Entegris, Inc. (ENTG) Q3 2022 Earnings Call Transcript

For the period ending October 1, 2022

November 2, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, everyone, and welcome to the Entegris Q3 2022 Earnings Release Call. Today’s call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Bill Seymour, VP of Investor Relations. Please go ahead, sir.

Bill Seymour

Good morning, everyone. Earlier today, we announced the financial results for our third quarter of 2022. Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in our most recent annual report and subsequent quarterly reports that we have filed with the SEC. Please refer to the information on the disclaimer slide in the presentation.

On this call, we will also refer to non-GAAP financial measures as defined by the SEC and Regulation G. You can find a reconciliation table in today’s news release as well as on our IR page of our website at entegris.com.

On the call today are Bertrand Loy, our CEO; and Greg Graves, our CFO.

With that, I’ll hand it over to Bertrand.

Bertrand Loy

Thank you, Bill, and good morning to all. Let’s turn to our results. Sales growth and overall execution were solid in the quarter, especially considering the growing uncertainty in the semi market. For the quarter, on a pro forma basis, sales were up 14% year-on-year and down 2% sequentially. On a reported basis, sales were up 71% year-on-year and up 44% sequentially.

EBITDA margins were 30% in the quarter, in line with our guidance, and non-GAAP EPS on an as-reported basis was down year-over-year, mostly reflecting the increase in interest expense. Let me make a few additional comments on our sales performance.

In the third quarter, growth in our unit-driven solutions was led by liquid filtration, formulated cleans and CMP consumables. Solutions, which are of growing importance to our customers’ technology road maps. Growth also remained strong in the quarter in many of our CapEx-driven solutions, which are linked to new fab investments. So far this year, we have yet to see any meaningful slowdown in new fab construction projects, and this has helped sustained strong growth in fluid and wafer handling solutions as well as gas filtration and purification products.