Summary
Entegris, Inc. (ENTG) is a leading provider of advanced materials and process solutions critical to the semiconductor and other high-technology industries. The company's business is structured into three segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH), all of which focus on enhancing manufacturing yields, reducing costs, and enabling higher device performance for their customers. The company reported strong revenue growth in 2021, driven by increased demand from semiconductor manufacturers for its advanced products. A significant development for Entegris is the pending acquisition of CMC Materials, Inc., announced in December 2021, which is expected to further strengthen its market position. Entegris's resilience is highlighted by its recurring revenue model and the critical, often costly-to-switch, nature of its solutions for customers, positioning it well to benefit from the ongoing trends of increasing semiconductor complexity and materials content per wafer.
Financial Highlights
54 data points| Revenue | $2.30B |
| Cost of Revenue | $1.24B |
| Gross Profit | $1.06B |
| R&D Expenses | $167.63M |
| SG&A Expenses | $292.41M |
| Operating Income | $551.77M |
| Interest Expense | $41.24M |
| Net Income | $409.13M |
| EPS (Basic) | $3.02 |
| EPS (Diluted) | $3.00 |
| Shares Outstanding (Basic) | 135.41M |
| Shares Outstanding (Diluted) | 136.57M |
Key Highlights
- 1Entegris reported a 24% year-over-year increase in net sales for 2021, reaching $2.3 billion, driven by strong demand across its product lines, particularly in liquid filtration and advanced deposition materials.
- 2The company is in the process of acquiring CMC Materials, Inc. for a combination of cash and stock, a strategic move aimed at significantly increasing Entegris's scale and broadening its product and technology portfolio in the semiconductor materials space.
- 3Entegris operates through three key segments: Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH), demonstrating a comprehensive offering across the semiconductor manufacturing ecosystem.
- 4Approximately 69% of Entegris's revenue in 2021 was unit-driven or recurring, indicating a stable revenue base tied to ongoing semiconductor manufacturing processes rather than capital equipment cycles.
- 5The company is committed to innovation, with R&D expenses representing 7.3% of net sales in 2021 ($167.6 million). Investments are focused on advanced technology nodes and new materials to meet evolving customer needs.
- 6Entegris serves a diverse customer base, with its top 10 customers accounting for approximately 43% of net sales in 2021. Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics were significant customers.
- 7The company is diversifying beyond semiconductors, with growing sales in the life sciences sector, notably its Aramus high-purity bag assemblies used in biologics production, including COVID-19 vaccines.