Entegris, Inc.

What they do

Entegris supplies critical advanced materials and process solutions to semiconductor and other high-technology industries. Its Materials Solutions (MS) segment sells deposition materials, CMP slurries and pads, ion implantation gases, and etch/clean chemicals. The Advanced Purity Solutions (APS) segment provides filtration, purification, and contamination-control products that ensure purity of chemistries, gases, and wafers.

Revenue drivers

• Materials Solutions (MS) — Sells advanced deposition materials, CMP consumables, and specialty gases; a primary source of revenue, benefiting from advanced node transitions like molybdenum integration.
• Advanced Purity Solutions (APS) — Provides filtration and contamination-control products; revenue grows with semiconductor manufacturing capacity and purity requirements.
• Semiconductor demand and capital investments — Both unit-driven consumables and capex-related equipment benefit from industry growth; recent double-digit growth correlated with improving demand and customer capital investments.

Recent performance

In Q2 2026 (ended June 27, 2026), net sales were $883.2 million, up 11.5% year-over-year from $792.4 million. GAAP diluted EPS was $0.61, and non-GAAP diluted EPS was $0.93. Adjusted operating margin was 24.5%, up from 20.9% a year earlier. Net income for the quarter was $93.6 million. For the first half of 2026, revenue was $1.695 billion with net income of $185.6 million.

Strategy

Entegris focuses on co-optimized, integrated solutions across deposition, CMP, and post-CMP modules, combining MS and APS products. The company is positioned to support the industry's shift to molybdenum at advanced nodes, leveraging its precursor, deposition, etch, CMP, and contamination control expertise. Management emphasizes operational initiatives to enhance profitability and cash generation. The company is also navigating tariff and trade policy changes by adjusting its supply chain and sourcing.

Risks

• Semiconductor demand cyclicality — Fluctuations in semiconductor demand and manufacturing volumes could materially affect revenue.
• Supply chain and trade policy — Tariffs, retaliatory measures, and export controls have increased costs and may disrupt supply chains or reduce demand.
• Customer concentration — A limited number of large customers could drive significant revenue variability.
• Operational disruptions — Manufacturing interruptions, IT failures, or cybersecurity breaches could harm operations and financial results.

Outlook

For Q3 2026, management expects sales of $905 million to $935 million. GAAP net income is guided to $116-128 million, with diluted EPS of $0.75-0.83. Non-GAAP diluted EPS is expected between $0.96 and $1.04, and Adjusted EBITDA margin of 28-29%. The CEO noted 'the next phase of semiconductor investment is underway,' suggesting continued growth.