Entegris Stretched Its Equipment Lives, Adding $0.25 A Share To Nine-Month Profit
Longer asset lives cut depreciation by $55.6 million for the nine months, while capital spending fell to $124.0 million.
Entegris, which supplies specialty materials and purity products to chipmakers, said its decision to lengthen the assumed lives of its plants and equipment added $0.25 per diluted share to nine-month earnings, out of diluted EPS of $2.24. The company's quarterly report puts the benefit at $0.10 per share for the third quarter alone.
A $55.6 million depreciation cut
The change in useful lives reduced depreciation expense by $17.9 million in the third quarter and $55.6 million for the nine months ended September 26. Net income rose by about $14.8 million for the quarter and $38.1 million for the nine months as a result, according to the 10-Q.
Total nine-month depreciation was $102.4 million, against $151.6 million a year earlier. The prior quarter's filing put the six-month effect at $37.7 million and $0.15 per share.
The benefit sits inside reported results. Gross margin reached 49.7% in the third quarter, up from 43.5%, and the company lists lower depreciation alongside higher production volume and tariff refunds as drivers. Net income was $157.8 million, compared with $70.5 million a year earlier. Adjusted measures such as adjusted EBITDA add depreciation back, so the benefit shows up most plainly in the reported numbers.
Fourteen years for machines
In January 2026, the company reassessed its assets. Manufacturing equipment now runs 14 years, instead of 5 to 10. Molds go to 9 years from 3 to 5, and lab equipment to 9 years from 3 to 8. Buildings and improvements move to 12 to 40 years from 5 to 35.
Management said the change would trim 2026 depreciation by about $73.0 million. The company said it followed an analysis of how assets are actually used, including obsolescence and its capital plans.
Entegris sells deposition materials, polishing slurries and pads, specialty gases, and filtration and contamination-control products to semiconductor makers.
Spending down, receivables up
Capital spending for the nine months fell to $124.0 million from $241.2 million. Receivables rose to $625.2 million from $458.7 million at year-end, and inventories to $769.0 million from $643.2 million.
Third-quarter net sales rose to $1,005.7 million, up 24.6% from $807.1 million, with volume adding $205.8 million, driven by demand for advanced logic and memory chips. Operating cash flow for the nine months reached $606.0 million. The company repaid its Term Loans B in full, cutting total debt to $3,260.6 million from $3,697.6 million at year-end.
Fourth-quarter guidance and Capital Markets Day
The company guides fourth-quarter GAAP diluted EPS of $1.09 to $1.17 on sales of $1,025 million to $1,055 million, according to its earnings release. Its market value was $24.3 billion at Thursday's report.
Entegris holds its Capital Markets Day on November 9, 2026.
Sources
- 10-Q Filing — Entegris (ENTG) — SEC EDGAR
- 10-Q Filing — Entegris (ENTG), Q2 FY2026 filed 2026-08-04 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, entgq32026ex991.htm) — Entegris, filed 2026-10-29 — SEC EDGAR
- Compared to Estimates, Entegris (ENTG) Q3 Earnings: A Look at Key Metrics — Yahoo Finance
- Entegris Reports Jump in 3Q Profit, Revenue on Continued Semiconductor Demand — MarketWatch
- Entegris Non-GAAP EPS of $1.23 beats by $0.21, revenue of $1B beats by $74.65M (ENTG:NASDAQ) | Seeking Alpha — seekingalpha.com
- Entegris (ENTG) Beats Q3 Earnings and Revenue Estimates — Yahoo Finance
- Entegris: Q3 Earnings Snapshot – WTOP News — wtop.com
