Entegris (ENTG) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales were $792.4M, down 2.5–3% year-over-year but up 2–2.5% sequentially, exceeding guidance, driven by demand for CMP consumables, selective etch, and deposition materials.

• GAAP net income was $52.8M (6.7% margin), down 22% year-over-year; adjusted net income was $100.6M, down 6.1%.

• Adjusted EBITDA was $216.7M (27.3% margin), down 4.2% year-over-year.

• Segment realignment in late 2024 resulted in two segments: Materials Solutions (MS) and Advanced Purity Solutions (APS).

• Leadership transition: David Reeder to become CEO in August 2025; Bertrand Loy to serve as Executive Chair.

Financial highlights

• Q2 2025 gross margin was 44.4% GAAP and 44.6% non-GAAP, down from 46.2% a year ago.

• Adjusted EBITDA margin was 27.3% of revenue.

• GAAP diluted EPS was $0.35; non-GAAP EPS was $0.66, both within guidance.

• Free cash flow for Q2 was $47M; for the first half, $79M with a margin of 5%.

• Cash and cash equivalents at quarter-end: $376.8M; long-term debt: $3,987.8M.

Outlook and guidance

• Q3 2025 sales expected between $780M and $820M.

• Q3 2025 GAAP net income guidance: $65M–$76M; GAAP EPS: $0.43–$0.50.

• Q3 2025 non-GAAP net income: $104M–$115M; non-GAAP EPS: $0.68–$0.75.

• Adjusted EBITDA margin for Q3 projected at ~27.5%.

• Free cash flow margin targeted in the low double digits for 2025; second half expected to be stronger.