Sales in Q1 2024: $771 million, down 16% year-over-year and down 5% sequentially.
Excluding divestitures, Q1 sales were down 5% year-over-year and 4% sequentially.
Gross margin on a GAAP and non-GAAP basis: 45.6%.
Adjusted EBITDA in Q1 2024: $223 million or 29% of revenue.
GAAP diluted EPS: $0.30 per share in Q1.
Non-GAAP EPS: $0.68 per share in Q1.
Materials Solutions division sales in Q1: $350 million, down 1% sequentially excluding divestitures.
Advanced Materials Handling (AMH) division sales in Q1: $163 million, down 4% sequentially.
Microcontamination Control (MC) division sales in Q1: $268 million, down 7% sequentially.
Future Guidance
Full-year 2024 sales expectation: Approximately $3.35 billion.
Expected EBITDA for 2024: Approximately 29% of revenue.
Non-GAAP EPS guidance for 2024: Greater than $3.25.
Q2 2024 sales guidance: $790 million to $810 million.
Expected EBITDA margin for Q2: Approximately 28%.
GAAP EPS forecast for Q2: $0.42 to $0.47 per share.
Non-GAAP EPS forecast for Q2: $0.68 to $0.73 per share.
Anticipated total CapEx in 2024: Approximately $350 million.
Trends, Market Conditions, Sentiment
The semiconductor industry is viewed as gradually recovering throughout 2024.
Entegris maintains a strong market position in new logic and memory nodes, expecting to outperform the market by 4 to 5 points in 2024, excluding the impact of divestitures.
The completion of the sale of the PIM business and other divestitures brought in approximately $1.3 billion, which was used to pay down debt significantly.
New manufacturing investments in Taiwan and Colorado are progressing, aiming to support mid- and long-term growth.
Market conditions indicate normalizing inventories and a more stable demand environment, expected to contribute to a healthier semiconductor market with an anticipated industry growth of about 4% for the year.
Specific product lines critical to customers’ leading-edge node transitions, including selective edge and advanced deposition materials, showed sequential growth.
Notable Quotes
”I am pleased with our start to the year.” - Bertrand Loy, CEO
”Our view of the semiconductor industry has not changed…We continue to expect a gradual market recovery throughout the year.” - Bertrand Loy, CEO
”We expect our sales in 2024 will be approximately $3.35 billion…we continue to expect EBITDA to be approximately 29% of revenue and non-GAAP EPS to be greater than $3.25.” - Bertrand Loy, CEO
”The industry is entering a period of unprecedented technology change and device complexity…All of this means the market is moving toward Entegris, ultimately translating into rapidly expanding content per wafer.” - Bertrand Loy, CEO
