We recently published 13 Best Semiconductor Equipment Stocks to Buy According to Hedge Funds. Entegris, Inc. (NASDAQ:ENTG) is one of the stocks Jim Cramer recently discussed. Entegris, Inc. (NASDAQ:ENTG) helps chip manufacturers in the deposition and cleaning phases of chip manufacturing. Through deposition, chip manufacturers deposit materials on a silicon wafer before removing them to print circuits. Additionally, the wafer is cleaned multiple times throughout chip fabrication to ensure purity. However ...

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!Over the summer, semiconductor supplier Entegris, Inc. ( ENTG ) continued to struggle. Despite being well-positioned in the wider semi-space, the actual performance was rather lackluster, with the ...

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Core Insights - Entegris reported revenue of $807.1 million for the quarter ended September 2025, a slight decrease of 0.1% year-over-year, with EPS at $0.72 compared to $0.77 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $804.74 million by 0.29%, while the EPS met the consensus estimate [1] Financial Performance - Net sales for Materials Solutions (MS) were $348.6 million, slightly below the average estimate of $361.78 million, reflecting a year-over-year increase of 0.6% [4] - Net sales for Advanced Purity Solutions (APS) reached $460.8 million, surpassing the average estimate of $447.4 million [4] - Adjusted segment profit for Materials Solutions (MS) was $65.9 million, lower than the estimated $77.59 million [4] - Adjusted segment profit for Advanced Purity Solutions (APS) was $119.2 million, exceeding the estimated $111.07 million [4] Market Performance - Entegris shares returned +0.6% over the past month, compared to a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Entegris (ENTG) came out with quarterly earnings of $0.72 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this maker of equipment used in chip manufacturing would post earnings of $0.65 per share when it actually produced earnings of $0.66, delivering a surprise of +1.54%.Over the last four quarters, the company has surpassed consensus EPS estimates two time ...

Financial Data and Key Metrics Changes - Third quarter revenue was $807 million, flat year-over-year and up 2% sequentially, in line with guidance [13] - Gross margin on a GAAP basis was 43.5% and 43.6% on a non-GAAP basis, below guidance due to underutilization of manufacturing assets [13][14] - Free cash flow reached $191 million, the highest in six years, driven by a focus on working capital and a reduction in inventory levels [16] Business Line Data and Key Metrics Changes - Material Solutions segment sales were $349 million, up 1% year-on-year and down 2% sequentially, driven by CMP consumables and cleaning chemistries [15] - Advanced Purity Solutions sales were $461 million, essentially flat year-on-year and up 5% sequentially, with record sales in liquid filtration [15][16] - Adjusted operating margin for Material Solutions was 18.9%, down year-over-year and sequentially, while Advanced Purity Solutions had a margin of 25.9% [15][16] Market Data and Key Metrics Changes - Advanced logic continues to show strong growth driven by AI applications, while mainstream logic demand remains mixed and below prior peak levels [9][10] - Memory pricing trends have improved, particularly for HBM, with renewed optimism in 3D NAND driven by AI demand [10][11] - Overall, year-on-year unit-driven revenue grew, led by CMP slurries, pads, cleans, and liquid filtration, while CapEx-driven revenue declined high single digits year-on-year [11] Company Strategy and Development Direction - The company aims to enhance customer intimacy and support technology roadmaps through organic innovation and accelerated product development [6][7] - There is a focus on ramping new facilities in Taiwan and Colorado to meet future demand and offset margin pressures [7][8] - The company plans to improve free cash flow and reduce leverage, with a goal to lower gross leverage to below 4x [17][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing market share during the next upcycle despite current underutilization of assets [9] - The semiconductor market is expected to remain challenging, with a wait-and-see approach being adopted for future orders [11][36] - Management noted that while advanced logic is strong, mainstream logic recovery is slow, and they are preparing for various scenarios [36][41] Other Important Information - The company plans to host an Investor Day on May 11, 2026, to share more details about its strategy and outlook [19] - The company is committed to local-for-local manufacturing, expecting over 90% of products for China to be locally produced by 2026 [48][50] Q&A Session Summary Question: Strategic or commercial differences to implement - Management plans to expand customer engagement models to include more ecosystem partners and mainstream logic customers [22] Question: Impact of BIS bands on revenue - Management confirmed that the BIS bands did not impact revenue in the current quarter and are not expected to affect 2026 [28] Question: Utilization across sites - Management acknowledged underutilization but emphasized a focus on cash flow and free cash flow, balancing inventory and production [30][32] Question: Wait-and-see approach for wafer starts - Management indicated that while advanced logic remains strong, mainstream logic recovery is slow, and they are preparing for various scenarios [36][41] Question: Demand shift in Material Solutions - Management clarified that the demand shift was more related to Q2 and Q3, with challenges in predicting shifts due to the trade environment [46] Question: Product rationalization for China - Management expects minimal impact on revenue from product rationalization, with a focus on local-for-local manufacturing [48] Question: Qualification of KSP South site - Management reported being behind schedule on qualifications but expects to materially increase volume in 2026 [77]

Financial Data and Key Metrics Changes - Third quarter revenue was $807 million, flat year-over-year and up 2% sequentially, in line with guidance [15] - Gross margin on a GAAP basis was 43.5% and 43.6% on a non-GAAP basis, below guidance due to underutilization of manufacturing assets [15][16] - Free cash flow reached $191 million, the highest in six years, driven by a focus on working capital and a reduction of approximately $50 million in inventory levels [18] Business Line Data and Key Metrics Changes - Material Solutions sales were $349 million, up 1% year-over-year and down 2% sequentially, driven by CMP consumables and cleaning chemistries [17] - Advanced Purity Solutions sales were $461 million, essentially flat year-over-year and up 5% sequentially, with record quarterly sales in liquid filtration [17] Market Data and Key Metrics Changes - Advanced logic continues to show strong growth driven by AI-enabled applications, while memory demand remains mixed and below prior peak levels [10][11] - Industry wafer starts are modestly higher this year, led by advanced logic, but other markets remain muted [11] Company Strategy and Development Direction - The company aims to enhance customer intimacy and support technology roadmaps with deep application expertise and strong organic innovation [7] - There is a commitment to accelerate the qualification and ramp of new facilities in Taiwan and Colorado to meet future demand [8] - The focus is on improving free cash flow and reducing leverage through operational efficiencies and reduced capital expenditures [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing market share during the next upcycle despite current underutilization of assets [10] - There is a cautious optimism regarding AI-driven growth in both advanced logic and memory, with a wait-and-see approach being adopted [12][40] Other Important Information - The company plans to host an Investor Day on May 11, 2026, to share more details about its strategic direction [20] Q&A Session Summary Question: Strategic or commercial differences to implement - The CEO highlighted a focus on expanding customer engagement models and enhancing operational capabilities in new facilities [24][25] Question: Impact of BIS bands on revenue - Management confirmed that the BIS bands did not impact revenue in the current quarter and are not expected to affect 2026 [30] Question: Utilization across sites - The CEO noted that while there is significant capacity available, the focus has been on cash flow and inventory management rather than immediate ramp-up [32][33] Question: Demand shifts in Material Solutions - Management clarified that the demand shift was more related to the transition from Q2 to Q3, influenced by the trade environment [48] Question: Local for local manufacturing strategy in China - The company expects to achieve over 90% local for local manufacturing for Chinese customers by 2026, which should not materially impact revenue [51][52] Question: Content growth opportunities from node transitions - The CEO expressed optimism about content growth from advanced nodes, particularly in liquid filtration and CMP solutions [60] Question: Qualification of KSP South site - Management acknowledged being behind schedule in the qualification process but expects to materially increase volume in 2026 [82]

Entegris Earnings Summary Third Quarter 2025 October 30, 2025 ENTEGRIS PROPRIETARY AND CONFIDENTIAL – INTERNAL Safe Harbor ENTEGRIS THIRD QUARTER 2025 EARNINGS SUMMARY This presentation contains "forward-looking statements." The words "believe," "expect," "anticipate," "intend," "estimate," "forecast," "project," "should," "may," "will," "would" or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on current mana ...

Financial Performance - Net sales for Q3 2025 were $807.1 million, slightly down from $807.7 million in Q3 2024[3] - GAAP diluted EPS for Q3 2025 was $0.46, compared to $0.51 in Q3 2024[4] - Non-GAAP diluted EPS for Q3 2025 was $0.72, down from $0.77 in Q3 2024[3] - Gross margin as a percentage of net sales was 43.5% in Q3 2025, down from 46.0% in Q3 2024[3] - Net income for the three months ended September 27, 2025, was $70.5 million, down 9.0% from $77.5 million in the prior year[21] - Adjusted operating income for the three months ended September 27, 2025, was $170.3 million, with an adjusted operating margin of 21.1%[29] - The company reported a segment profit of $183.4 million for the three months ended September 27, 2025, down from $199.1 million in the same period last year, a decrease of 7.9%[23] - Total adjusted operating income for the nine months ended September 27, 2025, was $506.5 million, compared to $542.9 million for the same period in 2024, a decline of 6.7%[27] Future Projections - The company expects Q4 2025 sales to be between $790 million and $830 million, with GAAP net income projected between $53 million and $64 million[5] - The company expects fourth quarter net sales to be in the range of $790 million to $830 million, with a GAAP operating margin of 13.5% to 15.4%[34] - Non-GAAP net income for the fourth quarter is projected to be between $95 million and $105 million, with diluted non-GAAP earnings per share expected to range from $0.62 to $0.69[34] Assets and Liabilities - Total current assets increased to $1,696.9 million as of September 27, 2025, compared to $1,616.3 million at the end of 2024, reflecting a growth of 5.0%[19] - Cash and cash equivalents at the end of the period were $399.8 million, an increase of 21.4% from $329.2 million at the end of 2024[21] - Total liabilities decreased to $4,710.0 million as of September 27, 2025, down from $4,724.0 million at the end of 2024, a reduction of 0.3%[19] - Long-term debt decreased to $3,842.8 million as of September 27, 2025, from $3,981.1 million at the end of 2024, a reduction of 3.5%[19] Operational Highlights - Adjusted EBITDA for Q3 2025 was 27.3% of net sales, consistent with the previous quarter[3] - Entegris anticipates significant growth in content per wafer, leading to market outperformance and margin expansion[2] - The company operates in two segments: Materials Solutions and Advanced Purity Solutions, focusing on semiconductor manufacturing[6][7] - Entegris has approximately 8,000 employees and operates globally, with facilities in multiple countries[10] Cost Management - Integration costs included $1.7 million in restructuring costs for the three months ended September 27, 2025[31] - The company reported a decrease in interest expense, net, to $46.1 million for the three months ended September 27, 2025, compared to $50.4 million in the same period last year[29] Sales Performance - Total net sales for the three months ended September 27, 2025, were $807.1 million, a slight decrease of 0.1% compared to $807.7 million for the same period in 2024[23] - Adjusted net sales (excluding divestiture) for the nine months ended September 27, 2025, were $2,372.7 million, compared to $2,357.5 million in the prior year[32]

Core Points - Entegris, Inc. will release its financial results for Q3 2025 on October 30, 2025, before market opening [1] - A teleconference with management is scheduled for the same day at 8:00 am ET [1] - Participants are encouraged to dial in 5 to 10 minutes prior to the start of the call [1]