Nasdaq:ENTG
ENTEGRIS INC
Entegris supplies critical advanced materials and process solutions enabling leading-edge semiconductor manufacturing and life sciences innovation.
Key Metrics
Investment Thesis
Bull Case
Entegris is well-positioned to benefit from the ongoing structural growth in global semiconductor capacity expansion, particularly in AI-driven logic chip demand. The company's dominant market share in critical wafer processing solutions provides pricing power and predictable long-term revenue visibility. Strong balance sheet management with $360.4M in cash equivalents offers flexibility to fund R&D and strategic acquisitions while servicing its debt obligations.
Bear Case
Valuation concerns may arise given the significant goodwill of $3.95B and a retained earnings deficit, suggesting potential future impairment risks or past overpayment for acquisitions. Revenue contraction in 2024 and 2025 indicates sensitivity to macroeconomic headwinds that could persist if global chip demand does not recover. High operating expenses and interest-bearing debt of $3.70B constrain cash flow conversion efficiency compared to pure-play peers with lighter balance sheets.
About ENTEGRIS INC
Entegris Inc. is a leading provider of advanced materials and process solutions that support customers in the semiconductor manufacturing and life sciences industries. The company primarily serves global foundries through its strategic focus on chemical processing, wafer cleaning, and high-purity filtration systems. Its diverse portfolio includes products essential for 300mm wafer fabrication as well as specialized offerings for the biopharmaceutical sector.
Analysis
Management Discussion
Entegris reported strong operating performance with a net profit of $235.6M, supported by robust cash flows from operations of $695.4M that significantly exceed net income due to non-cash adjustments like depreciation and share-based compensation. While revenue slightly declined to $3.20B in 2025 compared to the previous year, the company maintained healthy gross margins and generated substantial free cash flow despite significant capital expenditures of $299.2M for facility upgrades and inventory buildup.
Industry Overview
The semiconductor materials and equipment industry is characterized by high capital intensity, long product development cycles, and a small number of dominant suppliers controlling critical supply chains. Companies must continuously invest in R&D to keep pace with Moore's Law advancements and shifting technology nodes while navigating complex global trade dynamics. Consolidation is common as firms seek scale advantages and diversification across multiple end-use applications including automotive, consumer electronics, and data centers.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.28B | $3.52B | $3.24B | $3.20B |
| Cost of Revenue | $1.89B | $2.03B | $1.75B | $1.78B |
| Gross Profit | $1.40B | $1.50B | $1.49B | $1.42B |
| Operating Expenses | $916.4M | $998.4M | $704.4M | $716.9M |
| Operating Income | $480.0M | $499.2M | $533.9M | $455.9M |
| R&D | $229.0M | $277.3M | $316.1M | $329.0M |
| G&A | $543.5M | $576.2M | $446.6M | $450.6M |
| Stock-Based Comp | $66.6M | $61.4M | $65.9M | $69.3M |
| D&A | $279.3M | $387.2M | $188.1M | $205.3M |
| Depreciation | $135.4M | $172.7M | $188.1M | $205.3M |
| Amortization | $144.0M | $214.5M | $190.1M | $184.4M |
| Other OpEx | $144.0M | $144.9M | $-58.3M | $-62.7M |
| Non-Operating Income | $-232.9M | $-326.5M | $-211.9M | $-201.3M |
| Interest Expense | $212.7M | $312.4M | $215.2M | — |
| Interest Income | $3.7M | $11.3M | $7.4M | $7.9M |
| Pre-Tax Income | $247.1M | $172.7M | $322.1M | $254.6M |
| Income Tax | $38.2M | $-8.4M | $28.3M | $18.0M |
| Continuing Ops | $208.9M | $181.1M | $293.7M | $236.6M |
| Discontinued Ops | $0 | $-414.0K | $-933.0K | $-1.0M |
| Net Income | $208.9M | $180.7M | $292.8M | $235.6M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $208.9M | $180.7M | $292.8M | $235.6M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.34B | $1.98B | $1.62B | $1.64B |
| Cash & Equivalents | $561.6M | $456.9M | $329.2M | $360.4M |
| Inventory | $812.8M | $607.1M | $638.1M | $643.2M |
| Other Current Assets | $960.8M | $913.3M | $649.0M | $634.6M |
| Long-Term Assets | $7.80B | $6.84B | $6.78B | $6.71B |
| PP&E (Net) | $1.39B | $1.47B | $1.62B | $1.64B |
| Goodwill | $4.41B | $3.95B | $3.94B | $3.95B |
| Operating Leases | $94.9M | $58.0M | $62.5M | $90.2M |
| Other LT Assets | $1.91B | $1.36B | $1.15B | $1.04B |
| Total Assets | $10.14B | $8.81B | $8.39B | $8.35B |
| Current Liabilities | $761.9M | $514.0M | $525.2M | $488.6M |
| Accounts Payable | $172.5M | $134.2M | $193.3M | $171.5M |
| Current Debt | $152.0M | $0 | $0 | — |
| Current Leases | — | — | — | $13.8M |
| Deferred Revenue | $60.5M | $69.1M | $41.7M | $49.9M |
| Taxes Payable | $98.1M | $77.4M | $80.5M | $82.4M |
| Other Current Liab | $278.9M | $233.3M | $209.6M | $171.0M |
| Long-Term Liabilities | $6.16B | $4.89B | $4.18B | $3.91B |
| Long-Term Debt | $5.63B | $4.58B | $3.98B | $3.70B |
| LT Operating Leases | $80.7M | $49.7M | $53.8M | $81.6M |
| Other LT Liab | $445.3M | $263.1M | $143.1M | $129.3M |
| Total Liabilities | $6.92B | $5.40B | $4.70B | $4.40B |
| Shareholders' Equity | $3.22B | $3.41B | $3.69B | $3.95B |
| Retained Earnings | $1.03B | $1.15B | $1.38B | $1.56B |
| AOCI | $-13.1M | $-42.9M | $-72.1M | $-71.4M |
| Treasury Stock | $7.1M | $7.1M | $7.1M | $7.1M |
| Total L&E | $10.14B | $8.81B | $8.39B | $8.35B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $208.9M | $180.7M | $292.8M | $235.6M |
| Non-Cash Adjustments | $-160.1M | $578.9M | $196.4M | $443.7M |
| Working Capital Changes | $303.4M | $-130.0M | $142.5M | $16.1M |
| Cash from Operations | $352.3M | $629.6M | $631.7M | $695.4M |
| Capital Expenditures | $466.2M | $456.8M | $315.6M | $299.2M |
| Cash from Investing | $-4.95B | $553.1M | $-67.1M | $-300.8M |
| Debt Issuances | $4.94B | $217.4M | $224.5M | $0 |
| Debt Repayments | $145.0M | $1.34B | $848.3M | $300.0M |
| Share Buybacks | $0 | $0 | — | — |
| Dividends Paid | $57.3M | $60.2M | $60.6M | $60.8M |
| Cash from Financing | $4.77B | $-1.28B | $-689.0M | $-366.9M |
| FX Effect | $-11.9M | $-6.5M | $-3.4M | $3.5M |
| Net Change in Cash | $160.9M | $-106.5M | $-127.7M | $31.2M |
| Beginning Cash | $402.6M | $563.4M | $456.9M | $329.2M |
| Ending Cash | $563.4M | $456.9M | $329.2M | $360.4M |
Frequently Asked Questions
How does ENTEGRIS INC make money?
The company's revenue is driven by its Advanced Materials & Process Solutions segment, which supports 300mm wafer fabrication for logic and memory chips. A second major stream comes from Life Sciences products tailored for the biopharmaceutical industry, alongside a portfolio of specialty chemicals and consumables used across global fabrication facilities.
What are the main risks for ENTG?
Semiconductor industry cyclicality poses significant volatility risks as global capex spending fluctuates with economic conditions and demand shifts. Intense price competition and rapid technological evolution could erode margins if the company fails to innovate quickly enough. Regulatory changes regarding hazardous materials or export controls on advanced semiconductors could disrupt supply chains or limit market access. High levels of long-term debt relative to equity increase financial leverage risk during periods of rising interest rates or reduced cash flow.
What is ENTG's competitive advantage?
Entegris maintains strong customer stickiness through deep technical integration into complex semiconductor manufacturing flows and proprietary advanced material formulations. The company benefits from a high barrier to entry due to rigorous qualification processes required by top-tier foundries, ensuring long-term contract relationships. Its diversified geographic footprint and broad product portfolio provide resilience against cyclical downturns in any single market segment.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.