10-QPeriod: Q2 FY2025

ENTEGRIS INC Quarterly Report for Q2 Ended Jun 28, 2025

Filed July 30, 2025For Securities:ENTG

Summary

Entegris, Inc. (ENTG) reported net sales of $792.4 million for the third quarter of 2025, a slight decrease from $812.7 million in the prior year period, primarily impacted by decreased semiconductor market demand and foreign currency fluctuations. The company experienced a decline in gross profit margin to 44.4% from 46.2% year-over-year, attributed to lower plant performance. Despite the top-line and margin pressures, Entegris maintained a solid balance sheet with $376.8 million in cash and cash equivalents and total assets of $8,449.5 million. Net income for the quarter was $52.8 million ($0.35 per diluted share), down from $67.7 million ($0.45 per diluted share) in the prior year. The company continues to invest in R&D, with expenses increasing year-over-year. Entegris reaffirmed its commitment to returning capital to shareholders through dividends. Looking ahead, the company is navigating a dynamic global trade environment and ongoing semiconductor market demand shifts. Entegris's strategic focus remains on its Advanced Purity Solutions (APS) and Materials Solutions (MS) segments, aiming to deliver integrated solutions for its customers. The company appears well-positioned to manage its liquidity and capital requirements.

Financial Statements
Beta
Revenue$792.40M
Cost of Revenue$440.90M
Gross Profit$351.50M
R&D Expenses$84.30M
SG&A Expenses$115.10M
Operating Expenses$183.10M
Operating Income$106.10M
Interest Expense$52.40M
Net Income$52.80M
EPS (Basic)$0.35
EPS (Diluted)$0.35
Shares Outstanding (Basic)151.60M
Shares Outstanding (Diluted)151.90M

Key Highlights

  • 1Net sales decreased by 2.5% to $792.4 million for the three months ended June 28, 2025, compared to $812.7 million in the prior year, primarily due to decreased semiconductor market demand.
  • 2Gross profit decreased to $351.5 million from $375.8 million year-over-year, with gross margin contracting by 1.8 percentage points to 44.4%, impacted by lower plant performance.
  • 3Net income for the quarter was $52.8 million ($0.35 per diluted share), a decrease from $67.7 million ($0.45 per diluted share) in the comparable prior-year period.
  • 4Cash and cash equivalents increased to $376.8 million as of June 28, 2025, from $329.2 million as of December 31, 2024, indicating strong liquidity.
  • 5Total assets grew slightly to $8,449.5 million from $8,394.6 million, while total liabilities saw a slight increase, largely due to current portion of long-term debt.
  • 6Engineering, research and development expenses increased to $84.3 million from $81.9 million year-over-year, reflecting continued investment in innovation.
  • 7The Advanced Purity Solutions (APS) segment saw a net sales decrease of 7% to $439.9 million, while the Materials Solutions (MS) segment experienced a net sales increase of 4% to $354.9 million.

Frequently Asked Questions

The primary driver for the decrease in net sales was a reduction of $25.6 million primarily due to decreased semiconductor market demand. This was partially offset by an increase of $5.3 million attributable to favorable foreign currency translations.

Gross profit decreased to $351.5 million from $375.8 million in the prior year's comparable quarter. The gross margin contracted by 1.8 percentage points to 44.4%, mainly due to lower plant performance. Net income also decreased to $52.8 million from $67.7 million.

Entegris maintains a strong liquidity position. Cash and cash equivalents increased to $376.8 million as of June 28, 2025, compared to $329.2 million at the end of the previous fiscal year. The company believes its current cash balances and anticipated operating cash flows will be sufficient to meet its needs.

The Advanced Purity Solutions (APS) segment experienced a 7% decrease in net sales to $439.9 million, primarily due to a decline in facilities-based capital expenditure investments. In contrast, the Materials Solutions (MS) segment saw a 4% increase in net sales to $354.9 million, driven by higher sales from CMP slurries and pads, and selective etch and deposition materials.