Entegris Reports $3.24 Billion in Net Sales for Fiscal Year 2024, 8% Decrease from Previous Year

Entegris, Inc. reported a net sales figure of $3.24 billion for the fiscal year ending December 31, 2024, reflecting an 8% decrease from the previous year's revenue of $3.52 billion. The decline in sales was primarily attributed to the absence of $434.2 million in revenue from divested businesses and unfavorable foreign currency translation effects, which accounted for a reduction of $23.4 million. However, this was partially offset by a $174.9 million increase in sales driven by heightened demand in the semiconductor market. The company's net income for 2024 was $292.8 million, or $1.93 per diluted share, compared to $180.7 million, or $1.20 per diluted share, in 2023.

In terms of operational changes, Entegris underwent a significant internal reorganization in the fourth quarter of 2024, consolidating its operations into two segments: Materials Solutions (MS) and Advanced Purity Solutions (APS). This restructuring aims to enhance collaboration and efficiency across the company's offerings. The MS segment reported a 17% decrease in net sales to $1.4 billion, largely due to the divestiture of certain businesses, while the APS segment's sales remained relatively stable at approximately $1.85 billion. The company also reported a gross margin increase to 45.9%, up from 42.5% in 2023, attributed to improved plant performance and the impact of divested businesses.

Entegris has been active in strategic divestitures, completing the sale of its Pipeline and Industrial Materials business for $263.2 million in March 2024, and the Electronic Chemicals business for $675.3 million in October 2023. Additionally, the company recognized a pre-tax gain of $4.3 million from the sale of the Pipeline and Industrial Materials business. The divestitures are part of a broader strategy to streamline operations and focus on core competencies in the semiconductor industry.

The company’s workforce as of December 31, 2024, consisted of approximately 8,200 employees, with a significant presence in North America and Asia. Entegris continues to invest in research and development, with expenses rising to $316.1 million in 2024, representing 9.8% of net sales. This investment is aimed at enhancing its technology platforms and developing new products to meet evolving customer needs in the semiconductor market.

Looking ahead, Entegris anticipates continued growth opportunities driven by the semiconductor industry's long-term demand, particularly in emerging applications such as artificial intelligence and cloud computing. The company has also secured up to $77 million in funding under the CHIPS and Science Act to support the development of a new manufacturing facility in Colorado Springs, expected to enhance its operational capabilities and resilience in the semiconductor supply chain.