Core Points - Entegris Inc. will replace Arcadium Lithium plc in the S&P MidCap 400 effective March 6, 2025 [1] - Rio Tinto plc is acquiring Arcadium Lithium, with the deal expected to be completed soon [1] Summary by Category Index Changes - Effective March 6, 2025, Entegris will be added to the S&P MidCap 400 under the ticker ENTG in the Information Technology sector [1] - Arcadium Lithium will be deleted from the S&P MidCap 400 under the ticker ALTM in the Materials sector [1]

Financial Performance - For the year ended December 31, 2024, net sales were $3,241.2 million, a decrease of $282.7 million, or 8%, from 2023[218] - The decrease in net sales was primarily due to the absence of $434.2 million in sales associated with divested businesses and a reduction of $23.4 million from unfavorable foreign currency translation effects[219] - Gross profit for 2024 was $1,486.7 million, representing 45.9% of net sales, compared to $1,497.6 million, or 42.5% of net sales in 2023[218] - Operating income increased to $533.9 million, or 16.5% of net sales, compared to $499.2 million, or 14.2% of net sales in 2023[218] - The company reported net income of $292.8 million, or 9.0% of net sales, compared to $180.7 million, or 5.1% in 2023[218] - Net income rose to $292.8 million, or $1.93 per diluted share, in 2024, compared to $180.7 million, or $1.20 per diluted share, in 2023[234] - Adjusted Operating Income decreased by 3.5% to $742.9 million in 2024, while Non-GAAP EPS increased by 13.6% to $3.00[237] - Non-GAAP net income for 2024 was $455,988, with diluted non-GAAP earnings per share at $3.00, compared to $398,918 and $2.64 in 2023[292] Expenses and Costs - Engineering, research and development expenses rose to $316.1 million, or 9.8% of net sales, up from $277.3 million, or 7.9% in 2023[218] - SG&A expenses decreased by $129.6 million, or 22%, to $446.6 million in 2024 from $576.2 million in 2023[222] - Interest expense decreased to $215.2 million, or 6.6% of net sales, from $312.4 million, or 8.9% in 2023[218] - The company recorded a goodwill impairment of $115,217 in 2023, which was not present in 2024[292] - Interest expense decreased from $312,378 in 2023 to $215,217 in 2024, reflecting improved financial management[291] Sales and Market Performance - North America sales decreased by 25% to 21% of total sales in 2024, while Taiwan sales increased by 12% to 20%[220] - Materials Solutions net sales decreased by 17% to $1,400.1 million in 2024, primarily due to the absence of $434.2 million in sales from divested businesses[242] - Advanced Purity Solutions reported flat net sales of approximately $1,850.2 million in 2024, with a segment profit decrease of 7% to $496.1 million[246] Cash Flow and Debt Management - Total debt decreased to $3,981.1 million in 2024 from $4,577.1 million in 2023[251] - Cash and cash equivalents decreased to $329.2 million in 2024 from $456.9 million in 2023[251] - In 2024, the net cash provided by operating activities was $631.7 million, a decrease of $12.8 million compared to $644.5 million in 2023[254] - Cash used in investing activities in 2024 was $67.1 million, a significant decrease from $553.1 million provided in 2023, primarily due to less proceeds from divestitures of $564.2 million[258] - Cash used in financing activities was $689.0 million in 2024, down from $1,297.5 million in 2023, mainly due to decreased net debt activity of $635.9 million[261] - Total debt (par value) decreased to $4.045 billion as of December 31, 2024, from $4.669 billion in 2023[263] - The company repaid $623.8 million net of borrowings under the term loans B during the fiscal year 2024[264] - The company had cash requirements totaling $5.414 billion as of December 31, 2024, with $395.6 million due within one year[269] Future Outlook and Investments - The company expects capital expenditure spending to be approximately $325.0 million in 2025, including investments in a new manufacturing facility in Colorado Springs, Colorado[271] - The company entered into a definitive agreement with the U.S. Department of Commerce for up to $77.0 million in funding under the CHIPS and Science Act to support a new facility in Colorado Springs[212] Currency and Interest Rate Impact - A 100-basis point change in interest rates could impact annual net income by approximately $2.5 million in 2024 and $3.4 million in 2023[293] - Approximately 16.7% of sales in 2024 were denominated in foreign currencies, which could lead to a revenue decrease of about $53.2 million if those currencies depreciate by 10% against the U.S. dollar[294] Other Financial Metrics - Adjusted EBITDA for 2024 was $931,074, accounting for 28.7% of net sales, compared to $942,355 and 26.7% in 2023[291] - Goodwill impairment was recorded at $115.2 million in 2023, with no impairment recorded in 2024[218] - The company utilized non-GAAP financial measures, including Adjusted EBITDA and Non-GAAP EPS, to provide additional insights into its performance[277]

Financial Data and Key Metrics Changes - In Q4 2024, revenue excluding divestitures grew 11% year on year, exceeding guidance [7] - Full-year revenue grew more than 5% excluding divestitures and currency impact, yielding an estimated market outperformance of 4% [10] - Gross margin for Q4 was 45.6%, and EBITDA margin expanded more than 100 basis points year on year to reach 28.7% [13][22] Business Line Data and Key Metrics Changes - Material Solutions division sales in Q4 were $361 million, up 14% year on year, driven by CMP consumables, advanced deposition materials, and etching chemistries [24] - Advanced Purity Solutions division sales in Q4 were $491 million, up 9% year on year, with growth in fluid handling, wafer handling, and gas purification [26] Market Data and Key Metrics Changes - Semiconductor customers with significant exposure to advanced logic and AI performed well, while the rest of the industry remained weak throughout 2024 [9] - The company expects the semiconductor market to grow between 1% and 3% in 2025, with an anticipated outperformance of four to five points [19] Company Strategy and Development Direction - The company is focused on delivering strong market outperformance, improving free cash flow, and paying down debt while funding critical investments for long-term competitiveness [36] - The company is optimistic about the long-term growth outlook of the semiconductor industry, driven by complex device architectures and miniaturization [37] Management's Comments on Operating Environment and Future Outlook - Management noted limited visibility outside of advanced logic and AI-driven applications as they enter 2025 [18] - The company anticipates a significant revenue loss of $30 million to $40 million in 2025 due to new restrictions on sales to China [20][101] Other Important Information - The company paid down almost $625 million of debt in 2024, with a focus on continuing debt reduction in 2025 [15] - The new facility in Kaohsiung, Taiwan is progressing well, with product qualifications expected to be completed by the end of the year [17] Q&A Session Summary Question: Market outlook and outperformance - Management indicated that wafer starts are expected to be up in the low single digits, with limited visibility in mainstream and traditional memory [43][44] Question: Working capital optimization - Management emphasized the importance of improving free cash flow margins and optimizing working capital, particularly inventory [51][55] Question: March quarter guidance - Management noted that guidance for Q1 is in line with normal seasonal market decline, expecting a sequential decline in wafer starts [59] Question: Advanced packaging growth - Management highlighted that advanced packaging revenues are approaching $100 million and expect significant growth in 2025 [63][64] Question: Impact of China restrictions - Management confirmed that the new restrictions will impact both divisions, leading to an estimated annual revenue loss of $30 million to $40 million [101] Question: Supply constraints - Management stated that supplier issues discussed in previous quarters are largely resolved, with improvements expected in Q1 [108] Question: Tariff impacts - Management is monitoring the impact of tariffs but expects immaterial effects on raw material costs due to established local supply chains [111] Question: Silicon carbide growth - Management noted that silicon carbide revenue was flat year on year but remains a promising area for future growth [148]

Group 1 - Entegris reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and up from $0.65 per share a year ago, representing an earnings surprise of 9.09% [1] - The company achieved revenues of $849.84 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.36% and increasing from $812.29 million year-over-year [2] - Entegris has outperformed the S&P 500, gaining approximately 4.9% since the beginning of the year compared to the S&P 500's gain of 3.1% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $805.87 million, and for the current fiscal year, it is $3.63 on revenues of $3.54 billion [7] - The Electronics - Manufacturing Machinery industry, to which Entegris belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Group 3 - The estimate revisions trend for Entegris is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] - Cohu, another company in the same industry, is anticipated to report a quarterly loss of $0.11 per share, with a significant year-over-year decline in revenues expected [9]

Financial Performance - Net sales for Q4 2024 were $849.8 million, a 4.6% increase from $812.3 million in Q4 2023[3] - Net income for Q4 2024 was $102.2 million, significantly up from $38.0 million in Q4 2023, representing a 169% increase[3] - Total net sales for the twelve months ended December 31, 2024, were $3,241,208, a decrease of 8.0% compared to $3,523,926 for the same period in 2023[25] - Net income for the twelve months ended December 31, 2024, was $292,787, an increase of 62.0% from $180,669 in 2023[23] - Net sales for the three months ended December 31, 2024, were $849.8 million, an increase from $812.3 million in the same period last year, representing a growth of 4.0%[32] Earnings and Margins - Diluted non-GAAP earnings per share for Q4 2024 were $0.84, compared to $0.65 in Q4 2023, reflecting a 29% increase[3] - Adjusted EBITDA for Q4 2024 was 29.2% of net sales, up from 26.0% in Q4 2023[3] - Adjusted operating income for the three months ended December 31, 2024, was $200.1 million, up from $168.3 million year-over-year, indicating a growth of 18.9%[32] - The company reported an adjusted operating margin of 23.5% for the three months ended December 31, 2024, compared to 20.7% in the same period last year[32] - The adjusted operating margin for the first quarter of 2025 is projected to be between 21.2% and 22.6%[37] Future Outlook - For Q1 2025, the company expects sales between $775 million and $805 million, indicating a 7% year-on-year increase at the midpoint[4] - The company expects net sales for the first quarter of 2025 to be in the range of $775 million to $805 million, with a GAAP operating margin projected between 15.0% and 16.7%[37] - Non-GAAP net income for the first quarter of 2025 is anticipated to be between $97 million and $108 million, with diluted non-GAAP earnings per share expected to range from $0.64 to $0.71[37] Cost Management - The company reported a significant reduction in selling, general and administrative expenses, down to $109.6 million from $144.7 million in Q4 2023[3] - The company incurred restructuring costs of $3.9 million in the fourth quarter of 2024, compared to $2.3 million in the prior year[34] Asset and Debt Management - Total assets decreased to $8,394,620 as of December 31, 2024, down 4.7% from $8,812,591 in 2023[21] - Long-term debt decreased to $3,981,105 as of December 31, 2024, down 13.1% from $4,577,141 in 2023[21] - Cash and cash equivalents at the end of the period were $329,213, a decrease of 28.0% from $456,929 at the end of 2023[23] Segment Performance - Entegris operates in two segments: Materials Solutions and Advanced Purity Solutions, both contributing to improved device performance and reliability[6][7] - Segment profit for Advanced Purity Solutions for the twelve months ended December 31, 2024, was $496,131, a decrease of 6.6% from $531,448 in 2023[30] - Adjusted gross profit for the twelve months ended December 31, 2024, was $1,487,148, a decrease of 1.2% from $1,505,799 in 2023[27] Cash Flow - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $631,721, a decrease of 2.0% from $644,476 in 2023[23] - Adjusted EBITDA for the three months ended December 31, 2024, reached $248.4 million, compared to $210.8 million in the same quarter last year, marking an increase of 17.9%[32]

Industry Overview - The Zacks Electronics - Manufacturing Machinery industry is facing challenging macroeconomic conditions globally, with softness in the 3D NAND end-market being a headwind [1] - Industry participants are benefiting from increased capital spending on high-performance computing, AI, mobility, augmented reality, virtual reality, advanced packaging, lithography, and wet processing solutions by semiconductor manufacturers [1] - The industry comprises companies providing solutions for wafer processing, device packaging, and test facilities, including thin-film processing systems, photonics, process-control tools, and advanced material-handling solutions [3] Key Trends Shaping the Industry - Miniaturization of electronic products is driving demand for advanced packaging solutions, with a consistent shift to smaller dimensions and new device architectures like FinFET transistors and 3D-NAND [4][5] - The complexity of semiconductor manufacturing processes is increasing due to the demand for faster, more powerful, and energy-efficient semiconductors, driven by cloud computing, IoT, and AI adoption [6][7] - Strong demand for NAND, DRAM, and SSDs, particularly from data centers and cloud spending, is benefiting industry participants [8][9] Industry Performance and Valuation - The Zacks Electronics - Manufacturing Machinery industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500, returning 14% compared to the S&P 500's 24.4% and the sector's 27.1% over the past year [14] - The industry is trading at a trailing 12-month EV/EBITDA ratio of 8.88X, below the S&P 500's 18.73X and the sector's 18.78X [15] - The industry's earnings estimate for 2025 has decreased by 10.7% since September 30, 2024, reflecting a bearish outlook [12] Companies to Watch - **Entegris (ENTG)**: A leading supplier of advanced materials and process solutions for the semiconductor industry, expecting $10-$15 million in annualized cost savings to be reinvested in R&D and new operational capabilities [16][17] - **MKS Instruments (MKSI)**: Benefiting from strong adoption of Photonics and Optical solutions, with steady earnings estimates and a 10.6% share price increase over the past year [18][19] - **Axcelis Technologies (ACLS)**: Experiencing robust demand for ion implantation systems in the silicon carbide market, driven by the EV market, despite a 48.2% decline in share price over the past year [20][21]

TORONTO, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) (FSE: 4WE) (the “Company” or “Entourage”) is pleased to announce that it has entered into a definitive arrangement agreement (the “Arrangement Agreement”) with 1001007762 Ontario Inc. (the “Purchaser”) and 2437653 Ontario Inc. (the “Guarantor”) pursuant to which the Purchaser will acquire all of the issued and outstanding common shares of the Company (the “Common Shares”) pursuant to a statutory plan of arrangemen ...

| --- | --- | --- | --- | --- | |-------|-------|-------|-------|--------------------| | | | | | | | | | | | | | | | | | | | | | | | Earnings | | | | | | Summary | | | | | | Third Quarter 2024 | | | | | | | | | | | | November 4, 2024 | | | | | | | 2 Safe Harbor This news release 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 identi ...

Entegris, Inc. (NASDAQ:ENTG) Q3 2024 Earnings Conference Call November 4, 2024 9:00 AM ET Company Participants Bill Seymour – Vice President-Investor Relations Bertrand Loy – President and Chief Executive Officer Linda LaGorga – Senior Vice President and Chief Financial Officer Conference Call Participants Toshiya Hari – Goldman Sachs Bhavesh Lodaya – BMO Capital Markets John Roberts – Mizuho Melissa Weathers – Deutsche Bank Atif Malik – Citi Charles Shi – Needham Tim Arcuri – UBS Christopher Parkinson – Wo ...

Entegris (ENTG) came out with quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.53%. A quarter ago, it was expected that this maker of equipment used in chip manufacturing would post earnings of $0.70 per share when it actually produced earnings of $0.71, delivering a surprise of 1.43%.Over the la ...