absolute CapEx remains high.

Analysts focused on foundry utilization and wafer capacity, and management said Vishay is working with two foundries in Korea plus one in China that should come on board in Q3 to expand AI wafer and end-product capacity; however, they declined to provide wafer-per-month targets for the Newport or Germany fabs. Questions also probed MLCC versus polymer tantalum exposure, and Joel said Vishay’s MLCCs are more specialized for military and medical, while polymer tantalum remains important for automotive and AI and is being expanded. Analysts pressed on price increases and possible pull-forward or double ordering; management said behavior still looks rational, backlog is being repriced quickly, distributors’ inventories are falling, and they do not see double ordering at this point.