Entegris Inc. (ENTG) Q2 2023 Earnings Call Transcript

For the period ending July 1, 2023

August 3, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Entegris Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode, and the floor will be open for questions following the presentation. [Operator Instructions]

I would now like to turn the call over to Bill Seymour, Vice President of Investor Relations.

Bill Seymour

Good morning, everyone. Earlier today, we announced the Financial Results for our second quarter of 2023.

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 Linda LaGorga, our CFO.

With that, I'll hand the call over to Bertrand.

Bertrand Loy

Thank you, Bill. Good morning to all, and welcome again, Linda, to the Entegris team. I will start by saying that I am pleased with our solid execution in the second quarter, especially in light of the dynamic industry environment. During the quarter, we delivered strong results within or above our guidance. Sales were $901 million. EBITDA margins were over 27%, and non-GAAP EPS was $0.66.

Let me make a few additional comments on our financial performance. Sales were down sequentially as expected, but we did see growth in product lines that are of increasing importance to our customers' technology road maps. These include liquid filtration and etching chemistries which also explains the relative strength in our MC and SCEM divisions in the second quarter. Meanwhile, performance was mixed, but in line with our expectations in our CapEx-driven solutions. While we saw a contraction in sales of FOUPs and gas filters, consistent with the decline in WFE, we did see steady demand for our fluid handling and gas purification solutions in line with the level of new fab construction activity, which so far this year remains resilient. In terms of profitability, we continued to execute well and performed in line with our expectations.