Entegris 2025 Q2 Earnings Misses Targets as Net Income Declines 22%

Entegris (ENTG) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. Entegris fell short of analysts' expectations for the quarter. The company reported a decline in both revenue and net income compared to the same quarter last year. Despite the challenges, Entegris provided guidance for Q3 that was in line with expectations, including anticipated sales between $780 million and $820 million and projected non-GAAP EPS between $0.68 and $0.75. The company remains optimistic about its long-term growth outlook.

Revenue
The total revenue of Entegris decreased by 2.5% to $792.40 million in 2025 Q2, down from $812.70 million in 2024 Q2.

Earnings/Net Income
Entegris's EPS declined 22.2% to $0.35 in 2025 Q2 from $0.45 in 2024 Q2. Meanwhile, the company's net income declined to $52.80 million in 2025 Q2, down 22.0% from $67.70 million reported in 2024 Q2. This performance indicates a challenging quarter for Entegris.

Price Action
The stock price of Entegris has dropped 5.39% during the latest trading day, has tumbled 13.40% during the most recent full trading week, and has dropped 3.69% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Entegris (ENTG) shares following a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days has proven ineffective over the past three years. This approach resulted in a compound annual growth rate (CAGR) of 0.00% and an excess return of -87.61%, significantly underperforming the benchmark return of 87.61%. Despite a maximum drawdown and volatility of 0.00%, indicating a risk-averse stance, the strategy failed to capture gains post-earnings releases. The lack of returns suggests that this method does not capitalize on potential opportunities for profit following Entegris's earnings reports, emphasizing the need for alternative investment strategies.

CEO Commentary
Bertrand Loy, CEO, expressed satisfaction with Entegris' performance in Q2 2025, highlighting that revenue exceeded guidance and showed a 2% sequential increase. He noted strong growth in the Materials Solutions division, particularly in CMP slurries and pads, driven by demand in China and technology transitions. However, he acknowledged challenges in the Advanced Purity Solutions segment due to declining CapEx investments. Loy emphasized the importance of their global manufacturing strategy, citing ongoing investments in Taiwan and Colorado to enhance supply chain resilience amid trade uncertainties. Despite current market volatility, he maintained a positive long-term outlook for the semiconductor industry.

Guidance
For Q3 2025, Entegris anticipates sales between $780 million and $820 million, with a gross margin consistent with Q2. GAAP EPS guidance ranges from $0.43 to $0.50, and non-GAAP EPS is projected between $0.68 and $0.75. Operating expenses are expected to be between $228 million and $232 million on a GAAP basis and $182 million to $186 million on a non-GAAP basis. The company aims for a free cash flow margin in the low double digits for 2025, driven by improved business performance in the second half.

Additional News
In the past three weeks, Entegris announced several noteworthy developments. The company revealed its CEO succession plan, with Bertrand Loy set to retire on August 18, 2025, after 13 years in his roles. David Reeder will take over as President and CEO at that time. Additionally, Entegris declared a quarterly cash dividend of $0.10 per share, payable on August 20, 2025, to shareholders of record as of July 30, 2025. Furthermore, the company opened its Korea Technology Center at Hanyang University ERICA Campus Innovation Park in Ansan-si, Gyeonggi-do, offering advanced technical innovations and capabilities tailored to the needs of customers in Korea.