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, with double-digit growth in both Materials Solutions (MS) and Advanced Purity Solutions (APS) segments.

• Adjusted EBITDA was $250.7 million (28.4% margin), up 16% year-over-year, and adjusted net income rose 41.8% to $142.7 million, with non-GAAP diluted EPS at $0.93.

• Gross margin expanded to 47.6%, driven by increased production volumes, operational improvements, and lower depreciation expense following a change in asset useful lives.

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

• Free cash flow reached $120.3 million, supporting debt repayment and reducing net leverage to 3.4x.

Financial highlights

• Q2 2026 net sales: $883.2 million (+11.5% YoY); GAAP net income: $93.6 million (+77% YoY); adjusted net income: $142.7 million (+41.8% YoY); diluted EPS: $0.61; non-GAAP EPS: $0.93.

• Gross margin improved to 47.6% (GAAP and non-GAAP); operating margin rose to 18.6% from 13.4% YoY.

• Adjusted operating income was $216.3 million (24.5% margin); adjusted EBITDA margin increased to 28.4% from 27.3% YoY.

• Free cash flow was $120.3 million, with a 20-day year-over-year reduction in cash conversion cycle.

• Long-term debt reduced to $3,456 million from $3,987.8 million year-over-year.

Outlook and guidance

• Q3 2026 sales expected between $905 million and $935 million, with GAAP EPS of $0.75–$0.83 and non-GAAP EPS of $0.96–$1.04.

• Adjusted EBITDA margin projected at 28.0%–29.0%; adjusted operating margin guidance of 24.2%–25.1%.

• 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.