Entegris (ENTG) Q2 2026 earnings summary

Executive summary

• Net sales reached $883.2 million in Q2 2026, up 11.5% year-over-year and 8.8% sequentially, surpassing guidance on all key metrics, driven by strong AI-related semiconductor demand and double-digit growth in both unit and CapEx-driven businesses.

• Adjusted EBITDA was $250.7 million (28.4% margin), up 16% year-over-year, with margin improvement supported by operational improvements and portfolio optimization.

• Adjusted net income was $143 million, up 42% year-over-year, and non-GAAP diluted EPS reached $0.93.

• Free cash flow was $120.3 million, enabling $200 million in debt repayment and supporting leverage reduction to 3.4x.

• Exited the U.S. Life Sciences Fluid Management business and closed the Logan, Utah facility to focus on core semiconductor operations.

Financial highlights

• Q2 2026 net sales: $883.2 million (+11.5% YoY); GAAP net income: $93.6 million (+77% YoY); adjusted net income: $143 million (+42% YoY).

• Gross margin improved to 47.6% (GAAP and non-GAAP), up from 44.4% year-over-year.

• Adjusted operating income reached $216.3 million (24.5% margin), up 30.8% year-over-year.

• Adjusted EBITDA margin increased to 28.4% from 27.3% year-over-year.

• Operating cash flow for the first six months was $339.2 million, up from $253.9 million year-over-year.

Outlook and guidance

• Q3 2026 sales expected between $905 million and $935 million, with non-GAAP EPS guidance of $0.96–$1.04 and adjusted EBITDA margin of 28.0%–29.0%.

• Q3 GAAP EPS expected between $0.75 and $0.83; Q3 gross margin expected between 47.5% and 48.5%.

• Q4 revenue expected to grow ~4% sequentially from Q3 midpoint, representing mid-teens year-over-year growth.

• Full-year 2026 net interest expense expected at $180 million, non-GAAP tax rate at 14%, and CapEx at $250 million.

• Management expects continued benefit from operational leverage and lower depreciation in 2026 due to revised asset useful lives.