Entegris(ENTG) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, net sales were $3,241.2 million, a decrease of$282.7 million, or 8%, from 2023[218] - The decrease in net sales was primarily due to the absence of $434.2 million in sales associated with divested businesses and a reduction of$23.4 million from unfavorable foreign currency translation effects[219] - Gross profit for 2024 was $1,486.7 million, representing 45.9$1,497.6 million, or 42.5% of net sales in 2023[218] - Operating income increased to $533.9 million, or 16.5$499.2 million, or 14.2% of net sales in 2023[218] - The company reported net income of $292.8 million, or 9.0$180.7 million, or 5.1% in 2023[218] - Net income rose to $292.8 million, or$1.93 per diluted share, in 2024, compared to $180.7 million, or$1.20 per diluted share, in 2023[234] - Adjusted Operating Income decreased by 3.5% to $742.9 million in 2024, while Non-GAAP EPS increased by 13.6$3.00[237] - Non-GAAP net income for 2024 was $455,988, with diluted non-GAAP earnings per share at$3.00, compared to $398,918 and$2.64 in 2023[292] Expenses and Costs - Engineering, research and development expenses rose to $316.1 million, or 9.8$277.3 million, or 7.9% in 2023[218] - SG&A expenses decreased by $129.6 million, or 22$446.6 million in 2024 from $576.2 million in 2023[222] - Interest expense decreased to$215.2 million, or 6.6% of net sales, from $312.4 million, or 8.9$115,217 in 2023, which was not present in 2024[292] - Interest expense decreased from $312,378 in 2023 to$215,217 in 2024, reflecting improved financial management[291] Sales and Market Performance - North America sales decreased by 25% to 21% of total sales in 2024, while Taiwan sales increased by 12% to 20%[220] - Materials Solutions net sales decreased by 17% to $1,400.1 million in 2024, primarily due to the absence of$434.2 million in sales from divested businesses[242] - Advanced Purity Solutions reported flat net sales of approximately $1,850.2 million in 2024, with a segment profit decrease of 7$496.1 million[246] Cash Flow and Debt Management - Total debt decreased to $3,981.1 million in 2024 from$4,577.1 million in 2023[251] - Cash and cash equivalents decreased to $329.2 million in 2024 from$456.9 million in 2023[251] - In 2024, the net cash provided by operating activities was $631.7 million, a decrease of$12.8 million compared to $644.5 million in 2023[254] - Cash used in investing activities in 2024 was$67.1 million, a significant decrease from $553.1 million provided in 2023, primarily due to less proceeds from divestitures of$564.2 million[258] - Cash used in financing activities was $689.0 million in 2024, down from$1,297.5 million in 2023, mainly due to decreased net debt activity of $635.9 million[261] - Total debt (par value) decreased to$4.045 billion as of December 31, 2024, from $4.669 billion in 2023[263] - The company repaid$623.8 million net of borrowings under the term loans B during the fiscal year 2024[264] - The company had cash requirements totaling $5.414 billion as of December 31, 2024, with$395.6 million due within one year[269] Future Outlook and Investments - The company expects capital expenditure spending to be approximately $325.0 million in 2025, including investments in a new manufacturing facility in Colorado Springs, Colorado[271] - The company entered into a definitive agreement with the U.S. Department of Commerce for up to$77.0 million in funding under the CHIPS and Science Act to support a new facility in Colorado Springs[212] Currency and Interest Rate Impact - A 100-basis point change in interest rates could impact annual net income by approximately $2.5 million in 2024 and$3.4 million in 2023[293] - Approximately 16.7% of sales in 2024 were denominated in foreign currencies, which could lead to a revenue decrease of about $53.2 million if those currencies depreciate by 10$931,074, accounting for 28.7% of net sales, compared to $942,355 and 26.7$115.2 million in 2023, with no impairment recorded in 2024[218] - The company utilized non-GAAP financial measures, including Adjusted EBITDA and Non-GAAP EPS, to provide additional insights into its performance[277]