Overview

Entegris is a leading supplier of critical advanced materials and process solutions for the semiconductor and other high-technology industries. The company is organized into two operating segments: Materials Solutions (MS) and Advanced Purity Solutions (APS). MS provides materials-based solutions such as chemical vapor and atomic layer deposition materials, chemical mechanical planarization (CMP) slurries and pads, and other specialty materials. APS offers filtration, purification and contamination-control solutions to improve customers’ yield, device reliability and cost.

Financial Performance

In 2024, Entegris reported net sales of $3,241.2 million, a decrease of 8% from 2023. This was primarily due to the absence of sales from divested businesses and unfavorable foreign currency translation effects, partially offset by increased semiconductor market demand. Gross margin increased to 45.9% in 2024 from 42.5% in 2023, driven by the positive impact of divested businesses and improved plant performance.

Selling, general and administrative (SG&A) expenses decreased 22% to $446.6 million in 2024, mainly due to lower integration, deal and transaction costs related to the CMC Materials acquisition. Engineering, research and development (ER&D) expenses increased to $316.1 million in 2024 from $277.3 million in 2023, as the company continued to invest in developing new technologies and products.

Operating income increased to $533.9 million in 2024 from $499.2 million in 2023. Net income was $292.8 million, or $1.93 per diluted share, in 2024 compared to $180.7 million, or $1.20 per diluted share, in 2023. The increase in net income was primarily due to lower interest expense and the absence of a goodwill impairment charge recorded in 2023.

Segment Performance

The Materials Solutions (MS) segment reported net sales of $1,400.1 million in 2024, down 17% from 2023, due to the absence of sales from divested businesses, partially offset by increased sales of CMP consumables, advanced deposition materials and selective etching products. MS segment profit decreased 3% to $286.2 million in 2024.

The Advanced Purity Solutions (APS) segment reported net sales of $1,850.2 million in 2024, approximately flat compared to 2023. APS segment profit decreased 7% to $496.1 million in 2024, primarily due to increased costs associated with the ramp-up of a new manufacturing facility in Taiwan and higher operating expenses.

Liquidity and Capital Resources

As of December 31, 2024, Entegris had $329.2 million in cash and cash equivalents and $1,091.1 million in working capital. The company’s total debt outstanding was $3,981.1 million. Entegris believes its existing cash balances and anticipated operating cash flows will be sufficient to meet its cash needs for the next twelve months and the longer term.

In 2024, Entegris used $67.1 million in net cash for investing activities, primarily for capital expenditures, and $689.0 million in net cash for financing activities, mainly for debt repayments.

Outlook

Entegris expects to continue investing in its facilities, equipment and technology to support the semiconductor industry’s growth and its customers’ evolving needs. The company anticipates greater uncertainty and inconsistency among the jurisdictions in which it operates due to the current geopolitical environment, which may add volatility to business planning and forecasting. However, Entegris believes its complementary capabilities and integrated solutions position it well to create value for customers and shareholders.