Entegris (NASDAQ:ENTG) Releases Earnings Results

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

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 Stock Performance

NASDAQ:ENTG opened at $160.00 on Friday. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.85 and a current ratio of 3.05. Entegris has a fifty-two week low of $67.97 and a fifty-two week high of $186.94. The company has a 50 day simple moving average of $146.13 and a two-hundred day simple moving average of $137.58. The company has a market capitalization of $24.40 billion, a PE ratio of 80.40, a P/E/G ratio of 1.46 and a beta of 1.40.

Entegris Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 18th. Shareholders of record on Wednesday, October 28th will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Wednesday, October 28th. Entegris’s dividend payout ratio is currently 20.10%.

Key Entegris News

Here are the key news stories impacting Entegris this week:

• Positive Sentiment: Entegris reported third-quarter revenue of $1.006 billion, up 24.6% year over year and well above the approximately $925 million analyst estimate. Adjusted EPS of $1.23 also exceeded the $1.03-$1.04 consensus, while EPS rose from $0.72 a year earlier. Entegris Q3 earnings report
• Positive Sentiment: Profitability improved significantly: GAAP gross margin increased to 49.7% from 43.5% a year earlier, while operating income nearly doubled to $230.6 million. Advanced Purity Solutions generated $604.9 million in revenue, and Materials Solutions contributed $404.1 million. Entegris record Q3 revenue
• Positive Sentiment: Management projected fourth-quarter sales of $1.025 billion to $1.055 billion and GAAP EPS of $1.09 to $1.17, suggesting continued demand momentum. The company also generated $266.8 million in operating cash flow and paid down $200 million of debt. Entegris fourth-quarter outlook
• Positive Sentiment: Needham raised its price target from $170 to $185 and maintained a Buy rating, indicating analysts see additional upside after the earnings beat. Needham Entegris price target
• Neutral Sentiment: At a P/E ratio above 80, ENTG already reflects substantial growth expectations, making future guidance and execution particularly important.
• Negative Sentiment: Recent insider-trading data showed sales by company executives and no insider purchases over the past six months, a potential caution signal for investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on ENTG shares. Needham & Company LLC boosted their price objective on Entegris from $170.00 to $185.00 and gave the stock a “buy” rating in a research report on Thursday. Truist Financial began coverage on Entegris in a research report on Wednesday, October 14th. They issued a “buy” rating and a $190.00 target price for the company. Freedom Capital raised Entegris to a “strong-buy” rating in a research note on Monday, August 3rd. Zacks Research downgraded Entegris from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 7th. Finally, Stifel Nicolaus assumed coverage on shares of Entegris in a report on Wednesday, October 7th. They issued a “buy” rating and a $200.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $182.92.

Insider Transactions at Entegris

In other news, SVP Joseph Colella sold 3,916 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $164.48, for a total value of $644,103.68. Following the sale, the senior vice president directly owned 50,297 shares of the company’s stock, valued at approximately $8,272,850.56. This represents a 7.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Susan Rice sold 2,062 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $149.52, for a total transaction of $308,310.24. Following the sale, the senior vice president 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. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 7,978 shares of company stock worth $1,273,734. Company 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.