VISHAY INTERTECHNOLOGY INC
For the period ended Jun 28, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2025 · Filed Aug 6, 2025
VSH$23.28+5.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-29; filed 2025-05-07.
0000103730-25-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-08-06.
0000103730-25-000055
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 135 previous paragraphs and 139 current paragraphs.
83 unchanged; 34 reworded; 21 added; 14 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 34 previous and 34 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Net revenues for the six fiscal months ended June 28, 2025 were $1,477.5 million, compared to $1,487.5 million for the six fiscal months ended June 29, 2024. The net loss attributable to Vishay stockholders for the six fiscal months ended June 28, 2025 was $(2.1) million, or $(0.02) per share, compared to net earnings of $54.5 million, or $0.39 per diluted share for the six fiscal months ended June 29, 2024.
Current report
Tariff Impact
Current report
The announcement of the U.S. tariffs and recent geopolitical events resulted in significant stock market volatility and uncertainty in the markets for our products. A sustained decrease in share price or prolonged deterioration in the general economy could represent indicators of impairment of our goodwill or other long-lived assets.
Current report
Gross profit margin increased versus the prior fiscal quarter, but decreased versus the prior year fiscal quarter. The increase versus the prior fiscal quarter is primarily due to higher sales volume and lower fixed costs. The decrease versus the prior year quarter is primarily due to lower average selling prices and higher fixed costs. Costs associated with the Newport wafer fab also contributed to the decrease versus the prior year quarter.
Current report
Gross profit margin decreased versus the prior fiscal quarter and prior year periods. The decreases are primarily due to lower average selling prices. Costs associated with the Newport wafer fab also contributed to the decrease versus the prior year-to-date period.
Current report
Segment operating margin decreased versus the prior fiscal quarter and prior year periods. The decreases are primarily due to gross profit decreases.
Current report
Average selling prices decreased versus the prior fiscal quarter and the prior year periods.
Current report
Gross profit margin increased slightly versus the prior fiscal quarter, but decreased versus the prior year periods. The increase versus the prior fiscal quarter is primarily due to higher sales volume. The decreases versus the prior year periods is primarily due to lower average selling prices.
Current report
Average selling prices decreased versus the prior fiscal quarter and prior year periods.
Current report
Gross margin increased versus the prior fiscal quarter and prior year-to-date period, but decreased versus the prior year quarter. The increases versus the prior fiscal quarter and prior year-to-date period are primarily due to higher sales volume and lower utility costs. The decrease versus the prior year quarter is primarily due to lower average selling prices and higher metals and fixed costs.
Current report
Segment operating margin increased versus the prior fiscal quarter and prior year-to-date period, but decreased versus the prior year quarter. The changes are primarily due to changes in gross profit.
Current report
Average selling prices decreased versus the prior fiscal quarter and prior year periods.
Current report
Segment operating margin increased versus the prior fiscal quarter, but decreased versus the prior year periods. The changes are primarily due to changes in gross profit.
Current report
Average selling prices, including tariff adders, increased versus the prior fiscal quarter and decreased versus the prior year periods.
Current report
Gross profit margin increased significantly versus the prior fiscal quarter, but decreased versus the prior year periods. The increase versus the prior fiscal quarter is primarily due to higher sales volume and manufacturing efficiencies. The decreases versus the prior year periods are primarily due to lower sales volume.
Current report
Segment operating margin increased significantly versus the prior fiscal quarter, but decreased versus the prior year periods. The changes are primarily due to changes in gross profit.
Current report
Average selling prices, including tariff adders, increased versus the prior fiscal quarter and prior year periods.
Current report
Segment operating margin decreased versus the prior fiscal quarter and prior year periods. The changes are primarily due to gross profit decreases.
Current report
Average selling prices, including tariff adders, increased versus the prior fiscal quarter and prior year periods.
Current report
In the second fiscal quarter of 2025, we entered into a forward contract with a highly-rated financial institution to mitigate the foreign currency risk associated with an intercompany loan denominated in a currency other than the legal entity's functional currency. The notional amount of the forward contract was $25 million as of June 28, 2025. We have not designated the forward contract as a hedge for accounting purposes, and as such the change in the fair value of the contract is recognized in the consolidated condensed statements of operations as a component of other income (expense). Due to the timing of the forward contract, the value of the forward contract was immaterial as of June 28, 2025.
Current report
On July 4, 2025, H.R. 1 (“the Act”), a tax reconciliation act, was enacted into law in the United States. Under U.S. GAAP (specifically, Accounting Standards Codification Topic 740), the effects of changes in tax rates and laws on deferred tax balances are recognized in the period in which the new legislation is enacted. Accordingly, we will account for the Act in the third fiscal quarter. We are evaluating the Act’s provisions, but are not currently able to estimate the impact of the Act on our deferred tax balances and future income tax expense. Certain provisions of the Act, particularly the international tax provisions, may have a material impact on our deferred tax balances and future income tax expense.
Removed paragraphs (14)
Previous report
The announcement of the U.S. tariffs has resulted in significant market volatility. A decrease in our common stock price could impact our goodwill impairment assessment if a stock price recovery does not take place.
Previous report
The following table summarizes activity pursuant to this policy(in thousands):
Previous report
The structure of our Stockholder Return Policy enables us to allocate capital responsibly among our business, our lenders, and our stockholders. We will continue to invest in growth initiatives including key product line expansions, targeted R&D, and synergistic acquisitions.
Previous report
The book-to-bill ratio in the first fiscal quarter of 2025 increased to 1.08 versus 1.01 in the fourth fiscal quarter of 2024.
Previous report
Gross profit margin decreased versus the prior fiscal quarter and the prior year quarter. The decreases are primarily due to lower average selling prices and higher fixed costs. Costs associated with the Newport wafer fab also contributed to the decrease versus the prior year quarter.
Previous report
Segment operating margin decreased versus the prior fiscal quarter and the prior year quarter. The decreases are primarily due to gross profit decreases.
Previous report
Gross profit margin decreased versus the prior fiscal quarter and the prior year quarter. The decreases are primarily due to lower average selling prices.
Previous report
Gross profit margin increased versus the prior fiscal quarter and the prior year quarter. The increases are primarily due to higher sales volume. Higher average selling prices also contributed to the increase versus the prior fiscal quarter.
Previous report
Segment operating margin increased versus the prior fiscal quarter and the prior year quarter. The increases are primarily due to gross profit increases.
Previous report
Average selling prices increased versus the prior fiscal quarter.
Previous report
Segment operating margin increased versus the prior fiscal quarter, but decreased versus the prior year quarter. The changes are primarily due to fluctuations in gross profit.
Previous report
Segment operating margin decreased versus the prior fiscal quarter and prior year quarter. The decreases are primarily due to gross profit decreases.
Previous report
Gross profit margin decreased versus the prior fiscal quarter and prior year quarter. The decreases are primarily due to lower average selling prices, higher fixed costs, and negative foreign currency exchange rate fluctuations.
Previous report
Segment operating margin decreased versus the prior fiscal quarter and prior year quarter. The fluctuations are primarily due to gross profit decreases.
Reworded paragraphs (34)
Previous wording
We utilize several financial metrics, including net revenues, gross profit margin, operating margin, segment operating margin, end-of-period backlog, book-to-bill ratio, inventory turnover, change in average selling prices, net cash and short-term investments (debt), and free cash generation to evaluate the performance and assess the future direction of our business. See further discussion in “Financial Metrics” and “Financial Condition, Liquidity, and Capital Resources” below. The key financial metrics were mixed versus the prior fiscal quarter, but mostly lower than the prior year period. Net revenues and margins decreased versus the prior year period primarily due to lower sales volume and decreased average selling prices, but orders increased.
Current wording
We utilize several financial metrics, including net revenues, gross profit margin, operating margin, segment operating margin, end-of-period backlog, book-to-bill ratio, inventory turnover, change in average selling prices, net cash and short-term investments (debt), and free cash generation to evaluate the performance and assess the future direction of our business. See further discussion in “Financial Metrics” and “Financial Condition, Liquidity, and Capital Resources” below. The key financial metrics increased versus the prior fiscal quarter, but were mixed versus the prior year period. Net revenues and margins increased versus the prior fiscal quarter and net revenues increased versus the prior year quarter, but margins were lower. The increases are primarily due to increased sales volume.
Previous wording
Net revenues for the fiscal quarter ended March 29, 2025 were $715.2 million, compared to $714.7 million and $746.3 million for the fiscal quarters ended December 31, 2024 and March 30, 2024, respectively. The net loss attributable to Vishay stockholders for the fiscal quarter ended March 29, 2025 was $(4.1) million, or $(0.03) per share, compared to a net loss of $(66.3) million, or $(0.49) per share for the fiscal quarter ended December 31, 2024, and net earnings of $30.9 million, or $0.22 per diluted share for the fiscal quarter ended March 30, 2024.
Current wording
Net revenues for the fiscal quarter ended June 28, 2025 were $762.3 million, compared to $715.2 million and $741.2 million for the fiscal quarters ended March 29, 2025 and June 29, 2024, respectively. The net earnings attributable to Vishay stockholders for the fiscal quarter ended June 28, 2025 was $2.0 million, or $0.01 per diluted share, compared to a net loss of $(4.1) million, or $(0.03) per share for the fiscal quarter ended March 29, 2025, and net earnings of $23.5 million, or $0.17 per diluted share for the fiscal quarter ended June 29, 2024.
Previous wording
For the past several quarters, orders were negatively impacted by a distributor inventory correction and channel inventory that overhung the market, but there are indicators that the prolonged period of excess inventory digestion is ending. The long-term outlook for our business remains strong, although our results are weaker than our prior year results.
Current wording
For the past several quarters, orders were negatively impacted by a distributor inventory correction and channel inventory that overhung the market, but there are indicators that the prolonged period of excess inventory digestion is ending. The long-term outlook of our business remains strong, although our results are weaker than our prior year results.
Previous wording
In 2022, our Board of Directors adopted a Stockholder Return Policy, which calls for us to return at least 70% of free cash flow, net of scheduled principal payments of long-term debt, on an annual basis. We intend to return such amounts to stockholders directly, in the form of dividends, or indirectly, in the form of stock repurchases.
Current wording
In 2022, our Board of Directors adopted a Stockholder Return Policy, which calls for us to return at least 70% of free cash flow, net of scheduled principal payments of long-term debt, on an annual basis. We intend to return such amounts to stockholders directly, in the form of dividends, or indirectly, in the form of stock repurchases. The policy sets forth our intention, but does not obligate us to acquire any shares of common stock or declare any dividends, and the policy may be terminated or suspended at any time at our discretion, in accordance with applicable laws and regulations. We expect negative free cash flow for the fiscal year ending December 31, 2025 due to our capacity expansion plans. As a result, we expect to maintain our dividend and opportunistically repurchase shares based on U.S. available liquidity in line with this policy. We did not repurchase any shares of common stock in the second fiscal quarter. We expect to be in compliance with our Stockholder Return Policy without repurchasing any additional shares in 2025.
Previous wording
The newly announced U.S. tariffs will impact our future results. The tariff rates and application are currently unsettled and any potential demand distraction is not able to be estimated at this time. Historically, we have charged tariff adders to customers to offset increased costs. The gross profit impact of the tariffs and tariff adders is approximately zero, but they negatively impact gross profit margin.
Current wording
The newly announced U.S. tariffs will impact our future results. The tariff rates and application are currently unsettled and any potential demand distraction is not able to be estimated at this time. Historically, we have charged tariff adders to customers to offset increased costs. The gross profit impact of the tariffs and tariff adders is approximately zero, but they negatively impact gross profit margin. The net impact of tariffs on gross profit margin in the second fiscal quarter was (40) basis points.
Previous wording
The quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business. The following table shows net revenues, gross profit margin, operating margin, end-of-period backlog, book-to-bill ratio, inventory turnover, and changes in ASP for our business as a whole during the five fiscal quarters beginning with the first fiscal quarter of 2024 through the first fiscal quarter of 2025(dollars in thousands):
Current wording
The quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business. The following table shows net revenues, gross profit margin, operating margin, end-of-period backlog, book-to-bill ratio, inventory turnover, and changes in ASP for our business as a whole during the five fiscal quarters beginning with the second fiscal quarter of 2024 through the second fiscal quarter of 2025(dollars in thousands):
Previous wording
(1) Operating margin for the third fiscal quarter of 2024 includes $40.6 million of restructuring and severance expenses (see Note 2 to our consolidated condensed financial statements). Operating margin for the fourth fiscal quarter of 2024 includes $66.5 million of goodwill impairment charges.
Current wording
(1) Operating margin for the second fiscal quarter of 2025 includes an $11.3 million gain recognized upon the favorable resolution of a contingency. Operating margin for the third fiscal quarter of 2024 includes $40.6 million of restructuring and severance expenses (see Note 2 to our consolidated condensed financial statements). Operating margin for the fourth fiscal quarter of 2024 includes $66.5 million of goodwill impairment charges.
Previous wording
Revenues increased slightly versus the prior fiscal quarter, but decreased versus the prior year quarter. The increase versus the prior fiscal quarter is primarily due to higher sales volume, partially offset by lower average selling prices. The decrease versus the prior year quarter is primarily due to lower average selling prices and lower sales volume. The book-to-bill ratio and backlog increased versus the prior fiscal quarter. We continue to increase capacity for critical product lines. Average selling prices decreased versus the prior fiscal quarter and prior year quarter.
Current wording
Revenues increased versus the prior fiscal quarter and prior year quarter. The increases versus the prior fiscal quarter and prior year quarter are primarily due to higher sales volume and favorable exchange rate impacts. The book-to-bill ratio remained above 1.0 for the third consecutive quarter. Backlog was relatively flat versus the prior fiscal quarter and prior year fiscal quarter. We continue to increase capacity for critical product lines. Average selling prices, including tariff adders, were flat versus the prior fiscal quarter, but decreased versus the prior year fiscal quarter.
Previous wording
The following table shows net revenues, book-to-bill ratio, gross profit margin, and segment operating margin broken out by segment for the five fiscal quarters beginning with the first fiscal quarter of 2024 through the first fiscal quarter of 2025(dollars in thousands):
Current wording
The following table shows net revenues, book-to-bill ratio, gross profit margin, and segment operating margin broken out by segment for the five fiscal quarters beginning with the second fiscal quarter of 2024 through the second fiscal quarter of 2025(dollars in thousands):
Previous wording
There are indications that the channel inventory that has overhung the market is normalizing and the prolonged period of excess inventory digestion is ending. The long-term prospects for our business remain favorable, and we continue to increase manufacturing capacities for critical product lines. The decrease in net revenues versus the prior year quarter is primarily due to lower average selling prices and decreased sales volume.
Current wording
There are indications that the channel inventory that has overhung the market is normalizing and the prolonged period of excess inventory digestion is ending. The long-term prospects for our business remain favorable, and we continue to increase manufacturing capacities for critical product lines. The increase in net revenues versus the prior fiscal quarter and prior year periods are primarily due to sales volume and favorable foreign currency impacts.
Previous wording
Gross profit margins for the fiscal quarter ended March 29, 2025 were 19.0%, versus 19.9% and 22.8% for the comparable prior fiscal quarter and prior year period, respectively. Gross profit margin decreased versus the prior fiscal quarter and the prior year quarter primarily due to lower average selling prices and higher fixed costs. Costs associated with the Newport wafer fab also contributed to the decrease versus the prior year quarter.
Current wording
Gross profit margins for the fiscal quarter ended June 28, 2025 were 19.5%, versus 19.0% and 22.0%, for the comparable prior quarter and prior year quarter, respectively. Gross profit margins for the six fiscal months ended June 28, 2025 were 19.2%, versus 22.4% for the comparable prior year period. Gross profit margin increased versus the prior fiscal quarter primarily due to higher sales volume. The decreases versus the prior year periods are primarily due to lower average selling prices and higher fixed costs. Costs associated with the Newport wafer fab also contributed to the decrease versus the prior year-to-date period.
Previous wording
Net revenues of the MOSFETs segment decreased versus the prior fiscal quarter and the prior year quarter. The decreases are primarily due to decreased sales to distribution and OEM customers, automotive and industrial end market customers, and customers in all regions. An increase in sales to computing end market customers partially offset the decreases versus the prior fiscal quarter and prior year quarter.
Current wording
Net revenues of the MOSFETs segment increased versus the prior fiscal quarter, but decreased versus the prior year periods. The increase versus the prior fiscal quarter is primarily due to increased sales to distribution customers, power supply end market customers, and customers in the Asia region. The decreases versus the prior year periods are primarily due to decreased sales to OEM customers, industrial end market customers, and customers in the Europe region.
Previous wording
Net revenues of the Diodes segment decreased versus the prior fiscal quarter and the prior year quarter. The decreases are primarily due to decreased sales to OEM customers, automotive end market customers, and customers in the Asia and Americas regions. Increases in sales to distribution customers and customers in the Europe region partially offset the decrease versus the prior fiscal quarter.
Current wording
Net revenues of the Diodes segment increased versus the prior fiscal quarter and the prior year quarter, but decreased versus the prior year-to-date period. The increases versus the prior fiscal quarter and prior year quarter are primarily due to increased sales to distribution customers, industrial end market customers, and customers in the Asia region. The decrease versus the prior year-to-date period is primarily due to decreased sales to OEM customers, automotive end market customers, and customers in the Americas region.
Previous wording
Segment operating margin decreased versus the prior fiscal quarter and prior year quarter. The decreases are primarily due to decreased gross profit.
Current wording
Segment operating margin was flat versus the prior fiscal quarter, but decreased versus the prior year periods. The decreases versus the prior year periods are primarily due to decreased gross profit.
Previous wording
Net revenues of our Optoelectronic Components segment increased versus the prior fiscal quarter and the prior year quarter. The increases are primarily due to increased sales to distribution customers and industrial end market customers. Sales to customers in all regions increased versus the prior fiscal quarter and in the Asia and Americas regions versus the prior year quarter.
Current wording
Net revenues of the Optoelectronic Components segment increased versus the prior fiscal quarter and prior year periods. The increase versus the prior fiscal quarter is primarily due to increased sales to OEM and distribution customers, industrial and consumer end market customers, and customers in the Europe region. The increase versus the prior year quarter is primarily due to increased sales to OEM customers, automotive and industrial end market customers, and customers in the Europe region. The increase versus the prior year-to-date period is primarily due to increased sales to distribution customers, industrial end market customers, and customers in the Asia region.
Previous wording
Net revenues of the Resistors segment increased versus the prior fiscal quarter, but decreased versus the prior year quarter. The increase versus the prior fiscal quarter is primarily due to increased sales to distribution customers, industrial end market customers, and customers in the Asia and Europe regions. The decrease versus the prior year quarter is primarily due to decreased sales to OEM customers, industrial and automotive end market customers, and customers in the Europe region, partially offset by increased sales to distribution customers and customers in the Asia region.
Current wording
Net revenues of the Resistors segment increased versus the prior fiscal quarter and prior year periods. The increases versus the prior fiscal quarter and prior year quarter are primarily due to increased sales to distribution and OEM customers, industrial and automotive end market customers, and customers in all regions. The increase versus the prior year-to-date period is primarily due to increased sales to distribution customers, military and aerospace end market customers, and customers in the Asia and Americas regions.
Previous wording
Gross profit margin increased versus the prior fiscal quarter, but decreased versus the prior year quarter. The increase versus the prior fiscal quarter is primarily due to higher sales volume. The decrease versus the prior year quarter is primarily due to lower average selling prices.
Current wording
Gross profit margin increased versus the prior fiscal quarter, but decreased versus the prior year periods. The increase versus the prior fiscal quarter is primarily due to higher sales volume. The decrease versus the prior year periods is primarily due to lower average selling prices.
Previous wording
Net revenues of the Inductors segment increased versus the prior fiscal quarter, but decreased versus the prior year quarter. The increase versus the prior fiscal quarter is primarily due to increased sales to OEM customers, automotive end market customers, and customers in the Europe region, partially offset by decreased sales to EMS customers and customers in the Asia region. The decrease versus the prior year quarter is primarily due to decreased sales to OEM customers, automotive and military and aerospace end market customers, and customers in all regions, partially offset by increased sales to medical end market customers.
Current wording
Net revenues of the Inductors segment increased versus the prior fiscal quarter and prior year quarter, but decreased versus the prior year-to-date period. The increase versus the prior fiscal quarter is primarily due to increased sales to distribution and OEM customers, automotive and industrial end market customers, and customers in all regions. The increase versus the prior year quarter is primarily due to increased sales to distribution customers, industrial end market customers, and customers in the Asia region. The decrease versus the prior year-to-date period is primarily due to decreased sales to OEM customers, automotive and military and aerospace end market customers, and customers in the Americas region, partially offset by increased sales to distribution customers and customers in the Asia region.
Previous wording
Net revenues of the Capacitors segment decreased versus the prior fiscal quarter and the prior year quarter. The decreases are primarily due to decreased sales to military and aerospace end market customers and customers in the Americas region, partially offset by increased sales to customers in the Europe region. Decreased sales to OEM customers also contributed to the decrease versus the prior fiscal quarter, while increased sales to distribution customers partially offset the decrease. Decreased sales to customers in the Asia region also contributed to the decrease versus the prior year quarter, while increased sales to industrial market end customers partially offset the decrease.
Current wording
Net revenues of the Capacitors segment increased versus the prior fiscal quarter and prior year periods. The increase versus the prior fiscal quarter is primarily due to increased sales to distribution customers, industrial end market customers, and customers in the Asia region, partially offset by decreased sales to customers in the Europe region. The increase versus the prior year quarter is primarily due to increased sales to OEM customers, industrial and telecommunications end market customers, and customers in the Asia region. The increase versus the prior year-to-date period is primarily due to increased sales to OEM customers, industrial and telecommunications end market customers, and customers in the Europe region, partially offset by decreased sales to military and aerospace end market customers and customers in the Americas region.
Previous wording
Gross profit margin decreased versus the prior fiscal quarter and prior year quarter. The decreases are primarily due to lower average selling prices, higher variable costs, and manufacturing inefficiencies. Lower sales volume also contributed to the decrease versus the prior year quarter.
Current wording
Gross profit margin decreased versus the prior fiscal quarter and prior year periods. The decrease versus the prior fiscal quarter is primarily due to lower sales volume. The decreases versus the prior year periods are primarily due to higher fixed costs. Lower sales volume also contributed to the decrease versus the prior fiscal quarter.
Previous wording
Selling, general, and administrative expenses are summarized as follows(dollars in thousands):
Current wording
Selling, general, and administrative (“SG&A”) expenses are summarized as follows(dollars in thousands):
Previous wording
The sequential increase in SG&A expenses is primarily attributable to increased incentive compensation accruals.
Current wording
The sequential decrease in SG&A expenses is primarily attributable to an $11.3 million gain recognized upon the favorable resolution of a contingency. Excluding the one-time benefit, the sequential increase is primarily due to exchange rate impacts. SG&A expenses increased versus the prior year periods due to higher stock-based compensation expense, general cost inflation, and exchange rate impacts.
Previous wording
Interest expense for the fiscal quarter ended March 29, 2025 increased by $1.1 million versus the fiscal quarter ended December 31, 2024 and increased by $2.3 million versus the fiscal quarter ended March 30, 2024. The increases versus the prior fiscal quarter and the prior year quarter are due to higher outstanding balances on our revolving credit facility.
Current wording
Interest expense for the fiscal quarter ended June 28, 2025 increased $1.8 million versus the fiscal quarter ended March 29, 2025 and increased $3.9 million versus the fiscal quarter ended June 29, 2024. Interest expense for the six fiscal months ended June 28, 2025 increased by $6.2 million versus the six fiscal months ended June 29, 2024. The increases versus the prior fiscal quarter and the prior year periods are due to higher average outstanding balances on our revolving credit facility.
Previous wording
For the fiscal quarter ended March 29, 2025, our effective tax rate was 3.2%, as compared to (12.3)% and 29.0% for the fiscal quarters ended December 31, 2024 and March 30, 2024, respectively. We expect that our effective tax rate will be higher than the U.S. statutory rate, excluding unusual transactions, at higher levels of pre-tax income.
Current wording
For the fiscal quarter ended June 28, 2025, our effective tax rate was 83.7%, as compared to 3.2% and 34.2% for the fiscal quarters ended March 29, 2025 and June 29, 2024, respectively. For the six fiscal months ended June 28, 2025, our effective tax rate was 125.9%, as compared to 31.3% for the six fiscal months ended June 29, 2024. Our current effective tax rate is not indicative of expected future tax rates due to relatively small items having a disproportionate impact on the current effective tax rate. When pre-tax earnings increase, we expect that our effective tax rate will be higher than the U.S. statutory rate, excluding unusual transactions.
Previous wording
During the three fiscal months ended March 29, 2025, the liabilities for unrecognized tax benefits decreased by $1.0 million on a net basis, primarily due to the settlement of tax audits, partially offset by accruals for the current period.
Current wording
During the six fiscal months ended June 28, 2025, the liabilities for unrecognized tax benefits decreased $0.7 million on a net basis, primarily due to statute expirations, settlements, and payments, partially offset by accruals for the current period.
Previous wording
Cash flows provided by operating activities were $16.1 million for the three fiscal months ended March 29, 2025, as compared to cash flows provided by operations of $80.2 million for the three fiscal months ended March 30, 2024.
Current wording
Cash flows provided by operating activities were $7.3 million for the six fiscal months ended June 28, 2025, as compared to cash flows provided by operations of $55.5 million for the six fiscal months ended June 29, 2024.
Previous wording
In order to manage our working capital and operating cash needs, we monitor our cash conversion cycle. The following table presents the components of our cash conversion cycle during the five fiscal quarters beginning with the first fiscal quarter of 2024 through the first fiscal quarter of 2025:
Current wording
In order to manage our working capital and operating cash needs, we monitor our cash conversion cycle. The following table presents the components of our cash conversion cycle during the five fiscal quarters beginning with the second fiscal quarter of 2024 through the second fiscal quarter of 2025:
Previous wording
Cash paid for property and equipment for the three fiscal months ended March 29, 2025 was $61.6 million, as compared to $53.1 million for the three fiscal months ended March 30, 2024. To be well positioned to service our customers and to fully participate in growing markets, we have increased and expect to maintain a relatively high level of capital expenditures for expansion in the mid-term. We remain committed to our long-term plan of increasing Vishay's capacity, to assure our customers of reliable volume as they scale. While we plan to advance our capacity expansion projects, we have and will continue to modulate spending in response to order flow and the timing of customer demand and qualifications. The decreased lead time for equipment and the increased subcontractor capacity are also variables that allow us to adjust our capacity spending. For 2025, we plan to spend between $300 million to $350 million for capital expenditures, at least 70% of which will be invested in capacity expansion projects for high growth product lines, including our wafer fab expansions.
Current wording
Cash paid for property and equipment for the six fiscal months ended June 28, 2025 was $126.2 million, as compared to $115.6 million for the six fiscal months ended June 29, 2024. To be well positioned to service our customers and to fully participate in growing markets, we have increased and expect to maintain a relatively high level of capital expenditures for expansion in the mid-term. We remain committed to our long-term plan of increasing Vishay's capacity, to assure our customers of reliable volume as they scale. While we plan to advance our capacity expansion projects, we have and will continue to modulate spending in response to order flow and the timing of customer demand and qualifications. The decreased lead time for equipment and the increased subcontractor capacity are also variables that allow us to adjust our capacity spending. For 2025, we plan to spend between $300 million to $350 million for capital expenditures, at least 70% of which will be invested in capacity expansion projects for high growth product lines, including our wafer fab expansions.
Previous wording
Free cash flow for the three fiscal months ended March 29, 2025 decreased versus the three fiscal months ended March 30, 2024 primarily due to decreased net earnings. We expect that free cash flow will be negatively impacted by the expected high level of capital expenditures for expansion in 2023 - 2025 after which we expect to generate increasingly higher levels of free cash. There is no assurance, however, that we will be able to continue to generate cash flows from operations and free cash at our historical levels, or at all, going forward if the economic environment worsens.
Current wording
Free cash flow for the six fiscal months ended June 28, 2025 decreased versus the six fiscal months ended June 29, 2024 primarily due to decreased net earnings. We expect that free cash flow will be negatively impacted by the expected high level of capital expenditures for expansion after which we expect to generate increasingly higher levels of free cash. There is no assurance, however, that we will be able to continue to generate cash flows from operations and free cash at our historical levels, or at all, going forward if the economic environment worsens.
Previous wording
As of March 29, 2025, $12.7 million of our cash and cash equivalents and short-term investments were held by our U.S. subsidiaries. As of March 29, 2025, we are in a net borrowing position in the U.S. and we expect to continue to be at least throughout 2025, primarily due to Newport expansion funding requirements. As of March 29, 2025, we have approximately $535.8 million of German and Israeli earnings that are deemed not indefinitely reinvested. Based on the expected timing of future repatriations, we estimate that the tax liability to repatriate these unremitted earnings will be approximately $79.8 million, which has been accrued, but will only be paid upon repatriation of the unremitted earnings. Repatriating these unremitted earnings earlier than currently planned may not be possible and would incur additional tax expense. We also have amounts of unremitted foreign earnings held by subsidiaries in countries other than Israel and Germany, which continue to be reinvested indefinitely, that we have not accrued for the incremental foreign income taxes and withholding taxes payable to foreign jurisdictions that would be incurred to repatriate these amounts. Certain of these subsidiaries are located in countries with restrictive regulations and high tax rates for repatriating cash. Due to the uncertainties associated with the ability, timing, and method to repatriate these unremitted earnings and other complexities associated with its hypothetical calculation, determination of the amount of tax expense that would be incurred to repatriate the unremitted earnings is not practicable, but could be significant. Our undrawn credit facility provides us with adequate operating liquidity in the United States.
Current wording
We repatriated $75 million of accumulated earnings to the United States in the second fiscal quarter of 2025 and paid withholding taxes, in Israel, of $9.4 million. As of June 28, 2025, $26.5 million of our cash and cash equivalents and short-term investments were held by our U.S. subsidiaries. As of June 28, 2025, we are in a net borrowing position in the U.S. and we expect to continue to be at least throughout 2025, primarily due to Newport expansion funding requirements. As of June 28, 2025, we have approximately $491.1 million of German and Israeli earnings that are deemed not indefinitely reinvested. Based on the expected timing of future repatriations, we estimate that the tax liability to repatriate these unremitted earnings will be approximately $75.3 million, which has been accrued, but will only be paid upon repatriation of the unremitted earnings. Repatriating these unremitted earnings earlier than currently planned may not be possible and would incur additional tax expense. We also have amounts of unremitted foreign earnings held by subsidiaries in countries other than Israel and Germany, which continue to be reinvested indefinitely, that we have not accrued for the incremental foreign income taxes and withholding taxes payable to foreign jurisdictions that would be incurred to repatriate these amounts. Certain of these subsidiaries are located in countries with restrictive regulations and high tax rates for repatriating cash. Due to the uncertainties associated with the ability, timing, and method to repatriate these unremitted earnings and other complexities associated with its hypothetical calculation, determination of the amount of tax expense that would be incurred to repatriate the unremitted earnings is not practicable, but could be significant. Our undrawn credit facility provides us with adequate operating liquidity in the United States.
Previous wording
We were in compliance with all financial covenants under the credit facility at March 29, 2025. Our interest coverage ratio and net leverage ratio were 12.96 to 1 and 2.47 to 1, respectively. We expect to continue to be in compliance with these covenants based on current projections. Based on our current EBITDA and outstanding revolver balance, the usable capacity on the credit facility is approximately $248 million.
Current wording
We were in compliance with all financial covenants under the credit facility at June 28, 2025. Our interest coverage ratio and net leverage ratio were 10.69 to 1 and 2.34 to 1, respectively. We expect to continue to be in compliance with these covenants based on current projections. Based on our current EBITDA and outstanding revolver balance, the usable capacity on the credit facility is approximately $275 million.
Previous wording
Borrowings under the credit facility bear interest at variable reference rates plus an interest margin. The applicable interest margin is based on our total leverage ratio. We also pay a commitment fee, also based on our total leverage ratio, on undrawn amounts. U.S. dollar borrowings under the credit facility are based on SOFR (including a customary spread adjustment). Borrowings in foreign currencies bear interest at currency-specific reference rates plus an interest margin. Based on our current total leverage ratio of 3.25 to 1, any new U.S. dollar borrowings will bear interest at SOFR plus 2.10% (including the applicable credit spread), and the undrawn commitment fee is 0.35% per annum.
Current wording
Borrowings under the credit facility bear interest at variable reference rates plus an interest margin. The applicable interest margin is based on our total leverage ratio. We also pay a commitment fee, also based on our total leverage ratio, on undrawn amounts. U.S. dollar borrowings under the credit facility are based on SOFR (including a customary spread adjustment). Borrowings in foreign currencies bear interest at currency-specific reference rates plus an interest margin. Based on our current total leverage ratio of 3.16 to 1, any new U.S. dollar borrowings will bear interest at SOFR plus 2.10% (including the applicable credit spread), and the undrawn commitment fee is 0.35% per annum.
Previous wording
We had $136 million outstanding on our revolving credit facility at December 31, 2024 and $218 million outstanding at March 29, 2025. We borrowed $123 million and repaid $41 million on the revolving credit facility during the three fiscal months ended March 29, 2025. The average outstanding balance on our revolving credit facility calculated at fiscal month-ends was $187 million and the highest amount outstanding at a fiscal month end was $218 million during the three fiscal months ended March 29, 2025. We expect, at least initially, to fund certain future obligations required to be paid by the U.S. parent company by borrowing under our credit facility. We also expect to continue to use the credit facility from time-to-time to meet certain short-term financing needs. Additional acquisition activity, convertible debt repurchases, or conversion of our convertible debt instruments may require additional borrowing under our credit facility or may otherwise require us to incur additional debt. Except for the maturity of $41.9 million of convertible senior notes due 2025, which will be funded by the revolving credit facility, no principal amounts of our debt are due until 2028.
Current wording
We had $136 million outstanding on our revolving credit facility at December 31, 2024 and $185 million outstanding at June 28, 2025. We borrowed $420 million and repaid $371 million on the revolving credit facility during the six fiscal months ended June 28, 2025. The average outstanding balance on our revolving credit facility calculated at fiscal month-ends was $223 million and the highest amount outstanding at a fiscal month end was $309 million during the six fiscal months ended June 28, 2025. We expect, at least initially, to fund certain future obligations required to be paid by the U.S. parent company by borrowing under our credit facility. We also expect to continue to use the credit facility from time-to-time to meet certain short-term financing needs. Additional acquisition activity, convertible debt repurchases, or conversion of our convertible debt instruments may require additional borrowing under our credit facility or may otherwise require us to incur additional debt. No principal payments on our debt are due until 2028.
Previous wording
The convertible senior notes due 2025 became convertible on December 15, 2024 and will remain convertible until maturity. The convertible senior notes due 2030 are not currently convertible. Pursuant to the indenture governing the convertible senior notes due 2030, we will cash-settle the principal amount of $1,000 per note and settle any additional amounts in cash or shares of our common stock. Pursuant to the indenture governing the convertible senior notes due 2025 and the amendments thereto incorporated in the Supplemental Indenture dated December 23, 2020, we will cash-settle the principal amount of $1,000 per note and settle any additional amounts in shares of our common stock. We intend to finance the principal amount of any converted notes using borrowings under our credit facility. No conversions have occurred to date. We have the intent and ability to finance the principal amount of the convertible senior notes due 2025 using borrowings under our credit facility upon maturity of the notes.
Current wording
The convertible senior notes due 2030 are not currently convertible. Pursuant to the indenture governing the convertible senior notes due 2030, we will cash-settle the principal amount of $1,000 per note and settle any additional amounts in cash or shares of our common stock. We intend to finance the principal amount of any converted notes using borrowings under our credit facility. No conversions have occurred to date.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The convertible senior notes due 2025 matured on June 15, 2025. Pursuant to the indenture governing the convertible senior notes due 2025 and the amendments thereto incorporated in the Supplemental Indenture dated December 23, 2020, we cash-settled the $41.9 million aggregate principal amount outstanding as of June 15, 2025. The settlement was funded using borrowings under our credit facility. No shares were issued to settle the convertible senior notes due 2025.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
We have paid dividends each quarter since the first quarter of 2014, and the Stockholder Return Policy will remain in effect until such time as the Board votes to amend or rescind the policy. Implementation of the Stockholder Return Policy is subject to future declarations of dividends by the Board of Directors, market and business conditions, legal requirements, and other factors. The policy sets forth our intention, but does not obligate us to acquire any shares of common stock or declare any dividends, and the policy may be terminated or suspended at any time at our discretion, in accordance with applicable laws and regulations.
Previous report — wording carried elsewhere
Gross profit margin decreased versus the prior fiscal quarter and the prior year quarter primarily due to lower average selling prices and higher fixed costs. Costs associated with the Newport wafer fab also contributed to the decrease versus the prior year quarter.
Previous report — wording carried elsewhere
Average selling prices decreased versus the prior fiscal quarter and the prior year quarter.
Previous report — wording carried elsewhere
Average selling prices decreased versus the prior fiscal quarter and the prior year quarter.