10-QPeriod: Q2 FY2026

ENTEGRIS INC Quarterly Report for Q2 Ended Jun 27, 2026

Filed August 4, 2026For Securities:ENTG

Summary

Entegris, Inc. (ENTG) reported a strong financial performance for the six months ended June 27, 2026, with net sales increasing by 8.3% to $1.695 billion compared to the prior year period. This growth was driven by robust demand across both the Materials Solutions (MS) and Advanced Purity Solutions (APS) segments, particularly in key geographic regions like Taiwan and Japan. The company also benefited from a significant improvement in gross margin, up 2.0 percentage points to 47.2%, attributed to increased production volumes, operational efficiencies, and a favorable impact from a change in accounting estimate regarding the useful lives of property, plant, and equipment, which reduced depreciation expense. Net income for the first six months of 2026 rose substantially to $185.6 million, a 60.4% increase from $115.7 million in the prior year. This bottom-line improvement, coupled with disciplined expense management and a lower effective tax rate in some periods, led to diluted earnings per share (EPS) of $1.21, up from $0.76 in the prior year. The company also demonstrated healthy operating cash flow generation of $339.2 million, although investing activities saw a significant decrease in capital expenditures compared to the prior year. Entegris also took steps to strengthen its financial flexibility by amending its revolving credit facility, increasing its commitment amount and extending its maturity date.

Key Highlights

  • 1Net sales for the six months ended June 27, 2026, increased by 8.3% to $1.695 billion, driven by strong performance in both Materials Solutions (MS) and Advanced Purity Solutions (APS) segments.
  • 2Gross margin improved significantly, reaching 47.2% for the six months ended June 27, 2026, up from 45.2% in the prior year, due to increased volumes, operational efficiencies, and a reduction in depreciation expense from a change in accounting estimate.
  • 3Net income for the six months ended June 27, 2026, surged by 60.4% to $185.6 million, leading to a 59.2% increase in diluted EPS to $1.21 from $0.76 in the prior year.
  • 4Operating cash flow remained strong, providing $339.2 million for the six months ended June 27, 2026, an increase from $253.9 million in the prior year period.
  • 5The company repaid $250 million of long-term debt during the six months ended June 27, 2026, reducing its total debt to $3.456 billion from $3.698 billion at the end of the prior fiscal year.
  • 6The Advanced Purity Solutions (APS) segment showed particularly strong growth with net sales up 12% and segment profit up 39% for the six months ended June 27, 2026, year-over-year.
  • 7Entegris amended its revolving credit facility on April 29, 2026, increasing the commitment amount to $750 million and extending the maturity date to April 29, 2031.

Frequently Asked Questions

The substantial increase in net income and EPS was driven by a combination of factors including a healthy increase in net sales (up 8.3%), a significant improvement in gross margin (up 2.0 percentage points), and the positive impact of a change in accounting estimate that reduced depreciation expense. These operational improvements, coupled with disciplined expense management, contributed to the strong bottom-line performance.

Entegris has actively managed its debt by repaying $250 million of long-term debt in the first six months of 2026, reducing its total debt to $3.456 billion. The company also amended its revolving credit facility to increase its commitment amount to $750 million and extend its maturity to 2031, enhancing its financial flexibility.

Both segments showed growth. The Advanced Purity Solutions (APS) segment demonstrated particularly strong performance with net sales up 12% and segment profit up 39% in the first six months of 2026 compared to the prior year. The Materials Solutions (MS) segment also saw growth in net sales (up 4%) and segment profit (up 4%), driven by advanced deposition materials, specialty materials, and CMP consumables.

In January 2026, Entegris adjusted the estimated useful lives of certain property, plant, and equipment. This change, applied prospectively, reduced depreciation expense, which in turn favorably impacted gross profit and net income. For the six months ended June 27, 2026, this change is estimated to have reduced depreciation expense by approximately $37.7 million and increased net income by approximately $23.3 million.