7 min read

Entegris (ENTG) Q4 2024 Earnings and CHIPS Act Impact

by monexa-ai

Entegris (ENTG) Q4 2024 earnings beat expectations, fueled by CHIPS Act funding and strong market positioning. A competitive analysis with MKS Instruments reveals key insights.

Entegris (ENTG) Q4 2024 Earnings: Financial analysis of CHIPS Act impact, revenue, EPS, and market trends in semiconductor industry.

Entegris (ENTG) Q4 2024 Earnings: Financial analysis of CHIPS Act impact, revenue, EPS, and market trends in semiconductor industry.

Entegris (ENTG) Q4 2024 Earnings and CHIPS Act Impact: A Financial Analysis#

Entegris, Inc. (ENTG) has recently announced its financial results for the fourth quarter of 2024, marking a strong conclusion to the year. The company's performance is being closely watched as it navigates the complexities of the semiconductor market, leveraging both organic growth and strategic initiatives like the CHIPS Act funding.

Stay ahead of market trends

Get comprehensive market analysis and real-time insights across all sectors.

Explore Market Overview

Q4 2024 Financial Highlights#

Entegris reported earnings per share (EPS) of $0.84, surpassing the Zacks Consensus Estimate of $0.77, according to Zacks.com. This compares favorably to the $0.65 per share reported in the same quarter last year, showcasing robust growth. CEO Bertrand Loy highlighted the company's success in outperforming the market throughout 2024, with EBITDA growth outpacing sales growth, as noted in the BusinessWire press release. This underscores Entegris's efficient operational model and strategic market positioning.

Revenue and EPS Analysis#

While specific revenue figures for Q4 2024 were not detailed in the provided snippets, the Entegris earnings call transcript from Seeking Alpha suggests strong performance across its business segments. The Specialty Chemicals and Engineered Materials (SCEM), Microcontamination Control (MC), and Advanced Materials Handling (AMH) segments likely contributed significantly to the overall revenue, driven by increasing demand in semiconductor manufacturing. Analysts estimate 2025 revenue at $3.43 billion and EPS at $3.32, both increases from previous estimates, according to Monexa AI.

CHIPS Act Funding: Fueling Entegris's Growth#

CHIPS Act Funding Details#

Entegris has secured up to $77 million in funding under the CHIPS and Science Act, as announced by BusinessWire. This funding underscores Entegris's crucial role in the semiconductor supply chain and its commitment to domestic manufacturing. The structured approach of the CHIPS Act, with funding released upon achievement of milestones, ensures accountability and efficient use of resources.

Expansion Plans and R&D Initiatives#

The CHIPS Act funding will support Entegris's state-of-the-art facility in Colorado Springs, increasing production capabilities for Front-Opening Unified Pods (FOUPs) and advanced liquid filtration and purification products, according to Entegris. This expansion is expected to create approximately 600 direct manufacturing jobs and 500 construction jobs by 2030. Entegris is also committed to expanding its R&D capabilities in the U.S. and partnering with educational institutions for workforce development, as highlighted in the Commerce.gov press release. The Colorado Springs facility will also serve as a Military Center of Excellence, aiming to recruit 50% of its workforce from Veterans and military families.

High-Performance Computing and Advanced Packaging#

The semiconductor industry is experiencing rapid growth, driven by demand for high-performance computing (HPC), advanced packaging, and memory solutions. Entegris is well-positioned to capitalize on these trends, with its comprehensive portfolio of solutions addressing the needs of these high-growth segments. The increasing demand for advanced node transitions in logic and memory also presents opportunities for Entegris, given its expertise in filtration, purification, and advanced materials handling.

The memory market, particularly DRAM and NAND flash, is critical to Entegris's performance. The rise of high-bandwidth memory (HBM), essential for AI and HPC, presents another growth opportunity. The HBM market is expected to grow at a 64% compound annual growth rate (CAGR) in bit growth and a 58% CAGR in revenue through 2028. Entegris's solutions for advanced packaging and materials handling are essential for enabling the production of HBM chips.

Entegris vs. MKS Instruments: A Competitive Analysis#

Product Offerings and Market Share#

Entegris and MKS Instruments are key players in the semiconductor equipment and materials market. Entegris offers advanced materials and process solutions, while MKS Instruments provides instruments, systems, subsystems, and process control solutions. While both serve the semiconductor industry, their product offerings and target markets differ. Entegris's focus on advanced materials gives it an edge in filtration, purification, and materials handling.

Customer Relationships#

Both Entegris and MKS Instruments emphasize strong relationships with leading semiconductor manufacturers and OEMs. Entegris's relationships are built on its ability to provide comprehensive solutions across the semiconductor manufacturing value chain. While specific market share figures are difficult to obtain, both companies are recognized leaders in their respective areas.

Valuation and Profitability#

Entegris has a higher forward P/E ratio (35.33) compared to MKS Instruments (17.82), indicating investors are willing to pay a premium for Entegris's future earnings, according to Nasdaq. Entegris also has a higher net margin (9.03%) compared to MKS Instruments (5.30%). MKS Instruments, however, has a higher return on equity (18.94%) compared to Entegris (12.83%), suggesting it is more efficient at generating profits from shareholders' equity, per MarketBeat.

Here's a table summarizing the key differences between ENTG and MKSI:

Metric ENTG MKSI
Forward P/E Ratio 35.33 17.82
Net Margin 9.03% 5.30%
Return on Equity 12.83% 18.94%

Analyst Outlook: What's Next for Entegris?#

Analyst Ratings and Price Targets#

Recent analyst activity suggests a positive outlook for Entegris. Citi raised its price target for Entegris to $125, maintaining a Buy rating. BMO Capital Markets adjusted its price target for Entegris to $131 from $135, while still rating the stock as Outperform. These actions reflect growing confidence in Entegris's ability to execute its strategic initiatives and capitalize on market opportunities.

Macroeconomic Factors Influencing Entegris#

Interest Rate Sensitivity#

Entegris's stock price is sensitive to macroeconomic indicators such as interest rates and GDP growth. Higher interest rates can negatively impact Entegris by increasing borrowing costs and reducing economic activity. Strong GDP growth can drive demand for semiconductors and increase Entegris's revenue.

Semiconductor Industry ETF Performance#

The correlation between Entegris's stock performance and semiconductor industry ETFs provides insights into the company's overall market sentiment. A positive correlation suggests that Entegris's stock price tends to move in the same direction as the semiconductor industry.

Entegris: A Long-Term Investment Perspective#

Entegris presents a compelling long-term investment opportunity for investors seeking exposure to the semiconductor industry. The company's strong financial performance, strategic positioning, and commitment to innovation make it a valuable addition to any portfolio. Entegris's CHIPS Act funding and expansion plans are likely to positively impact its stock price in the long run. The company's focus on sustainability and environmental responsibility is also likely to attract socially responsible investors.

Here's a table summarizing Entegris's Analyst Estimates:

Year Estimated Revenue (Avg) Estimated EPS (Avg)
2025 $3.43 Billion $3.32
2026 $3.78 Billion $4.25
2027 $4.07 Billion $4.89

Key Takeaways:

  • Strong Q4 2024 Performance: Entegris exceeded earnings estimates, demonstrating resilience and efficient operations.
  • CHIPS Act Funding Advantage: The secured funding will bolster expansion plans and R&D initiatives, strengthening Entegris's market position.
  • Strategic Market Positioning: Entegris is well-aligned to capitalize on growth trends in HPC, advanced packaging, and memory solutions.
  • Competitive Landscape: While MKS Instruments presents a value proposition, Entegris's higher growth potential and net margins make it an attractive investment.
  • Positive Analyst Sentiment: Recent analyst ratings indicate confidence in Entegris's future prospects.

Strategic Implications:

  • Focus on Innovation: Continued investment in R&D is crucial to maintaining a competitive edge and addressing evolving customer needs.
  • Efficient Capital Allocation: Effective utilization of CHIPS Act funding will be vital for achieving expansion targets and driving revenue growth.
  • Proactive Supply Chain Management: Mitigating supply chain risks is essential for ensuring business continuity and meeting increasing demand.
  • Sustainability Initiatives: Embracing sustainable practices will attract socially responsible investors and enhance Entegris's long-term value.
Electric SUV parked before a modern factory with wind turbines in the background

Rivian Automotive Inc. Profitability Roadmap and Market Position Analysis

Comprehensive analysis of Rivian's financial performance, cost reduction strategies, R2 launch, Volkswagen partnership, and market challenges shaping its EV future.

Futuristic rocket in a modern launch facility with purple lighting

Rocket Lab USA, Inc. (RKLB) Defense Contracts and Neutron Rocket Propel Growth Amid Competitive Space Launch Market

Rocket Lab's multi-billion dollar defense contracts and Neutron rocket development boost revenue growth and competitive positioning versus SpaceX in the evolving space launch sector.

Abstract business chart with arrows and team meeting in a modern office, city skyline in background

Klaviyo, Inc. Q2 2025 Earnings Preview: AI-Driven Growth and Strategic Expansion Analysis

Explore Klaviyo's Q2 2025 earnings outlook, AI-driven marketing growth, upmarket expansion, and competitive positioning backed by detailed financial insights.

Oil pumpjack in a wide open field with distant refinery and mountains under a purple-toned sky

Ovintiv Inc. Q2 2025 Analysis: Capital Efficiency and Strategic Portfolio Realignment

Ovintiv Inc. delivered strong Q2 2025 results with production outperformance, capital discipline, and strategic asset moves boosting free cash flow and shareholder returns.

Silicon wafer displaying complex microchips in a modern semiconductor lab setting with a purple hue

TSMC Financial Analysis: AI Leadership, Global Expansion, and Robust Growth

TSMC leads in AI chip manufacturing with advanced nodes N2 and A16, strong financials, global fab expansion, and strategic resilience amid geopolitical risks.

Businessman studying cybersecurity interface in a modern office with digital data visuals and purple lighting

Booz Allen Hamilton (BAH) AI Cybersecurity Strategy and Q1 FY26 Financial Analysis

Booz Allen Hamilton advances AI cybersecurity with Vellox Reverser, posts strong Q1 FY26 growth driven by defense contracts amid civil sector restructuring.