ENTG earnings analysis
What we found in ENTG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Entegris delivered a strong Q2, with revenue up 11.5% to $883.2 million, GAAP EPS up to $0.61 from $0.35, and gross and operating margins expanding to 47.6% and 18.6%, respectively. APS drove the outperformance, growing revenue 17% and segment profit 57%, while MS also expanded. Operating cash flow improved to $339.2 million for the first half and net debt fell by $241.6 million, though leverage remains high at $3.456 billion and part of the margin expansion reflects an estimated $73.0 million 2026 depreciation reduction from revised asset lives.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated in Q2
- Q2 net sales rose 11.5% year over year to $883.2 million from $792.4 million, and increased 8.8% sequentially from $811.8 million in Q1 2026. The year-over-year increase reflected a $97.8 million volume-led sales increase, partly offset by a $7.0 million foreign-exchange headwind.
- Margins expanded materially
- Gross margin expanded 3.2 percentage points year over year to 47.6% from 44.4%, and increased 0.7 point sequentially from 46.9%. Operating margin rose 5.2 points year over year to 18.6% from 13.4%, aided by higher production volumes and lower depreciation.
- EPS and earnings rose sharply
- GAAP diluted EPS increased to $0.61 from $0.35 a year earlier, while non-GAAP EPS rose 41% to $0.93 from $0.66. Net income increased to $93.6 million from $52.8 million.
- Both segments grew, led by APS
- APS was the primary growth engine: revenue increased 17% to $514.6 million and segment profit climbed 57% to $150.9 million. MS revenue grew 5% to $371.3 million, with segment profit up 7% to $77.7 million.
- Cash generation and capex improved
- Six-month operating cash flow increased to $339.2 million from $253.9 million, while cash used in investing activities declined to $74.6 million from $174.9 million. The filing attributes the investing decline primarily to a $93.7 million reduction in property, plant and equipment cash spending.
- Deleveraging and liquidity capacity improved
- Net debt declined to $3.456 billion at June 27, 2026 from $3.698 billion at year-end, after $250.0 million of six-month Term Loan repayments. The revolver was expanded to $750.0 million from $575.0 million and its maturity extended to April 29, 2031.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margin gain includes $73.0M depreciation benefit
- Management estimates that extending useful lives will reduce 2026 depreciation expense by approximately $73.0 million, primarily in cost of revenues and R&D. This accounting-estimate benefit contributed to the 3.2-point year-over-year gross-margin expansion, creating a comparability and earnings-quality consideration.
- Leverage and interest burden remain high
- Total debt remained substantial at $3.456 billion net of discount and issuance costs as of June 27, 2026, despite reduction from $3.698 billion at December 31, 2025. Q2 interest expense was $48.6 million, equal to 5.5% of sales.
- Impairment and refinancing charges affected GAAP EPS
- Q2 other expense was $7.8 million, including a $6.7 million equity-investment impairment and a $1.7 million loss on debt extinguishment. These items reduced reported earnings despite operating improvement.
- No formal risk-factor update; trade uncertainty persists
- The filing states there were no material changes to risk factors from the 2025 annual report. Nonetheless, management identifies tariffs and trade measures as near-term risks; the Q2 revenue bridge already included a $7.0 million unfavorable foreign-currency translation impact.
- Cash declined modestly and is largely overseas
- Cash and equivalents declined to $353.6 million at June 27, 2026 from $360.4 million at year-end as $270.1 million of financing cash outflows exceeded operating inflows after investing and capital returns. Of cash, $287.8 million was held outside the U.S.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.61
- Gross margin
- 47.6%
- Operating margin
- 18.6%
- Segment
- Materials Solutions revenue: $371.3 million, up 5% year over year from $354.9 million; segment profit: $77.7 million, up 7% from $72.5 million.
- Segment
- Advanced Purity Solutions revenue: $514.6 million, up 17% year over year from $439.9 million; segment profit: $150.9 million, up 57% from $95.9 million.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that $353.6 million of cash and cash equivalents and anticipated operating cash flow should be sufficient for ordinary-course cash needs over the next 12 months and longer term; quantitative Q3 guidance was issued separately with the earnings release.
The filing reads better than the one before it.
What came before.
- 10-Q · April 30, 2026
- Entegris reported strong Q1 2026 results, with net sales of $811.9 million exceeding estimates by $5.9 million—a 5.0% increase from Q1 2025. EPS of $0.86 surpassed expectations by 14.67%, driven by improved operational…
- 10-K · February 11, 2026
- Entegris positions itself as a leading supplier of advanced materials and contamination-control solutions for semiconductors, organized into two reportable segments (Materials Solutions and Advanced Purity Solutions)…
- 10-Q · October 30, 2025
- Entegris reported quarterly net sales of $807.1 million (essentially flat vs $807.7 million a year ago) and diluted EPS of $0.46 (down from $0.51 a year ago). Gross margin compressed to ~43.5% and operating income…
- 10-Q · May 7, 2025
- Entegris reported quarter net sales of $773.2 million and diluted EPS of $0.41 for the three months ended March 29, 2025. Gross margin held at 46.1% and operating income rose to $122.3 million, but free cash flow…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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