Vishay Intertechnology NYSE: VSH reported first-quarter 2026 revenue above its guidance range and said broad-based demand improvements, stronger bookings and capacity investments under its Vishay 3.0 strategy are positioning the company for faster growth as markets recover.
President and Chief Executive Officer Joel Smejkal said revenue for the quarter was $839 million, above the company’s $800 million to $830 million guidance range. Revenue rose 4.8% from the fourth quarter and 17.3% from the first quarter of 2025, reflecting growth across end markets, sales channels and regions.
“Clearly, the Vishay 3.0 transformation and our growth strategy is working,” Smejkal said, pointing to increased consumption, inventory replenishment and market share gains. He said volume increased 5.8% sequentially, with gains in both semiconductors and passives, while customer programs in multiple end markets have begun to ramp and demand tied to artificial intelligence applications remains strong.
Bookings and Backlog Strengthen
Vishay ended the quarter with a total company book-to-bill ratio of 1.34, up from 1.2 in the fourth quarter. The semiconductor book-to-bill ratio was 1.47, while passives stood at 1.23. Backlog increased 21% to $1.6 billion, or 5.7 months.
Smejkal said customers are placing orders with longer visibility, including some one-year forecasts, and some are building safety stock in Asia for AI-related applications and across regions for automotive and industrial demand.
He contrasted the current approach with prior business cycles, saying Vishay is focused on turning backlog faster and maintaining competitive lead times rather than allowing capacity to become constrained for extended periods.
“We have no intention of backsliding to the business approach of Vishay 2.0,” Smejkal said. He added that OEMs and Tier 1 suppliers are increasingly collaborating with Vishay on technology roadmaps and forward demand planning.
Automotive, Industrial and Defense Demand Improve
Automotive revenue rose 2.7% sequentially, driven mainly by solid OEM demand in the Americas and Europe as customers increased electronic content and ramped hybrid and electric vehicle programs. Smejkal said Asia revenue was weighed down by Lunar New Year timing and by customers that had increased production in the second half of last year ahead of U.S. tariffs.
Smejkal said Vishay is seeing success with automotive OEMs and Tier 1 suppliers, including becoming the top supplier of resistors to multiple OEMs launching new EV platforms. Design activity remained focused on hybrid, EV and internal combustion drivetrains, advanced driver assistance systems, battery management, electronic power steering and smart cockpits.
Industrial power revenue increased 6.5% sequentially, marking the fifth consecutive quarter of sequential gains. Demand grew in electrical power transmission and power management, renewable energy and smart metering, factory automation and security systems. Smejkal said customers in the Americas are ramping production for new projects supporting AI infrastructure, while Europe and China continue to support smart grid programs.
Aerospace and defense revenue increased 14.1% from the fourth quarter and 16.8% from the prior-year period. Smejkal cited strong demand from the U.S. government, spending to replenish munitions programs and production ramps in allied countries in Asia. He said U.S. defense contractors have begun increasing orders for resistors, capacitors and custom magnetics.
Healthcare sales increased 4.5% sequentially and 11.1% year over year, supported by demand from long-standing customers, particularly in the Americas. In telecom, computing and consumer, revenue was flat from the fourth quarter but up 25.8% from a year earlier. Smejkal said AI-related demand in China was flat sequentially due to Lunar New Year and shipments pulled into the fourth quarter, though Vishay continued to receive quick-delivery orders in Asia for high-voltage MOSFETs used in AI power applications.
Financial Results and Cash Flow
Chief Financial Officer Dave McConnell said first-quarter revenue increased 5% sequentially, driven by 6% volume growth and offset by a 1% decline in average selling prices. Compared with the first quarter of 2025, revenue increased 17%, primarily on a 14% increase in volume. Favorable currency, mainly from the euro, contributed 4%, partially offset by a 1% decline in average selling prices.
Gross profit was $177 million, and gross margin was 21.0%, exceeding the company’s guidance and improving from the prior quarter. McConnell said higher volumes helped offset metals and materials cost pressures. He also said Vishay exited the quarter with its Newport facility at gross profit neutral.
SG&A expenses were $154 million, compared with $142 million in the fourth quarter, mainly due to higher stock and bonus compensation expenses. GAAP operating margin was 2.6%, compared with 1.8% in the fourth quarter and 0.1% in the first quarter of 2025. EBITDA was $78 million, for an EBITDA margin of 9.3%.
GAAP earnings per share were $0.05, compared with $0.01 in the fourth quarter and a loss of $0.03 in the first quarter of 2025.
Vishay generated $64 million in operating cash flow, including an additional $63 million from securitization of accounts receivable. Capital expenditures totaled $111 million, including about $87 million for the company’s new 12-inch fab in Germany. Free cash flow was negative $47 million, reflecting elevated capital spending. The company paid a quarterly dividend of $13.6 million and did not repurchase shares.
Second-Quarter Outlook
For the second quarter of 2026, Vishay expects revenue of $875 million to $905 million. The company guided for gross margin of 22.0%, plus or minus 50 basis points, including higher logistics costs, continued higher metals and materials costs and inefficiencies tied to ramping new direct labor.
Depreciation is expected to be approximately $54 million for the second quarter and $216 million for the full year. SG&A expenses are expected to be $155 million, plus or minus $3 million. The company expects its second-quarter effective tax rate to be between 40% and 50%.
McConnell said Vishay again expects negative free cash flow in 2026 because of capacity expansion plans.
Vishay 3.0 Investments Continue
Smejkal said Vishay is maintaining its plan to spend $400 million to $440 million in capital expenditures during 2026, with about half allocated to its 12-inch fab in Germany. Nearly all of that fab investment is expected to be spent in the first half of 2026, marking the peak capital intensity point of the company’s five-year capacity expansion plan.
At Newport, Vishay continues to ramp wafer production and completed four audits with Tier 1 automotive customers in the quarter, with two more planned in the second quarter. At the German 12-inch fab, the company began installing equipment and plans to finish in the second quarter, with a goal of starting non-automotive production in mid-2027.
In the analyst Q&A, Smejkal said Vishay is gaining automotive share and expects additional opportunities as Newport receives approvals for customer programs. Asked about longer-term targets from the company’s 2024 Analyst Day, he said the revenue and margin targets remain in place, though timing was delayed by inventory digestion and tariffs.
“Right now, we feel, as we said in the last call, 2026 is our quarter and our year to take off,” Smejkal said.
About Vishay Intertechnology NYSE: VSH
Vishay Intertechnology, Inc is a global manufacturer of discrete semiconductors and passive electronic components, serving a wide range of industries including industrial, automotive, computing, consumer electronics, telecommunications, medical, and military/aerospace markets. The company's portfolio encompasses resistors, capacitors, inductors, sensors, diodes, rectifiers, MOSFETs and a variety of integrated circuit solutions. Vishay's components are used in power management, signal conditioning, circuit protection and sensing applications, supporting both standard and custom designs for original equipment manufacturers worldwide.
Originally founded in 1962 by Dr.
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