Photronics Q3 revenue down 0.3% YoY, net income $22.9mln, EPS $0.39.

• Photronics Q3 revenue down 0.3% YoY and QoQ to $210.4mln • GAAP net income $22.9mln, down from $34.4mln YoY • Chairman and CEO George Macricostas focuses on operational efficiency and investment • Company aims to maintain customer cycle times and drive revenue and earnings growth • Photronics remains a leader in photomask technologies and solutions • Photronics delivered good Q3 results ahead of expectations.

Photronics Inc. (PLAB), a leading manufacturer of photomasks for integrated circuits and flat-panel displays, reported its third-quarter fiscal 2025 financial results on August 27, 2025. The company's revenue reached $210.4 million, marking a 0.3% year-over-year (YoY) decline and a marginal 0.3% sequential drop [2]. Despite the flat revenue, Photronics' non-GAAP earnings per share (EPS) improved by 27.5% sequentially, reaching $0.51 per share, although GAAP net income fell to $22.9 million, down from $34.4 million a year ago [2].

The company's integrated circuit (IC) revenue decreased to $147.8 million, down 5% YoY and sequentially, while flat-panel display (FPD) revenue grew to $62.6 million, up 14% YoY and sequentially. This divergence in segment performance highlights Photronics' ability to stabilize overall performance through its diversified product portfolio [2].

Chairman and CEO George Macricostas emphasized the company's focus on operational efficiency and strategic investments to enhance geographic revenue diversification and maintain customer cycle times. He stated, "Photronics delivered very good results in our fiscal third quarter with revenue, profitability, and EPS ahead of expectations. Looking ahead, we remain focused on operational efficiency to maintain our excellent standard of maximizing customer cycle times. We will further accelerate internal investment efforts to enhance geographic revenue diversification and position the company for sustained revenue and earnings growth" [2].

Photronics' cash position remained robust at $575.8 million, with $396.8 million associated with joint ventures. The company authorized a $25.0 million increase to its share repurchase program, signaling management's confidence in the company's intrinsic value [2].

For the fourth quarter of fiscal 2025, Photronics expects revenue between $201 million and $209 million, with non-GAAP EPS of $0.42 to $0.48. The cautious outlook reflects the ongoing weakness in the IC segment and the company's strategic focus on operational efficiency and investment [2].

Photronics continues to face challenges in the semiconductor market, but its operational resilience and strategic pivot towards high-margin segments support a long-term buy thesis despite near-term earnings volatility [3].

References:
[1] https://www.stocktitan.net/news/PLAB/photronics-reports-third-quarter-fiscal-2025-financial-f3280thyr6a7.html
[2] https://www.ainvest.com/news/photronics-plab-earnings-volatility-ai-driven-growth-opportunities-2508/