Entegris, Inc.

Please stand by, your program is about to begin. If you need assistance on the conference today, please press star zero. Welcome to the INTEGRIS third quarter 2025 earnings conference call. At this time, all participants are in a listen only mode and the floor will be open for questions following the presentation. If you would like to ask a question, please press star one 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 question clearly, we do ask that you please pick up your handset for best sound quality. Lastly, should you require operator assistance, please press star 0. I would now like to turn the conference over to Bill Seymour. Please go ahead.

Good morning, everyone. Earlier today, we announced the financial results for the third quarter of 2025. 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, subsequent quarterly reports that we 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 and Regulation G. You can find reconciliation tables in today's news release as well as on the IR page of our website at integris.com. On the call today are Dave Reeder, our CEO, and Linda LaGorga, our CFO. With that, I'll hand the call over to Dave.

Thank you, Bill, and good morning. And this is my first earnings call as the CEO of Integris. I want to begin by expressing how honored and excited I am to lead this exceptional company. Throughout my long career in the semiconductor industry and during nearly two years on the Integris board, I've developed a deep appreciation for the company's culture, its commitment to innovation, and its consistent track record of delivering value to both customers and shareholders. In the two months since I started as CEO, I've met with many of our customers around the world in their home country. And during that process, I also visited many of our local manufacturing sites and technology centers, engaging with hundreds of our team members. These interactions have only deepened my conviction in the strength of Integris, our people and culture, our capabilities, and the tremendous opportunities ahead. In my conversations with customers, one message came through loud and clear. Integris is a trusted, highly engaged, and indispensable partner. Our customers rely on us, not only to support their technology roadmaps and node transitions, but also to help solve complex challenges. To continue earning their trust, we must consistently engage, innovate, and execute at the highest level. Starting with our Asia facilities and continuing throughout the U.S., I've had the opportunity to visit many of our manufacturing sites, seeing firsthand the capability and capacity that we've built. Our existing manufacturing base, including our new facilities in Taiwan and Colorado, are valuable and strategic assets. Assets that, when fully ramped, will enable us to capture more of the demand that we were unable to support during the last industry upturn and better serve our customers. Finally, over the past few months, I've also had the opportunity to meet with many of you, our investors. The feedback has been clear. There's strong appreciation for our business model, our historical outperformance, and the compelling opportunities ahead. I've also heard and noted some of the candid feedback regarding growth, capital intensity, and leverage, all of which we have plans to address over time and which are reflected in my top initial priorities. I have three initial priorities, all based upon my observations of the last 10 weeks. First and most fundamental to our success is customer intimacy. We will continue to support our customers' technology roadmaps with our deep application expertise, strong organic innovation, and accelerated product development. Execution in these areas will continue to translate into winning critical positions of record, PORs, which will increase our SAM and accelerate our revenue and content per way for growth. We're already seeing encouraging momentum in liquid filters, liquid purification, deposition materials like MOLLE, and CMP consumables at the most advanced nodes and within the most complicated processes. In addition to these efforts, we are extending our customer engagement model to more customers and more ecosystem partners than ever before. While these efforts are nascent today, we believe they'll help us drive long-term incremental growth. Our second priority is accelerating the qualification and ramp of our new facilities in Taiwan and Colorado. Ramping these sites is critical to meeting future demand and offsetting the margin pressure driven by the cost of these investments, including incremental depreciation and foregone fixed cost leverage. Our Taiwan facility is expected to increase volume in 2026 and our Colorado facility, which has just been put into service, is expected to substantially complete customer product qualifications next year. Exiting this quarter, we will have largely worked through the majority of the significant manufacturing investment cycle that began in 2022. We subsequently expect CapEx to materially decrease on a year over year basis. At our current mix, we believe that our existing manufacturing footprint, when fully ramped, will enable us to support meaningfully more revenue with limited incremental investment. Third, we're committed to improving free cash flow. Thanks to our team's efforts, we've already seen excellent progress delivering record operating cash flow in the third quarter, which Linda will discuss more in her section. Looking forward, Operating cash flow improvements in combination with reduced CapEx are expected to enhance free cash flow, enabling us to accelerate debt reduction and reduce leverage. Turning to the third quarter. Third quarter revenue, EBITDA, and non-GAAP EPS were all approximately at the midpoint of our guidance ranges, while gross margin percent was roughly 100 bps below guidance. directly driven by the underutilization of our manufacturing assets. Though these assets are underutilized in the current semiconductor environment, I am confident that, longer term, our expanded global footprint will enable us to capture share during the next market upcycle, enable peak-to-peak gross margin expansion, and enable us to better manage a dynamic international trade environment. With respect to the semi-market, Advanced logic continues to show strong growth, largely driven by AI-enabled applications. In mainstream logic, while inventories have normalized, end demand is still mixed and well below prior peak levels. In memory, pricing trends in recent months have firmed, with HBM benefiting from the same AI trends as logic, a continuation of strong growth. And more recently, we've seen a notable shift in sentiment regarding 3D NAND, After a prolonged period of weakness, our NAND customers are now expressing renewed optimism. This renewed optimism is fueled by the potential of accelerating AI-driven demand for 3D NAND as the industry shifts from training large language models to inference workloads. From an industry wafer starts and CapEx perspective, trends remain consistent with what they've been all year. Wafer starts are modestly higher this year, led by advanced logic, But other markets, as referenced, have remained muted. From an industry CapEx perspective, WFE continues to grow solidly, but industry facilities-related spending, where Integris has the most exposure, remains muted, down approximately 10% this year due to slower year-over-year fab construction. These industry trends correlated well with our third quarter performance. Overall, our year-on-year unit-driven revenue grew, led by CMP slurries, pads, cleans, and liquid filtration. Notably, liquid filtration achieved record quarterly sales in Q3. Conversely, our capex-driven revenue declined high single digits year-on-year in the third quarter, reflecting the slowdown in industry fab construction. This year-over-year slowdown has continued to impact FOOP and fluid handling revenue in our APS division. Looking into next year, AI-driven growth, both advanced logic and memory, is expected to remain strong. And despite pockets of optimism for the rest of the semi-market, like others, we are prudently taking a wait-and-see approach diligently managing our costs while operationally and commercially preparing ourselves for the optimism to translate into orders. In closing, I'm truly excited to lead Integris into its next chapter. Over the past several weeks, I've gained an even deeper appreciation for the unique and indispensable role we play with our customers and across the semiconductor industry. As devices become more complex, our expertise in materials science and materials purity becomes increasingly critical, helping customers enhance performance and achieve optimal yields. Because of the uniqueness of our value proposition and the quality of our execution, we expect to significantly grow our content per wafer and outperform the market in the coming years. I look forward to connecting with many of you in the coming weeks and months as we close out 2025. Let me now turn the call over to Linda. Linda?