Entegris (ENTG) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 12:03 PM CDT 44 min read

Image source: The Motley Fool.

Date

Thursday, April 30, 2026 astatine 8 a.m. ET

Call participants

• Chief Executive Officer — David Reeder

• Chief Financial Officer — Jeffrey Schnell

Need a punctuation from a Motley Fool analyst? Email [email protected]

Full Conference Call Transcript

David Reeder: Thanks, Jeff, and bully morning. The archetypal 4th was a coagulated commencement to the twelvemonth arsenic we proceed to execute with absorption and subject against the constructive and improving semiconductor manufacture environment. We are delivering connected our commitments. Revenue accrued 5%, somewhat supra the midpoint of our range, portion astir different metrics, including adjusted gross margin, EBITDA borderline and non-GAAP EPS each exceeded our guidance range. I'm encouraged by these results, and we stay focused connected the important opportunities up to afloat capitalize connected the organization's semipermanent maturation and net potential.

As I mentioned, full gross accrued 5% successful the archetypal 4th arsenic compared to the anterior year, driven by a 7% summation successful our APS conception and a 3% betterment successful MS. Our unit-driven revenue, which is correlated to MSI, accrued astir 7% year-over-year, driven by maturation successful liquid filtration, precocious deposition and selective etch, each of which are captious merchandise lines for our customers' caller exertion nodes. We're pleased to spot the continued maturation successful liquid filtration, which posted its 3rd consecutive grounds quarter. CapEx-driven gross decreased modestly year-over-year successful the archetypal quarter, mostly driven by accelerating bid patterns successful the anterior twelvemonth 4th successful effect to tariff actions.

Given our existent bookings patterns, we expect 2026 CapEx gross to summation passim the remainder of the twelvemonth and lend much meaningfully to our wide maturation profile, driven by beardown WFE maturation and improving fab operation trends, which enactment not lone the second fractional of 2026, but besides maturation expectations successful 2027 and beyond. Our wide results bespeak the improving request scenery crossed our extremity markets and regions. This includes double-digit Q1 maturation successful Taiwan and broader Asia, supported by beardown program of grounds positions arsenic good arsenic improving request wrong precocious logic and memory, driven successful portion by AI-enabled applications. Turning to profitability. Gross margins improved successful the archetypal 4th of 2026.

The cardinal drivers to the spot successful margins connected some a year-over-year and sequential ground were productivity and ratio actions crossed our manufacturing web and proviso chain, favorability from the utile beingness accounting alteration successful the archetypal 4th and merchandise mix. Jeff volition supply much details connected this later, but we are pleased with the structural betterment successful margins and expect to physique connected this advancement successful the future. Additionally, we are continuing our efforts to optimize our manufacturing network. We closed different subscale installation during the 4th successful Chandler, Arizona, further advancing our operational initiatives.