Entegris posts record Q3 as AI demand lifts growth and margins

Transcript intelligence

What changed

Revenue reached a record $1.006 billion, up 25% year over year, while adjusted gross margin expanded to 48.9% and adjusted EBITDA margin exceeded 30%. Book-to-bill remained well above 1, backlog rose more than 35% sequentially and doubled year over year, and 2026 capex guidance was reduced to approximately $200 million.

Guidance delta

Management maintained its outlook, pointing to continued FY 2026 growth, an upbeat Q4 view and lower 2026 capex. The company also outlined ongoing ramps at KSP South and Colorado.

Key takeaways

• Record Q3 revenue grew 25% year over year to $1.006 billion.
• Adjusted gross margin reached 48.9%, up 530 basis points year over year, while adjusted EBITDA margin exceeded 30%.
• APS grew 31% year over year and both APS and MS delivered double-digit growth.
• Book-to-bill stayed well above 1, with backlog up more than 35% sequentially and doubled year over year.
• KSP reached gross-profit breakeven in Q3, while 2026 capex guidance fell to approximately $200 million.

Management priorities

• Expand brownfield capacity while reducing planned 2026 capex.
• Ramp KSP South toward breakeven and bring the Colorado facility to revenue generation in 2027.
• Continue early customer engagement to secure plan-of-record wins.
• Use productivity, yield and procurement initiatives to support margins.
• Detail the AI-native strategy and long-term roadmap at the November 9 Capital Markets Day.