StockNews.AI
ENTG
StockNews.AI
194 days

Entegris Reports Results for Fourth Quarter of 2024

1. Entegris exceeded Q4 2024 sales and EPS guidance significantly. 2. CEO noted limited visibility in semiconductor market recovery. 3. Company focuses on long-term growth driven by tech innovation. 4. Adjusted EBITDA margin reached 29.2% in Q4 2024. 5. Expecting 7% sales increase in Q1 2025, excluding divestitures.

Earnings
+3.51%Current Return
VS
-0.28%S&P 500
$103.902/06 06:14 AM EDTEvent Start
$107.5502/07 12:57 PM EDTLatest Updated
43m saved
Insight
Article

FAQ

Why Bullish?

Positive earnings results and strong guidance indicate growth potential, similar to past quarterly performance surges.

How important is it?

Strong quarterly results improve investor confidence, but semiconductor market uncertainty could temper long-term optimism.

Why Short Term?

Immediate effects expected from quarterly results, as seen in previous quarterly earnings releases.

Related Companies

SMHQCOMINTC
BILLERICA, Mass.--(BUSINESS WIRE)--Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s fourth quarter ended December 31, 2024. Bertrand Loy, Entegris’ President and Chief Executive Officer, said: “We concluded 2024 with strong performance in the fourth quarter, exceeding our guidance for both sales and non-GAAP EPS. For the year, we continued to outperform the market and demonstrated leverage in our model with EBITDA growth that was twice the rate of our sales growth.” Mr. Loy added: “As we enter 2025, visibility outside of advanced logic and AI-driven applications remains limited and we have yet to see evidence of a significant broad-based semiconductor market rebound. We remain focused on delivering strong market outperformance and profitability, improving free cash flow while continuing to fund critical investments that improve our long-term competitiveness and position us for the industry upturn.” Mr. Loy concluded: “We are very confident in the strong long-term growth outlook of the semiconductor industry. The industry’s technology roadmaps continue to be opportunity-rich for Entegris, as our customers drive for more complex device architectures and further miniaturization. The resulting process complexity is making our expertise in materials science and materials purity increasingly valuable, positioning us very well for the upcoming technology node transitions, all of which are expected to generate incremental content per wafer opportunities and fuel our market outperformance in the years to come.” Quarterly Financial Results Summary (in thousands, except percentages and per share data) GAAP Results Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Net sales $849,837 $812,291 $807,694 Gross margin - as a % of net sales 45.6% 42.4% 46.0% Operating margin - as a % of net sales 17.6% 12.4% 16.9% Net income $102,243 $37,977 $77,582 Diluted earnings per common share $0.67 $0.25 $0.51 Non-GAAP Results Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Adjusted gross margin - as a % of net sales 45.6% 42.4% 46.0% Adjusted operating margin - as a % of net sales 23.5% 20.7% 23.0% Adjusted EBITDA - as a % of net sales 29.2% 26.0% 28.8% Diluted non-GAAP earnings per common share $0.84 $0.65 $0.77 First Quarter Outlook For the Company’s guidance for the first quarter ending March 29, 2025, the Company expects sales of $775 million to $805 million. The midpoint of this guidance range represents a 7% year-on-year increase, excluding the impact of divestitures. GAAP net income of $58 million to $68 million and diluted earnings per common share is expected to be between $0.38 and $0.45. On a non-GAAP basis, the Company expects diluted earnings per common share to range from $0.64 to $0.71, reflecting net income on a non-GAAP basis in the range of $97 million to $108 million. The Company also expects adjusted EBITDA of approximately 28.0% to 29.0% of sales. Segment Results The Company currently operates in two segments: Materials Solutions (MS): MS provides materials-based solutions, such as chemical vapor and atomic layer deposition materials, chemical mechanical planarization slurries and pads, ion implantation specialty gases, formulated etch and clean materials, and other specialty materials that enable our customers to achieve better device performance and faster time to yield, while providing for lower total cost of ownership. Advanced Purity Solutions (APS): APS offers filtration, purification and contamination-control solutions that improve customers’ yield, device reliability and cost by ensuring the purity of critical liquid chemistries and gases and the cleanliness of wafers and other substrates used throughout semiconductor manufacturing processes, the semiconductor ecosystem and other high-technology industries. Fourth-Quarter Results Conference Call Entegris will hold a conference call to discuss its results for the fourth quarter on Thursday, February 6, 2025, at 9:00 a.m. Eastern Time. Participants should dial 800-579-2543 or +1 785-424-1789, referencing confirmation ID: ENTGQ424. Participants are asked to dial in 10 minutes prior to the start of the call. For the live webcast and replay of the call, please Click Here. Management’s slide presentation concerning the results for the fourth quarter will be posted on the Investor Relations section of www.entegris.com. About Entegris Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 8,000 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in the United States, Canada, China, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan. Additional information can be found at www.entegris.com. Non-GAAP Information The Company’s condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted Net Sales, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Segment Profit, Adjusted Operating Income, non-GAAP Net Income, non-GAAP Adjusted Operating Margin and diluted non-GAAP Earnings Per Common Share, together with related measures thereof, are considered “non-GAAP financial measures” under the rules and regulations of the Securities and Exchange Commission. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company provides supplemental non-GAAP financial measures to better understand and manage its business and believes these measures provide investors and analysts additional and meaningful information for the assessment of the Company’s ongoing results. Management also uses these non-GAAP measures to assist in the evaluation of the performance of its business segments and to make operating decisions. Management believes that the Company’s non-GAAP measures help indicate the Company’s baseline performance before certain gains, losses or other charges that may not be indicative of the Company’s business or future outlook, and that non-GAAP measures offer a more consistent view of business performance. The Company believes the non-GAAP measures aid investors’ overall understanding of the Company’s results by providing a higher degree of transparency for such items and providing a level of disclosure that will help investors generally understand how management plans, measures and evaluates the Company’s business performance. Management believes that the inclusion of non-GAAP measures provides greater consistency in its financial reporting and facilitates investors’ understanding of the Company’s historical operating trends by providing an additional basis for comparisons to prior periods. The reconciliations of GAAP net sales to Adjusted Net Sales (excluding divestitures), GAAP gross profit to Adjusted Gross Profit, GAAP segment profit to Adjusted Operating Income, GAAP net income to Adjusted Operating Income and Adjusted EBITDA, GAAP net income and diluted earnings per common share to non-GAAP Net Income and diluted non-GAAP Earnings Per Common Share and GAAP outlook to non-GAAP outlook are included elsewhere in this release. Cautionary Note on Forward-Looking Statements This news release contains “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on current management expectations and assumptions only as of the date of this news release. They are not guarantees of future performance and they involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, but are not limited to, fluctuations in the demand for semiconductors and the overall volume of semiconductor manufacturing; the impact of global economic uncertainty, including volatile financial markets, inflationary pressures and interest rate fluctuations, economic recessions, national debt and bank failures, raw material shortages, supply and labor constraints, and price increases; fluctuations in the Company’s revenues and operating results and their impact on the Company’s stock price; supply chain interruptions and the Company’s dependence on sole, single and limited source suppliers; operational, political and legal risks of the Company’s international operations; the impact of regional and global instabilities, hostilities and geopolitical uncertainty, including, but not limited to, the ongoing conflicts between Ukraine and Russia, and between Israel and Hamas, as well as the global responses thereto; export controls, economic sanctions, and similar restrictions; the concentration and consolidation of the Company’s customer base; the Company’s ability to meet rapid demand shifts; the Company’s ability to continue technological innovation and to introduce new products to meet customers’ rapidly changing requirements; manufacturing and other operational disruptions or delays; IT system failures, network disruptions, and cybersecurity risks; the risks associated with the use and manufacture of hazardous materials; tariffs, additional taxes, and other protectionist measures resulting from international trade disputes, strained international relations, and changes in foreign and national security policy; goodwill impairment; challenges in attracting and retaining qualified personnel; the Company’s ability to protect and enforce intellectual property rights; the Company’s environmental, social, and governance commitments; legal and regulatory risks, including changes in laws and regulations related to the environment, health and safety, accounting standards, and corporate governance, across the jurisdictions in which the Company operates; changes in taxation or adverse tax rulings; the Company’s ability to effectively implement any organizational changes; the ability to obtain government incentives and the possibility that competitors will benefit from government incentives; the amount and consequences of the Company’s indebtedness, its ability to repay its debt and to obtain future financing, and the Company’s obligations under its current outstanding credit facilities; volatility in the Company’s stock price; the payment of cash dividends and the adoption of future share repurchase programs; challenges associated with a potential change of control; substantial competition; the Company’s ability to identify, complete and integrate acquisitions, joint ventures, divestitures or other similar transactions; the impacts of climate change; and other matters. These risks and uncertainties also include, but are not limited to, the risk factors and additional information described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including under the heading “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 15, 2024, and in the Company’s other SEC filings. Except as required under the federal securities laws and the rules and regulations of the SEC, the Company undertakes no obligation to update publicly any forward-looking statements or information contained herein, which speak as of their respective dates.   Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three months ended Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Net sales $849,837 $812,291 $807,694 Cost of sales 462,582 467,611 435,869 Gross profit 387,255 344,680 371,825 Selling, general and administrative expenses 109,604 144,680 108,455 Engineering, research and development expenses 81,447 67,567 80,903 Amortization of intangible assets 46,221 50,984 46,226 Goodwill impairment — 10,432 — Gain on termination of alliance agreement — (30,000 ) — Operating income 149,983 101,017 136,241 Interest expense, net 50,524 62,101 50,419 Other (income) expense, net (13,029 ) 12,058 (212 ) Income before income tax expense (benefit) 112,488 26,858 86,034 Income tax expense (benefit) 9,997 (11,264 ) 8,190 Equity in net loss of affiliates 248 145 262 Net income $102,243 $37,977 $77,582 Basic earnings per common share: $0.68 $0.25 $0.51 Diluted earnings per common share: $0.67 $0.25 $0.51 Weighted average shares outstanding: Basic 151,236 150,223 151,196 Diluted 151,900 151,331 151,924 Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)   Twelve months ended Dec 31, 2024 Dec 31, 2023 Net sales $3,241,208 $3,523,926 Cost of sales 1,754,489 2,026,321 Gross profit 1,486,719 1,497,605 Selling, general and administrative expenses 446,567 576,194 Engineering, research and development expenses 316,111 277,313 Amortization of intangible assets 190,119 214,477 Goodwill impairment — 115,217 Gain on termination of alliance agreement — (184,754 ) Operating income 533,922 499,158 Interest expense, net 207,849 301,121 Other expense, net 4,021 25,367 Income before income tax expense (benefit) 322,052 172,670 Income tax expense (benefit) 28,332 (8,413 ) Equity in net loss of affiliates 933 414 Net income $292,787 $180,669 Basic earnings per common share: $1.94 $1.21 Diluted earnings per common share: $1.93 $1.20 Weighted average shares outstanding: Basic 150,946 149,900 Diluted 151,840 150,945   Entegris, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited)   Dec 31, 2024 Dec 31, 2023 ASSETS Current assets: Cash and cash equivalents $329,213 $456,929 Trade accounts and notes receivable, net 495,312 457,052 Inventories, net 638,080 607,051 Deferred tax charges and refundable income taxes 39,613 63,879 Assets held-for-sale 5,519 278,753 Other current assets 108,567 113,663 Total current assets 1,616,304 1,977,327 Property, plant and equipment, net 1,622,926 1,468,043 Right-of-use assets 83,475 80,399 Goodwill 3,943,571 3,945,860 Intangible assets, net 1,091,746 1,281,969 Deferred tax assets and other noncurrent tax assets 12,463 31,432 Other assets 24,135 27,561 Total assets $8,394,620 $8,812,591 LIABILITIES AND EQUITY Current liabilities Accounts payable 193,261 134,211 Accrued liabilities 250,172 283,158 Liabilities held-for-sale 1,213 19,223 Income tax payable 80,532 77,403 Total current liabilities 525,178 513,995 Long-term debt 3,981,105 4,577,141 Long-term lease liabilities 72,159 68,986 Other liabilities 124,674 243,875 Shareholders’ equity 3,691,504 3,408,594 Total liabilities and equity $8,394,620 $8,812,591   Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)   Three months ended Twelve months ended Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 Operating activities: Net income $102,243 $37,977 $292,787 $180,669 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 48,272 42,558 188,120 172,683 Amortization 46,221 50,984 190,119 214,477 Share-based compensation expense 15,510 8,955 65,859 61,371 Provision for deferred income taxes (31,835 ) (50,240 ) (78,902 ) (145,606 ) Loss on extinguishment of debt 2,001 17,003 13,386 27,865 Impairment of goodwill — 10,432 — 115,217 Gain on termination of alliance agreement — (30,000 ) — (184,754 ) (Gain) loss from sale of businesses and held-for-sale assets, net — (4,740 ) (4,311 ) 23,839 Other 14,852 45,398 73,647 113,232 Changes in operating assets and liabilities, net of effects of acquisitions: Trade accounts and notes receivable 3,044 903 (49,031 ) 608 Inventories (7,836 ) 39,411 (76,708 ) 102,751 Accounts payable and accrued liabilities (43,693 ) (26,437 ) 8,870 (14,633 ) Income taxes payable, refundable income taxes and noncurrent taxes payable 31,597 26,597 7,889 (10,177 ) Other (4,280 ) (10,696 ) (4 ) (13,066 ) Net cash provided by operating activities 176,096 158,105 631,721 644,476 Investing activities: Acquisition of property and equipment (107,524 ) (128,665 ) (315,606 ) (456,847 ) Proceeds, net from sale of businesses — 680,674 250,789 814,960 Proceeds from termination of alliance agreement — 21,900 — 191,151 Other (387 ) 1,888 (2,262 ) 3,807 Net cash (used in) provided by investing activities (107,911 ) 575,797 (67,079 ) 553,071 Financing activities: Proceeds from debt 110,000 — 364,537 217,449 Payments of debt (260,000 ) (869,725 ) (988,311 ) (1,473,675 ) Payments for debt issuance costs — — — (3,475 ) Payments for dividends (15,105 ) (15,019 ) (60,583 ) (60,221 ) Issuance of common stock 429 5,704 14,046 35,878 Taxes paid related to net share settlement of equity awards (688 ) (568 ) (16,834 ) (12,108 ) Other (27 ) (468 ) (1,842 ) (1,391 ) Net cash used in financing activities (165,391 ) (880,076 ) (688,987 ) (1,297,543 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (5,653 ) 9,083 (3,371 ) (6,514 ) Decrease in cash, cash equivalents and restricted cash (102,859 ) (137,091 ) (127,716 ) (106,510 ) Cash, cash equivalents and restricted cash at beginning of period 432,072 594,020 456,929 563,439 Cash, cash equivalents and restricted cash at end of period $329,213 $456,929 $329,213 $456,929   Entegris, Inc. and Subsidiaries Segment Information (In thousands) (Unaudited)   Three months ended Twelve months ended Net sales Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Dec 31, 2024 Dec 31, 2023 Materials Solutions $361,079 $364,965 $346,634 $1,400,082 $1,689,467 Advanced Purity Solutions 491,193 449,779 463,131 1,850,199 1,846,596 Inter-segment elimination (2,435 ) (2,453 ) (2,071 ) (9,073 ) (12,137 ) Total net sales $849,837 $812,291 $807,694 $3,241,208 $3,523,926 Three months ended Twelve months ended Segment profit Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Dec 31, 2024 Dec 31, 2023 Materials Solutions $77,122 $53,204 $71,706 $286,220 $296,375 Advanced Purity Solutions 134,966 118,021 127,315 496,131 531,448 Total segment profit 212,088 171,225 199,021 782,351 827,823 Amortization of intangibles (46,221 ) (50,984 ) (46,226 ) (190,119 ) (214,477 ) Unallocated expenses (15,884 ) (19,224 ) (16,554 ) (58,310 ) (114,188 ) Total operating income $149,983 $101,017 $136,241 $533,922 $499,158   Entegris, Inc. and Subsidiaries Reconciliation of GAAP Gross Profit to Adjusted Gross Profit (In thousands)   Three months ended Twelve months ended Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Dec 31, 2024 Dec 31, 2023 Net sales $849,837 $812,291 $807,694 $3,241,208 $3,523,926 Gross profit-GAAP $387,255 $344,680 $371,825 $1,486,719 $1,497,605 Adjustments to gross profit: Restructuring costs 1 429 28 — 429 8,194 Adjusted gross profit $387,684 $344,708 $371,825 $1,487,148 $1,505,799 Gross margin - as a % of net sales 45.6 % 42.4 % 46.0 % 45.9 % 42.5 % Adjusted gross margin - as a % of net sales 45.6 % 42.4 % 46.0 % 45.9 % 42.7 % 1 Restructuring charges resulting from cost saving initiatives.   Entegris, Inc. and Subsidiaries Reconciliation of GAAP Segment Profit to Adjusted Operating Income (In thousands) (Unaudited)   Three months ended Twelve months ended Adjusted segment profit Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Dec 31, 2024 Dec 31, 2023 MS segment profit $77,122 $53,204 $71,706 $286,220 $296,375 Restructuring costs 1 1,154 1,635 — 1,154 9,261 (Gain) loss on sale of businesses and held-for-sale assets, net 2 — (4,740 ) — (4,311 ) 23,839 Goodwill impairment 3 — 10,432 — — 115,217 Gain on termination of alliance agreement 4 — (30,000 ) — — (184,754 ) Impairment on long-lived assets 5 — 30,464 — 12,967 30,464 MS adjusted segment profit $78,276 $60,995 $71,706 $296,030 $290,402 APS segment profit $134,966 $118,021 $127,315 $496,131 $531,448 Restructuring costs 1 2,121 278 — 2,121 5,009 APS adjusted segment profit $137,087 $118,299 $127,315 $498,252 $536,457 Unallocated general and administrative expenses $15,884 $19,224 $16,554 $58,310 $114,188 Less: unallocated deal and integration costs — (7,810 ) (426 ) (3,368 ) (56,526 ) Less: unallocated restructuring costs 1 (655 ) (388 ) — (655 ) (475 ) Less: unallocated acquired tax equalization asset reduction 6 — — (2,959 ) (2,959 ) — Adjusted unallocated general and administrative expenses $15,229 $11,026 $13,169 $51,328 $57,187 Total adjusted segment profit $215,363 $179,294 $199,021 $794,282 $826,859 Less: adjusted unallocated general and administrative expenses (15,229 ) (11,026 ) (13,169 ) (51,328 ) (57,187 ) Total adjusted operating income $200,134 $168,268 $185,852 $742,954 $769,672   1 Restructuring charges resulting from cost saving initiatives. 2 (Gain) loss from the sale of certain businesses and held-for-sale assets, net. 3 Non-cash impairment charges associated with goodwill. 4 Gain on the termination of the alliance agreement with MacDermid Enthone. 5 Impairment of long-lived assets. 6 Represents an asset reduction of an acquired tax equalization asset from the CMC Materials acquisition.   Entegris, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA (In thousands) (Unaudited) Three months ended Twelve months ended Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Dec 31, 2024 Dec 31, 2023 Net sales $849,837 $812,291 $807,694 $3,241,208 $3,523,926 Net income $102,243 $37,977 $77,582 $292,787 $180,669 Net income - as a % of net sales 12.0 % 4.7 % 9.6 % 9.0 % 5.1 % Adjustments to net income: Equity in net loss of affiliates 248 145 262 933 414 Income tax expense (benefit) 9,997 (11,264 ) 8,190 28,332 (8,413 ) Interest expense, net 50,524 62,101 50,419 207,849 301,121 Other (income) expense, net (13,029 ) 12,058 (212 ) 4,021 25,367 GAAP - Operating income 149,983 101,017 136,241 533,922 499,158 Operating margin - as a % of net sales 17.6 % 12.4 % 16.9 % 16.5 % 14.2 % Goodwill impairment 1 — 10,432 — — 115,217 Deal and transaction costs 2 — — — — 3,001 Integration costs: Professional fees 3 — 4,582 287 2,574 36,650 Severance costs 4 — (395 ) 139 794 1,478 Retention costs 5 — — — — 1,687 Other costs 6 — 3,623 — — 13,710 Restructuring costs 7 3,930 2,301 — 3,930 14,745 Acquired tax equalization asset reduction 8 — — 2,959 2,959 — (Gain) loss on sale of businesses and held-for-sale assets, net 9 — (4,740 ) — (4,311 ) 23,839 Gain on termination of alliance agreement 10 — (30,000 ) — — (184,754 ) Impairment of long-lived assets 11 — 30,464 — 12,967 30,464 Amortization of intangible assets 12 46,221 50,984 46,226 190,119 214,477 Adjusted operating income 200,134 168,268 185,852 742,954 769,672 Adjusted operating margin - as a % of net sales 23.5 % 20.7 % 23.0 % 22.9 % 21.8 % Depreciation 48,272 42,558 47,098 188,120 172,683 Adjusted EBITDA $248,406 $210,826 $232,950 $931,074 $942,355 Adjusted EBITDA - as a % of net sales 29.2 % 26.0 % 28.8 % 28.7 % 26.7 % 1 Non-cash impairment charges associated with goodwill of our Electronic Chemicals and a small, industrial specialty chemicals businesses. 2 Deal and transaction costs associated with the CMC Materials acquisition and completed divestitures. 3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other third-party service providers to assist us in integrating CMC Materials into our operations. These fees arise outside of the ordinary course of our continuing operations. 4 Represents severance charges related to the integration of the CMC Materials acquisition. 5 Represents retention charges related directly to the CMC Materials acquisition and completed divestitures, and are not part of our normal, recurring cash operating expenses. 6 Represents other employee-related costs and other costs incurred relating to the CMC Materials acquisition and the completed divestitures. These costs arise outside of the ordinary course of our continuing operations. 7 Restructuring charges resulting from cost saving initiatives. 8 Represents an asset reduction of an acquired tax equalization asset from the CMC Materials acquisition. 9 (Gain) loss from the sale of certain businesses and held-for-sale assets, net. 10 Gain on termination of the alliance agreement with MacDermid Enthone. 11 Impairment of long-lived assets. 12 Non-cash amortization expense associated with intangibles acquired in acquisitions.   Entegris, Inc. and Subsidiaries Reconciliation of GAAP Net Income and Diluted Earnings per Common Share to Non-GAAP Net Income and Diluted Non-GAAP Earnings per Common Share (In thousands, except per share data) (Unaudited)     Three months ended Twelve months ended Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Dec 31, 2024 Dec 31, 2023 GAAP net income $102,243 $37,977 $77,582 $292,787 $180,669 Adjustments to net income: Goodwill impairment 1 — 10,432 — — 115,217 Deal and transaction costs 2 — — — — 3,001 Integration costs: Professional fees 3 — 4,582 287 2,574 36,650 Severance costs 4 — (395 ) 139 794 1,478 Retention costs 5 — — — — 1,687 Other costs 6 — 3,623 — — 13,710 Restructuring costs 7 3,930 2,301 — 3,930 14,745 Patent infringement settlement gain, net 8 (20,033 ) — — (20,033 ) — Acquired tax equalization asset reduction 9 — — 2,959 2,959 — Loss on extinguishment of debt and modification 10 2,001 17,003 — 14,348 29,896 (Gain) loss on sale of businesses and held-for-sale assets, net 11 — (4,740 ) — (4,311 ) 23,839 Gain on termination of alliance agreement 12 — (30,000 ) — — (184,754 ) Infineum termination fee, net 13 — — — — (10,877 ) Impairment of long-lived assets 14 — 30,464 — 12,967 30,464 Amortization of intangible assets 15 46,221 50,984 46,226 190,119 214,477 Tax effect of adjustments to net income and discrete tax items16 (6,837 ) (24,288 ) (9,611 ) (40,146 ) (71,284 ) Non-GAAP net income $127,525 $97,943 $117,582 $455,988 $398,918 Diluted earnings per common share $0.67 $0.25 $0.51 $1.93 $1.20 Effect of adjustments to net income $0.17 $0.40 $0.26 $1.07 $1.45 Diluted non-GAAP earnings per common share $0.84 $0.65 $0.77 $3.00 $2.64 Diluted weighted averages shares outstanding 151,900 151,331 151,924 151,840 150,945 1 Non-cash impairment charges associated with goodwill of our Electronic Chemicals and a small, industrial specialty chemicals businesses. 2 Deal and transaction costs associated with the CMC Materials acquisition and completed divestitures. 3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other third-party service providers to assist us in integrating CMC Materials into our operations. 4 Represents severance charges related to the integration of the CMC Materials acquisition. 5 Represents retention charges related directly to the CMC Materials acquisition and completed divestitures, and are not part of our normal, recurring cash operating expenses. 6 Represents other employee related costs and other costs incurred relating to the CMC Materials acquisition and the completed divestitures. These costs arise outside of the ordinary course of our continuing operations. 7 Restructuring charges resulting from cost saving initiatives. 8 During the fourth quarter of 2024, the Company settled a patent infringement litigation and received net proceeds of $20.0 million. 9 Represents an asset reduction of an acquired tax equalization asset from the CMC Materials acquisition. 10 Loss on extinguishment of debt and modification of our Existing Credit Agreement. 11 (Gain) loss from the sale of certain businesses and held-for-sale assets, net. 12 Gain on termination of the alliance agreement with MacDermid Enthone. 13 Non-recurring gain from the termination fee with Infineum. 14 Impairment of long-lived assets. 15 Non-cash amortization expense associated with intangibles acquired in acquisitions. 16 The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate for each respective year.   Entegris, Inc. and Subsidiaries Reconciliation of Reported Net Sales to Adjusted Net Sales (excluding divestitures) Non-GAAP (In thousands) (Unaudited)   Three months ended Twelve months ended Dec 31, 2024 Dec 31, 2023 Sep 28, 2024 Dec 31, 2024 Dec 31, 2023 Net sales $849,837 $812,291 $807,694 $3,241,208 $3,523,926 Less: divestitures 1 — (46,844 ) — (33,907 ) (458,357 ) Adjusted net sales (excluding divestitures) Non-GAAP $849,837 $765,447 $807,694 $3,207,301 $3,065,569 1 Adjusted for the impact of net sales from divestitures.   Entegris, Inc. and Subsidiaries Reconciliation of GAAP Outlook to Non-GAAP Outlook * (In millions, except per share data) (Unaudited)   First Quarter Outlook Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin March 29, 2025 Net sales $775 - $805 GAAP - Operating income $116 - $134 Operating margin - as a % of net sales 15.0% - 16.7% Restructuring costs 2 Amortization of intangible assets 46 Adjusted operating income $165 - $182 Adjusted operating margin - as a % of net sales 21.2% - 22.6% Depreciation 53 Adjusted EBITDA $217 - $233 Adjusted EBITDA - as a % of net sales 28.0% - 29.0% First Quarter Outlook Reconciliation GAAP net income to non-GAAP net income March 29, 2025 GAAP net income $58 - $68 Adjustments to net income: Restructuring costs 2 Amortization of intangible assets 46 Income tax effect (9) Non-GAAP net income $97 - $108 First Quarter Outlook Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share March 29, 2025 Diluted earnings per common share $0.38 - $0.45 Adjustments to earnings per share: Restructuring costs 0.01 Amortization of intangible assets 0.30 Income tax effect (0.06) Diluted non-GAAP earnings per common share $0.64 - $0.71 *As a result of displaying amounts in millions, rounding differences may exist in the tables.

Related News