Entegris, Inc. (NASDAQ:ENTG) Q3 2024 Earnings Conference Call November 4, 2024 9:00 AM ET
Company Participants
Bill Seymour – Vice President-Investor Relations
Bertrand Loy – President and Chief Executive Officer
Linda LaGorga – Senior Vice President and Chief Financial Officer
Conference Call Participants
Toshiya Hari – Goldman Sachs
Bhavesh Lodaya – BMO Capital Markets
John Roberts – Mizuho
Melissa Weathers – Deutsche Bank
Atif Malik – Citi
Charles Shi – Needham
Tim Arcuri – UBS
Christopher Parkinson – Wolfe Research
Aleksey Yefremov – KeyBanc Capital Markets
Operator
Welcome to the Entegris Third Quarter 2024 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for your 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 third quarter of 2024. Before we begin, I would like to remind listeners that our comments today will include 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 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. And finally, as a reminder, we have included in the appendix of the earnings slide presentation for your reference, consolidated and divisional P&L that exclude divestitures for the first quarter of 2024 and for all four quarters of 2023.
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, and good morning. Our third quarter revenue, excluding divestitures, grew 7% year-on-year, but was below our expectations. Despite the softer top line, gross margin, EBITDA margin and non-GAAP EPS were within our guidance. The industry recovery is happening but it is happening slower than anticipated and visibility continues to be limited.
Customers with strong exposure to AI applications are performing well but the rest of the industry remains challenged. And because Entegris serves all parts of the industry ecosystem, including areas like mainstream and NAND, which remain muted. Demand for our products is softer than our original expectations. In addition, 2024 continues to be a year of limited technology transitions which limits our incremental wafer content gain opportunity and our level of outperformance this year.