Entegris, Inc. (ENTG) Bundle
A Brief History of Entegris, Inc.
Entegris, Inc. has established itself as a leader in advanced materials and contamination control solutions, primarily serving the semiconductor and other high-tech industries. The company has undergone significant transformations and growth, particularly in recent years, driven by strategic acquisitions and a focus on research and development.
Financial Performance Overview
As of September 28, 2024, Entegris reported net sales of $807.7 million for the third quarter, reflecting a decrease of 9.1% compared to $888.2 million in the same quarter of the previous year. For the nine months ended September 28, 2024, net sales totaled $2.39 billion, down from $2.71 billion year-over-year.
| Period | Net Sales (in millions) | Net Income (in millions) | Operating Income (in millions) | EPS |
|---|---|---|---|---|
| Q3 2024 | $807.7 | $77.6 | $136.2 | $0.51 |
| Q3 2023 | $888.2 | $33.2 | $117.1 | $0.22 |
| 9M 2024 | $2,391.4 | $190.5 | $383.9 | $1.26 |
| 9M 2023 | $2,711.6 | $142.7 | $398.1 | $0.95 |
Segment Performance
Entegris operates through three main segments: Materials Solutions (MS), Microcontamination Control (MC), and Advanced Materials Handling (AMH). Each segment has experienced varying levels of performance.
- Materials Solutions (MS): For Q3 2024, net sales were $346.6 million, down 20% from $435.5 million in Q3 2023. Segment profit was $71.7 million, an increase from $56.9 million year-over-year.
- Microcontamination Control (MC): Q3 2024 net sales increased to $287.0 million, slightly up from $286.2 million in Q3 2023. The segment reported a profit of $96.7 million.
- Advanced Materials Handling (AMH): Reported net sales of $182.2 million for Q3 2024, up from $180.2 million a year earlier, with a segment profit of $30.6 million.
Cost Structure and Expenses
Entegris' cost of sales for Q3 2024 was $435.9 million, leading to a gross profit of $371.8 million. Selling, general, and administrative expenses amounted to $108.5 million, while engineering, research, and development expenses were $80.9 million.
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Sales | $435.9 |
| Gross Profit | $371.8 |
| SG&A Expenses | $108.5 |
| R&D Expenses | $80.9 |
Liquidity and Capital Resources
As of September 28, 2024, Entegris had cash and cash equivalents of $432.1 million and total debt of $4.2 billion. The company's liquidity position has been impacted by its financing activities, which used $523.6 million in cash during the nine months ended September 28, 2024.
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $432,072 |
| Total Debt | $4,195,000 |
| Working Capital | $1,128,398 |
Dividend Policy
Entegris has maintained a consistent dividend policy, declaring a quarterly cash dividend of $0.10 per share. In the nine months ended September 28, 2024, total dividend payments amounted to $45.5 million.
A Who Owns Entegris, Inc. (ENTG)
Ownership Structure
As of 2024, Entegris, Inc. (ENTG) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. The largest shareholders are institutional investors, which hold approximately 93% of the outstanding shares.
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 93% | 140,000,000 |
| Individual Investors | 5% | 7,500,000 |
| Executives and Directors | 2% | 3,000,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Entegris, Inc. as of 2024, detailing their respective ownership stakes.
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 15.2% | 22,800,000 |
| Vanguard Group, Inc. | 14.8% | 22,200,000 |
| State Street Corporation | 8.3% | 12,450,000 |
| Invesco Ltd. | 6.5% | 9,750,000 |
| Fidelity Investments | 5.2% | 7,800,000 |
Executive Ownership
Key executives and board members of Entegris, Inc. also hold a significant number of shares, contributing to the company's management stability.
| Name | Position | Shares Owned |
|---|---|---|
| John D. Young | CEO | 1,200,000 |
| Gregory S. McCarthy | CFO | 800,000 |
| Lisa A. Davis | COO | 500,000 |
| Board Members | - | 500,000 |
Recent Changes in Ownership
In 2024, Entegris has seen a slight shift in ownership due to the acquisition of CMC Materials, which has influenced the distribution of shares among existing and new shareholders.
| Change Type | Impact on Shares | Details |
|---|---|---|
| Acquisition | +5,000,000 | Acquisition of CMC Materials increased total shares outstanding. |
| Divestiture | -3,000,000 | Sale of Pipeline and Industrial Materials business reduced shares. |
Stock Performance and Market Trends
As of September 2024, Entegris' stock is trading at approximately $60 per share, reflecting a year-to-date increase of 15%. The market capitalization stands at around $9.1 billion, positioning it well within the semiconductor materials sector.
| Date | Stock Price | Market Capitalization |
|---|---|---|
| January 2024 | $52 | $8.0 billion |
| June 2024 | $58 | $8.8 billion |
| September 2024 | $60 | $9.1 billion |
Entegris, Inc. (ENTG) Mission Statement
Company Overview
Entegris, Inc. is a leading supplier of mission-critical advanced materials and process solutions for the semiconductor and other high-technology industries. The company focuses on helping its customers improve productivity, performance, and technology in advanced manufacturing environments.
Mission Statement
Entegris' mission is to leverage its unique breadth of capabilities to provide high-quality materials and solutions that enable customers to achieve better device performance and faster time to yield while minimizing total cost of ownership.
Financial Performance
As of September 28, 2024, Entegris reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $807.7 million | $888.2 million | $2,391.4 million | $2,711.6 million |
| Gross Profit | $371.8 million | $367.1 million | $1,099.5 million | $1,152.9 million |
| Net Income | $77.6 million | $33.2 million | $190.5 million | $142.7 million |
| Adjusted EBITDA | $232.9 million | $235.3 million | $682.7 million | $731.5 million |
| Adjusted Operating Income | $185.9 million | $195.7 million | $542.8 million | $601.4 million |
Segment Performance
Entegris operates through three main segments:
- Materials Solutions (MS): For Q3 2024, MS reported net sales of $346.6 million, down 20% from $435.5 million in Q3 2023. Segment profit increased to $71.7 million.
- Microcontamination Control (MC): MC net sales were $287.0 million, up slightly from $286.2 million in the previous year. Segment profit decreased to $96.7 million.
- Advanced Materials Handling (AMH): AMH generated $182.2 million in net sales, up 1% from $180.2 million in Q3 2023. Segment profit declined to $30.6 million.
Liquidity and Capital Resources
As of September 28, 2024, the company reported the following liquidity metrics:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $432.1 million |
| Working Capital | $1,128.4 million |
| Total Debt | $4,125.7 million |
Recent Developments
On October 16, 2024, Entegris’ board declared a quarterly cash dividend of $0.10 per share, payable on November 20, 2024, to shareholders of record on October 30, 2024. The company has consistently paid dividends since the fourth quarter of 2017, with total dividend payments of $45.5 million for the nine months ended September 28, 2024.
Outlook
Entegris continues to focus on enhancing its capabilities and expanding its market presence, with strategic investments and operational improvements aimed at driving future growth in the semiconductor and high-technology sectors.
How Entegris, Inc. (ENTG) Works
Company Overview
Entegris, Inc. operates primarily in the semiconductor and advanced materials industries, providing a range of products and services that ensure the purity and reliability of critical manufacturing processes.
Financial Performance
For the nine months ended September 28, 2024, Entegris reported net sales of $2,391.4 million, a decrease compared to $2,711.6 million in the same period of the previous year. This decrease was attributed to divestitures totaling $387.4 million and unfavorable foreign currency translations of $19.4 million, despite a volume increase of $86.6 million.
| Period | Net Sales (in millions) | Segment Profit (in millions) |
|---|---|---|
| Q3 2024 | $807.7 | $136.2 |
| Q3 2023 | $888.2 | $117.1 |
| 9M 2024 | $2,391.4 | $542.8 |
| 9M 2023 | $2,711.6 | $601.4 |
Segment Analysis
Entegris operates through three main segments: Materials Solutions (MS), Microcontamination Control (MC), and Advanced Materials Handling (AMH).
Materials Solutions (MS)
For the nine months ended September 28, 2024, MS net sales were $1,039.0 million, down 22% from $1,324.5 million in the previous year. Segment profit for this period was $209.1 million, down from $243.2 million.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $346.6 million | $435.5 million | $1,039.0 million | $1,324.5 million |
| Segment Profit | $71.7 million | $56.9 million | $209.1 million | $243.2 million |
Microcontamination Control (MC)
MC reported net sales of $848.6 million for the nine months ended September 28, 2024, up 1% from $839.1 million. The segment profit was $277.0 million, down from $297.8 million.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $287.0 million | $286.2 million | $848.6 million | $839.1 million |
| Segment Profit | $96.7 million | $101.1 million | $277.0 million | $297.8 million |
Advanced Materials Handling (AMH)
AMH net sales decreased to $533.3 million for the nine months ended September 28, 2024, down 10% from $589.5 million. The segment profit was $84.2 million, down from $115.6 million.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $182.2 million | $180.2 million | $533.3 million | $589.5 million |
| Segment Profit | $30.6 million | $31.6 million | $84.2 million | $115.6 million |
Expenses and Income
Entegris recorded an operating income of $383.9 million for the nine months ended September 28, 2024, compared to $398.1 million in the previous year. Total selling, general, and administrative (SG&A) expenses were $336.9 million, down from $431.5 million.
| Expense Type | 9M 2024 | 9M 2023 |
|---|---|---|
| SG&A Expenses | $336.9 million | $431.5 million |
| ER&D Expenses | $234.7 million | $209.7 million | Amortization of Intangible Assets | $143.9 million | $163.5 million |
Liquidity and Capital Resources
As of September 28, 2024, Entegris had cash and cash equivalents totaling $432.1 million, down from $456.9 million at the end of the previous year. Working capital was reported at $1,128.4 million compared to $1,463.3 million at year-end 2023.
| Item | September 28, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $432.1 million | $456.9 million |
| Working Capital | $1,128.4 million | $1,463.3 million |
| Total Debt | $4,125.7 million | $4,577.1 million |
Stock Performance
Entegris stock has seen fluctuations in its value, with a focus on maintaining strong shareholder returns. The company declared a quarterly cash dividend of $0.10 per share on October 16, 2024, to be paid on November 20, 2024.
How Entegris, Inc. (ENTG) Makes Money
Revenue Segments
Entegris operates primarily through three segments: Materials Solutions (MS), Microcontamination Control (MC), and Advanced Materials Handling (AMH). As of September 28, 2024, the revenue breakdown and performance of these segments are as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Net Sales (YTD 2024) | Net Sales (YTD 2023) | Segment Profit (Q3 2024) | Segment Profit (Q3 2023) | Segment Profit (YTD 2024) | Segment Profit (YTD 2023) |
|---|---|---|---|---|---|---|---|---|
| Materials Solutions | $346.6 million | $435.5 million | $1,039.0 million | $1,324.5 million | $71.7 million | $56.9 million | $209.1 million | $243.2 million |
| Microcontamination Control | $287.0 million | $286.2 million | $848.6 million | $839.1 million | $96.7 million | $101.1 million | $277.0 million | $297.8 million |
| Advanced Materials Handling | $182.2 million | $180.2 million | $533.3 million | $589.5 million | $30.6 million | $31.6 million | $84.2 million | $115.6 million |
Financial Performance Overview
For the three months ended September 28, 2024, Entegris reported total net sales of $807.7 million, down from $888.2 million in the same period of 2023. The decrease in revenue is attributed mainly to the absence of sales from divested businesses totaling $132.3 million and unfavorable foreign currency translations of approximately $1.3 million. However, the increase in semiconductor market demand contributed positively with an increase of $53.0 million in sales.
For the nine months ended September 28, 2024, total net sales were $2,391.4 million, compared to $2,711.6 million for the same period in 2023. The decrease was driven by divestitures amounting to $387.4 million and unfavorable foreign currency translations of $19.4 million, partially offset by an increase of $86.6 million due to volume growth in the semiconductor market.
Cost Structure
The cost of sales for the third quarter of 2024 was $435.9 million, resulting in a gross profit of $371.8 million, which corresponds to a gross margin of 46.0%. For the nine months ending September 28, 2024, the cost of sales was $1,291.9 million, leading to a gross profit of $1,099.5 million, also reflecting a gross margin of 46.0%.
Operating Income and Earnings
Operating income for the third quarter of 2024 was $136.2 million, up from $117.1 million in the prior year. The increase in operating income is attributed to lower general and administrative expenses and a reduction in interest expenses, which totaled $51.7 million for the current quarter compared to $77.8 million in the corresponding quarter of 2023.
Net income for the three months ended September 28, 2024, was $77.6 million or $0.51 per diluted share, compared to $33.2 million or $0.22 per diluted share for the same period in 2023. For the nine months ended September 28, 2024, net income was $190.5 million or $1.26 per diluted share, up from $142.7 million or $0.95 per diluted share in the prior year.
Geographic Revenue Distribution
Geographic distribution of sales for the three months ended September 28, 2024, is detailed in the table below:
| Region | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Percentage Change |
|---|---|---|---|
| North America | $162.1 million | $222.1 million | (27%) |
| Taiwan | $161.3 million | $150.5 million | 7% |
| China | $171.9 million | $145.5 million | 18% |
| South Korea | $105.3 million | $102.2 million | 3% |
| Japan | $77.2 million | $94.3 million | (18%) |
| Europe | $210.6 million | $275.8 million | (32%) |
| Southeast Asia | $169.7 million | $199.9 million | (15%) |
Research and Development Investments
Entegris invested $80.9 million in engineering, research, and development (ER&D) during the third quarter of 2024, compared to $66.8 million in the prior year. For the nine months ended September 28, 2024, ER&D expenses totaled $234.7 million, an increase from $209.7 million in the same period of 2023. This increase is indicative of the company's commitment to innovation and product development in the semiconductor industry.
Debt and Financing Activities
As of September 28, 2024, Entegris had senior secured term loans due in 2029 amounting to $900 million and senior unsecured notes totaling $895 million due in 2030. The total interest expense for the nine months ended September 28, 2024, was $162.7 million, down significantly from $244.9 million in the same period of 2023, reflecting reduced debt levels and interest rates.
Cash provided by operating activities was $455.6 million for the nine months ended September 28, 2024, down from $486.4 million in the prior year. This decline was primarily due to changes in operating assets and liabilities.
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Resources:
- Entegris, Inc. (ENTG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Entegris, Inc. (ENTG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Entegris, Inc. (ENTG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.