Entegris (NASDAQ:ENTG) Announces Quarterly Earnings Results

Entegris (NASDAQ:ENTG) issued its quarterly earnings results on Thursday. The semiconductor company reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.20, FiscalAI reports. Entegris had a net margin of 9.18% and a return on equity of 12.25%. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $925.35 million. During the same period in the previous year, the business earned $0.72 EPS. The company’s revenue was up 24.6% compared to the same quarter last year.

Here are the key takeaways from Entegris’ conference call:

• Record third-quarter performance: Revenue rose 25% year over year to $1.006 billion, while non-GAAP EPS increased 71% to $1.23. Growth was broad-based across both APS and MS, supported by advanced logic, memory, AI infrastructure and stronger CapEx demand.
• Profitability improved substantially: Adjusted gross margin expanded 530 basis points year over year to 48.9%, and adjusted EBITDA margin reached 30.2%, driven by higher volumes, factory absorption, yield improvements and productivity gains rather than material pricing increases.
• Demand visibility and backlog strengthened: Book-to-bill remained significantly above one, with backlog increasing more than 35% sequentially and more than doubling year over year. New plans of record in EUV filtration, advanced materials and CMP are expected to expand future content opportunities.
• Fourth-quarter outlook remains strong: Management expects revenue of $1.025 billion to $1.055 billion, approximately 26% year-over-year growth at the midpoint, and adjusted EBITDA margin of about 31%. Executives also described industry conditions and 2027 CapEx trends as constructive.
• Seasonality expected in early 2027: First-quarter revenue is projected to decline by a mid-single-digit percentage sequentially because of fewer selling days and typical seasonality, although it is still expected to grow more than 20% year over year. The company also fully repaid its 2029 term loan, reducing net leverage to 2.9 times.

Entegris Stock Up 0.4%

Shares of NASDAQ:ENTG traded up $0.68 during mid-day trading on Thursday, hitting $160.00. 4,269,927 shares of the company traded hands, compared to its average volume of 2,851,929. The stock has a market cap of $24.40 billion, a P/E ratio of 80.40, a P/E/G ratio of 1.23 and a beta of 1.40. The company has a current ratio of 3.05, a quick ratio of 1.85 and a debt-to-equity ratio of 0.83. Entegris has a 12-month low of $67.97 and a 12-month high of $186.94. The stock has a 50-day moving average price of $145.82 and a two-hundred day moving average price of $137.30.

Entegris Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 18th. Investors of record on Wednesday, October 28th will be given a $0.10 dividend. The ex-dividend date of this dividend is Wednesday, October 28th. This represents a $0.40 annualized dividend and a yield of 0.3%. Entegris’s dividend payout ratio (DPR) is presently 20.10%.

Trending Headlines about Entegris

Here are the key news stories impacting Entegris this week:

• Positive Sentiment: Q3 results substantially exceeded expectations: Entegris reported adjusted earnings of $1.23 per share, versus the $1.03–$1.04 consensus, while revenue reached $1.006 billion compared with estimates near $925 million. Revenue increased 24.6% year over year, and adjusted earnings rose from $0.72 a year earlier. Earnings Flash: Entegris Reports Q3 Revenue Above Estimates
• Positive Sentiment: Profitability improved sharply: GAAP gross margin expanded to 49.7% from 43.5% in the prior-year quarter, while operating income nearly doubled to $230.6 million. Advanced Purity Solutions revenue was $604.9 million, supported by strong demand for filtration products. Entegris Reports Record Q3 Revenue
• Positive Sentiment: Fourth-quarter outlook supports continued momentum: Management forecast revenue of $1.025 billion to $1.055 billion and GAAP diluted EPS of $1.09 to $1.17. The midpoint implies further sequential growth and was viewed positively by investors. Entegris Provides Fourth-Quarter Guidance
• Neutral Sentiment: Entegris generated $266.8 million in operating cash flow and paid down $200 million of debt during the quarter, strengthening its balance sheet. However, the stock trades at a relatively high valuation, with a price-to-earnings ratio above 80.
• Negative Sentiment: Recent insider activity has consisted entirely of sales, with executives selling shares during the past six months. This may create a modest sentiment headwind, although the transactions do not change the strong quarterly fundamentals.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. The Goldman Sachs Group upgraded shares of Entegris from a “sell” rating to a “buy” rating in a research report on Wednesday, August 12th. Truist Financial started coverage on Entegris in a research note on Wednesday, October 14th. They issued a “buy” rating and a $190.00 price objective on the stock. Deutsche Bank Aktiengesellschaft raised Entegris from a “hold” rating to a “buy” rating and boosted their target price for the stock from $152.00 to $200.00 in a research note on Wednesday, August 12th. Freedom Capital upgraded shares of Entegris to a “strong-buy” rating in a research report on Monday, August 3rd. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Entegris in a research note on Monday, August 3rd. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $181.67.

Insider Activity at Entegris

In other Entegris news, SVP Susan Rice sold 2,062 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $149.52, for a total value of $308,310.24. Following the transaction, the senior vice president owned 66,976 shares of the company’s stock, valued at approximately $10,014,251.52. The trade was a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Olivier Blachier sold 2,000 shares of the business’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $160.66, for a total transaction of $321,320.00. Following the completion of the transaction, the insider owned 34,997 shares in the company, valued at approximately $5,622,618.02. The trade was a 5.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,978 shares of company stock valued at $1,273,734 over the last ninety days. Corporate insiders own 0.53% of the company’s stock.

About Entegris

Entegris, Inc is a materials science and process technology company that supplies products and solutions used in the manufacture of semiconductors and other advanced technology products. Its offerings help chipmakers manage contamination, handle sensitive materials, and improve process control across the semiconductor production cycle.

The company’s products include specialty chemicals and gases, filtration and purification systems, wafer and substrate handling products, fluid-management components, and advanced materials used in semiconductor fabrication.