Vishay Intertechnology (NYSE:VSH) reported a surge in new orders to a three-year high, signaling a potential turning point for the electronic components giant after a prolonged industry-wide inventory correction.
The Malvern, Pennsylvania-based manufacturer said Wednesday that fourth-quarter revenue reached $800.9 million, surpassing analyst estimates.
A key metric of future demand, the book-to-bill ratio, climbed to 1.20—with the semiconductor segment even stronger at 1.27—indicating that the company is receiving orders significantly faster than it is shipping them.
While demand is recovering, the company's bottom line remains under pressure from integration costs.
Vishay reported GAAP earnings of just 1 cent per share for the quarter, as gross margins were squeezed to 19.6%.
This figure included a 130-basis-point drag from the Newport Wafer Fab acquisition, a strategic move intended to bolster Vishay’s silicon carbide production capacity for the electric vehicle and AI markets.
"Our fourth-quarter results and three-year high in orders demonstrate that our 'Vishay 3.0' strategy is gaining traction," management said in a statement.
The company ended the year with an order backlog of 4.9 months, providing a solid cushion heading into the new fiscal year.
For the first quarter of 2026, Vishay issued a positive outlook, forecasting revenue between $800 million and $830 million.
Gross margins are expected to improve slightly to approximately 19.9%, as the headwind from the Newport facility is projected to narrow to between 50 and 75 basis points.