Entegris shares fall over 3% as Q3 guidance disappoints despite Q2 beat

Published 30/07/2025, 11:26
 Entegris shares fall over 3% as Q3 guidance disappoints despite Q2 beat

BILLERICA, Mass. - On Wednesday, Entegris, Inc. (NASDAQ:ENTG) issued third-quarter guidance that failed to impress investors, despite reporting better-than-expected second quarter results.

The materials supplier for the semiconductor industry saw its shares tumble 3.68% in pre-market trading after the announcement.

The company posted second quarter adjusted earnings of $0.66 per share, exceeding analyst estimates of $0.63. Revenue came in at $792.4 million, significantly above the consensus forecast of $761.22 million and representing a 2% sequential increase, though down 2.5% YoY from $812.7 million.

For the third quarter, Entegris expects revenue between $780 million and $820 million, with the midpoint of $800 million slightly below analyst expectations of $807.9 million. The company forecasts adjusted earnings of $0.68 to $0.75 per share, with the midpoint aligning with the $0.74 consensus.

"Our second quarter revenue grew 2 percent sequentially and was above our guidance range. Growth was driven by demand for our unit-driven solutions, particularly CMP consumables, selective etch and deposition materials," said Bertrand Loy, Entegris’ President and Chief Executive Officer.

The company maintained its adjusted EBITDA margin at 27.3% of sales, slightly below the 27.8% reported in the same quarter last year. Gross margin declined to 44.4% from 46.2% YoY.

Loy noted that while AI applications are driving significant growth in advanced logic and HBM (High Bandwidth (NASDAQ:BAND) Memory), "elsewhere, fab activity remains subdued. And in the short term, the uncertainty around trade policies and the macroeconomic environment will continue to have an impact on semiconductor demand."

Despite near-term challenges, management expressed optimism about the second half of 2025 and maintained confidence in the company’s long-term growth prospects, citing Entegris’ expertise in materials science and purity as increasingly valuable for customers seeking to improve device performance and yields.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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