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• Revenue: $773 million, up 5% year over year, excluding divestitures; flat year over year on an as-reported basis, down 9% sequentially.

• Gross Margin: 46.1% on both GAAP and non-GAAP basis, at the midpoint of guidance.

• Operating Expenses: $234 million on a GAAP basis; $186 million on a non-GAAP basis, better than guidance.

• Adjusted EBITDA Margin: 28.5%, at the midpoint of guidance.

• GAAP Tax Rate: 11.5%; Non-GAAP Tax Rate: 15%.

• GAAP EPS: $0.41 per share; Non-GAAP EPS: $0.67 per share, at the midpoint of guidance.

• Material Solutions Sales: $341 million, up 8% year on year, excluding divestitures; down 5% sequentially.

• Advanced Purity Solutions Sales: $434 million, up 3% year on year; down 11% sequentially.

• Free Cash Flow: $32 million.

• Capital Expenditures: Expected to be approximately $300 million in 2025, down from $325 million.

• Gross Debt: Approximately $4 billion; Net Debt: $3.7 billion.

• Gross Leverage: 4.4 times; Net Leverage: 4 times.

• Q2 Revenue Guidance: $735 million to $775 million.

• Q2 Gross Margin Guidance: Approximately 45% on both GAAP and non-GAAP basis.

• Q2 GAAP EPS Guidance: $0.34 to $0.41 per share; Non-GAAP EPS Guidance: $0.60 to $0.67 per share.

• Warning! GuruFocus has detected 6 Warning Signs with ENTG.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Entegris Inc (NASDAQ:ENTG) reported a 5% year-over-year revenue growth in Q1 2025, excluding divestitures.

• Materials Solutions sales increased by 8% year-over-year, driven by strong growth in CMP slurries and pads.

• The company is making progress with its new Colorado manufacturing site and expects to initiate customer qualifications in the second half of the year.

• Entegris Inc (NASDAQ:ENTG) has developed well-integrated supply chain clusters around its largest manufacturing centers, enhancing its strategic advantage.

• The company is well-positioned to capture incremental content per wafer and outperform the market, with strong engagements in moly deposition materials and IPA purifiers.

Negative Points

• Q1 2025 revenue was slightly below guidance due to softer demand for fluid handling and FOUP products.

• The company faces significant uncertainty due to new tariff regimes, impacting its ability to provide precise revenue guidance.

• Entegris Inc (NASDAQ:ENTG) expects a temporary impact on its top line related to sales to China due to new tariffs.

• Gross margin is expected to decline slightly in Q2 2025 due to volume deleveraging and tariff impacts.

• The company has paused M&A activities and is focusing on reducing its debt level amidst the uncertain environment.