Entegris Inc.: Initiation Of Coverage- Adapting to Industry Demand Trends to Capture Growth Opportunities In The Market!

Entegris demonstrated a mixed financial performance in the second quarter of 2025, characterized by a moderate revenue increase of 2% sequentially, surpassing its guidance range. However, despite this improvement, overall year-over-year sales fell by 3%, reflecting ongoing challenges within the broader semiconductor sector. The Materials Solutions division emerged as a strong performer, with a 4% increase in sales year-over-year, driven by robust demand for CMP slurries and pads, selective etch, and deposition materials. This division particularly benefited from growth in China, demand in HBM, and upcoming technological transitions in logic and 3D NAND. Conversely, the Advanced Purity Solutions segment observed a 7% decline year-over-year, attributed to reduced facilities-based CapEx investments affecting FOUPs and fluid handling revenue, despite some growth in photoresist and CMP liquid filtration.