Core Viewpoint - Entegris (ENTG) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][10]. Earnings Estimate Revisions - Analysts have become increasingly optimistic about Entegris' earnings prospects, leading to a rising trend in estimate revisions, which is expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is projected at $0.75 per share, reflecting a year-over-year increase of +11.9%. Over the last 30 days, the estimate has risen by 13.57% with three upward revisions and no negative changes [6]. - For the full year, the earnings estimate is expected to be $3.41 per share, representing a +24.0% change from the previous year. The consensus estimate has increased by 6.27% over the same period, with three estimates moving higher and no negative revisions [7][8]. Zacks Rank and Performance - Entegris currently holds a Zacks Rank 1 (Strong Buy), which is based on the positive estimate revisions. This ranking system has a strong track record, with Zacks 1 stocks averaging an annual return of +25% since 2008 [3][9]. - Stocks rated Zacks Rank 1 and 2 (Buy) have been shown to significantly outperform the S&P 500 [9]. Recent Stock Performance - Entegris shares have appreciated by 12% over the past four weeks, indicating investor confidence in the company's earnings growth prospects due to the favorable estimate revisions [10].

Company Overview - Entegris, Inc. (ENTG) is a vital supplier of advanced materials and process solutions essential for semiconductor manufacturing [1] Industry Focus - The company is based in Massachusetts and collaborates with fabs and other industry players to support semiconductor production [1] Investment Research Approach - The focus is primarily on small- to mid-cap companies, which are often overlooked by many investors, while also occasionally analyzing large-cap companies to provide a comprehensive view of the broader equity markets [1]

Company Overview - Entegris, Inc. (ENTG) is a vital supplier of advanced materials and process solutions essential for semiconductor manufacturing [1] - The company is headquartered in Massachusetts and collaborates with fabs and other industry players [1] Investment Focus - The analysis primarily targets small- to mid-cap companies, which are often overlooked by investors, while also occasionally reviewing large-cap companies to provide a comprehensive view of the equity markets [1]

Financial Performance - In 2025, net sales were $3,196.6 million, a decrease of $44.6 million, or 1%, from 2024's $3,241.2 million [231]. - Gross profit for 2025 was $1,419.9 million, resulting in a gross margin of 44.4%, down from 45.9% in 2024, a decrease of 1.5 percentage points [234]. - Net income for 2025 was $235.6 million, or $1.55 per diluted share, compared to $292.8 million, or $1.93 per diluted share, in 2024 [244]. - Adjusted Operating Income decreased by 8.4% to $680.9 million in 2025 from $743.0 million in 2024 [247]. - Advanced Purity Solutions (APS) net sales decreased by 3% to $1,799.1 million in 2025, primarily due to reduced semiconductor industry capital expenditures [253]. - Materials Solutions (MS) net sales increased slightly to $1,406.7 million in 2025, driven by CMP consumables and selective etch materials [251]. - Net income for 2025 was $235.6 million, down 19.5% from $292.8 million in 2024, with a net income margin of 7.4% compared to 9.0% in 2024 [293]. - Adjusted Operating Income for 2025 was $680.9 million, a decrease of 8.4% from $743.0 million in 2024, resulting in an adjusted operating margin of 21.3% [293]. - Adjusted EBITDA for 2025 was $886.2 million, down 4.8% from $931.1 million in 2024, with an adjusted EBITDA margin of 27.7% [293]. - Non-GAAP net income for 2025 was $418.5 million, compared to $456.0 million in 2024, with diluted non-GAAP earnings per share of $2.75, down from $3.00 [294]. Expenses and Costs - Selling, general and administrative (SG&A) expenses increased by $4.0 million, or 1%, to $450.6 million in 2025 from $446.6 million in 2024 [235]. - Engineering, research and development (ER&D) expenses rose to $329.0 million in 2025, up from $316.1 million in 2024, reflecting a focus on technology platform development [236]. - The company incurred restructuring costs of $29.7 million in 2025, primarily related to cost-saving initiatives and workforce reductions [293]. Cash Flow and Debt - Total debt decreased to $3,697.6 million in 2025 from $3,981.1 million in 2024, reflecting repayments on outstanding debt [256]. - Cash and cash equivalents increased to $360.4 million in 2025 from $329.2 million in 2024, indicating improved liquidity [256]. - Net cash provided by operating activities increased to $695.4 million in 2025 from $631.7 million in 2024, driven by changes in operating assets and liabilities [260]. - Net cash used in investing activities was $300.8 million in 2025, a significant increase from $67.1 million in 2024, primarily due to lower proceeds from divestitures [264]. - Cash used in financing activities decreased to $366.9 million in 2025 from $688.9 million in 2024, reflecting a reduction in net debt activity [265]. - Total debt (par value) decreased to $3,745.0 million as of December 31, 2025, down from $4,045.0 million in 2024 [267]. - Long-term debt principal obligations total $3,745.0 million, with interest payments of $655.3 million due [273]. - The company was in compliance with all applicable financial covenants included in its debt arrangements as of December 31, 2025 [269]. - Cash requirements for the company total $4,885.3 million, with $419.1 million due within one year [273]. Accounting Estimates and Depreciation - The Company expects total depreciation expense in 2026 to be reduced by $72.9 million due to adjustments in the estimated useful lives of certain property, plant, and equipment [220]. - The updated estimated useful lives for financial reporting purposes include buildings and improvements increased from 5 to 35 years to 5 to 40 years, and manufacturing equipment increased from 5 to 10 years to 5 to 14 years [221]. - The Company anticipates an increase in gross margin of approximately $52.4 million as a result of the change in accounting estimate [221]. Trade and Supply Chain - The Company operates in two segments: Materials Solutions (MS) and Advanced Purity Solutions (APS), providing critical materials and process solutions for the semiconductor industry [215]. - The global trade environment has heightened uncertainty, particularly with respect to China, impacting sourcing and manufacturing costs [218]. - The Company aims to build a resilient supply chain and global manufacturing footprint to mitigate financial impacts from trade volatility [219]. - The Company is exposed to risks associated with trade conflicts, supply chain interruptions, and geopolitical uncertainties [213]. - The Company’s strategy includes closely monitoring trade policy changes and exploring options to mitigate volatility in the supply chain [219]. Currency and Interest Rate Risks - A 100-basis point change in interest rates could impact annual net income by approximately $0.7 million in 2025 and $2.5 million in 2024 [295]. - Approximately 17.5% of sales in 2025 were denominated in foreign currencies, which could lead to a revenue impact of approximately $55.9 million if foreign currencies depreciate by 10% against the U.S. dollar [296][297]. - The company utilizes derivative financial instruments to manage foreign currency exchange rate risks but does not engage in speculative trading [298].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

分组1 - Entegris reported quarterly earnings of $0.7 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, but down from $0.84 per share a year ago, representing an earnings surprise of +4.14% [1] - The company posted revenues of $823.9 million for the quarter, surpassing the Zacks Consensus Estimate by 1.15%, but down from $849.84 million year-over-year [2] - Entegris has outperformed the S&P 500, with shares increasing by about 45.3% since the beginning of the year compared to the S&P 500's gain of 1.7% [3] 分组2 - The earnings outlook for Entegris is mixed, with the current consensus EPS estimate for the coming quarter at $0.64 on revenues of $792.22 million, and $3.27 on revenues of $3.39 billion for the current fiscal year [7] - The Zacks Industry Rank places Electronics - Semiconductors in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Credo Technology Group Holding Ltd., another company in the same industry, is expected to report quarterly earnings of $0.78 per share, reflecting a year-over-year increase of +212% [9]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $824 million, down 3% year-over-year but up 2% sequentially, at the high end of guidance [17] - Gross margin on a GAAP basis was 43.8% and 44% on a non-GAAP basis, also at the high end of guidance [17] - Adjusted EBITDA margin in Q4 was 27.7% of revenue, above guidance [17] - Full year free cash flow was $404 million, representing a free cash flow margin of 12.7%, nearly a 300 basis point increase year-over-year [19] Business Line Data and Key Metrics Changes - Sales for Material Solutions in Q4 were $362 million, flat year-over-year and up 4% sequentially, driven by advanced deposition materials [18] - Sales for Advanced Purity Solutions in Q4 were $465 million, down 5% year-over-year but up 1% sequentially, with declines driven by fluid handling and FOUPs [19] Market Data and Key Metrics Changes - The semiconductor market is expected to see mid-single-digit industry MSI growth in 2026, with advanced logic positioned for significant growth driven by AI-enabled applications [10][11] - NAND is expected to see more than 20% bit growth in 2026, driven by the shift to higher layer, higher capacity NAND [12] - DRAM is expected to see solid MSI growth in 2026, with tight supply in HBM and DDR5 driving the need for additional fab capacity [13] Company Strategy and Development Direction - The company aims to deepen customer intimacy by supporting technology roadmaps and securing key positions of record in new nodes [7] - The focus is on improving utilization by ramping new facilities in Taiwan and Colorado while rationalizing existing manufacturing [9] - The company plans to increase local-for-local manufacturing, particularly for China, to enhance strategic flexibility [10] Management's Comments on Operating Environment and Future Outlook - The management is cautiously optimistic about industry conditions entering 2026, expecting improvements in node transitions and industry fab construction spending [15] - The company anticipates that the growth in advanced logic and memory will drive higher content per wafer and revenue [15] - Management highlighted the importance of AI as a growth driver, with over 60% of revenue coming from advanced logic and advanced memory [14] Other Important Information - The company expects Q1 sales to range from $785 million to $825 million, reflecting an increase of approximately 4% year-over-year [21] - CapEx for 2026 is expected to decline to $250 million, with a return to historical levels of approximately 7%-8% of sales in the long term [9] Q&A Session Summary Question: Expectations for growth in 2026 compared to underlying markets - Management believes the industry backdrop is more constructive for 2026, with potential for outperformance in advanced logic and memory segments [29][30] Question: Margin trajectory for 2026 - Management indicated that gross margins are expected to stabilize and improve with increased production volumes and facility rationalization [32][34] Question: CapEx and MSI targets for the year - Management expects MSI growth to be mid-single digits for the year, with CapEx-related revenue driven by fab construction spending [38][40] Question: Update on mainstream customer engagement - Management is focusing on deeper penetration of mainstream customers by providing comprehensive solutions across product lines [46][48] Question: Competitive intensity in the China market - Management noted that the fundamentals in China are similar to the rest of the world, emphasizing yield and performance, and highlighted efforts to guarantee supply to customers [50][51] Question: NAND business outlook - Management expects strong underlying demand for NAND, with incremental layer transitions expected to drive higher content per wafer [56][57] Question: Growth expectations for China business in 2026 - Management anticipates growth in the China market, particularly in CapEx-related areas and liquid filtration products [59][60]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $824 million, down 3% year-over-year but up 2% sequentially, at the high end of guidance [17] - Gross margin on a GAAP basis was 43.8% and 44% on a non-GAAP basis, also at the high end of guidance [17] - Adjusted EBITDA margin in Q4 was 27.7% of revenue, above guidance [17] - Full year free cash flow was $404 million, representing a free cash flow margin of 12.7%, nearly a 300 basis point increase year-over-year [19] Business Line Data and Key Metrics Changes - Sales for Material Solutions in Q4 were $362 million, flat year-over-year and up 4% sequentially, driven by advanced deposition materials [18] - Sales for Advanced Purity Solutions in Q4 were $465 million, down 5% year-over-year but up 1% sequentially, with declines driven by fluid handling and FOUPs [19] Market Data and Key Metrics Changes - The semiconductor market is expected to see mid- to single-digit industry MSI growth in 2026, with advanced logic positioned for significant growth driven by AI-enabled applications [11][14] - NAND is expected to benefit from strong AI-driven demand and pricing trends, translating into more than 20% bit growth in 2026 [12] Company Strategy and Development Direction - The company aims to deepen customer intimacy by supporting technology roadmaps and securing key positions of record in new nodes [7] - The focus is on improving utilization by ramping new facilities in Taiwan and Colorado while rationalizing existing manufacturing [9] - The company plans to increase local-for-local manufacturing, particularly for China, to enhance strategic flexibility [10] Management's Comments on Operating Environment and Future Outlook - The management is cautiously optimistic about industry conditions entering 2026, expecting notable improvements compared to 2025 [15] - The company anticipates that node transitions in both logic and memory will drive wafer output and increase content per wafer opportunities [6] Other Important Information - The company expects Q1 sales to range from $785 million to $825 million, reflecting an increase of approximately 4% year-over-year [21] - CapEx for 2025 was $299 million, approximately 9% of sales, and is expected to decline to $250 million in 2026 [20] Q&A Session Summary Question: Expectations for growth in 2026 - The company expects a more constructive industry backdrop in 2026, with potential for outperformance in revenue growth compared to underlying markets [29][30] Question: Margin trajectory for the year - Management indicated that gross margins are expected to stabilize and improve with increased production volumes and facility rationalization [32][34] Question: CapEx and MSI targets for the year - The company anticipates mid-single-digit growth for MSI in 2026, with CapEx expected to be more constructive in the second half of the year [38][40] Question: Update on mainstream customer engagement - The company is focusing on deeper penetration of its product portfolio among mainstream customers, particularly in silicon carbide and mainstream logic [46][48] Question: Competitive intensity in China - The company is working to guarantee supply to Chinese customers, which is critical for competing effectively in that market [50][52] Question: NAND business outlook - The company expects strong underlying demand for NAND, with incremental layer transitions expected to drive higher content per wafer [56][57]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $824 million, down 3% year-over-year but up 2% sequentially, at the high end of guidance [17] - Gross margin on a GAAP basis was 43.8% and 44% on a non-GAAP basis, also at the high end of guidance [17] - Adjusted EBITDA margin in Q4 was 27.7% of revenue, above guidance [17] - Full year free cash flow was $404 million, representing a free cash flow margin of 12.7%, nearly a 300 basis point increase year-over-year [19] Business Line Data and Key Metrics Changes - Material Solutions sales in Q4 were $362 million, flat year-over-year and up 4% sequentially, driven by advanced deposition materials [18] - Advanced Purity Solutions sales in Q4 were $465 million, down 5% year-over-year but up 1% sequentially, with declines driven by fluid handling and FOUPs [19] Market Data and Key Metrics Changes - The semiconductor market is expected to see mid- to single-digit industry MSI growth in 2026, with advanced logic positioned for significant growth driven by AI applications [10][11] - NAND is expected to see more than 20% bit growth in 2026, driven by the shift to higher layer counts [12] Company Strategy and Development Direction - The company aims to deepen customer intimacy by supporting technology roadmaps and securing key positions of record (PORs) in new nodes [6] - Focus on improving utilization by ramping new facilities in Taiwan and Colorado while rationalizing existing manufacturing footprint [9] - Plans to increase local-for-local manufacturing, particularly for China, to enhance supply assurance [10] Management's Comments on Operating Environment and Future Outlook - Management is cautiously optimistic about industry conditions entering 2026, expecting improvements in wafer starts and CapEx spending [14] - The company anticipates that node transitions in both logic and memory will drive growth and increase content per wafer opportunities [5][6] Other Important Information - The company expects CapEx to decline to $250 million in 2026, with a return to historical levels of approximately 7%-8% of sales in the long term [9] - The Capital Markets Day has been rescheduled from May to fall 2026 due to the CFO transition [15] Q&A Session Questions and Answers Question: Expectations for growth in 2026 - The company expects a more constructive industry backdrop in 2026, with potential for outperformance in revenue growth compared to underlying market growth [29][30] Question: Margin trajectory for the year - Management indicated that gross margins are expected to stabilize and improve with increased production volumes and facility rationalization [32][34] Question: CapEx and MSI targets for the year - MSI is expected to grow in the mid-single digits, with CapEx-related revenue driven by fab construction spending anticipated to pick up in the second half of 2026 [38][39] Question: Update on mainstream customer engagement - The company is focusing on deeper penetration of mainstream customers by providing comprehensive solutions across its product portfolio [45][46] Question: Competitive intensity in the China market - The company is working to guarantee supply to Chinese customers, which is critical for competing effectively in that market [51][52] Question: NAND business outlook - The company expects strong underlying demand for NAND, with incremental wafer starts anticipated to remain measured due to node transitions [56][57]

Entegris Earnings Summary Fourth Quarter 2025 February 10, 2026 ENTEGRIS PROPRIETARY AND CONFIDENTIAL – INTERNAL Safe Harbor ENTEGRIS FOURTH 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 m ...