Photronics (PLAB) Q3 2025 Earnings Call August 27, 2025 08:30 AM ET Company ParticipantsTed Moreau - VP - IRGeorge Macricostas - Chairman & CEOEric Rivera - CFOTom Diffely - Director - Institutional ResearchChristopher Progler - EVP, Chief Technology Officer & Strategic PlanningFrank Lee - President - PDMCConference Call ParticipantsChristian Schwab - Senior Research AnalystGowshihan Sriharan - Equity Research AnalystOperatorGood day and thank you for standing by, and welcome to the Medtronic's Fiscal Third ...

Financial Data and Key Metrics Changes - The company reported sales of $210 million, which was flat year over year and sequentially [4] - Non-GAAP diluted EPS was $0.51, exceeding guidance [4] - Operating cash flow was 25% of revenue, contributing to a strong balance sheet with $576 million in cash and short-term investments [4][19] - Gross margin was reported at 34%, and operating margin was 23%, both above expectations [17] Business Line Data and Key Metrics Changes - Integrated Circuits (IC) revenue was $148 million, reflecting a 5% decline year over year, with high-end IC revenue increasing by 8% [14][15] - Flat Panel Display (FPD) revenue was $63 million, up 14% year over year, driven by strong demand in Korea [15][12] Market Data and Key Metrics Changes - Geographically, Taiwan accounted for 33% of total revenue, China for 24%, Korea for 21%, and the U.S. and Europe together accounted for 22% [16] - The company noted challenges in the IC market due to geopolitical trade restrictions, particularly affecting demand in Asia [11] Company Strategy and Development Direction - The company is focusing on geographic revenue diversification, with expansion plans in the U.S. and capability enhancements in Asia [5][8] - Investments are being made in high-end production capabilities and clean room facilities to meet increased demand [6][7] - The company aims to leverage its strong balance sheet for future growth and competitive advantages [5] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding near-term demand due to geopolitical uncertainties and the uneven nature of product demand [20] - The company anticipates fourth-quarter revenue to be in the range of $201 million to $209 million, with operating margins expected between 20% to 22% [20] Other Important Information - The company repurchased $21 million worth of stock in the quarter, with a total of $97 million year-to-date [5][19] - Capital expenditures (CapEx) are projected to be $200 million for fiscal 2025, focusing on capacity expansion and technology improvements [19] Q&A Session Summary Question: Will the fourth quarter mix be similar to the third quarter? - Yes, the mix in the fourth quarter is expected to be similar to that of the third quarter [23] Question: Do tariffs and trade restrictions impact the company directly? - The impact is indirect, affecting customers more than the company itself [24][25] Question: Are investments in higher-end nodes aimed at serving major customers like Samsung and TSMC? - Yes, the investments are targeted at higher-end nodes for major customers [27] Question: What end market products will the six to eight nanometer chips serve? - The chips will primarily serve high-end processors, including applications in edge AI and EVs [34] Question: Will CapEx normalize back to historical levels soon? - CapEx is expected to remain elevated for about three years due to ongoing investments and end-of-life tool replacements [40][44] Question: How does the U.S. government's involvement with Intel affect the company? - Strengthening Intel could benefit the company as it is a customer, leading to potential outsourcing opportunities [65][68]

Financial Performance & Strategic Focus - Photronics' revenue for the trailing twelve months reached $856 million[12] - The company's operating income for the same period was $212 million[12] - Operating cash flow totaled $228 million[12] - The company's market capitalization stood at $1.21 billion as of August 21, 2025[12] - Q3 2025 revenue was $210.4 million with a gross margin of 33.7% and an operating margin of 22.9%[60] - Non-GAAP diluted EPS for Q3 2025 was $0.51[60] - The company repurchased 1.18 million shares for $20.7 million in Q3 2025[61] Market Position & Growth Drivers - High-end products accounted for 36% of IC revenue and 85% of FPD revenue in Q3 2025[63, 64] - The company anticipates capital expenditures of approximately $200 million in fiscal year 2025[68, 69, 72] - Revenue by geographic origin: Taiwan 34%, China 26%, Korea 19%, US 17%, Europe 4%[12]

Exhibit 99.1 For Further Information: Ted Moreau VP, Investor Relations 469.395.8175 tmoreau@photronics.com Photronics Reports Third Quarter Fiscal 2025 Financial Results BROOKFIELD, Conn. August 27, 2025 (GLOBE NEWSWIRE) — Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2025 ended August 3, 2025. Commenting on the third-quarter performance, Chairman and CEO George Macricostas said, "Photronics ...

BROOKFIELD, Conn., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2025 ended August 3, 2025. Commenting on the third-quarter performance, Chairman and CEO George Macricostas said, "Photronics delivered very good results in our fiscal third quarter with revenue, profitability and EPS ahead of expectations. Looking ahead, we remain focused on operational efficien ...

Group 1 - The U.S. GDP grew 3% in Q2 2025, driven by a significant decline in imports after a record surge in Q1 2025, although tariff uncertainty remains a concern [2] - The artificial intelligence (AI) sector continues to attract substantial investments, with companies like Anthropic raising $5 billion, increasing its valuation from $62 billion to $170 billion [3] - Photronics (PLAB) is identified as an undervalued stock benefiting from AI-driven demand for photomasks, with a strong fundamental research backing its investment thesis [4][5] Group 2 - Photronics is positioned to profit from AI-driven growth in photomask demand due to advancements in chip technology, capacity expansions, and consumer electronics [5][6] - The global semiconductor manufacturing capacity is projected to grow at a compounded annual rate of 7% from 2024 to 2028, with semiconductor sales increasing by 20% year-over-year in May 2025 [7] - The long-term outlook for the semiconductor market indicates an 8% compounded annual growth rate from 2025 to 2034, driven by the demand for advanced chipmaking technologies [8][9] Group 3 - Photronics has increased its high-end photomask revenue from 30% in fiscal 2023 to 39% in the first half of fiscal 2025, indicating a shift towards higher-value products [12] - The company operates 11 production facilities globally, which minimizes tariff impacts and allows for efficient collaboration with customers [13][15] - Photronics has demonstrated strong financial performance, with revenue and core earnings growing at compounded annual rates of 6% and 25% since fiscal 2014, respectively [16] Group 4 - The company has generated $415 million in free cash flow from fiscal 2020 to fiscal 2Q25, representing 37% of its enterprise value, which supports its share repurchase program [19] - Photronics has a competitive edge in profitability, with a NOPAT margin of 19% and a return on invested capital (ROIC) of 12% in the trailing twelve months [17][21] - The company has repurchased $77 million in shares in the first half of fiscal 2025, with a potential repurchase yield of 1.8% based on current market capitalization [23] Group 5 - Photronics faces ongoing tariff uncertainty, particularly regarding its revenue from China, which accounted for 27% of its revenue in the first half of fiscal 2025 [24] - The company generated 36% of its revenue from three customers in fiscal 2024, indicating a concentration risk that could impact financial performance [27] - The current stock price implies a permanent decline in profits of 20%, despite the company's historical growth rates in NOPAT [29]

BROOKFIELD, Conn., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (Nasdaq: PLAB), a worldwide leader in photomask technologies and solutions, is scheduled to announce financial results for the third quarter of fiscal 2025 on Wednesday, August 27, 2025, before the market opens. Photronics will host a public conference call the same day at 8:30 a.m. Eastern time. During the call, company management will respond to questions concerning, but not limited to, the company’s financial performance, business cond ...

BROOKFIELD, Conn., Aug. 12, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (Nasdaq:PLAB), a worldwide leader in photomask technologies and solutions, today announced its participation in the following upcoming investor conferences: Date: Wednesday, August 13th Event: Oppenheimer’s 28th Annual Technology, Internet, & Communications ConferenceLocation: Virtual Date: Thursday, September 4thEvent: TD Cowen’s 53rd Technology Growth Cap SummitLocation: New York, NY Date: Wednesday, September 10th Event: Singular Resea ...

Core Insights - Photronics, Inc. has installed a new multi-beam tool in its Boise, Idaho facility, enhancing its technological leadership in photomask technologies [1][2] - This installation represents the first multi-beam writer in production for the merchant market in the U.S., supporting both U.S. Government Trusted and commercial advanced photomask applications [2] - The multi-beam tool is designed to improve writing speed and performance for U.S. built merchant photomask products, enabling faster time to market and enhanced IC performance for customers [2] Company Overview - Photronics is a leading manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks, essential for the manufacturing process of ICs and FPDs [3] - The company has been a trusted supplier for over 56 years and operates 11 manufacturing facilities strategically located in Asia, Europe, and North America [3]

Core Points - Photronics, Inc. received the Outstanding Contribution award from Visionox, highlighting its dedication to customer excellence in photomask technologies [1][2] - Visionox recognizes Photronics for its premier economic value and customer support, particularly in delivery, quality, and local service [2] Company Overview - Photronics is a leading manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks, essential for the manufacturing process of ICs and FPDs [2] - The company has been a trusted supplier for over 56 years and operates 11 manufacturing facilities strategically located in Asia, Europe, and North America [2]