Entegris (ENTG) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $773.2 million, up 0.3% year-over-year as reported and 5% excluding divestitures, with strong demand in CMP consumables and micro contamination control; net income rose to $62.9 million, and non-GAAP EPS was $0.67, both with margin improvements.

• Adjusted EBITDA was $220.7 million (28.5% margin), down 1% year-over-year; adjusted operating income was $170.8 million (22.1% margin), down 4%.

• The PIM business divestiture in Q1 2024 impacted year-over-year comparisons.

• Progress continued at new manufacturing sites in Colorado and Kaohsiung, supporting a global, regionally integrated supply chain strategy.

• Management remains optimistic about long-term semiconductor industry growth despite near-term tariff and macroeconomic uncertainties.

Financial highlights

• Gross margin was 46.1% (GAAP and non-GAAP), up from 45.6% year-over-year and at the midpoint of guidance.

• Adjusted EBITDA margin was 28.5%; adjusted operating margin was 22.1%.

• GAAP net income was $62.9 million, up 38.9% year-over-year; GAAP diluted EPS was $0.41, non-GAAP EPS $0.67.

• Net cash from operating activities was $140.4 million; capital expenditures were $108 million; ending cash balance was $340.9 million.

• Long-term debt stood at $3,984.5 million; net debt at $3.7 billion.

Outlook and guidance

• Q2 2025 sales guidance is $735–$775 million, with non-GAAP EPS expected at $0.60–$0.67 and adjusted EBITDA margin projected at ~27.5%.

• Q2 gross margin expected at ~45%; GAAP net income forecasted at $51–$62 million.

• No update to full-year 2025 outlook due to tariff-related uncertainty.

• CapEx for 2025 now expected at $300 million, down from $325 million.

• Management believes liquidity and cash flow are sufficient for the next twelve months and longer term.