Entegris (ENTG) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales were $807.1M, nearly flat year-over-year and up sequentially, with GAAP diluted EPS of $0.46 and non-GAAP EPS of $0.72, both meeting guidance.

• Net income for Q3 2025 was $70.5M, down from $77.5M a year ago, while adjusted (non-GAAP) net income was $109.9M.

• Record operating cash flow was achieved, with strong momentum in advanced node products and a leadership transition to a new CEO focused on growth and value creation.

• The company completed restructuring initiatives, including workforce reductions and asset impairments, and divested the PIM business, impacting year-over-year comparability.

• For the nine months ended September 27, 2025, net sales were $2,372.7M and net income was $186.2M.

Financial highlights

• Gross margin for Q3 2025 was 43.5% (GAAP) and 43.6% (non-GAAP), down from 46.0% a year ago, mainly due to underutilization of manufacturing facilities.

• Adjusted EBITDA for Q3 2025 was $220.7M (27.3% margin), down 5% year-over-year but up sequentially.

• Free cash flow for Q3 2025 was $191M, the highest in six years, driven by inventory reduction.

• Operating income for Q3 2025 was $122.6M (15.2% margin), compared to $136.2M (16.9% margin) in Q3 2024.

• Cash and cash equivalents at quarter-end were $399.8M; long-term debt was $3,842.8M.

Outlook and guidance

• Q4 2025 sales expected between $790M and $830M; GAAP EPS guidance is $0.35–$0.42, non-GAAP EPS is $0.62–$0.69.

• Adjusted EBITDA margin for Q4 2025 is projected at 26.5%–27.5%.

• CapEx is expected to materially decrease year-over-year as the company exits a major investment cycle, with existing capacity supporting higher revenue.

• Management expects continued near-term headwinds from global trade tensions, supply chain challenges, and semiconductor market volatility.

• Non-GAAP tax rate to normalize at ~15% in Q4.