ENTG Entegris Inc

• Net sales (as reported) of $850 million, increased 5% from prior year.
• Adjusted net sales (excluding the impact of divestitures) increased 11% from prior year.
• GAAP diluted EPS of $0.67.
• Non-GAAP diluted EPS of $0.84.

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.

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206637324/en/

Bill Seymour VP of Investor Relations T + 1 952 556 1844 bill.seymour@entegris.com