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Photronics Reports Third Quarter Fiscal 2025 Financial Results

1. PLAB reported Q3 2025 results with revenue at $210.4 million. 2. GAAP net income decreased to $22.9 million from last year’s $34.4 million. 3. FPD revenue increased 14%, while IC revenue decreased 5% year-over-year. 4. PLAB announced a $25 million increase in share repurchase authorization. 5. Fourth-quarter revenue guidance is projected between $201 million and $209 million.

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$22.2708/27 07:07 AM EDTEvent Start
$23.9908/27 02:32 PM EDTLatest Updated
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FAQ

Why Bullish?

Despite a slight revenue decline, strong EPS and FPD growth support a positive outlook. Historical trends show similar patterns leading to stock price increases post-earnings.

How important is it?

Investors will prioritize the overall revenue guidance and share buybacks, directly influencing PLAB’s valuation in the near term.

Why Short Term?

Immediate investor response likely in the next quarter, especially with share repurchase news boosting market sentiments.

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INTCTSMSamsung
August 27, 2025 07:00 ET  | Source: Photronics, Inc. BROOKFIELD, Conn., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2025 ended August 3, 2025. Commenting on the third-quarter performance, Chairman and CEO George Macricostas said, "Photronics delivered very good results in our fiscal third quarter with revenue, profitability and EPS ahead of expectations. Looking ahead, we remain focused on operational efficiency to maintain our excellent standard of maximizing customer cycle times. We will further accelerate internal investment efforts to enhance geographic revenue diversification and position the company for sustained revenue and earnings growth.” Third Quarter Fiscal 2025 Results Revenue was $210.4 million, down 0.3% year-over-year and 0.3% sequentially.GAAP Net income attributable to Photronics, Inc. shareholders was $22.9 million, or $0.39 per diluted share, compared with $34.4 million, or $0.55 per diluted share, in the third quarter of 2024 and $8.9 million, or $0.15 per diluted share, in the second quarter of 2025.Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4 million, or $0.51 per diluted share, compared with $31.9 million, or $0.51 per diluted share in the third quarter of 2024 and $24.3 million, or $0.40 per diluted share, in the second quarter of 2025.IC revenue was $147.8 million, down 5% year-over-year and 5% sequentially.FPD revenue was $62.6 million, up 14% from the same quarter last year and 14% sequentially.Cash, cash equivalents and short-term investments at the end of the quarter were $575.8 million, of which $396.8 million was associated with our Joint Ventures, of which we own 50%.Cash generated from operating activities was $50.1 million, cash invested in organic growth through capital expenditures was $24.8 million, and cash returned to shareholders through share repurchases was $20.7 million.The Board of Directors authorized an increase of $25.0 million to the share repurchase authorization. Fourth Quarter Fiscal 2025 Guidance For the fourth quarter of fiscal 2025, Photronics expects Revenue to be between $201 million and $209 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.42 and $0.48 per diluted share. Webcast A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on August 27, 2025. The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here. It is suggested that participants register fifteen minutes prior to the call's scheduled start time. About Photronics Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 56 years. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com. Forward-Looking Statements Certain statements in this press release constitute “forward-looking statements” regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially. Please refer to Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results. Non-GAAP Financial Measures Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders, are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below. PHOTRONICS, INC.   Condensed Consolidated Statements of Income   (in thousands, except per share amounts)   (Unaudited)                 Three Months Ended Nine Months Ended    August 3, May 4, July 28, August 3, July 28,     2025   2025   2024   2025   2024              Revenue   $210,394  $210,992  $210,984  $633,524  $644,318              Cost of goods sold   139,539   133,086   135,846   409,228   410,674              Gross Profit    70,855   77,906   75,138   224,296   233,644 Gross margin %   33.7%  36.9%  35.6%  35.4%  36.3%             Operating Expenses:                        Selling, general and administrative 18,423   18,099   19,436   55,624   56,753              Research and development  4,271   4,090   3,555   12,618   11,291              Total Operating Expenses  22,694   22,189   22,991   68,242   68,044              Other operating gain   -   -   1   -   90              Operating Income   48,161   55,717   52,148   156,054   165,690 Operating Margin   22.9%  26.4%  24.7%  24.6%  25.7%             Non-operating (loss) income, net (9,428)  (25,786)  10,145   (10,232)  26,931              Income Before Income Tax Provision 38,733   29,931   62,293   145,822   192,621              Income tax provision   9,594   5,714   14,124   34,209   48,998              Net Income    29,139   24,217   48,169   111,613   143,623              Net income attributable to noncontrolling interests 6,248   15,356   13,781   37,009   46,804              Net income attributable to Photronics, Inc. shareholders$22,891  $8,861  $34,388  $74,604  $96,819              Earnings per share attributed to Photronics, Inc. shareholders:                     Basic   $0.40  $0.15  $0.56  $1.24  $1.57                        Diluted   $0.39  $0.15  $0.55  $1.23  $1.55                        Weighted-average number of common shares outstanding:                                          Basic    57,937   60,793   61,815   60,274   61,681                        Diluted    58,068   60,974   62,414   60,567   62,369                         PHOTRONICS, INC.Condensed Consolidated Balance Sheets(in thousands)(Unaudited)             August 3, October 31,     2025 2024         Assets               Current assets:      Cash and cash equivalents $479,521 $598,485 Short-term investments  96,277  42,184 Accounts receivable  190,875  200,830 Inventories   63,490  56,527 Other current assets  42,073  33,036         Total current assets  872,236  931,062         Property, plant and equipment, net 838,988  745,257 Other assets   41,541  35,740         Total assets  $1,752,765 $1,712,059                         Liabilities and Equity             Current liabilities:      Current portion of long-term debt$11 $17,972 Accounts payable and accrued liabilities 174,914  165,839         Total current liabilities  174,925  183,811         Long-term debt   16  25 Other liabilities   39,824  47,464         Equity:       Photronics, Inc. shareholders' equity 1,125,551  1,120,864 Noncontrolling interests  412,449  359,895 Total equity   1,538,000  1,480,759         Total liabilities and equity $1,752,765 $1,712,059          PHOTRONICS, INC. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited)                        Nine Months Ended      August 3, July 28,       2025   2024           Cash flows from operating activities:     Net income   $111,613  $143,623  Adjustments to reconcile net income to net cash    provided by operating activities:     Depreciation and amortization  59,234   61,613  Share-based compensation  10,003   9,841  Changes in operating assets, liabilities and other (20,876)  (22,003)          Net cash provided by operating activities  159,974   193,074           Cash flows from investing activities:     Purchases of property, plant and equipment (120,588)  (87,733) Purchases of short-term investments  (96,571)  (100,558) Proceeds from maturities of short-term investments 42,148   44,696  Government incentives   1,469   1,541  Other     (57)  (4)          Net cash used in investing activities  (173,599)  (142,058)          Cash flows from financing activities:     Repayments of debt   (17,969)  (4,500) Common stock repurchases  (97,422)  -  Proceeds from share-based arrangements 2,120   1,074  Net settlements of restricted stock awards (2,013)  (3,002)          Net cash used in financing activities  (115,284)  (6,428)          Effects of exchange rate changes on cash, cash equivalents, and restricted cash 10,129   (6,454)          Net (decrease) increase in cash, cash equivalents, and restricted cash (118,780)  38,134  Cash, cash equivalents, and restricted cash, beginning of period 601,243   501,867           Cash, cash equivalents, and restricted cash, end of period$482,463  $540,001            PHOTRONICS, INC.Reconciliation of GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders to Non-GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders(in thousands, except per share amounts)(Unaudited)               Three Months ended  August 3, May 4, July 28,   2025   2025   2024                GAAP Net income attributable to Photronics, Inc. shareholders$22,891  $8,861  $34,388  FX (gain) loss 14,258   31,111   (4,068) Estimated tax effects of FX (gain) loss (3,663)  (8,337)  914  Estimated noncontrolling interest effects of above (4,130)  (7,376)  681  Non-GAAP Net income attributable to Photronics, Inc. shareholders$29,356  $24,259  $31,915         Weighted-average number of common shares outstanding - Diluted 58,068   60,974   62,414                GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders$0.39  $0.15  $0.55  Effects of non-GAAP adjustments above 0.12   0.25   (0.04) Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders$0.51  $0.40  $0.51          For Further Information:Ted MoreauVP, Investor Relations469.395.8175tmoreau@photronics.com 

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