Entegris Reports 2.5% Decline in Q2 Fiscal 2025 Net Sales

Entegris, Inc. reported a decline in financial performance for the second quarter of fiscal 2025, with net sales of $792.4 million, down 2.5% from $812.7 million in the same period last year. The decrease was primarily attributed to reduced demand in the semiconductor market, which resulted in a $25.6 million drop in sales, partially offset by a $5.3 million increase due to favorable foreign currency translations. For the first half of the fiscal year, net sales totaled $1.57 billion, a slight decrease from $1.58 billion in the prior year. The company's gross profit also fell to $351.5 million from $375.8 million year-over-year, leading to a gross margin of 44.4%, down from 46.2%.

In terms of profitability, Entegris reported a net income of $52.8 million, or $0.35 per diluted share, for the second quarter, compared to $67.7 million, or $0.45 per diluted share, in the same quarter of the previous year. For the six-month period, net income increased slightly to $115.7 million, or $0.76 per diluted share, from $113 million, or $0.74 per diluted share, in the prior year. The decline in quarterly net income was influenced by higher restructuring costs and lower sales, while the year-to-date increase was attributed to improved operational efficiencies.

Strategically, Entegris has been focusing on restructuring initiatives aimed at enhancing operational efficiency, which resulted in restructuring charges of $15.7 million for the first half of the fiscal year. The company also continues to manage its product offerings and has made adjustments to its operational structure, including the realignment of its business segments into Materials Solutions and Advanced Purity Solutions. The Materials Solutions segment saw a 4% increase in net sales to $354.9 million, while the Advanced Purity Solutions segment experienced a 7% decline to $439.9 million.

Operationally, Entegris reported a total employee headcount of 5,200 as of June 28, 2025, reflecting a slight increase from the previous year. The company has also been actively managing its inventory levels, which rose to $694.6 million from $638.1 million, indicating a strategic response to anticipated market conditions. The company’s cash and cash equivalents increased to $376.8 million, up from $329.2 million at the end of the previous fiscal year, providing a stronger liquidity position.

Looking ahead, Entegris anticipates continued challenges in the semiconductor market due to fluctuating demand and global economic uncertainties. The company remains committed to leveraging its global manufacturing footprint and supply chain to mitigate risks associated with trade tensions and market volatility. Entegris plans to focus on innovation and product development to meet evolving customer needs while maintaining operational efficiency to drive profitability in the coming quarters.