Entegris Reports Results for Second Quarter of 2024

About this update from Entegris, Inc.

Net sales (as reported) of $813 million , decreased 10% from prior year and increased 5% sequentially Adjusted net sales (excluding the impact of divestitures) increased 6% from prior year and 10% sequentially GAAP diluted EPS of $0.45 Non-GAAP diluted EPS of $0.71 BILLERICA, Mass. --(BUSINESS WIRE)-- Entegris, Inc. (NASDAQ: ENTG), today reported its financial results for the Company’s second quarter ended June 29, 2024 . Bertrand Loy , Entegris’ president and chief executive officer, said: “The Entegris team delivered another quarter of strong performance and execution. Sales (excluding divestitures) increased 10 percent sequentially and were up in all three divisions and in most product lines.” Mr. Loy added: "2024 continues to be a transition year for the semiconductor industry. We feel good about the improving fundamentals of the semi market and expect it will gradually recover in the second half of this year, albeit at a more moderate pace than previously expected. In the second half of 2024, we will continue to position the company for strong growth acceleration into 2025.” “The compounding process complexity of our customers’ roadmaps is making Entegris expertise in materials science and materials purity increasingly valuable,” he said. “This is expected to translate into higher Entegris content per wafer, expanding served market, and fuel our market outperformance.” Quarterly Financial Results Summary (in thousands, except percentages and per share data) GAAP Results Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Net sales $812,652 $901,000 $771,025 Gross margin - as a % of net sales 46.2% 42.6% 45.6% Operating margin - as a % of net sales 16.0% 29.7% 15.3% Net income $67,696 $197,646 $45,266 Diluted earnings per common share $0.45 $1.31 $0.30 Non-GAAP Results Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Adjusted gross margin - as a % of net sales 46.2% 42.6% 45.6% Adjusted operating margin - as a % of net sales 22.0% 22.3% 23.1% Adjusted EBITDA - as a % of net sales 27.8% 27.2% 29.0% Diluted non-GAAP earnings per common share $0.71 $0.66 $0.68 Third Quarter Outlook For the Company’s guidance for the third quarter ending September 28, 2024 , the Company expects sales of $820 million to $840 million . The midpoint of this guidance range represents a 10% year-on-year increase, excluding the impact of divestitures. GAAP net income of $78 million to $85 million and diluted earnings per common share is expected to be between $0.51 and $0.56 . On a non-GAAP basis, the Company expects diluted earnings per common share to range from $0.75 to $0.80 , reflecting net income on a non-GAAP basis in the range of $114 million to $121 million . The Company also expects adjusted EBITDA of approximately 28.5% to 29.5% of sales. Segment Results The Company operates in three segments: Materials Solutions (MS): MS provides materials-based solutions, such as chemical mechanical planarization slurries and pads, deposition materials, process chemistries and gases, formulated cleans, etchants and other specialty materials that enable our customers to achieve better device performance and faster time to yield, while providing for lower total cost of ownership. Microcontamination Control (MC): MC offers advanced filtration solutions that improve customers’ yield, device reliability and cost by filtering and purifying critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries. Advanced Materials Handling (AMH): AMH develops solutions that improve customers’ yields by protecting critical materials during manufacturing, transportation, and storage including products that monitor, protect, transport and deliver critical liquid chemistries, wafers, and other substrates for a broad set of applications in the semiconductor, life sciences and other high-technology industries. Second-Quarter Results Entegris will hold a conference call to discuss its results for the second quarter on Wednesday, July 31, 2024 , at 9:00 a.m. Eastern Time . Participants should dial 800-225-9448 or +1 203-518-9708, referencing confirmation ID: ENTGQ224. Participants are asked to dial in 10 minutes prior to the start of the call. For the live webcast and replay of the call, please Click Here . Management’s slide presentation concerning the results for the second quarter will be posted on the Investor Relations section of www.entegris.com . About Entegris Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 8,000 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in the United States , Canada , China , Germany , Israel , Japan , Malaysia , Singapore , South Korea , and Taiwan . Additional information can be found at www.entegris.com . Non-GAAP Information The Company’s condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). Adjusted Net Sales , Adjusted EBITDA, Adjusted Gross Profit, Adjusted Segment Profit, Adjusted Operating Income, non-GAAP Net Income, non-GAAP Adjusted Operating Margin and diluted non-GAAP Earnings Per Common Share, together with related measures thereof, are considered “non-GAAP financial measures” under the rules and regulations of the Securities and Exchange Commission . The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company provides supplemental non-GAAP financial measures to better understand and manage its business and believes these measures provide investors and analysts additional and meaningful information for the assessment of the Company’s ongoing results. Management also uses these non-GAAP measures to assist in the evaluation of the performance of its business segments and to make operating decisions. Management believes that the Company’s non-GAAP measures help indicate the Company’s baseline performance before certain gains, losses or other charges that may not be indicative of the Company’s business or future outlook, and that non-GAAP measures offer a more consistent view of business performance. The Company believes the non-GAAP measures aid investors’ overall understanding of the Company’s results by providing a higher degree of transparency for such items and providing a level of disclosure that will help investors generally understand how management plans, measures and evaluates the Company’s business performance. Management believes that the inclusion of non-GAAP measures provides greater consistency in its financial reporting and facilitates investors’ understanding of the Company’s historical operating trends by providing an additional basis for comparisons to prior periods. The reconciliations of GAAP net sales to Adjusted Net Sales (excluding divestitures), GAAP gross profit to Adjusted Gross Profit, GAAP segment profit to Adjusted Operating Income, GAAP net income to Adjusted Operating Income and Adjusted EBITDA, GAAP net income and diluted earnings per common share to non-GAAP Net Income and diluted non-GAAP Earnings Per Common Share and GAAP outlook to non-GAAP outlook are included elsewhere in this release. Cautionary Note on Forward-Looking Statements This news release contains “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements may include statements about fluctuations in demand for semiconductors; global economic uncertainty and the risks inherent in operating a global business; supply chain matters; inflationary pressures; future period guidance or projections; the Company’s performance relative to its markets, including the drivers of such performance; market and technology trends, including the duration and drivers of any growth trends; the development of new products and the success of their introductions; the focus of the Company’s engineering, research and development projects; the Company’s ability to obtain, protect and enforce intellectual property rights; information technology risks; the Company’s ability to execute on our business strategies, including the Company’s expansion of its manufacturing presence in Taiwan and in Colorado Springs ; the Company’s capital allocation strategy, which may be modified at any time for any reason, including with respect to share repurchases, dividends, debt repayments and potential acquisitions; the impact of the acquisitions and divestitures the Company has made and commercial partnerships the Company has established, including the acquisition of CMC Materials, Inc. (now known as CMC Materials LLC ) (“CMC Materials”); the amount of goodwill we carry on our balance sheets; key employee retention; future capital and other expenditures, including estimates thereof; the Company’s expected tax rate; the impact, financial or otherwise, of any organizational changes or changes in the legal and regulatory environment in which we operate; the impact of accounting pronouncements; quantitative and qualitative disclosures about market risk; climate change and our environmental, social and governance commitments; and other matters. These forward-looking statements are based on current management expectations and assumptions only as of the date of this news release, are not guarantees of future performance and involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, but are not limited to, weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for the Company’s products and solutions; the level of, and obligations associated with, the Company’s indebtedness, including the debts incurred in connection with the acquisition of CMC Materials ; risks related to the acquisition and integration of CMC Materials , including the ability to achieve the anticipated value-creation contemplated by the acquisition of CMC Materials ; raw material shortages, supply and labor constraints, price increases, inflationary pressures and rising interest rates; operational, political and legal risks of the Company’s international operations; the Company’s dependence on sole source and limited source suppliers; the Company’s ability to meet rapid demand shifts; the Company’s ability to continue technological innovation and introduce new products to meet customers’ rapidly changing requirements; substantial competition; the Company’s concentrated customer base; the Company’s ability to identify, complete and integrate acquisitions, joint ventures, divestitures or other similar transactions; the Company’s ability to effectively implement any organizational changes; the Company’s ability to protect and enforce intellectual property rights; the impact of regional and global instabilities, hostilities and geopolitical uncertainty, including, but not limited to, the ongoing conflicts between Ukraine and Russia , between Israel and Hamas and other tensions in the Middle East , as well as the global responses thereto; the increasing complexity of certain manufacturing processes; changes in government regulations of the countries in which the Company operates, including the imposition of tariffs, export controls and other trade laws, restrictions and changes to national security and international trade policy, especially as they relate to China ; fluctuation of currency exchange rates; fluctuations in the market price of the Company’s stock; and other risk factors and additional information described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including under the heading “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 , filed on February 15, 2024 , and in the Company’s other SEC filings. Except as required under the federal securities laws and the rules and regulations of the SEC , the Company undertakes no obligation to update publicly any forward-looking statements or information contained herein, which speak as of their respective dates. Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three months ended Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Net sales $812,652 $901,000 $771,025 Cost of sales 436,833 516,834 419,205 Gross profit 375,819 384,166 351,820 Selling, general and administrative expenses 116,315 145,596 112,193 Engineering, research and development expenses 81,885 71,030 71,876 Amortization of intangible assets 47,513 54,680 50,159 Gain on termination of alliance agreement — (154,754) — Operating income 130,106 267,614 117,592 Interest expense, net 52,527 78,605 54,379 Other expense, net 2,977 7,724 14,285 Income before income tax expense (benefit) 74,602 181,285 48,928 Income tax expense (benefit) 6,689 (16,491) 3,456 Equity in net loss of affiliates 217 130 206 Net income $67,696 $197,646 $45,266 Basic earnings per common share: $0.45 $1.32 $0.30 Diluted earnings per common share: $0.45 $1.31 $0.30 Weighted average shares outstanding: Basic 150,801 149,825 150,549 Diluted 151,819 150,837 151,718 Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Six months ended Jun 29, 2024 Jul 1, 2023 Net sales $1,583,677 $1,823,396 Cost of sales 856,038 1,037,545 Gross profit 727,639 785,851 Selling, general and administrative expenses 228,508 315,463 Engineering, research and development expenses 153,761 142,936 Amortization of intangible assets 97,672 112,254 Goodwill impairment — 88,872 Gain on termination of alliance agreement — (154,754) Operating income 247,698 281,080 Interest expense, net 106,906 163,426 Other expense, net 17,262 3,066 Income before income tax expense 123,530 114,588 Income tax expense 10,145 4,978 Equity in net loss of affiliates 423 130 Net income $112,962 $109,480 Basic earnings per common share: $0.75 $0.73 Diluted earnings per common share: $0.74 $0.73 Weighted average shares outstanding: Basic 150,675 149,626 Diluted 151,769 150,609 Entegris, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) (Unaudited) Jun 29, 2024 Dec 31, 2023 ASSETS Current assets: Cash and cash equivalents $320,008 $456,929 Trade accounts and notes receivable, net 457,107 457,052 Inventories, net 633,373 607,051 Deferred tax charges and refundable income taxes 52,690 63,879 Assets held-for-sale 6,195 278,753 Other current assets 107,413 113,663 Total current assets 1,576,786 1,977,327 Property, plant and equipment, net 1,495,098 1,468,043 Right-of-use assets 83,710 80,399 Goodwill 3,943,893 3,945,860 Intangible assets, net 1,184,955 1,281,969 Deferred tax assets and other noncurrent tax assets 24,059 31,432 Other assets 28,085 27,561 Total assets $8,336,586 $8,812,591 LIABILITIES AND EQUITY Current liabilities Accounts payable 141,579 134,211 Accrued liabilities 235,201 283,158 Liabilities held-for-sale 662 19,223 Income tax payable 62,416 77,403 Total current liabilities 439,858 513,995 Long-term debt 4,122,233 4,577,141 Long-term lease liabilities 71,800 68,986 Other liabilities 200,305 243,875 Shareholders’ equity 3,502,390 3,408,594 Total liabilities and equity $8,336,586 $8,812,591 Entegris, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three months ended Six months ended Jun 29, 2024 Jul 1, 2023 Jun 29, 2024 Jul 1, 2023 Operating activities: Net income $67,696 $197,646 $112,962 $109,480 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 47,407 43,719 92,750 90,494 Amortization 47,513 54,680 97,672 112,254 Share-based compensation expense 26,889 11,458 34,797 42,136 Provision for deferred income taxes (12,723) (31,988) (24,088) (66,814) Loss on extinguishment of debt 796 4,482 11,385 7,269 Impairment of goodwill — — — 88,872 Gain on termination of alliance agreement — (154,754) — (154,754) Loss (gain) from sale of businesses and held-for-sale assets, net 537 14,935 (4,311) 28,577 Other 13,784 21,670 48,264 49,526 Changes in operating assets and liabilities, net of effects of acquisitions: Trade accounts and notes receivable (35,125) 9,562 (11,908) 17,941 Inventories (15,797) 29,843 (50,659) (5,009) Accounts payable and accrued liabilities (33,728) (43,638) (42,634) (23,595) Income taxes payable, refundable income taxes and noncurrent taxes payable (15,001) (31,437) (16,923) (15,570) Other 18,964 840 11,091 (1,918) Net cash provided by operating activities 111,212 127,018 258,398 278,889 Investing activities: Acquisition of property and equipment (59,269) (116,051) (125,889) (250,043) Proceeds, net from sale of businesses — 759 249,600 134,286 Proceeds from termination of alliance agreement — 169,251 — 169,251 Other 47 258 (1,917) 366 Net cash (used in) provided by investing activities (59,222) 54,217 121,794 53,860 Financing activities: Proceeds from debt 30,000 — 254,537 117,170 Payments of debt (85,000) (311,501) (728,311) (428,671) Payments for debt issuance costs — (3,475) — (3,475) Payments for dividends (15,099) (14,980) (30,355) (30,150) Issuance of common stock 1,494 18,374 10,467 36,767 Taxes paid related to net share settlement of equity awards (878) (240) (15,306) (9,646) Other (526) (279) (902) (578) Net cash used in financing activities (70,009) (312,101) (509,870) (318,583) Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,655) (11,149) (7,243) (10,588) (Decrease) increase in cash, cash equivalents and restricted cash (20,674) (142,015) (136,921) 3,578 Cash, cash equivalents and restricted cash at beginning of period 340,682 709,032 456,929 563,439 Cash, cash equivalents and restricted cash at end of period $320,008 $567,017 $320,008 $567,017 Entegris, Inc. and Subsidiaries Segment Information (In thousands) (Unaudited) Three months ended Six months ended Net sales Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Jun 29, 2024 Jul 1, 2023 Materials Solutions $342,333 $440,634 $350,036 $692,369 $888,964 Microcontamination Control 293,769 283,614 267,864 561,633 552,911 Advanced Materials Handling 188,225 190,356 162,854 351,079 409,209 Inter-segment elimination (11,675) (13,604) (9,729) (21,404) (27,688) Total net sales $812,652 $901,000 $771,025 $1,583,677 $1,823,396 Three months ended Six months ended Segment profit Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Jun 29, 2024 Jul 1, 2023 Materials Solutions $70,268 $215,738 $67,124 $137,392 $186,216 Microcontamination Control 93,709 100,661 86,555 180,264 196,658 Advanced Materials Handling 28,980 35,830 24,606 53,586 83,995 Total segment profit 192,957 352,229 178,285 371,242 466,869 Amortization of intangibles (47,513) (54,680) (50,159) (97,672) (112,254) Unallocated expenses (15,338) (29,935) (10,534) (25,872) (73,535) Total operating income $130,106 $267,614 $117,592 $247,698 $281,080 Entegris, Inc. and Subsidiaries Reconciliation of GAAP Gross Profit to Adjusted Gross Profit (In thousands) Three months ended Six months ended Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Jun 29, 2024 Jul 1, 2023 Net Sales $812,652 $901,000 $771,025 $1,583,677 $1,823,396 Gross profit-GAAP $375,819 $384,166 $351,820 $727,639 $785,851 Adjustments to gross profit: Restructuring costs 1 — — — — 7,377 Adjusted gross profit $375,819 $384,166 $351,820 $727,639 $793,228 Gross margin - as a % of net sales 46.2 % 42.6 % 45.6 % 45.9 % 43.1 % Adjusted gross margin - as a % of net sales 46.2 % 42.6 % 45.6 % 45.9 % 43.5 % 1 Restructuring charges resulting from cost saving initiatives. Entegris, Inc. and Subsidiaries Reconciliation of GAAP Segment Profit to Adjusted Operating Income (In thousands) (Unaudited) Three months ended Six months ended Adjusted segment profit Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Jun 29, 2024 Jul 1, 2023 MS segment profit $70,268 $215,738 $67,124 $137,392 $186,216 Restructuring costs 1 — — — — 7,108 Loss (gain) on sale of businesses and held-for-sale assets, net 2 537 14,936 (4,848) (4,311) 28,578 Goodwill impairment 3 — — — — 88,872 Gain on termination of alliance agreement 4 — (154,754) — — (154,754) Impairment on long-lived assets 5 — — 12,967 12,967 — MS adjusted segment profit $70,805 $75,920 $75,243 $146,048 $156,020 MC segment profit $93,709 $100,661 $86,555 $180,264 $196,658 Restructuring costs 1 — — — — 2,795 MC adjusted segment profit $93,709 $100,661 $86,555 $180,264 $199,453 AMH segment profit $28,980 $35,830 $24,606 $53,586 $83,995 Restructuring costs 1 — — — — 1,254 AMH adjusted segment profit $28,980 $35,830 $24,606 $53,586 $85,249 Unallocated general and administrative expenses $15,338 $29,935 $10,534 $25,872 $73,535 Less: unallocated deal and integration costs (724) (18,441) (2,218) (2,942) (38,416) Less: unallocated restructuring costs 1 — — — — (86) Adjusted unallocated general and administrative expenses $14,614 $11,494 $8,316 $22,930 $35,033 Total adjusted segment profit $193,494 $212,411 $186,404 $379,898 $440,722 Less: adjusted unallocated general and administrative expenses (14,614) (11,494) (8,316) (22,930) (35,033) Total adjusted operating income $178,880 $200,917 $178,088 $356,968 $405,689 1 Restructuring charges resulting from cost saving initiatives. 2 Loss (gain) from the sale of certain businesses and held-for-sale assets, net. 3 Non-cash impairment charges associated with goodwill. 4 Gain on the termination of the alliance agreement with MacDermid Enthone . 5 Impairment of long-lived assets. Entegris, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Operating Income and Adjusted EBITDA (In thousands) (Unaudited) Three months ended Six months ended Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Jun 29, 2024 Jul 1, 2023 Net sales $812,652 $901,000 $771,025 $1,583,677 $1,823,396 Net income $67,696 $197,646 $45,266 $112,962 $109,480 Net income - as a % of net sales 8.3% 21.9% 5.9% 7.1% 6.0% Adjustments to net income: Equity in net loss of affiliates 217 130 206 423 130 Income tax expense (benefit) 6,689 (16,491) 3,456 10,145 4,978 Interest expense, net 52,527 78,605 54,379 106,906 163,426 Other expense, net 2,977 7,724 14,285 17,262 3,066 GAAP - Operating income 130,106 267,614 117,592 247,698 281,080 Operating margin - as a % of net sales 16.0% 29.7% 15.3% 15.6% 15.4% Goodwill impairment 1 — — — — 88,872 Deal and transaction costs 2 — — — — 3,001 Integration costs: Professional fees 3 147 13,324 2,140 2,287 25,312 Severance costs 4 577 965 78 655 2,327 Retention costs 5 — 362 — — 1,642 Other costs 6 — 3,789 — — 6,134 Restructuring costs 7 — — — — 11,242 Loss (gain) on sale of businesses and held-for-sale assets, net 8 537 14,937 (4,848) (4,311) 28,579 Gain on termination of alliance agreement 9 — (154,754) — — (154,754) Impairment of long-lived assets 10 — — 12,967 12,967 — Amortization of intangible assets 11 47,513 54,680 50,159 97,672 112,254 Adjusted operating income 178,880 200,917 178,088 356,968 405,689 Adjusted operating margin - as a % of net sales 22.0% 22.3% 23.1% 22.5% 22.2% Depreciation 47,407 43,719 45,343 92,750 90,494 Adjusted EBITDA $226,287 $244,636 $223,431 $449,718 $496,183 Adjusted EBITDA - as a % of net sales 27.8% 27.2% 29.0% 28.4% 27.2% 1 Non-cash impairment charges associated with goodwill. 2 Deal and transaction costs associated with the CMC Materials acquisition and completed divestitures. 3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other third-party service providers to assist us in integrating CMC Materials into our operations. These fees arise outside of the ordinary course of our continuing operations. 4 Represents severance charges related to the integration of the CMC Materials acquisition. 5 Represents retention charges related directly to the CMC Materials acquisition and completed divestitures, and are not part of our normal, recurring cash operating expenses. 6 Represents other employee related costs and other costs incurred relating to the CMC Materials acquisition and the completed divestitures. These costs arise outside of the ordinary course of our continuing operations. 7 Restructuring charges resulting from cost saving initiatives. 8 Loss (gain) from the sale of certain businesses and held-for-sale assets, net. 9 Gain on the termination of the alliance agreement with MacDermid Enthone . 10 Impairment of long-lived assets. 11 Non-cash amortization expense associated with intangibles acquired in acquisitions. Entegris, Inc. and Subsidiaries Reconciliation of GAAP Net Income and Diluted Earnings per Common Share to Non-GAAP Net Income and Diluted Non-GAAP Earnings per Common Share (In thousands, except per share data) (Unaudited) Three months ended Six months ended Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Jun 29, 2024 Jul 1, 2023 GAAP net income $67,696 $197,646 $45,266 $112,962 $109,480 Adjustments to net income: Goodwill impairment 1 — — — — 88,872 Deal and transaction costs 2 — — — — 3,001 Integration costs: Professional fees 3 147 13,324 2,140 2,287 25,312 Severance costs 4 577 965 78 655 2,327 Retention costs 5 — 362 — — 1,642 Other costs 6 — 3,789 — — 6,134 Restructuring costs 7 — — — — 11,242 Loss on extinguishment of debt and modification 8 796 4,481 11,551 12,347 8,361 Loss (gain) on sale of businesses and held-for-sale assets, net 9 537 14,937 (4,848) (4,311) 28,579 Gain on termination of alliance agreement 10 — (154,754) — — (154,754) Infineum termination fee, net 11 — — — — (10,877) Impairment of long-lived assets 12 — — 12,967 12,967 — Amortization of intangible assets 13 47,513 54,680 50,159 97,672 112,254 Tax effect of adjustments to net income and discrete tax items14 (10,157) (35,825) (13,541) (23,698) (34,186) Non-GAAP net income $107,109 $99,605 $103,772 $210,881 $197,387 Diluted earnings per common share $0.45 $1.31 $0.30 $0.74 $0.73 Effect of adjustments to net income $0.26 $(0.65) $0.39 $0.65 $0.58 Diluted non-GAAP earnings per common share $0.71 $0.66 $0.68 $1.39 $1.31 Diluted weighted averages shares outstanding 151,819 150,837 151,718 151,769 150,609 Diluted non-GAAP weighted average shares outstanding 151,819 150,837 151,718 151,769 150,609 1 Non-cash impairment charges associated with goodwill. 2 Deal and transaction costs associated with the CMC Materials acquisition and completed divestitures. 3 Represents professional and vendor fees recorded in connection with services provided by consultants, accountants, lawyers and other third-party service providers to assist us in integrating CMC Materials into our operations. These fees arise outside of the ordinary course of our continuing operations. 4 Represents severance charges related to the integration of CMC Materials . 5 Represents retention charges related directly to the CMC Materials acquisition and completed divestitures, and are not part of our normal, recurring cash operating expenses. 6 Represents other employee-related costs and other costs incurred relating to the CMC Materials acquisition and completed divestitures. These costs arise outside of the ordinary course of our continuing operations. 7 Restructuring charges resulting from cost saving initiatives. 8 Non-recurring loss on extinguishment of debt and modification of our Credit Agreement. 9 Loss (gain) from the sale of certain businesses and held-for-sale assets, net. 10 Gain on the termination of the alliance agreement with MacDermid Enthone . 11 Non-recurring gain from Infineum termination fee. 12 Impairment of long-lived assets. 13 Non-cash amortization expense associated with intangibles acquired in acquisitions. 14 The tax effect of pre-tax adjustments to net income was calculated using the applicable marginal tax rate for each respective year. Entegris, Inc. and Subsidiaries Reconciliation of Reported Net Sales to Adjusted Net Sales (excluding divestitures) Non-GAAP (In thousands) (Unaudited) Three months ended Six months ended Jun 29, 2024 Jul 1, 2023 Mar 30, 2024 Jun 29, 2024 Jul 1, 2023 Net sales $812,652 $901,000 $771,025 $1,583,677 $1,823,396 Less: divestitures 1 — (135,225) (33,907) (33,907) (279,263) Adjusted Net sales (excluding divestitures) Non-GAAP $812,652 $765,775 $737,118 $1,549,770 $1,544,133 1 Adjusted for the quarterly impact of net sales from divestitures. Entegris, Inc. and Subsidiaries Reconciliation of GAAP Outlook to Non-GAAP Outlook * (In millions, except per share data) (Unaudited) Third Quarter Outlook Reconciliation GAAP Operating Margin to non-GAAP Operating Margin and Adjusted EBITDA Margin September 28, 2024 Net sales $820 - $840 GAAP - Operating income $139 - $153 Operating margin - as a % of net sales 17.0% - 18.2% Deal, transaction and integration costs — Amortization of intangible assets 47 Adjusted operating income $187 - $201 Adjusted operating margin - as a % of net sales 22.7% - 23.9% Depreciation 47 Adjusted EBITDA $234 - $248 Adjusted EBITDA - as a % of net sales 28.5% - 29.5% Third Quarter Outlook Reconciliation GAAP net income to non-GAAP net income September 28, 2024 GAAP net income $78 - $85 Adjustments to net income: Deal, transaction and integration costs — Amortization of intangible assets 47 Income tax effect (11) Non-GAAP net income $114 - $121 Third Quarter Outlook Reconciliation GAAP diluted earnings per share to non-GAAP diluted earnings per share September 28, 2024 Diluted earnings per common share $0.51 - $0.56 Adjustments to diluted earnings per common share: Deal, transaction and integration costs — Amortization of intangible assets 0.31 Income tax effect (0.07) Diluted non-GAAP earnings per common share $0.75 - $0.80 *As a result of displaying amounts in millions, rounding differences may exist in the tables. View source version on businesswire.com : https://www.businesswire.com/news/home/20240731830670/en/ Bill Seymour VP of Investor Relations T + 1 952 556 1844 [email protected] Source: Entegris, Inc.

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