MKS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except per share data) (Unaudited) ASSETS June 30, 2026 December 31, 2025 Current assets: Cash and cash equivalents $ 611 $ 675 Trade accounts receivable, net of allowance for doubtful accounts of $6 and $5 at June 30, 2026 and December 31, 2025, respectively 830 651 Inventories 1,033 921 Other current assets 300 263 Total current assets 2,774 2,510 Property, plant and equipment, net 798 810 Right-of-use assets 265 270 Goodwill 2,580 2,574 Intangible assets, net 2,015 2,140 Other assets 509 492 Total assets $ 8,941 $ 8,796 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 1,399 $ 51 Accounts payable 534 407 Other current liabilities 491 469 Total current liabilities 2,424 927 Long-term debt, net 2,544 4,150 Non-current deferred taxes 438 474 Non-current accrued compensation 147 149 Non-current lease liabilities 243 246 Other non-current liabilities 157 131 Total liabilities 5,953 6,077 Commitments and contingencies (Note 17) Stockholders’ equity: Preferred stock, $0.01 par value, 2 shares authorized; no shares issued and outstanding — — Common stock, no par value, 200 shares authorized; 67.6 and 67.2 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively — — Additional paid-in capital 2,093 2,101 Retained earnings 936 711 Accumulated other comprehensive (loss) income (41 ) (93 ) Total stockholders’ equity 2,988 2,719 Total liabilities and stockholders’ equity $ 8,941 $ 8,796 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 3 MKS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in millions, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net revenues: Products $ 1,104 $ 848 $ 2,058 $ 1,668 Services 144 125 268 242 Total net revenues 1,248 973 2,326 1,910 Cost of revenues: Products 582 463 1,096 900 Services 71 57 129 113 Total cost of revenues (exclusive of amortization shown separately below) 653 520 1,225 1,013 Gross profit 595 453 1,101 897 Research and development 76 76 157 145 Selling, general and administrative 200 175 389 361 Restructuring and other 6 5 9 21 Legal settlement — — 3 — Fees and expenses related to debt activities — — 18 2 Amortization of intangible assets 62 62 125 122 Income from operations 251 135 400 246 Interest income (2 ) (4 ) (4 ) (7 ) Interest expense 38 55 83 108 Loss on extinguishment of debt 4 2 9 5 Other (income) expense, net (2 ) 10 (2 ) 9 Income before income taxes 213 72 314 131 Provision for income taxes 38 10 56 17 Net income $ 175 $ 62 $ 258 $ 114 Other comprehensive income (loss), net of tax: Changes in value of financial instruments designated as cash flow hedges $ 2 $ (9 ) $ 7 $ (25 ) Foreign currency translation adjustments 25 190 (9 ) 245 Change in net investment hedges 6 (40 ) 55 (60 ) Unrecognized pension (loss) gain (3 ) — (1 ) 4 Total comprehensive income $ 205 $ 203 $ 310 $ 278 Net income per common share: Basic $ 2.59 $ 0.92 $ 3.83 $ 1.69 Diluted $ 2.41 $ 0.92 $ 3.60 $ 1.69 Weighted average common shares outstanding: Basic 67.6 67.2 67.5 67.3 Diluted 72.7 67.4 71.9 67.5 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 4 MKS INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in millions, except per share data) (Unaudited) Common Stock Additional Paid-In Retained Accumulated Other Comprehensive Total Stockholders’ Shares Amount Capital Earnings (Loss) Income Equity Balance at December 31, 2025 67.2 $ 0.1 $ 2,101 $ 711 $ (93 ) $ 2,719 Net issuance under stock-based plans 0.1 (16 ) (16 ) Stock-based compensation 19 19 Cash dividend ($0.25 per common share) (17 ) (17 ) Comprehensive income (loss) (net of tax): Net income 84 84 Other comprehensive income 22 22 Balance at March 31, 2026 67.3 $ 0.1 $ 2,104 $ 778 $ (71 ) $ 2,811 Net issuance under stock-based plans 0.3 (26 ) (26 ) Stock-based compensation 15 15 Cash dividend ($0.25 per common share) (17 ) (17 ) Comprehensive income (loss) (net of tax): Net income 175 175 Other comprehensive income 30 30 Balance at June 30, 2026 67.6 $ 0.1 $ 2,093 $ 936 $ (41 ) $ 2,988 Common Stock Additional Paid-In Retained Accumulated Other Comprehensive Total Stockholders’ Shares Amount Capital Earnings (Loss) Income Equity Balance at December 31, 2024 67.4 $ 0.1 $ 2,067 $ 503 $ (248 ) $ 2,322 Net issuance under stock-based plans — (5 ) (5 ) Stock-based compensation 22 22 Stock repurchase (0.5 ) (17 ) (28 ) (45 ) Cash dividend ($0.22 per common share) (15 ) (15 ) Comprehensive income (loss) (net of tax): Net income 52 52 Other comprehensive income 23 23 Balance at March 31, 2025 66.9 $ 0.1 $ 2,067 $ 512 $ (225 ) $ 2,354 Net issuance under stock-based plans 0.3 — — Stock-based compensation 12 12 Cash dividend ($0.22 per common share) (15 ) (15 ) Comprehensive income (loss) (net of tax): Net income 62 62 Other comprehensive income 141 141 Balance at June 30, 2025 67.2 $ 0.1 $ 2,078 $ 559 $ (84 ) $ 2,553 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 5 MKS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 258 $ 114 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 171 172 Unrealized (gain) loss on foreign currency and derivative instruments (2 ) 4 Amortization of debt issuance costs and original issue discount 8 13 Loss on extinguishment of debt 9 5 Stock-based compensation 34 34 Provision for excess and obsolete inventory 17 27 Deferred income taxes (44 ) (80 ) Other (4 ) — Changes in operating assets and liabilities: Trade accounts receivable (184 ) (10 ) Inventories (139 ) (24 ) Other current and non-current assets (6 ) 11 Accounts payable 146 4 Current and non-current accrued compensation (23 ) 31 Income taxes payable 19 19 Other current and non-current liabilities 36 (14 ) Net cash provided by operating activities 296 306 Cash flows from investing activities: Purchases of investments (1 ) — Proceeds from sale of long-lived assets — 2 Purchases of property, plant and equipment (79 ) (47 ) Net cash used in investing activities (80 ) (45 ) Cash flows from financing activities: Repurchase of common stock — (45 ) Proceeds from borrowing 1,192 — Payments of borrowings (1,378 ) (225 ) Payments of deferred financing fees (22 ) — Dividend payments (34 ) (30 ) Net payments related to employee stock awards (42 ) (5 ) Other financing activities (1 ) (4 ) Net cash used in financing activities (285 ) (309 ) Effect of exchange rate changes on cash and cash equivalents 5 8 Decrease in cash and cash equivalents (64 ) (40 ) Cash and cash equivalents at beginning of period 675 714 Cash and cash equivalents at end of period $ 611 $ 674 Supplemental disclosure of cash flow information: Supplemental non-cash financing activities: Right-of-use assets obtained in exchange for finance lease liabilities $ 10 $ 46 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements 6 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) (1)Basis of Presentation The terms “MKS” and the “Company” refer to MKS Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The interim financial data as of June 30, 2026, and for the three and six months ended June 30, 2026, are unaudited; however, in the opinion of MKS, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The condensed consolidated balance sheet presented as of December 31, 2025 has been derived from the consolidated audited financial statements as of that date. The unaudited condensed consolidated financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the MKS Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 24, 2026. The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to revenue recognition, inventory valuation, warranty costs, pension plan valuations, stock-based compensation expense, intangible assets, goodwill, long-lived assets, income taxes and derivatives. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. As a result of rounding, there may be immaterial differences in amounts presented and certain calculations may not sum to the total number expressed in each category or tie to a corresponding schedule. The Company has three reportable segments: the Vacuum Solutions Division (“VSD”), the Photonics Solutions Division (“PSD”) and the Materials Solutions Division (“MSD”) as described in Note 15. (2)Recent Accounting Pronouncements Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires public companies to disclose, in interim and annual reporting periods, additional disaggregated information about certain income statement expense line items in the notes to financial statements. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statement disclosures; however, adoption will not impact its consolidated balance sheets, cash flows or statements of operations. Derivatives and Hedging (Topic 815): Hedge Accounting Improvements In November 2025, the FASB issued ASU No, 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements (“ASU 2025-09”), which focuses on aligning hedge accounting with the economics of an entity’s risk management activities. The amendments in ASU 2025-09 are effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of adopting the new standard. Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities In December 2025, the FASB issued ASU No. 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities (“ASU 2025-10”), which establishes authoritative guidance on the recognition, 7 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) measurement, presentation and disclosure of government grants received by business entities. The amendments in ASU 2025-10 are effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-10 but does not expect ASU 2025-10 adoption to have a material impact on its consolidated financial statements. Interim Reporting (Topic 270): Narrow-Scope Improvements In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”), which clarifies interim disclosure requirements and the applicability of Topic 270. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 but does not expect ASU 2025-11 adoption to have a material impact on its consolidated financial statements. (3)Revenue from Contracts with Customers Contract assets as of June 30, 2026 and December 31, 2025 were $47 and $45, respectively. Contract assets reflect revenue recognized and performance obligations satisfied or partially satisfied in advance of customer billing. Deferred revenue that is expected to be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as long-term deferred revenue. The Company has elected to use the practical expedient and is not disclosing the remaining performance obligations related to deferred revenue and customer advances because these obligations generally have a duration of less than one year. A roll forward of the Company’s deferred revenue and customer advances was as follows: Six Months Ended June 30, 2026 June 30, 2025 Beginning of period(1) $ 83 $ 73 Additions to deferred revenue and customer advances 109 89 Amount of deferred revenue and customer advances recognized in income (76 ) (80 ) End of period(2) $ 116 $ 82 (1)Beginning deferred revenue and customer advances balances as of January 1, 2026 included $79 of current deferred revenue and customer advances and $4 of long-term deferred revenue. Beginning deferred revenue and customer advances balances as of January 1, 2025 included $71 of current deferred revenue and customer advances and $2 of long-term deferred revenue. The majority of the beginning of period balance is expected to be recognized in income within one year. (2)Ending deferred revenue and customer advances balances as of June 30, 2026 included $109 of current deferred revenue and customer advances and $7 of long-term deferred revenue. Ending deferred revenue and customer advances balances as of June 30, 2025 included $78 of current deferred revenue and customer advances and $4 of long-term deferred revenue. Revenue from certain custom products, including MSD plating equipment, and revenue from certain service contracts are recorded over time. Remaining product and service revenues are recorded at a point in time. Disaggregation of Revenue The following table summarizes revenue from contracts with customers in the Company’s three end markets: Semiconductor, Electronics and Packaging, and Specialty Industrial. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Semiconductor $ 554 $ 432 $ 1,019 $ 846 Electronics and Packaging 381 266 703 519 Specialty Industrial 313 275 604 545 Total net revenues $ 1,248 $ 973 $ 2,326 $ 1,910 Refer to Note 15 for revenue by reportable segment, geography and groupings of similar products. 8 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) (4)Fair Value Measurements In accordance with the provisions of fair value accounting, a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model. The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments or securities or derivative contracts that are valued using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the Company categorizes such assets and liabilities based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. 9 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) Assets and liabilities of the Company are measured at fair value on a recurring basis as of June 30, 2026, and are summarized as follows: Fair Value Measurements at Reporting Date Using Description June 30, 2026 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents Money market funds $ 145 $ 145 $ — $ — Time deposits 12 — 12 — Equity securities 6 6 — — Available-for-sale securities: Group insurance contracts 6 — 6 — Derivatives Foreign exchange forward contracts 2 — 2 — Interest rate swaps - non-current 10 — 10 — Pension and deferred compensation plan assets 30 — 30 — Total assets $ 211 $ 151 $ 60 $ — Liabilities: Derivatives Foreign exchange forward contracts - current $ 1 $ — $ 1 $ — Total liabilities $ 1 $ — $ 1 $ — Reported as follows: Assets: Cash and cash equivalents(1) $ 157 $ 145 $ 12 $ — Other current assets 2 — 2 — Total current assets $ 159 $ 145 $ 14 $ — Other assets $ 52 $ 6 $ 46 $ — Liabilities: Other current liabilities $ 1 $ — $ 1 $ — (1)The cash and cash equivalents amount presented in the table above does not include cash of $454 as of June 30, 2026. 10 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) Assets and liabilities of the Company are measured at fair value on a recurring basis as of December 31, 2025, and are summarized as follows: Fair Value Measurements at Reporting Date Using Description December 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents Money market funds $ 246 $ 246 $ — $ — Time deposits 11 — 11 — Equity securities 2 2 — — Available-for-sale securities: Group insurance contracts 6 — 6 — Derivatives Foreign exchange forward contracts 1 — 1 — Interest rate swaps - current 1 — 1 — Interest rate swaps - non-current 5 — 5 — Pension and deferred compensation plan assets 27 — 27 — Total assets $ 299 $ 248 $ 51 $ — Liabilities: Derivatives Foreign exchange forward contracts - current $ 2 $ — $ 2 $ — Interest rate swaps - current 5 — 5 — Total liabilities $ 7 $ — $ 7 $ — Reported as follows: Assets: Cash and cash equivalents (1) $ 257 $ 246 $ 11 $ — Other current assets 2 — 2 — Total current assets $ 259 $ 246 $ 13 $ — Other assets $ 40 $ 2 $ 38 $ — Liabilities: Other current liabilities $ 7 $ — $ 7 $ — (1)The cash and cash equivalents amount presented in the table above does not include cash of $418 as of December 31, 2025. Other Fair Value Disclosures The estimated carrying value and fair value of the Company’s debt were as follows: June 30, 2026 December 31, 2025 Carrying Value Fair Value Carrying Value Fair Value Term Loan Facility $ 1,481 $ 1,488 $ 2,878 $ 2,900 Convertible Notes 1,400 4,133 1,400 1,792 2034 Notes 1,142 1,130 — — Total $ 4,023 $ 6,751 $ 4,278 $ 4,692 The estimated fair values of the Company’s Term Loan Facility and 2034 Notes, each as defined and further described in Note 8, were determined using available market information based on recent trades or activity of debt instruments with substantially similar risks, terms and maturities, and fall within Level 2 under the fair value hierarchy. The estimated fair value of the Company’s Convertible Notes, as defined and further described in Note 8, was determined based on the last traded price of the Convertible Notes for the period ended June 30, 2026, and falls under Level 2 of the fair value hierarchy. Money Market Funds Money market funds are cash and cash equivalents and are classified within Level 1 of the fair value hierarchy. 11 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) Pension and Deferred Compensation Plan Assets The pension and deferred compensation plan assets represent investments in mutual funds, exchange traded funds, government securities and other time deposits. These investments are set aside for retirement benefits for employees of certain of the Company’s subsidiaries. Derivatives As a result of the Company’s global operating activities and variable interest rate borrowings, the Company is exposed to market risks from changes in foreign currency exchange rates and interest rates, which may adversely affect its operating results and financial position. When appropriate, the Company uses derivative financial instruments to minimize its exposure to risks from foreign currency exchange rate and interest rate fluctuations. The principal market in which the Company executes its foreign currency and interest rate contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants are typically large commercial banks. The contracts are valued using broker quotations or market transactions. (5)Derivatives and Net Investment Hedges Foreign Exchange Forward Contracts The Company hedges a portion of its forecasted foreign currency-denominated intercompany sales of inventory and certain of its foreign subsidiaries’ operating expenses, over a maximum period of twenty-four months, using foreign exchange forward contracts accounted for as cash-flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, and otherwise meet the hedge accounting criteria, changes in the derivatives’ fair value are not included in current earnings but are included in other comprehensive income (“OCI”) in stockholders’ equity. These changes in fair value will subsequently be reclassified into earnings as applicable, when the forecasted transaction occurs. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period it occurs. The cash flows resulting from foreign exchange forward contracts are classified in the condensed consolidated statements of cash flows as part of cash flows from operating activities. The Company also enters into foreign exchange forward contracts to hedge against certain monetary asset and liability accounts on the condensed consolidated balance sheet to mitigate the risk associated with certain foreign currency transactions in the ordinary course of business. These derivatives are not designated as cash flow hedging instruments and gains or losses from these derivatives are recorded immediately in other (income) expense, net. The following table summarizes the net notional values of foreign exchange forward contracts outstanding: June 30, 2026 December 31, 2025 Designated as cash flow hedging instruments: Foreign exchange forward contracts - cash flow hedges $ 2 $ 5 Not designated as cash flow hedging instruments: Foreign exchange forward contracts - balance sheet hedges $ 254 $ 367 As of June 30, 2026 and December 31, 2025, the Canadian dollar was the only notional contract designated as a cash flow hedging instrument. The largest notional contracts for balance sheet hedges not designated as cash flow hedging instruments were denominated in the Euro, British pound, and Chinese yuan as of June 30, 2026, and the Euro, Chinese yuan, British pound, and New Taiwan dollar as of December 31, 2025. Net Investment Hedges The Company designates certain Euro-denominated debt as net investment hedges to hedge a portion of its net investments in certain of its entities with functional currencies denominated in the Euro. On February 4, 2026, the Company designated the 2034 Notes, as defined and discussed further in Note 8, as a net investment hedge. As of June 30, 2026, the total principal outstanding amount under the 2034 Notes was €1,000 and the entire balance was designated as a net investment hedge. In addition, on January 28, 2026, the Company entered into a 12 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) foreign exchange forward contract with a notional value of €990, to manage its exposure to foreign currency exchange rate fluctuations related to the principal of the 2034 Notes from January 28, 2026 through the settlement date of February 4, 2026. The foreign exchange forward contract was designated as a net investment hedge and the related gain was reflected in the proceeds from borrowing on the condensed consolidated statements of cash flows. As of June 30, 2026 and December 31, 2025, the total principal amount outstanding under the Euro Tranche B, as defined and described further in Note 8, was €585 and €587, respectively, and the entire balance was designated as a net investment hedge. For these net investment hedges, the Company records foreign currency remeasurement gains and losses within a component of OCI. Recognition in earnings of amounts previously recorded in accumulated OCI is limited to circumstances such as complete or substantially complete liquidation or sale of the net investment in the hedged foreign operations. Interest Rate Agreements The Company has interest rate swap agreements, which are cash-flow hedges, maturing through January 31, 2029, that exchange a one-month forward-looking term rate based on the variable secured overnight financing rate (“Term SOFR”) paid on the outstanding balance of its USD Term Loan Facility, as defined and further described in Note 8, to a fixed rate. The notional value of the agreements was $500 and $1,900 as of June 30, 2026 and December 31, 2025, respectively. The decrease in notional value of the agreements was due to the Company de-designating certain interest rate swap agreements in the first quarter of 2026 in connection with the Company’s voluntary prepayment of the USD Tranche B loan, which resulted in the interest rate swaps no longer being effective hedges. The impact to the condensed consolidated financial statements was immaterial. The interest rate swaps are recorded at fair value on the balance sheet and changes in the fair value are recognized in OCI. To the extent these arrangements are no longer effective hedges, the hedging relationship will be discontinued and changes in the fair value of the hedging instruments from the date of the last effectiveness assessment through the current period will be recorded immediately in earnings. Amounts previously recorded in OCI will remain in OCI and will be reclassified to earnings when the interest payments impact consolidated earnings. If the Company determines that the interest payments are unlikely to occur, amounts previously recorded in OCI will be reclassified to earnings. The cash flows resulting from interest rate agreements were classified in cash flows from operating activities in the condensed consolidated statements of cash flows. The following table summarizes the net (losses) gains on derivatives designated as cash flow hedging instruments: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Foreign exchange forward contracts-cash flow hedges: Net (losses) gains recognized in OCI, net of tax $ — $ (3 ) $ — $ (4 ) Net gains (losses) reclassified from accumulated OCI into cost of revenues $ — $ 2 $ — $ 4 Interest rate hedges: Net gains (losses) recognized in OCI, net of tax $ 2 $ (6 ) $ 7 $ (21 ) Net gains (losses) reclassified from accumulated OCI into interest expense $ 1 $ 5 $ — $ 12 The Company expects an immaterial amount to be reclassified from accumulated OCI into cost of revenues during the next 12 months related to foreign exchange forward contracts. The Company expects a net gain of approximately $5 to be reclassified from accumulated OCI into interest expense during the next 12 months related to interest rate hedges. The following table summarizes the net gains (losses) on derivatives not designated as hedging instruments: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net gains (losses) recognized in other (income) expense, net $ — $ (5 ) $ 4 $ (4 ) Derivative instruments are subject to master netting arrangements. However, the Company has elected to record these contracts on a gross basis in the condensed consolidated balance sheet. The location and fair value amounts of derivative instruments reported in the condensed consolidated balance sheet is disclosed in Note 4. 13 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) (6)Inventories Inventories consist of the following: June 30, 2026 December 31, 2025 Raw materials $ 696 $ 617 Work-in-process 136 116 Finished goods 201 188 Total $ 1,033 $ 921 (7)Goodwill and Intangible Assets Goodwill Effective February 1, 2026, the Company reassigned goodwill to certain reporting units within PSD due to a reorganization of PSD. The goodwill was reassigned to the new reporting units using the relative fair value approach. The Company also concluded that the fair value of each reporting unit immediately before and after the reorganization exceeded its respective carrying value. Goodwill associated with each of the Company’s reportable segments was as follows: VSD PSD MSD Total Reportable segment: Gross goodwill at December 31, 2025 $ 358 $ 1,012 $ 3,037 $ 4,407 Foreign currency translation adjustments — (2 ) 8 6 Gross goodwill at June 30, 2026 358 1,010 3,045 4,413 Accumulated goodwill impairment at December 31, 2025 (141 ) (390 ) (1,302 ) (1,833 ) Impairment charge — — — — Accumulated goodwill impairment at June 30, 2026 (141 ) (390 ) (1,302 ) (1,833 ) Goodwill, net of accumulated impairment and foreign currency translation adjustments at June 30, 2026 $ 217 $ 620 $ 1,743 $ 2,580 Intangible Assets The Company’s intangible assets were comprised of the following: As of June 30, 2026 Gross Accumulated Impairment Charges Accumulated Amortization Foreign Currency Translation Net Completed technology $ 1,268 $ (152 ) $ (633 ) $ (2 ) $ 481 Customer relationships 2,072 (1 ) (695 ) (5 ) 1,371 Patents, trademarks, trade names and other 381 (63 ) (147 ) (8 ) 163 $ 3,721 $ (216 ) $ (1,475 ) $ (15 ) $ 2,015 As of December 31, 2025 Gross Accumulated Impairment Charges Accumulated Amortization Foreign Currency Translation Net Completed technology $ 1,268 $ (152 ) $ (587 ) $ (3 ) $ 526 Customer relationships 2,072 (1 ) (622 ) (5 ) 1,444 Patents, trademarks, trade names and other 381 (63 ) (141 ) (7 ) 170 $ 3,721 $ (216 ) $ (1,350 ) $ (15 ) $ 2,140 14 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) Aggregate amortization expense related to acquired intangible assets for the six months ended June 30, 2026 and 2025 was $125 and $122, respectively. Aggregate amortization expense related to acquired intangible assets for future years is as follows: Year Amount 2026 (remaining) $ 123 2027 247 2028 246 2029 244 2030 238 2031 209 Thereafter 652 The Company excluded from the above table intangible assets of $56 of indefinite-lived trademarks and trade names, which were not subject to amortization. (8)Debt The Company’s outstanding debt was as follows: June 30, 2026 December 31, 2025 Short-term debt: Term Loan Facility $ 19 $ 51 Convertible Notes 1,400 — Debt issuance costs - Convertible Notes (20 ) — Convertible Notes, net 1,380 — Total short-term debt, net $ 1,399 $ 51 Long-term debt: Term Loan Facility $ 1,462 $ 2,827 Debt issuance costs - Term Loan Facility (42 ) (55 ) Term Loan Facility, net 1,420 2,772 Convertible Notes — 1,400 Debt issuance costs - Convertible Notes — (22 ) Convertible Notes, net — 1,378 2034 Notes 1,142 — Debt issuance costs - 2034 Notes (18 ) — 2034 Notes, net 1,124 — Total long-term debt, net $ 2,544 $ 4,150 Credit Facilities On August 17, 2022, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, Barclays Bank PLC, and the lenders from time to time party thereto, which the Company has amended several times, including most recently in February 2026 (as amended, the “Credit Agreement”). As of June 30, 2026, after giving effect to all amendments and repayments prior to such date, the Credit Agreement provided for (i) a senior secured term loan facility comprised of two tranches: a $812 loan (as refinanced and otherwise modified from time to time, the “USD Tranche B”) and a €585 loan (as refinanced and otherwise modified from time to time, the “Euro Tranche B” and together with the USD Tranche B, the “Term Loan Facility”) and (ii) a senior secured revolving credit facility with aggregate commitments of $1,000 (as refinanced and otherwise modified from time to time, the “Revolving Facility” and together with the Term Loan Facility, the “Credit Facilities”). 15 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) As of June 30, 2026, borrowings under the Credit Facilities bore interest at a rate per annum equal to, at the Company’s option, any of the following, plus, in each case, an applicable margin: (a) with respect to the USD Tranche B and the Revolving Facility, (x) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the prime rate quoted in The Wall Street Journal, or (3) a forward-looking term rate based on Term SOFR for an interest period of one month, plus 1.00%; and (y) a Term SOFR rate for the interest period relevant to such borrowing and (b) with respect to the Euro Tranche B, a Euro Interbank Offered Rate (“EURIBOR”) rate determined by reference to the costs of funds for Euro deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case of clauses (a) and (b) above subject to a rate floor of 0.0%. As of June 30, 2026, the applicable margins for borrowings under the Credit Facilities were (i) under the USD Tranche B and the Revolving Facility, 0.75% with respect to base rate borrowings and 1.75% with respect to Term SOFR borrowings, and (ii) under the Euro Tranche B, 2.00%. In addition to paying interest on outstanding principal under the Credit Facilities, the Company is required to pay a commitment fee in respect of the unutilized commitments under the Revolving Facility. The commitment fee is subject to adjustment based on the Company’s first lien net leverage ratio as of the end of the preceding fiscal quarter. As of June 30, 2026, the commitment fee was 0.25% per annum. The Company must also pay customary letter of credit fees and agency fees. On February 4, 2026, the Company entered into the Sixth Amendment to Credit Agreement (the “Sixth Amendment”), pursuant to which the Company, among other things, (i) refinanced its then-existing USD Tranche B loan and Euro Tranche B loan with the $914 USD Tranche B loan and the €587 Euro Tranche B loan, (ii) refinanced and increased the commitments under its then-existing Revolving Facility with the $1,000 Revolving Facility, (iii) decreased the applicable margin for the USD Tranche B from 2.00% to 1.75% with respect to Term SOFR borrowings and from 1.00% to 0.75% with respect to base rate borrowings, (iv) decreased the applicable margin for the Euro Tranche B from 2.50% to 2.00%, (v) decreased the applicable margin under the Revolving Facility from 2.50% to 1.75% with respect to SOFR borrowings and from 1.50% to 0.75% with respect to base rate borrowings, (vi) eliminated the credit spread adjustment applicable to SOFR borrowings of the Revolving Facility and (vii) extended the maturities of the Term Loan Facility to February 2033 and the Revolving Facility to February 2031. The refinanced USD Tranche B loan and Euro Tranche B loan were issued without original issue discount. In connection with the execution of the Sixth Amendment, the Company paid customary fees and expenses to JPMorgan Chase Bank, N.A. On February 4, 2026, concurrently with the effectiveness of the Sixth Amendment, the Company made a voluntary prepayment of $1,274 principal amount to its then-existing USD Tranche B loan using the net proceeds from the 2034 Notes (as defined below), together with cash on hand, reducing the outstanding principal amount of the USD Tranche B loan from $2,188 to $914. On each of May 6, 2026 and August 4, 2026, the Company made a voluntary prepayment of $100 principal amount on the USD Tranche B loan. Under the Credit Agreement, the Company is required to prepay outstanding term loans, subject to certain exceptions, with portions of its annual excess cash flow as well as with the net cash proceeds of certain of its asset sales, certain casualty and condemnation events and the incurrence or issuances of certain debt. If at any time the aggregate amount of outstanding loans, unreimbursed letter of credit drawings and undrawn letters of credit under the Revolving Facility exceeds the aggregate commitments under the Revolving Facility, the Company is required to repay outstanding loans and/or cash collateralize letters of credit, with no reduction of the commitment amount. The Company may voluntarily prepay outstanding loans under the Credit Facilities from time to time, subject to certain conditions, without premium or penalty other than customary “breakage” costs with respect to Term SOFR or EURIBOR loans; provided, however, that subject to certain exceptions, if on or prior to August 4, 2026, the Company prepays any loans under the USD Tranche B or the Euro Tranche B in connection with a repricing transaction, the Company must pay a prepayment premium of 1.00% of the aggregate principal amount of the loans so prepaid. Additionally, the Company may voluntarily reduce the unutilized portion of the commitment amount under the Revolving Facility. As of June 30, 2026, the Company was required to make scheduled quarterly principal payments equal to $2 with respect to the USD Tranche B and €2 with respect to the Euro Tranche B, in each case with the balance due thereunder on the maturity date of the Term Loan Facility. There is no scheduled amortization under the Revolving Facility. Any principal amount outstanding under the Revolving Facility is due and payable in full on the maturity date of the Revolving Facility. All obligations under the Credit Facilities are guaranteed by certain of the Company’s wholly-owned domestic subsidiaries and are required to be guaranteed by certain of the Company’s future wholly-owned domestic subsidiaries, and are secured by substantially all of the Company’s assets and the assets of such subsidiaries, subject to certain exceptions and exclusions. 16 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) The Credit Agreement contains customary representations and warranties, covenants and provisions relating to events of default. If an event of default occurs, the lenders under the Credit Facilities will be entitled to take various actions, including the acceleration of amounts due under the Credit Facilities and all actions permitted to be taken by a secured creditor. As of June 30, 2026, the Company was in compliance with all covenants under the Credit Agreement. The USD Tranche B and the Euro Tranche B are not subject to financial maintenance covenants. As of June 30, 2026, the weighted average interest rate of the Term Loan Facility was 4.75%. As of June 30, 2026, there were no borrowings under the Revolving Facility. Convertible Notes On May 16, 2024, the Company completed a private offering of $1,400 aggregate principal amount of its convertible senior notes due 2030 (the “Convertible Notes”). The net proceeds from the offering were approximately $1,374 after deducting the initial purchasers’ discounts and commissions and estimated offering expenses paid by the Company. The Company used approximately $167 of the net proceeds from the offering to pay the cost of the capped call transactions described below. The Company used the remaining net proceeds from the offering to repay approximately $1,206 in borrowings outstanding under the USD Tranche B, together with accrued interest, as well as for general corporate purposes. Convertible Notes Indenture and the Convertible Notes On May 16, 2024, the Company entered into an indenture (the “Convertible Notes Indenture”) with respect to the Convertible Notes with U.S. Bank Trust Company, National Association, as trustee (the “Convertible Notes Trustee”). Under the Convertible Notes Indenture, the Convertible Notes are senior unsecured obligations of the Company and bear interest at a coupon rate of 1.25% per annum, with interest payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2024. The Convertible Notes will mature on June 1, 2030, unless earlier converted, redeemed or repurchased in accordance with their terms. Subject to certain conditions, on or after June 5, 2027, the Company may redeem for cash all or any portion of the Convertible Notes at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the trading day immediately preceding the date the notice of redemption is sent. As of June 30, 2026, the conversion rate for the Convertible Notes was 6.4813 shares of the Company’s common stock per one thousand dollars principal amount of the Convertible Notes, which is equivalent to a conversion price of approximately $154.29 per share. The conversion rate is subject to adjustment upon the occurrence of certain events. Upon conversion, the Company will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. Prior to the close of business on the business day immediately preceding March 1, 2030, noteholders may convert all or any portion of their Convertible Notes under the following circumstances: •during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ended September 30, 2024, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the Convertible Notes on each applicable trading day (the “Sale Price Condition”) (approximately $200.58 per share based on the current conversion price of approximately $154.29 per share, which is subject to further adjustment upon the occurrence of certain events); •during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on each such trading day; •if the Company calls any or all of the Convertible Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or 17 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) •upon the occurrence of specified corporate events as specified in the Convertible Notes Indenture. On or after March 1, 2030, until the close of business on the second scheduled trading day immediately preceding the maturity date, noteholders may convert all or any portion of their Convertible Notes at any time. If the Company undergoes a fundamental change (as defined in the Convertible Notes Indenture) prior to the maturity date of the Convertible Notes, holders may require the Company to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Convertible Notes Indenture contains customary terms and covenants, including that upon certain events of default that are occurring and continuing, either the Convertible Notes Trustee or the holders of at least 25% in aggregate principal amount of the outstanding Convertible Notes may declare 100% of the principal of, and accrued and unpaid interest, if any, on, all the Convertible Notes to be due and payable. The Convertible Notes are not subject to financial maintenance covenants. The Sale Price Condition for the Convertible Notes was met during the calendar quarter ended June 30, 2026, and as a result, the Convertible Notes are convertible, in whole or in part, at the option of the holders thereof at any time during the calendar quarter ending September 30, 2026 and have been classified as short-term debt, net of issuance costs, on the condensed consolidated balance sheet at June 30, 2026. The Convertible Notes were issued at par and costs associated with the issuance of the Convertible Notes are amortized to interest expense over the contractual term of the Convertible Notes. As of June 30, 2026, $1,400 in aggregate principal amount of the Convertible Notes remained outstanding. As of June 30, 2026, the effective interest rate of the Convertible Notes was 1.56%. Capped Call Transactions On May 13, 2024, in connection with the pricing of the Convertible Notes, and on May 14, 2024, in connection with the exercise in full by the initial purchasers of their option to purchase additional Convertible Notes, the Company entered into privately negotiated capped call transactions (“Convertible Debt Capped Calls”) with certain of the initial purchasers of the Convertible Notes or their respective affiliates and other financial institutions. The Convertible Debt Capped Calls are expected generally to reduce the potential dilution to the Company’s common stock upon conversion of any Convertible Notes and/or offset any cash payments that the Company is required to make in excess of the principal amount of any converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap initially equal to $237.42 per share, which represents a premium of 100% over the last reported sale price of $118.71 per share of the Company’s common stock on The Nasdaq Global Select Market on May 13, 2024, and which is subject to adjustments under the terms of the Convertible Debt Capped Calls. The Convertible Debt Capped Calls were recorded separately from the Convertible Notes as a reduction to additional paid-in capital in the condensed consolidated balance sheet as the Convertible Debt Capped Calls are indexed to the Company’s own stock and met the criteria to be classified in stockholders’ equity. 2034 Notes On February 4, 2026, the Company completed a private offering (the “2034 Notes Offering”) of €1,000 aggregate principal amount of senior notes due 2034 (the “2034 Notes”). The 2034 Notes were sold in a private placement to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. The Company used the net proceeds from the 2034 Notes Offering, together with cash on hand, to prepay approximately $1,274 of the USD Tranche B. 2034 Notes Indenture and the 2034 Notes On February 4, 2026, the Company and the Guarantors (as defined below) entered into an indenture (the “2034 Notes Indenture”) with respect to the 2034 Notes with U.S. Bank Trust Company, National Association, as trustee (the “2034 Notes Trustee”). Under the 2034 Notes Indenture, the 2034 Notes bear interest at a rate of 4.250% per annum, with interest payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2026. The 2034 Notes will mature on February 15, 2034, unless earlier redeemed or repurchased in accordance with their terms. 18 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) The 2034 Notes are unconditionally guaranteed, on a senior unsecured basis, jointly and severally, by the Company’s existing and future subsidiaries that guarantee the Credit Agreement or are required to become guarantors under certain circumstances and subject to certain exceptions (the “Guarantors”). The 2034 Notes and the guarantees are general senior unsecured obligations of the Company and the Guarantors. The 2034 Notes and guarantees will be: •pari passu in right of payment with any of the Company’s and the Guarantors’ existing and future unsubordinated indebtedness (including the Credit Agreement); •effectively subordinated to the Company’s and the Guarantors’ existing and future secured indebtedness (including the Credit Agreement) to the extent of the value of the assets securing such indebtedness; •senior in right of payment to any of the Company’s and the Guarantors’ future subordinated indebtedness; •structurally senior to any existing and future indebtedness of the Company that is not guaranteed by the Guarantors (including the Convertible Notes); and •structurally subordinated to any existing and future indebtedness and other liabilities of the Company’s and the Guarantors’ subsidiaries that are not and do not become Guarantors. At any time prior to February 15, 2029, the Company may redeem the 2034 Notes in whole or in part at a redemption price equal to 100% of their principal amount, plus a make-whole premium, plus accrued and unpaid interest, if any, and additional amounts, if any, to, but excluding, the redemption date. At any time and from time to time on or after February 15, 2029, the Company may redeem for cash all or any portion of the 2034 Notes at a redemption price equal to the percentage of principal amount set forth below, plus accrued and unpaid interest, if any, and additional amounts, if any, to, but excluding, the applicable redemption date, if redeemed during the twelve-month period beginning on February 15 of the year indicated below: Year Percentage 2029 102.125% 2030 101.0625% 2031 and thereafter 100.000% At any time and from time to time prior to February 15, 2029, the Company may redeem up to 40% of the original aggregate principal amount of the 2034 Notes using the net cash proceeds of certain equity offerings at a redemption price equal to 104.250%. In the event of certain developments affecting taxation, the Company may elect to redeem all, but not less than all, of the 2034 Notes at 100% of their principal amount, plus accrued and unpaid interest, if any, and additional amounts, if any, to, but excluding, the date fixed for redemption. Upon the occurrence of a change of control triggering event (as defined in the 2034 Notes Indenture), each holder of the 2034 Notes may require the Company to repurchase all or a portion of their 2034 Notes at a price equal to 101% of their principal amount plus accrued and unpaid interest, if any, and additional amounts, if any, to, but excluding, the repurchase date. The 2034 Notes Indenture contains customary terms and covenants that limit the ability of the Company and its Restricted Subsidiaries (as defined in the 2034 Notes Indenture) to, among other things, (i) incur liens, (ii) provide guarantees and (iii) consolidate, merge or sell or otherwise dispose of substantially all their assets. The 2034 Notes Indenture also provides for customary events of default. Upon certain events of default that are occurring and continuing, either the 2034 Notes Trustee or the holders of at least 30% in aggregate principal amount of the outstanding 2034 Notes may declare the principal of, and accrued and unpaid interest, if any, and additional amounts, if any, on, all the 2034 Notes to be due and payable. In the event of certain insolvency and bankruptcy related events of default specified in the 2034 Notes Indenture, the principal of, and accrued and unpaid interest, if any, and additional amounts, if any, on, all the 2034 Notes shall automatically become due and payable. The 2034 Notes are not subject to financial maintenance covenants. As of June 30, 2026, the effective interest rate of the 2034 Notes was 4.45%. 19 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) The Company’s interest expense was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Term Loan Facility: Contractual interest expense $ 18 $ 48 $ 45 $ 98 Amortization of debt issuance costs as interest expense 2 5 4 10 Total interest expense on Term Loan Facility $ 20 $ 53 $ 49 $ 108 Convertible Notes: Contractual interest expense $ 4 $ 4 $ 9 $ 9 Amortization of debt issuance costs as interest expense 1 1 2 2 Total interest expense on Convertible Notes $ 5 $ 5 $ 11 $ 11 2034 Notes: Contractual interest expense $ 12 $ — $ 20 $ — Amortization of debt issuance costs as interest expense 1 — 1 — Total interest expense on 2034 Notes $ 13 $ — $ 21 $ — Other interest expense (income), net (1) $ — $ (3 ) $ 2 $ (11 ) Total interest expense $ 38 $ 55 $ 83 $ 108 (1)Other interest expense (income), net primarily consists of interest expense (income) related to the Company’s interest rate swap agreements. Lines of Credit and Borrowing Arrangements Certain of the Company’s Japanese subsidiaries have lines of credit and a financing facility with various financial institutions, many of which generally expire and are renewed at three-month intervals with the remaining having no expiration date. The lines of credit and financing facility provided for aggregate borrowings of up to an equivalent of $12 and $13 as of June 30, 2026 and December 31, 2025, respectively. There were no borrowings outstanding under these arrangements at June 30, 2026 and December 31, 2025. Contractual maturities of the Company’s debt obligations as of June 30, 2026 are as follows: Year Amount 2026 (remaining) $ 9 2027 19 2028 19 2029 19 2030 1,419 Thereafter 2,538 (9)Product Warranties The Company provides for the estimated costs to fulfill customer warranty obligations upon the recognition of the related revenue. The Company’s warranty obligations are affected by shipment volume, product failure rates, utilization levels, material usage and supplier warranties on parts delivered to the Company. Should actual product failure rates, utilization levels, material usage, or supplier warranties on parts differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers. 20 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) Product warranty activities were as follows: Six Months Ended June 30, 2026 2025 Beginning of period $ 25 $ 22 Provision for product warranties 14 11 Charges to warranty liability (15 ) (10 ) End of period $ 24 $ 23 Short-term product warranties of $20 and long-term product warranties of $4, each as of June 30, 2026, are included within other current liabilities and other non-current liabilities, respectively, within the accompanying condensed consolidated balance sheet. Short-term product warranties of $15 and long-term product warranties of $8, each as of June 30, 2025, are included within other current liabilities and other non-current liabilities, respectively, within the respective condensed consolidated balance sheet. (10)Other Current Liabilities Other current liabilities consisted of the following: June 30, 2026 December 31, 2025 Accrued compensation and other employee-related obligations $ 177 $ 199 Deferred revenue and customer advances 109 79 Accrued expenses 83 78 Income taxes payable 53 48 Other 69 65 Total other current liabilities $ 491 $ 469 (11)Income Taxes The Company’s effective tax rate for both the three and six months ended June 30, 2026 was 17.8% and was lower than the U.S. statutory tax rate primarily due to the U.S. deduction for foreign-derived deduction eligible income and research and development tax credits, partially offset by foreign withholding taxes and a waiver of deductions related to U.S. base erosion payments. The Company’s effective tax rates for the three and six months ended June 30, 2025 were 13.6% and 13.0%, respectively, and were lower than the U.S. statutory tax rate primarily due to the U.S. deduction for foreign-derived intangible income and research and development tax credits, partially offset by foreign withholding taxes and a waiver of deductions related to U.S. base erosion payments. On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law. The OBBBA includes changes to the U.S. tax code, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. These changes to the U.S. tax code have not had a material impact on the Company’s results since the enactment of OBBBA and the Company does not anticipate these changes to the U.S. tax code will have a material impact on its results in future periods. 21 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) (12)Net Income Per Share The following table sets forth the computation of basic and diluted net income per share: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Numerator: Net income $ 175 $ 62 $ 258 $ 114 Denominator: Shares used in net income per share - basic 67.6 67.2 67.5 67.3 Dilutive effect of potential shares Equity awards 0.6 0.2 0.7 0.2 Convertible Notes 4.5 — 3.7 — Shares used in net income per share - diluted 72.7 67.4 71.9 67.5 Net income per share: Basic $ 2.59 $ 0.92 $ 3.83 $ 1.69 Diluted $ 2.41 $ 0.92 $ 3.60 $ 1.69 Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. The dilutive effect of equity awards is calculated based on the average stock price for the relevant period, using the treasury stock method. In periods in which a net loss is recognized, the impact of equity awards is not included as they would be antidilutive. For the three and six months ended June 30, 2026, the Company had an immaterial quantity of equity awards that were antidilutive and excluded from the computation of diluted weighted-average number of shares. For each of the three and six months ended June 30, 2025, there were 0.2 of restricted stock units (“RSUs”) that were antidilutive and excluded from the computation of diluted weighted-average number of shares. The dilutive effect of the Convertible Notes is calculated under the if-converted method. Interest expense, net of tax, is not added back to net income to calculate diluted net income per share as the principal amount of the Convertible Notes is required to be paid in cash. For the three and six months ended June 30, 2026, shares of the Company’s common stock that would be issued upon conversion of the Convertible Notes are included in the weighted-average number of shares of common stock used to calculate diluted net income per share. For the three and six months ended June 30, 2025, shares of common stock that would have been issued if the Convertible Notes had been converted are not included in the calculation of diluted net income per share as the Company’s average share price during these periods was below the initial conversion price and inclusion would be antidilutive. The Convertible Debt Capped Calls, as described in Note 8, are excluded from the calculation of diluted net income per share as they would be antidilutive. However, upon conversion of the Convertible Notes, the Convertible Debt Capped Calls would generally offset any dilution from the Convertible Notes from the conversion price up to a cap initially equal to $237.42 per share. See Note 8 for further information regarding the Convertible Notes and Convertible Debt Capped Calls. (13)Stock-Based Compensation Equity Incentive Plans Stock-based awards include (i) time-based RSUs, (ii) performance-based RSUs based on the achievement of adjusted EBITDA targets over a one-year performance period, (iii) performance-based RSUs based on the Company’s total stockholder return relative to a group of peers over a three-year performance period and (iv) employee stock purchase plan rights. The Company grants RSUs to employees and directors under the 2022 Stock Incentive Plan, as amended and restated, 22 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) and issues shares of common stock under the 2014 Employee Stock Purchase Plan pursuant to its employee stock purchase program. The following tables present the activity for the RSUs: Six Months Ended June 30, 2026 Quantity Weighted Average Grant Date Fair Value Per Share Beginning of period 1.1 $ 88.87 Granted 0.2 $ 258.56 Vested or forfeited (0.5 ) $ 88.95 End of period 0.8 $ 143.17 Six Months Ended June 30, 2025 Quantity Weighted Average Grant Date Fair Value Per Share Beginning of period 0.9 $ 104.83 Granted 0.7 $ 76.98 Vested or forfeited (0.4 ) $ 103.39 End of period 1.2 $ 89.04 Stock-Based Compensation Expense The pre-tax effect of stock-based compensation expense included in the Company’s condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of revenues $ 1 $ 2 $ 3 $ 3 Research and development expense 2 2 3 4 Selling, general and administrative expense 12 8 28 27 Total pre-tax stock-based compensation expense $ 15 $ 12 $ 34 $ 34 (14)Stockholders’ Equity Share Repurchase Program On July 25, 2011, the Company’s Board of Directors approved a share repurchase program for the repurchase of up to an aggregate of $200 of its outstanding common stock from time to time in open market purchases, privately negotiated transactions or through other appropriate means. The timing and quantity of any shares repurchased will depend upon a variety of factors, including business conditions, stock market conditions and business development activities, including, but not limited to, merger and acquisition opportunities. These repurchases may be commenced, suspended or discontinued at any time without prior notice. Any repurchased shares are held by the Company as authorized but unissued shares. During the six months ended June 30, 2026, there were no repurchases of common stock. During the six months ended June 30, 2025, the Company repurchased approximately 0.5 shares of its common stock for total consideration of $45. The Company has repurchased approximately 3.1 shares of common stock for approximately $172 pursuant to the program since its adoption. Cash Dividends Holders of the Company’s common stock are entitled to receive dividends when and if they are declared by the Company’s Board of Directors. During the first and second quarters of 2026, the Company’s Board of Directors declared a cash dividend 23 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) of $0.25 per share, totaling in aggregate $34 during the six months ended June 30, 2026. During the first and second quarters of 2025, the Company’s Board of Directors declared a cash dividend of $0.22 per share, totaling in aggregate $30 during the six months ended June 30, 2025. On August 3, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share to be paid on September 3, 2026 to stockholders of record as of August 25, 2026. Future dividend declarations, if any, as well as the record and payment dates for such dividends, are subject to the final determination of the Company’s Board of Directors. Accumulated Other Comprehensive (Loss) Income The changes in accumulated other comprehensive (loss) income (“AOCI”) by component as of June 30, 2026 and June 30, 2025, net of aggregate tax (benefit) expense of $(6) and $10 for each period, respectively, were as follows: Changes in value of financial instruments designated as cash flow hedges Foreign currency translation adjustments Change in net investment hedge Unrecognized pension gain (loss) Total Balance at December 31, 2025 $ 1 $ (55 ) $ (52 ) $ 13 $ (93 ) Other comprehensive income (loss) before reclassifications 5 (34 ) 49 3 23 Amounts reclassified out of AOCI (1 ) — — — (1 ) Net other comprehensive income (loss) 4 (34 ) 49 3 22 Balance at March 31, 2026 $ 5 $ (89 ) $ (3 ) $ 16 $ (71 ) Other comprehensive income (loss) before reclassifications 1 25 6 (2 ) 30 Amounts reclassified out of AOCI 1 — — (1 ) — Net other comprehensive income (loss) 2 25 6 (3 ) 30 Balance at June 30, 2026 $ 7 $ (64 ) $ 3 $ 13 $ (41 ) Changes in value of financial instruments designated as cash flow hedges Foreign currency translation adjustments Change in net investment hedge Unrecognized pension gain (loss) Total Balance at December 31, 2024 $ 30 $ (292 ) $ 11 $ 3 $ (248 ) Other comprehensive income (loss) before reclassifications (26 ) 54 (19 ) 4 13 Amounts reclassified out of AOCI 10 — — — 10 Net other comprehensive income (loss) (16 ) 54 (19 ) 4 23 Balance at March 31, 2025 $ 14 $ (238 ) $ (8 ) $ 7 $ (225 ) Other comprehensive income (loss) before reclassifications (16 ) 191 (40 ) — 135 Amounts reclassified out of AOCI 7 (1 ) — — 6 Net other comprehensive income (loss) (9 ) 190 (40 ) — 141 Balance at June 30, 2025 $ 5 $ (48 ) $ (48 ) $ 7 $ (84 ) (15)Business Segment, Geographic Area and Product Information Reportable Segments and Products The Company’s Chief Operating Decision Maker (the “CODM”), which is the Company’s Chief Executive Officer, utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision-making process to assess performance. The Company has a diverse base of customers across its three 24 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) end markets, semiconductor, electronics and packaging, and specialty industrial. Segment gross margin is the primary measure used by the CODM to assess segment performance and allocate resources. Gross margin, among other measures, is utilized when making decisions about capital and personnel allocations across segments. The Company has three reportable segments, VSD, PSD and MSD as described below. VSD delivers foundational technology solutions for semiconductor manufacturing, electronics and packaging, and specialty industrial applications. VSD products are derived from the Company’s core competencies in vacuum technologies, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and fiber optic temperature and position sensing. PSD provides a broad range of instruments, components and subsystems to leading edge semiconductor manufacturing, electronics and packaging and specialty industrial applications. PSD products are derived from the Company’s core competencies in lasers, photonics, optics, precision motion control and vibration control. MSD develops leading process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing. Applying a comprehensive systems-and-solutions approach, MSD’s portfolio includes chemistry, equipment and services for innovative and high-technology applications in the electronics and packaging and specialty industrial markets. The Company derives its segment results directly from the manner in which results are reported in its management reporting system. The Company groups its product offerings by its reportable segments, VSD, PSD, and MSD. For each reportable segment, the Company also provides services relating to the maintenance and repair of its products, sales of spare parts, installation and training. Unallocated corporate expenses represent those costs not specifically related to the operations of each segment and are managed separately at the corporate level and primarily relate to labor costs of global functions, such as operations and real estate. The following tables set forth the details of gross profit by reportable segment and the reconciliation to income before income taxes: Three Months Ended June 30, 2026 VSD PSD MSD Total Product $ 419 $ 300 $ 385 $ 1,104 Services 88 41 15 144 Revenues by segment 507 341 400 1,248 Total cost of revenues (exclusive of amortization shown separately below)(1) 285 167 198 650 Segment gross profit 222 174 202 598 Segment gross profit percentage 43.8 % 50.8 % 50.5 % 47.9 % Reconciliation to income before income taxes Operating expenses: Research and development 76 Selling, general and administrative 200 Restructuring and other 6 Amortization of intangible assets 62 Unallocated corporate expenses 3 Income from operations 251 Interest income (2 ) Interest expense 38 Loss on extinguishment of debt 4 Other (income) expense, net (2 ) Income before income taxes $ 213 25 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) Three Months Ended June 30, 2025 VSD PSD MSD Total Product $ 334 $ 204 $ 310 $ 848 Services 73 39 13 125 Revenues by segment 407 243 323 973 Total cost of revenues (exclusive of amortization shown separately below)(1) 229 140 149 518 Segment gross profit 178 103 174 455 Segment gross profit percentage 43.7 % 42.4 % 53.9 % 46.8 % Reconciliation to income before income taxes Operating expenses: Research and development 76 Selling, general and administrative 175 Restructuring and other 5 Amortization of intangible assets 62 Unallocated corporate expenses 2 Income from operations 135 Interest income (4 ) Interest expense 55 Loss on extinguishment of debt 2 Other expense (income), net 10 Income before income taxes $ 72 Six Months Ended June 30, 2026 VSD PSD MSD Total Product $ 771 $ 563 $ 724 $ 2,058 Services 162 80 26 268 Revenues by segment 933 643 750 2,326 Total cost of revenues (exclusive of amortization shown separately below)(1) 528 328 365 1,221 Segment gross profit 405 315 385 1,105 Segment gross profit percentage 43.4 % 49.1 % 51.3 % 47.5 % Reconciliation to income before income taxes Operating expenses: Research and development 157 Selling, general and administrative 389 Restructuring and other 9 Legal settlement 3 Fees and expenses related to debt activities 18 Amortization of intangible assets 125 Unallocated corporate expenses 4 Income from operations 400 Interest income (4 ) Interest expense 83 Loss on extinguishment of debt 9 Other (income) expense, net (2 ) Income before income taxes $ 314 26 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) Six Months Ended June 30, 2025 VSD PSD MSD Total Product $ 652 $ 430 $ 586 $ 1,668 Services 141 77 24 242 Revenues by segment 793 507 610 1,910 Total cost of revenues (exclusive of amortization shown separately below)(1) 440 288 280 1,008 Segment gross profit 353 219 330 902 Segment gross profit percentage 44.5 % 43.3 % 54.2 % 47.2 % Reconciliation to income before income taxes Operating expenses: Research and development 145 Selling, general and administrative 361 Restructuring and other 21 Fees and expenses related to debt activities 2 Amortization of intangible assets 122 Unallocated corporate expenses 5 Income from operations 246 Interest income (7 ) Interest expense 108 Loss on extinguishment of debt 5 Other expense (income), net 9 Income before income taxes $ 131 (1)The significant expense category and amount align with the segment-level information that is regularly provided to the CODM. The following table sets forth capital expenditures by reportable segment: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 VSD $ 14 $ 19 $ 26 $ 27 PSD 10 4 14 7 MSD 7 6 13 13 Total capital expenditures $ 31 $ 29 $ 53 $ 47 The following table sets forth depreciation and amortization by reportable segment: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 VSD $ 9 $ 11 $ 17 $ 22 PSD 12 13 24 25 MSD 64 63 130 125 Total depreciation and amortization $ 85 $ 87 $ 171 $ 172 The following tables set forth segment assets by reportable segment: June 30, 2026 Accounts receivable, net Inventories Total VSD $ 283 $ 530 $ 813 PSD 220 299 519 MSD 327 204 531 Total segment assets $ 830 $ 1,033 $ 1,863 27 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) December 31, 2025 Accounts receivable, net Inventories Total VSD $ 190 $ 475 $ 665 PSD 163 270 433 MSD 298 176 474 Total segment assets $ 651 $ 921 $ 1,572 The following table reconciles total segment assets to total assets: June 30, 2026 December 31, 2025 Total segment assets $ 1,863 $ 1,572 Cash and cash equivalents 611 675 Other current assets 300 263 Property, plant and equipment, net 798 810 Right-of-use assets 265 270 Goodwill and intangible assets, net 4,595 4,714 Other assets 509 492 Total assets $ 8,941 $ 8,796 Geographic Area Information about the Company’s operations by geographic area is presented in the table below. Net revenues from unaffiliated customers are based on the shipped-to location of the end customer. Intercompany sales between geographic areas are recorded at tax transfer prices and have been eliminated from consolidated revenues. Three Months Ended June 30, Six Months Ended June 30, Net revenues: 2026 2025 2026 2025 United States $ 225 $ 187 $ 420 $ 364 China 292 219 543 438 South Korea 160 122 289 225 Malaysia 90 54 160 104 Taiwan 87 66 149 126 Singapore 78 72 151 135 Japan 78 59 145 127 Other 238 194 469 391 $ 1,248 $ 973 $ 2,326 $ 1,910 (16)Restructuring The Company recorded $4 and $7 of restructuring charges in restructuring and other during the three and six months ended June 30, 2026, respectively, primarily related to severance costs incurred as a result of a reorganization of certain business units within PSD, which was implemented in the first quarter of 2026, and the planned closing of a PSD facility in Europe, which was initiated during the first quarter of 2026. The facility closing is expected to be completed in early 2027. The Company recorded $3 and $19 of restructuring charges in restructuring and other during the three and six months ended June 30, 2025, respectively, primarily related to severance costs incurred as a result of a cost saving initiative implemented during the first quarter of 2025, mainly in the general metal finishing business within MSD. The activity related to the Company’s restructuring accrual is shown below: Six Months Ended June 30, 2026 2025 Beginning of period $ 6 $ 3 Charged to expense 7 19 Payments and adjustments (10 ) (7 ) End of period $ 3 $ 15 28 MKS INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions, except per share data) (17)Commitments and Contingencies Legal Proceedings The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s results of operations, financial condition or cash flows. 29