Entegris, Inc.

Q2 sales were $883 million, up 11% year over year. GAAP net income was $94 million; adjusted net income was $143 million, up 42% year over year. GAAP diluted EPS was $0.61 and non-GAAP EPS was $0.93. Gross margin on both a GAAP and non-GAAP basis was 47.6%; adjusted EBITDA was $251 million, or 28.4% of sales. Free cash flow was $120 million, or 14% of sales, and the company repaid an additional $200 million of debt, bringing net leverage to 3.4x. For Q3, management guided sales to $905 million to $935 million, gross margin to 47.5% to 48.5%, GAAP EPS to $0.75 to $0.83, and non-GAAP EPS to $0.96 to $1.04. For full-year 2026, the company expects net interest expense of about $180 million, a non-GAAP tax rate of about 14%, diluted share count of about 154 million, and CapEx of $250 million. Management also said Q4 revenue should grow about 4% sequentially from the midpoint of Q3 guidance, implying mid-teens year-over-year growth.

Dave Reeder said the company is benefiting from accelerating AI-driven demand and a broader semiconductor investment cycle, with both unit-driven and capex-driven businesses growing. He emphasized that the business is “proactively scaling ahead of the market,” expanding capacity, and strengthening supply chain readiness to support customers. His tone was upbeat and confident, repeatedly pointing to technology leadership, operating discipline, and a stronger long-term growth algorithm.

Sukhi Nagesh highlighted the quarter’s financial performance: sales of $883 million, adjusted net income of $143 million, adjusted EBITDA of $251 million, and free cash flow of $120 million. He pointed to gross margin of 47.6%, operating expenses of $204 million on a non-GAAP basis, and a 20-day year-over-year improvement in the cash conversion cycle. He also said the company repaid $200 million of debt in the quarter, had net leverage of 3.4x, and now expects to end 2026 below 3x.

Analysts focused on capex timing, Q4 conservatism, margin sustainability, and whether Entegris could capture more value through long-term supply agreements. Management said second-half capex revenue will be driven mainly by WFE, with fab construction contributing more in 2027, and described the revenue ramp as unfolding in “three waves” over time. On margins, management said flow-through should be around 60% on a sequential basis and attributed year-over-year gross margin uplift partly to a useful-life adjustment, while also stressing ongoing operational improvements and reinvestment. They also said pricing discussions and supply agreements are under review, but the near-term priority is ensuring supply for customers’ ramps.