MKS INC Revenue Disclosure
Contract assets as of December 31, 2025 and 2024 were $45 and $30, respectively. Contract assets reflect revenue recognized and performance obligations satisfied or partially satisfied in advance of customer billing. 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:
|
|
2025 |
|
|
2024 |
|
||
Beginning of period(1) |
|
$ |
73 |
|
|
$ |
79 |
|
Additions to deferred revenue and customer advances |
|
|
217 |
|
|
|
134 |
|
Amount of deferred revenue and customer advances recognized in income |
|
|
(207 |
) |
|
|
(140 |
) |
End of period(2) |
|
$ |
83 |
|
|
$ |
73 |
|
Revenue from certain custom products, including MSD plating equipment, and revenue from certain service contracts are recorded over time. Remaining product and services 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.
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Semiconductor |
|
$ |
1,696 |
|
|
$ |
1,498 |
|
|
$ |
1,479 |
|
Electronics and Packaging |
|
|
1,111 |
|
|
|
922 |
|
|
|
916 |
|
Specialty Industrial |
|
|
1,124 |
|
|
|
1,166 |
|
|
|
1,227 |
|
Total net revenues |
|
$ |
3,931 |
|
|
$ |
3,586 |
|
|
$ |
3,622 |
|
Refer to Note 20 for revenue by reportable segment, geography and groupings of similar products.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 28, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.