Entegris (NASDAQ:ENTG) Posts Quarterly Earnings Results, Beats Expectations By $0.20 EPS

Key Points

• Entegris delivered a strong third quarter: Revenue rose 24.6% year over year to approximately $1.01 billion, while EPS of $1.23 exceeded analyst expectations by $0.20 and increased from $0.72 a year earlier.
• Profitability and demand strengthened: Adjusted gross margin expanded to 48.9%, adjusted EBITDA margin reached 30.2%, and backlog more than doubled year over year, supported by demand from advanced logic, memory and AI infrastructure.
• The outlook remains positive but valuation is elevated: Management forecast fourth-quarter revenue of $1.025 billion to $1.055 billion, while analysts maintain a consensus “Buy” rating and $181.67 price target; however, the stock trades at a price-to-earnings ratio above 80.

Entegris (NASDAQ:ENTG - Get Free Report) announced its earnings results on Thursday. The semiconductor company reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.03 by $0.20, FiscalAI reports. The firm had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $925.35 million. Entegris had a return on equity of 12.25% and a net margin of 9.18%. The business's revenue was up 24.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.72 EPS.

Here are the key takeaways from Entegris' conference call:

• Record third-quarter performance: Revenue rose 25% year over year to $1.006 billion, while non-GAAP EPS increased 71% to $1.23. Growth was broad-based across both APS and MS, supported by advanced logic, memory, AI infrastructure and stronger CapEx demand.
• Profitability improved substantially: Adjusted gross margin expanded 530 basis points year over year to 48.9%, and adjusted EBITDA margin reached 30.2%, driven by higher volumes, factory absorption, yield improvements and productivity gains rather than material pricing increases.
• Demand visibility and backlog strengthened: Book-to-bill remained significantly above one, with backlog increasing more than 35% sequentially and more than doubling year over year. New plans of record in EUV filtration, advanced materials and CMP are expected to expand future content opportunities.
• Fourth-quarter outlook remains strong: Management expects revenue of $1.025 billion to $1.055 billion, approximately 26% year-over-year growth at the midpoint, and adjusted EBITDA margin of about 31%. Executives also described industry conditions and 2027 CapEx trends as constructive.
• Seasonality expected in early 2027: First-quarter revenue is projected to decline by a mid-single-digit percentage sequentially because of fewer selling days and typical seasonality, although it is still expected to grow more than 20% year over year. The company also fully repaid its 2029 term loan, reducing net leverage to 2.9 times.

Entegris Price Performance

Shares of ENTG traded up $0.68 during trading hours on Thursday, reaching $160.00. The company had a trading volume of 4,269,541 shares, compared to its average volume of 2,846,473. The company has a current ratio of 3.05, a quick ratio of 1.85 and a debt-to-equity ratio of 0.83. Entegris has a 12-month low of $67.97 and a 12-month high of $186.94. The firm has a 50 day simple moving average of $145.82 and a 200-day simple moving average of $137.30. The company has a market capitalization of $24.40 billion, a price-to-earnings ratio of 80.40, a PEG ratio of 1.23 and a beta of 1.40.

Entegris Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 18th. Stockholders of record on Wednesday, October 28th will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date is Wednesday, October 28th. Entegris's dividend payout ratio (DPR) is currently 20.10%.

Trending Headlines about Entegris

Here are the key news stories impacting Entegris this week:

• Positive Sentiment: Q3 results substantially exceeded expectations: Entegris reported adjusted earnings of $1.23 per share, versus the $1.03–$1.04 consensus, while revenue reached $1.006 billion compared with estimates near $925 million. Revenue increased 24.6% year over year, and adjusted earnings rose from $0.72 a year earlier. Earnings Flash: Entegris Reports Q3 Revenue Above Estimates
• Positive Sentiment: Profitability improved sharply: GAAP gross margin expanded to 49.7% from 43.5% in the prior-year quarter, while operating income nearly doubled to $230.6 million. Advanced Purity Solutions revenue was $604.9 million, supported by strong demand for filtration products. Entegris Reports Record Q3 Revenue
• Positive Sentiment: Fourth-quarter outlook supports continued momentum: Management forecast revenue of $1.025 billion to $1.055 billion and GAAP diluted EPS of $1.09 to $1.17. The midpoint implies further sequential growth and was viewed positively by investors. Entegris Provides Fourth-Quarter Guidance
• Neutral Sentiment: Entegris generated $266.8 million in operating cash flow and paid down $200 million of debt during the quarter, strengthening its balance sheet. However, the stock trades at a relatively high valuation, with a price-to-earnings ratio above 80.
• Negative Sentiment: Recent insider activity has consisted entirely of sales, with executives selling shares during the past six months. This may create a modest sentiment headwind, although the transactions do not change the strong quarterly fundamentals.

Wall Street Analysts Forecast Growth

ENTG has been the topic of several research reports. Needham & Company LLC raised their price objective on shares of Entegris from $165.00 to $170.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. The Goldman Sachs Group raised Entegris from a "sell" rating to a "buy" rating in a report on Wednesday, August 12th. Barclays initiated coverage on Entegris in a research report on Monday, October 12th. They issued an "overweight" rating and a $212.00 price target on the stock. UBS Group increased their price objective on Entegris from $205.00 to $215.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft upgraded Entegris from a "hold" rating to a "buy" rating and lifted their target price for the company from $152.00 to $200.00 in a research note on Wednesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $181.67.

Insider Buying and Selling

In other Entegris news, insider Olivier Blachier sold 2,000 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $160.66, for a total transaction of $321,320.00. Following the transaction, the insider directly owned 34,997 shares in the company, valued at approximately $5,622,618.02. This represents a 5.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Susan Rice sold 2,062 shares of the stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $149.52, for a total transaction of $308,310.24. Following the completion of the transaction, the senior vice president directly owned 66,976 shares of the company's stock, valued at approximately $10,014,251.52. This trade represents a 2.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 7,978 shares of company stock valued at $1,273,734. Corporate insiders own 0.53% of the company's stock.

About Entegris

Entegris, Inc is a materials science and process technology company that supplies products and solutions used in the manufacture of semiconductors and other advanced technology products. Its offerings help chipmakers manage contamination, handle sensitive materials, and improve process control across the semiconductor production cycle.

The company's products include specialty chemicals and gases, filtration and purification systems, wafer and substrate handling products, fluid-management components, and advanced materials used in semiconductor fabrication.

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