Entegris, Inc.

Please stand by. Your program is about to begin. If you need assistance during your conference today, please press star zero. Welcome to the Integra's fourth quarter and full year 2024 earnings conference call. At this time, all participants have been placed on a listen-only mode. and the floor will be open for your questions following the presentation. If you would like to ask a question at that time please press star 1 on your telephone keypad. If at any point your question has been answered you may remove yourself from the queue by pressing star 2. So others can hear your questions clearly we ask that you pick up your handset for best sound quality. Lastly, if you should require operator assistance, please press star zero. I would now like to turn the call over to Bill Seymour, Vice President of Investor Relations.

Good morning, everyone. Earlier today, we announced the financial results for our fourth quarter of 2024. Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in our most recent annual report and subsequent quarterly reports that we have filed with the SEC. Please refer to the information on the disclaimer slide in the presentation. On this call, we will also refer to non-GAAP financial measures as defined by the SEC in Regulation G, You can find reconciliation tables in today's news release, as well as on the IR page of our website at antegris.com. As we referenced in last quarter's call, we have combined our MC and AMH divisions. The name of the new division is Advanced Purity Solutions, or APS. To assist you in your modeling, we have provided in the appendix of the earnings slides recast financials for this new division going back eight quarters. On the call today are Bertrand Loaf, our CEO, and Linda LaGorga, our CFO. With that, I'll hand the call over to Bertrand.

Thank you, Bill, and good morning. I am pleased that we were able to cap off 2024 with strong performance. In the fourth quarter, our revenue, excluding divestitures, grew 11% year-on-year and was above our guidance range. This performance was driven by the highest quarterly sales for material solutions in over two years and all-time high quarterly sales for advanced purity solutions. Profitability was also solid in the quarter. Gross margin and EBITDA margin were within guidance and non-GAAP EPS was above our guidance. Looking at the full year, Our semiconductor customers with significant exposure to advanced logic and AI performed very well, but the rest of the industry remained weak throughout 2024. In addition, there were no significant technology node transitions in logic or memory, which limited our opportunity to further increase our content per wafer. With this industry backdrop, I am very pleased with our overall results. During the year, excluding divestitures and the impact of currency, our revenue grew more than 5%, yielding an estimated market outperformance of 3 to 4 points. Sales of our material solutions divisions were up 11% for the year, excluding divestitures. For MS, growth was particularly strong in CMP consumables, advanced deposition materials, and selective etching chemistries. For additional context, I would like to highlight that last year, CMP slurry revenue grew 14% and CMP pads grew 24%. We are also encouraged by new critical POR positions, including more than doubling our slurry content from N3 to N2. This performance is a testament to the great work the team has done since our combination with CMC. There's still more to be done to harvest the full benefits of the CMC deal, but the team is making excellent progress. Advanced Purity Solutions Division sales were flat in 2024, driven by difficult comparisons from the significant backlog we were working through during 2023. and mirroring the performance of the overall semi-market. Strong growth in advanced logic and advanced packaging for APS was offset by weakness in mainstream and memory. However, APS ended the year strong, as expected, with sequential growth in most product areas. Moving back to our consolidated results from a profitability point of view, both our gross margin and EBITDA margin were up in 2024, excluding divestitures. Our EBITDA margin expanded more than 100 basis points year on year to reach 28.7%, slightly above our target commitment. We were able to improve our bottom line leverage while increasing our R&D investments by 14% in 2024. These investments are critical to winning new POR positions, such as MOLLE deposition, MOLLE etch in next-generation 3D NAN, and point-of-use photoresist filters in advanced logic. These new POR wins drive the increase of integrase content per wafer and ultimately fuel our top-line market outperformance. There are a few additional items I would like to highlight. Last year, we paid down almost $625 million of debt A portion of that coming from the proceeds of the divestiture of the pipeline and industrial materials business in early March 2024. That reduction will continue to be a focus area for us in 2025, and Linda will expand on that shortly. Our new facility in Kaohsiung, Taiwan continues to make progress. We have completed qualifications for products including drums, tubing, deposition materials, and some liquid filters. We expect to complete most of the remaining critical product qualifications by the end of this year. We are also progressing rapidly at our new Colorado site. Related to that, in December we finalized an agreement with the U.S. Department of Commerce that provides us up to 77 million in funding under the CHIPS and Science Act. Tools have started to move into the facility, and we expect to initiate customer qualifications in the second half of this year. Moving on to 2025. As we enter the year, we have yet to see evidence of a significant semi-market rebound, and our customers' visibility outside of advanced logic and AI-driven applications continues to be limited. In that context, for the full year 2025, we expect the market based on our unit and capex mix will be up between 1 and 3%. We believe that this is a prudent view of the industry at this point in the year until we see concrete evidence of a sustained market recovery across major end markets. On top of this industry growth, we expect to outperform the market by four to five points in 2025. This outperformance will be largely driven by additional content opportunities in new logic and memory nodes. This outperformance also includes the negative impact of the latest restrictions on sales to China. which we estimate to be an annual incremental loss of revenue of $30 to $40 million in 2025. Putting it all together, we expect our sales in 2025 will be approximately $3.4 billion at the midpoint of our guidance range, up approximately 6.5% on a pro forma basis. We expect EBITDA will be slightly above our target model or just over 29% of revenue, and we expect non-GAAP EPS to be at or above $3.25. Let me now turn the call over to Linda. Linda?