Entegris (ENTG) investor relations material

Executive summary

• Q1 2026 net sales rose 5% year-over-year to $811.9 million, driven by advanced logic, memory, and manufacturing process demand, with both Materials Solutions (MS) and Advanced Purity Solutions (APS) segments contributing to growth.

• GAAP net income increased 46.3% year-over-year to $92.0 million ($0.60 per diluted share), and non-GAAP net income was $132.5 million ($0.86 per share), both exceeding guidance.

• Adjusted EBITDA reached $226.1 million (27.8% margin), with adjusted gross margin, EBITDA margin, and non-GAAP EPS all above guidance.

• Strong free cash flow of $144 million (18% of sales) enabled $50 million term loan repayment and supported deleveraging.

• Appointment of Sukhi Nagesh as CFO effective May 2026, bringing semiconductor and financial expertise.

Financial highlights

• Gross margin improved to 46.9% (GAAP and non-GAAP), including 50 bps of one-time items, and operating income rose to $141.6 million.

• Free cash flow was $143.5 million, with cash and cash equivalents at $442.7 million at quarter end.

• Net debt at quarter end was $3.3 billion, net leverage 3.6x, with a target of ~3x by year-end.

• Dividend payments totaled $15.4 million for the quarter.

• CapEx expected to be $250 million for 2026, below 2025 levels.

Outlook and guidance

• Q2 2026 sales expected between $815–$845 million, with GAAP EPS $0.53–$0.61 and non-GAAP EPS $0.76–$0.84; adjusted EBITDA margin projected at 27.0%–28.0%.

• Q2 gross margin guided at 46.25–47.25%, a 200+ bps year-over-year improvement.

• Q3 revenue expected to grow ~5% sequentially from Q2 midpoint, with 8% year-over-year growth.

• Full-year 2026: net interest expense slightly below $190 million, non-GAAP tax rate ~15%, CapEx $250 million, depreciation ~$140 million.

• Management expects continued benefits from increased useful lives of property, plant, and equipment, reducing annual depreciation by approximately $73 million in 2026.