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Photo: DrHughManning, Wikimedia Commons, CC BY-SA 4.0 (file photo of a semiconductor wafer; not an Entegris product).
Billerica-based chip-materials supplier Entegris reported record quarterly sales of $1.006 billion on Thursday, Oct. 29, 2026, up 25% from a year earlier, as demand tied to advanced semiconductors lifted both of its businesses. In the Entegris Q3 earnings release, the company said net income more than doubled to $157.8 million and guided fourth-quarter sales higher again, according to its investor release.
What Entegris reported
Net sales for the quarter ended Sept. 26 were $1,005.7 million, compared with $807.1 million a year earlier and $883.2 million in the second quarter. GAAP diluted earnings were $1.03 per share, up from 46 cents, and non-GAAP earnings were $1.23, up from 72 cents.
Gross margin widened to 49.7% from 43.5%, and operating margin rose to 22.9% from 15.2%. Adjusted EBITDA was 30.2% of sales. Gross profit rose 42% to $500.2 million. Selling, general and administrative expenses rose 34% to $136.5 million, and engineering, research and development spending rose 8% to $87.5 million, so profit grew much faster than costs. These growth rates are TBR calculations from the release. The GAAP figures include $8.3 million in refunds of tariffs collected under the International Emergency Economic Powers Act, which the company excluded from its adjusted results as a one-time, out-of-period recovery. U.S. Customs and Border Protection describes the IEEPA duty refund process on its website.
“That growth, combined with disciplined execution, drove another strong quarter, highlighted by record revenue, continued margin expansion and strong earnings growth, all of which exceeded our guidance range,” CEO Dave Reeder said in the release.
By the numbers: sales growth, segment by segment
Sales rose $198.6 million from a year earlier, or 24.6%, and $122.5 million, or 13.9%, from the second quarter, TBR calculations from the company’s figures. Nine-month sales reached $2.70 billion, up 13.8%.
Advanced Purity Solutions, which sells filters and contamination-control products used in chip plants, grew 31.3% to $604.9 million and accounted for about 60% of sales. Its segment profit rose 80% to $212.7 million. Materials Solutions, which includes deposition materials, polishing slurries and specialty gases, grew 15.9% to $404.1 million, with segment profit up 29% to $84.3 million.
On an adjusted basis, operating margin reached 26.8%, up from 21.1% a year earlier and 24.5% in the second quarter. Through nine months, net income was $343.4 million, up 84% from $186.2 million, and GAAP diluted earnings were $2.24 a share, compared with $1.22.
The quarter also carried restructuring costs of $1.5 million. Entegris said those charges relate to an internal reorganization that combined two complementary divisions and realigned its customer-facing teams, to workforce reductions, and to the planned wind-down of its Life Sciences Fluid Management business.
Cash, debt and outlook
Operating cash flow was a record $266.8 million in the quarter. Entegris repaid $175 million of debt in the period, and long-term debt fell to $3.26 billion from $3.70 billion at the end of 2025. Capital spending dropped to $43.2 million from $66.7 million a year earlier. Working capital grew with sales: trade receivables rose to $625 million from $459 million at year-end, and inventories rose to $769 million from $643 million. The company paid $15.4 million in dividends in the quarter.
For the quarter ending Dec. 31, the company expects sales of $1.025 billion to $1.055 billion, GAAP earnings of $1.09 to $1.17 a share and non-GAAP earnings of $1.32 to $1.40. It forecast GAAP net income of $168 million to $181 million and adjusted EBITDA of about 30.7% to 31.2% of sales. The midpoint of the sales range would be about 3.4% above the third quarter, a TBR calculation. Entegris will lay out its long-term strategy at a Capital Markets Day on Nov. 9.
The company has about 7,700 employees worldwide, with plants and research sites in the U.S., Asia, Europe and Israel. Its results follow strong numbers from memory maker SK Hynix, one of the chip producers that buy the kinds of materials Entegris makes. For more Massachusetts companies reporting this month, see our Q3 earnings scorecard.
Sources
- Entegris: Results for Third Quarter of 2026
- SEC EDGAR: Entegris 8-K filings
- U.S. Customs and Border Protection: IEEPA duty refunds
Additional sources
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