Summary
Entegris, Inc. (ENTG) reported a decrease in net sales for the second quarter of 2024, down 9.8% year-over-year to $812.7 million. This decline was primarily driven by the absence of sales from divested businesses and unfavorable foreign currency translation, partially offset by increased semiconductor market demand. Despite lower sales, gross margins improved significantly due to the positive impact of divested businesses and better plant utilization, increasing by 3.6 percentage points to 46.2%. Net income for the quarter was $67.7 million, or $0.45 per diluted share, a substantial decrease from $197.6 million ($1.31 per diluted share) in the prior year quarter. This was largely influenced by the prior year's gain on termination of an alliance agreement. The company continues to manage its debt, with long-term debt, net, decreasing to $4.12 billion from $4.58 billion. Entegris remains focused on its core segments, Materials Solutions (MS), Microcontamination Control (MC), and Advanced Materials Handling (AMH), with MC showing modest sales growth.
Financial Highlights
53 data points| Revenue | $812.70M |
| Cost of Revenue | $436.90M |
| Gross Profit | $375.80M |
| R&D Expenses | $81.90M |
| SG&A Expenses | $116.30M |
| Operating Expenses | $182.90M |
| Operating Income | $130.10M |
| Interest Expense | $53.70M |
| Net Income | $67.70M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.45 |
| Shares Outstanding (Basic) | 150.80M |
| Shares Outstanding (Diluted) | 151.80M |
Key Highlights
- 1Net sales for Q2 2024 decreased by 9.8% to $812.7 million, primarily due to divestitures and foreign currency impacts, though partially offset by increased semiconductor demand.
- 2Gross margin improved by 3.6 percentage points to 46.2% in Q2 2024, benefiting from divested businesses and improved plant utilization.
- 3Net income significantly declined to $67.7 million ($0.45/share) in Q2 2024 from $197.6 million ($1.31/share) in Q2 2023, largely due to the absence of a significant one-time gain in the prior year.
- 4Total long-term debt decreased to $4.12 billion from $4.58 billion, reflecting ongoing debt management and repayments.
- 5The Microcontamination Control (MC) segment saw a 4% increase in net sales, driven by gas purification products, while Materials Solutions (MS) and Advanced Materials Handling (AMH) experienced sales declines.
- 6Operating expenses, including SG&A and R&D, were managed, with SG&A expenses decreasing year-over-year, partly due to lower integration and transaction costs.
- 7The company announced a non-binding Preliminary Memorandum of Terms for up to $75 million in proposed funding under the CHIPS and Science Act to support a new facility.