Entegris, Inc. (ENTG) Q2 2026 10-Q Summary
Business Context and Reporting Period
This summary covers the quarterly period ended June 27, 2026. Entegris, Inc. is a leading supplier of critical advanced materials and process solutions for the semiconductor and high-technology industries. The company operates through two segments: Materials Solutions (MS) and Advanced Purity Solutions (APS). As of July 31, 2026, there were 152.8 million shares of common stock outstanding.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Sales | $883.2 million | $792.4 million | $1,695.1 million | $1,565.6 million |
| Gross Profit | $420.0 million | $351.5 million | $800.8 million | $708.0 million |
| Gross Margin | 47.6% | 44.4% | 47.2% | 45.2% |
| Operating Income | $164.6 million | $106.1 million | $306.2 million | $228.4 million |
| Net Income | $93.6 million | $52.8 million | $185.6 million | $115.7 million |
| Diluted EPS | $0.61 | $0.35 | $1.21 | $0.76 |
| Operating Cash Flow (YTD) | $339.2 million (vs. $253.9 million YTD 2025) | |||
| Cash & Equivalents | $353.6 million (as of June 27, 2026) | |||
| Total Debt (Net) | $3,456.0 million (as of June 27, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 11.5% in Q2 and 8.3% YTD, driven primarily by volume growth in both segments. Taiwan sales grew 29% in Q2 and 23% YTD.
- Margin Expansion: Gross margin improved by 3.2 percentage points in Q2 and 2.0 percentage points YTD. This was driven by higher production volumes and a significant reduction in depreciation expense due to a change in the estimated useful lives of property, plant, and equipment (PP&E).
- Accounting Change: In January 2026, the company extended the useful lives of certain PP&E assets. This reduced depreciation expense by $18.7 million in Q2 and $37.7 million YTD, increasing net income by approximately $15.3 million and $23.3 million, respectively.
- Debt Reduction: The company repaid $250.0 million of Term Loan B borrowings during the first six months of 2026. Total debt decreased from $3,697.6 million at year-end 2025 to $3,456.0 million.
- Restructuring: Restructuring charges totaled $5.6 million in Q2 and $9.7 million YTD, related to workforce reductions and the wind-down of the Life Sciences Fluid Management business.
Guidance, Outlook, and Risks
- Segment Performance: The APS segment saw significant profit growth (57% in Q2) driven by liquid/gas filtration and FOUP sales. The MS segment grew 5% in sales and 7% in profit.
- Trade Environment: Management highlights risks from global trade tensions, specifically tariffs imposed by the U.S. and retaliatory measures by other countries, which may increase costs and disrupt supply chains.
- Geopolitical Risks: Conflicts in the Middle East and Ukraine/Russia continue to create volatility in energy prices and shipping routes, though the company states these do not constitute a material portion of revenue.
- Subsequent Events: On July 15, 2026, the board declared a quarterly dividend of $0.10 per share. On July 31, 2026, the company made an additional $25 million voluntary debt payment.
- Non-GAAP Measures: Adjusted EBITDA for Q2 was $250.7 million (28.4% margin), and Non-GAAP EPS was $0.93.
Investor Verification Checklist
- Depreciation Impact: Verify the sustainability of margin improvements given the one-time accounting change regarding PP&E useful lives.
- Tariff Exposure: Assess the specific impact of new U.S. tariffs and potential retaliatory measures on the company's cost structure and pricing power.
- Debt Covenants: Confirm compliance with the 5.20:1.00 first lien net leverage ratio covenant, particularly as the revolving facility utilization remains low.
- China Demand: Monitor sales trends in China, which saw a slight decline (-1% YTD) due to decreased demand for MS products, amidst broader geopolitical tensions.
- Restructuring Completion: Track the progress of the Life Sciences Fluid Management wind-down and associated asset impairment charges.