Entegris — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the quarter ended September 26, 2026, were $1,005.7 million, compared to $807.1 million in the same period last year.
• GAAP diluted earnings per share (EPS) were $1.03, up from $0.46 in the prior year period.
• Non-GAAP diluted EPS were $1.23, compared to $0.72 in the prior year period.
• GAAP gross margin was 49.7% of net sales, compared to 43.5% in the prior year period.
• Adjusted gross margin was 48.9% of net sales, compared to 43.6% in the prior year period.
• GAAP operating margin was 22.9% of net sales, compared to 15.2% in the prior year period.
• Adjusted operating margin was 26.8% of net sales, compared to 21.1% in the prior year period.
• Adjusted EBITDA was $303.3 million, or 30.2% of net sales, compared to $220.7 million (27.3% of sales) in the prior year period.
• GAAP net income was $157.8 million, compared to $70.5 million in the prior year period.
• Non-GAAP net income was $189.7 million, compared to $109.9 million in the prior year period.
• Net cash provided by operating activities was $266.8 million for the quarter.
• Long-term debt decreased to $3,260.6 million as of September 26, 2026, from $3,697.6 million as of December 31, 2025.
• Cash and cash equivalents were $356.5 million as of September 26, 2026.

Guidance and Future Outlook:

• For the fourth quarter ending December 31, 2026, sales are expected to be between $1,025 million and $1,055 million.
• GAAP net income is expected to be between $168 million and $181 million.
• GAAP diluted EPS is expected to be between $1.09 and $1.17.
• Non-GAAP diluted EPS is expected to be between $1.32 and $1.40.
• Non-GAAP net income is expected to be between $203 million and $215 million.
• Adjusted EBITDA is expected to be approximately 30.7% to 31.2% of sales.

Business Segments and Product Lines:

• The company operates in two segments: Materials Solutions (MS) and Advanced Purity Solutions (APS).
• Materials Solutions net sales were $404.1 million for the quarter, compared to $348.6 million in the prior year period.
• Advanced Purity Solutions net sales were $604.9 million for the quarter, compared to $460.8 million in the prior year period.
• Materials Solutions segment profit was $84.3 million for the quarter, compared to $65.2 million in the prior year period.
• Advanced Purity Solutions segment profit was $212.7 million for the quarter, compared to $118.2 million in the prior year period.
• MS provides chemical vapor and atomic layer deposition materials, chemical mechanical planarization slurries and pads, ion implantation specialty gases, and formulated etch and clean materials.
• APS offers filtration, purification, and contamination-control solutions for liquid chemistries, gases, and wafer cleanliness.

Market and Competitive Landscape:

• Growth is driven by increasing semiconductor complexity, rising materials intensity, and investment in leading-edge technologies.
• The company is expanding plans of record and securing new design wins.
• The company is a leading supplier of critical advanced materials and process solutions for the semiconductor and other high-technology industries.

Risks and Challenges:

• Forward-looking statements involve risks including fluctuations in semiconductor demand, global economic uncertainty, trade wars, and supply chain risks.
• Risks include reliance on sole or limited source suppliers, geopolitical and regulatory complexities, export controls, and customer concentration.
• Operational risks include manufacturing interruptions, cybersecurity threats, and the impact of tariffs.
• Financial risks include indebtedness, ability to service debt, and volatility in the company's stock price.
• Specific charges included in the period relate to restructuring costs from internal reorganization, workforce reductions, and the planned wind-down of the Life Sciences Fluid Management business.
• The company excluded $8.3 million in IEEPA tariff refunds from non-GAAP results as they represent a discrete, non-recurring recovery.

Management Commentary and Tone:

• Dave Reeder, President and CEO, stated the company is executing well against an attractive long-term opportunity.
• Management highlighted record revenue, continued margin expansion, and strong earnings growth that exceeded guidance.
• Management noted record cash flow enabled accelerated debt repayment and strengthened the balance sheet.
• A Capital Markets Day is scheduled for November 9, 2026, to discuss long-term strategy.

Other Key Points:

• The company paid $15.4 million in dividends during the quarter.
• Payments of debt totaled $200.0 million during the quarter.
• The company incurred a loss on extinguishment of debt of $1.7 million in the quarter.
• The company recognized an equity investment impairment loss of $6.7 million in the nine-month period ended September 26, 2026.
• The company has approximately 7,700 employees and facilities in the United States, Canada, China, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan.
• The company is ISO 9001 certified.