ENTEGRIS INC

Previous wording

The following discussion and analysis of the Company’s condensed consolidated financial condition and results of operation should be read along with the condensed consolidated financial statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”). The information, except for historical information, contained in this discussion and analysis or set forth elsewhere in this Quarterly Report includes forward-looking statements that involve risks and uncertainties. You should review Part II, Item 1A “Risk Factors” in this Quarterly Report and Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”) as well as our other U.S. Securities and Exchange Commission (“SEC”) filings for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis or set forth elsewhere in this Quarterly Report. The Company assumes no obligation to publicly release the results of any revisions or updates to these forward-looking statements to reflect future events or unanticipated occurrences.

Current wording

The following discussion and analysis of the Company’s condensed consolidated financial condition and results of operation should be read along with the condensed consolidated financial statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”). The information, except for historical information, contained in this discussion and analysis or set forth elsewhere in this Quarterly Report includes forward-looking statements that involve risks and uncertainties. You should review Part II, Item 1A “Risk Factors” in this Quarterly Report and Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”) as well as our other U.S. Securities and Exchange Commission (“SEC”) filings for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis or set forth elsewhere in this Quarterly Report. These forward-looking statements are made only as of the date hereof, and, except as legally required, the Company assumes no obligation to publicly release the results of any revisions or updates to these forward-looking statements to reflect future events, unanticipated occurrences or otherwise.

Previous wording

With our complementary capabilities, we believe we are uniquely positioned to create new, co-optimized and increasingly integrated solutions for our customers, which should translate into improved device performance, lower cost of ownership and faster time to market. For example, we have the capabilities and core competencies to develop and co-optimize offerings solving customers’ complex manufacturing challenges across the deposition, CMP process and post-CMP modules, with solutions including advanced deposition materials, CMP slurries, pads and post-CMP cleaning chemistries (each from our MS segment), and CMP slurry filters, high-purity packaging and fluid monitoring systems (each from our APS segment).

Current wording

With our complementary capabilities, we believe we are uniquely positioned to create new, co-optimized and increasingly integrated solutions for our customers, which are designed to translate into improved device performance, lower cost of ownership and faster time to market. For example, we have the capabilities and core competencies to develop and co-optimize offerings solving customers’ complex manufacturing challenges across the deposition, CMP process and post-CMP modules, with solutions including advanced deposition materials, CMP slurries, pads and post-CMP cleaning chemistries (each from our MS segment), and CMP slurry filters, high-purity packaging and fluid monitoring systems (each from our APS segment).

Previous wording

Recent and continuing developments in U.S. and foreign trade policy have heightened global trade tensions and created significant uncertainty in macroeconomic and geopolitical environments, particularly with respect to China. Beginning in 2025, the U.S. government imposed tariffs and other trade measures affecting products and materials imported into the U.S., prompting protectionist and retaliatory actions by other countries. The U.S. government has initiated, and in certain cases, concluded investigations that have led, or may lead, to additional tariffs under Section 301 of the Trade Act of 1974, as amended, covering a broad range of products and trading partners, including countries in which we operate. If new tariffs are imposed by the U.S., other countries, including countries into which we sell, may once again impose protectionist and retaliatory measures. The U.S. tariff framework remains subject to ongoing litigation, legislative action, and further executive action, any of which could materially alter the tariff rates applicable to our products and supply chain.

Current wording

Recent and continuing developments in U.S. and foreign trade policy have heightened global trade tensions and created significant uncertainty in macroeconomic and geopolitical environments, particularly with respect to China. Beginning in 2025, the U.S. government imposed tariffs and other trade measures affecting products and materials imported into the U.S., prompting protectionist and retaliatory actions by other countries. The U.S. government has initiated, and in certain cases, concluded investigations that have led, or may lead, to additional tariffs under Section 301 of the Trade Act of 1974, as amended, covering a broad range of products and trading partners, including countries in which we operate. The U.S. government has also imposed sector-specific tariffs, including on certain semiconductors, and has indicated that broader tariffs on semiconductors and related products may follow. If new tariffs are imposed by the U.S., other countries, including countries into which we sell, may once again impose protectionist and retaliatory measures. Certain arrangements between the U.S. and China that reduced tariffs and suspended certain export controls are temporary, and their expiration or non-renewal could result in higher tariffs or new restrictions affecting our products and supply chain. The U.S. tariff framework remains subject to ongoing litigation, legislative action, and potential additional executive action, any of which could materially alter the tariff rates applicable to our products and supply chain.

Previous wording

Because of the global nature of our business, these trade developments have exposed, and may continue to expose, our business and operations to various risks, particularly supply chain-related risks. The imposition of tariffs and other trade measures (i) has increased, and may continue to increase, our sourcing and manufacturing costs, (ii) has required, and may continue to require, us to adjust our supply chain and find alternative suppliers, and (iii) may result in manufacturing and delivery delays. In addition, foreign governments may apply rules of origin or other trade measures that treat products we manufacture outside the United States as U.S.-origin goods, potentially subjecting those products to retaliatory tariffs or other restrictions that increase costs for our customers and reduce demand for our products in those markets. Foreign governments have also imposed, and may further impose, export controls or licensing requirements on raw materials and inputs on which we rely, which could disrupt our supply chain or increase our costs. As a result, we may face a reduction in the demand for, and in the competitiveness of, our products, including from increased local or domestically sourced competition, harm to our relationships with our customers, and decreased profitability. These risks may be exacerbated by the overall macroeconomic uncertainty stemming from current trade tensions which may slow economic growth and negatively impact the demand for products containing semiconductors, thereby decreasing the demand for our products.

Current wording

Because of the global nature of our business, these trade developments have exposed, and may continue to expose, our business and operations to various risks, particularly supply chain-related risks. The imposition of tariffs and other trade measures (i) has increased, and may continue to increase, our sourcing and manufacturing costs, (ii) has required, and may continue to require, us to adjust our supply chain and find alternative suppliers, (iii) may result in manufacturing and delivery delays and (iv) has increased, and may continue to increase, our compliance obligations and related costs. In addition, foreign governments may apply rules of origin or other trade measures that treat products we manufacture outside the United States as U.S.-origin goods, potentially subjecting those products to retaliatory tariffs or other restrictions that increase costs for our customers and reduce demand for our products in those markets. Foreign governments have also imposed, and may further impose, export controls or licensing requirements on raw materials and inputs on which we rely, which could disrupt our supply chain or increase our costs. As a result, we may face a reduction in the demand for, and in the competitiveness of, our products, including from increased local or domestically sourced competition, harm to our relationships with our customers, and decreased profitability. These risks may be exacerbated by the overall macroeconomic uncertainty stemming from current trade tensions which may slow economic growth and negatively impact the demand for products containing semiconductors, thereby decreasing the demand for our products.

Previous wording

Our strategy has been, and will continue to be, to build a resilient supply chain and a global manufacturing footprint near our customers. While this strategy should mitigate the financial and operational impact of these trade policies, we expect that our business will be impacted, particularly in the near term, when elevated tariffs are imposed on our products. Certain tariffs are not eligible for duty drawback or preferential treatment under free trade agreements, which may limit the options available to us to mitigate their impact. Given the dynamic nature of this situation, the direct and indirect impact to our customers and our business is difficult to quantify; however, we will continue to closely monitor this evolving situation, further leverage our global footprint and regional supply chain, and explore additional options to mitigate trade-related risks.

Current wording

Our strategy has been, and will continue to be, to build a resilient supply chain and a global manufacturing footprint near our customers. While this strategy is intended to mitigate the financial and operational impact of these trade policies, our business has been, and we expect it will be continue to be, impacted, particularly in the near term, by elevated tariffs imposed on our products. Certain tariffs are not eligible for duty drawback or preferential treatment under free trade agreements, which may limit the options available to us to mitigate their impact. Given the dynamic nature of this situation, the direct and indirect impact to our customers and our business is difficult to quantify; however, we will continue to closely monitor this evolving situation, further leverage our global footprint and regional supply chain, and explore additional options to mitigate trade-related risks.

Previous wording

The military conflict in the Middle East between the U.S., Israel, Iran and other countries has caused uncertainty and volatility in the global markets, including, but not limited to, disruptions to shipping routes, oil and natural gas shortages, energy price fluctuations and availability of certain raw materials used in the production of our products. Revenue relating to products manufactured from raw materials or components sourced from or through this region does not constitute a material portion of our business and historically, we have not derived significant revenue from the region; however, as part of our commitment to the uninterrupted supply and uncompromised quality of our products, we have proactively implemented mitigation measures to manage the situation, including securing additional materials and building inventory, evaluating and activating established business continuity plans, and implementing prioritization measures in order to ensure operational stability. We will continue to closely monitor the situation and evaluate (and, as necessary, implement) additional mitigation measures.

Current wording

The ongoing military conflict in the Middle East involving the U.S., Israel, Iran and other countries has caused uncertainty and volatility in the global markets, including, but not limited to, disruptions to shipping routes, oil and natural gas shortages, energy price fluctuations and availability of certain raw materials used in the production of our products. Revenue relating to products manufactured from raw materials or components sourced from or through this region does not constitute a material portion of our business and historically, we have not derived significant revenue from the region; however, as part of our commitment to the uninterrupted supply and uncompromised quality of our products, we have proactively implemented mitigation measures to manage the situation, including securing additional materials and building inventory, evaluating and activating established business continuity plans, and implementing prioritization measures in order to ensure operational stability. We will continue to closely monitor the situation and evaluate (and, as necessary, implement) additional mitigation measures.

Previous wording

This change in accounting estimate is effective beginning in fiscal year 2026 and is applied prospectively to the assets on our balance sheet as of December 31, 2025 and to future asset purchases. Based on the carrying amount of the assets included in property, plant and equipment, net in our condensed consolidated balance sheet as of December 31, 2025, we expect total depreciation expense in 2026 to be reduced by approximately $73.0 million recognized primarily in cost of revenues and R&D expenses. For further discussion of the change, see Note 1 to the condensed consolidated financial statements.

Current wording

This change in accounting estimate is effective beginning in fiscal year 2026 and is applied prospectively to the assets on our balance sheet as of December 31, 2025 and to future asset purchases. Based on the carrying amount of the assets included in property, plant and equipment, net in our condensed consolidated balance sheet as of December 31, 2025, we expect total depreciation expense in 2026 to be reduced by approximately $73.0 million, with the reduction recognized primarily in cost of sales and R&D expenses. For further discussion of the change, see Note 1 to the condensed consolidated financial statements.

Previous wording

On April 29, 2026, the Company amended the Revolving Facility to provide for, among other things, lending commitments in an aggregate principal amount of up to $750.0 million, up from $575.0 million, and to extend the maturity to April 29, 2031 from July 6, 2027.

Current wording

On April 29, 2026, the Company amended the Revolving Credit Facility to provide for, among other things, lending commitments in an aggregate principal amount of up to $750.0 million, up from $575.0 million, and to extend the maturity to April 29, 2031 from July 6, 2027.

Previous wording

Three and Six Months Ended June 27, 2026 Compared to Three and Six Months Ended June 28, 2025

Current wording

Three and Nine Months Ended September 26, 2026 Compared to Three and Nine Months Ended September 27, 2025

Previous wording

The following table compares operating results for the three and six months ended June 27, 2026 and June 28, 2025, both in dollars and as a percentage of net sales, for each caption.

Current wording

The following table compares operating results for the three and nine months ended September 26, 2026 and September 27, 2025, both in dollars and as a percentage of net sales, for each caption.

Previous wording

Net sales For the three months ended June 27, 2026, net sales increased by 11.5% to $883.2 million, compared to $792.4 million for the three months ended June 28, 2025. An analysis of the factors underlying the change in net sales is presented in the following table:

Current wording

Net sales For the three months ended September 26, 2026, net sales increased by 24.6% to $1,005.7 million, compared to $807.1 million for the three months ended September 27, 2025. An analysis of the factors underlying the change in net sales is presented in the following table:

Previous wording

As described in the table above, the increase in net sales was primarily attributable to a $97.8 million increase in sales primarily due to increased sales from both of our reporting segments, partially offset by a decrease of $7.0 million of sales attributable to unfavorable foreign currency translations compared to the fiscal quarter ended June 28, 2025.

Current wording

As described in the table above, the increase in net sales was primarily attributable to a $205.8 million increase in net sales driven primarily by higher demand across both reporting segments, particularly for products supporting advanced logic and memory semiconductor production and the fabs being built to manufacture them, partially offset by a decrease of $7.2 million of sales attributable to unfavorable foreign currency translations, mainly due to the weakening of the Japanese yen relative to the U.S. dollar, compared to the fiscal quarter ended September 27, 2025.

Previous wording

Net sales for the six months ended June 27, 2026 increased by 8.3% to $1,695.1 million, compared to $1,565.6 million for the six months ended June 28, 2025. An analysis of the factors underlying the change in net sales is presented in the following table:

Current wording

Net sales for the nine months ended September 26, 2026 increased by 13.8% to $2,700.8 million, compared to $2,372.7 million for the nine months ended September 27, 2025. An analysis of the factors underlying the change in net sales is presented in the following table:

Previous wording

As described in the table above, the increase in net sales was primarily attributable to a $135.4 million increase in sales primarily due to increased sales from both of our reporting segments, partially offset by a decrease of $5.9 million of sales attributable to unfavorable foreign currency translations compared to the six months ended June 28, 2025.

Current wording

As described in the table above, the increase in net sales was primarily attributable to a $341.2 million increase in net sales driven primarily by higher demand across both reporting segments, partially offset by a decrease of $13.1 million of sales attributable to unfavorable foreign currency translations, mainly due to the weakening of the Japanese yen relative to the U.S. dollar, compared to the nine months ended September 27, 2025.

Previous wording

On a geographic basis, sales percentage by customers’ country or region for the six months ended June 27, 2026 and June 28, 2025 and the percentage increase (decrease) in net sales for the six months ended June 27, 2026 compared to the net sales for the six months ended June 28, 2025 were as follows:

Current wording

On a geographic basis, sales percentage by customers’ country or region for the nine months ended September 26, 2026 and September 27, 2025 and the percentage increase (decrease) in net sales for the nine months ended September 26, 2026 compared to the net sales for the nine months ended September 27, 2025 were as follows:

Previous wording

The decrease in sales to customers in North America primarily relates to decreased demand for our MS products, partially offset by increased demand for our APS products. The increase in sales to customers in Taiwan primarily relates to increased demand for our MS and APS products. The decrease in sales to customers in China primarily relates to decreased demand for our MS products, partially offset by increased demand for our APS products. The increase in sales to customers in South Korea primarily relates to increased demand for our MS and APS products. The increase in sales to customers in Japan primarily relates to increased demand for our MS and APS products. The decrease in sales to customers in Europe primarily relates to decreased demand for our APS products, partially offset by increased demand for our MS products. The increase in sales to customers in Southeast Asia primarily relates to increased demand for our MS and APS products.

Current wording

The increase in sales to customers in North America primarily relates to increased demand for APS products across the semiconductor ecosystem, while sales of MS products were relatively unchanged. The increase in sales to customers in Taiwan primarily relates to increased demand for both MS and APS products, particularly for products supporting the advanced nodes. Sales to customers in China were relatively unchanged compared to the prior-year period as increased demand for APS products was substantially offset by lower demand for MS products. The increase in sales to customers in South Korea, Japan and Southeast Asia primarily relates to increased demand for both MS and APS products, particularly for products supporting the advanced nodes. The increase in sales to customers in Europe primarily relates to increased demand for MS products.

Previous wording

Gross margin increased by 3.2 percentage points for the three months ended June 27, 2026, compared to the same period in the prior year. Gross margin increased primarily as a result of increased production volumes enabled by strong operational performance across our manufacturing facilities and a decrease in depreciation expense due to the change in useful lives for specific property, plant and equipment. See Note 1 to the condensed consolidated financial statements for further discussion of the change.

Current wording

Gross margin increased by 6.2 percentage points for the three months ended September 26, 2026, compared to the same period in the prior year. Gross margin increased primarily as a result of increased production volumes enabled by strong operational performance across our manufacturing facilities, a decrease in depreciation expense due to the change in useful lives for specific property, plant and equipment and tariff refunds. See Note 1 to the condensed consolidated financial statements for further discussion of the change.

Previous wording

Gross margin increased by 2.0 percentage points for the six months ended June 27, 2026, compared to the same period in the prior year. Gross margin increased primarily as a result of increased production volumes enabled by strong operational performance across our manufacturing facilities and a decrease in depreciation expense due to the change in useful lives for specific property, plant and equipment. See Note 1 to the condensed consolidated financial statements for further discussion of the change.

Current wording

Gross margin increased by 3.6 percentage points for the nine months ended September 26, 2026, compared to the same period in the prior year. Gross margin increased primarily as a result of increased production volumes enabled by strong operational performance across our manufacturing facilities, a decrease in depreciation expense due to the change in useful lives for specific property, plant and equipment and tariff refunds. See Note 1 to the condensed consolidated financial statements for further discussion of the change.

Previous wording

Selling, general and administrative expenses Selling, general and administrative (“SG&A”) expenses were $126.5 million in the three months ended June 27, 2026, compared to $115.1 million in the year-ago period. The factors underlying the change in SG&A expenses are presented in the following table:

Current wording

Selling, general and administrative expenses Selling, general and administrative (“SG&A”) expenses were $136.5 million in the three months ended September 26, 2026, compared to $101.8 million in the year-ago period. The factors underlying the change in SG&A expenses are presented in the following table:

Previous wording

SG&A expenses were $244.1 million in the six months ended June 27, 2026, compared to $218.4 million in the year-ago period. The factors underlying the change in SG&A expenses are presented in the following table:

Current wording

SG&A expenses were $380.6 million in the nine months ended September 26, 2026, compared to $320.2 million in the year-ago period. The factors underlying the change in SG&A expenses are presented in the following table:

Previous wording

Engineering, research and development expenses The Company’s ER&D efforts focus on the support or extension of current product lines and the development of new products and manufacturing technologies. ER&D expenses were $82.8 million in the three months ended June 27, 2026 compared to $84.3 million in the year-ago period. The factors underlying ER&D expenses are presented in the following table:

Current wording

Engineering, research and development expenses The Company’s ER&D efforts focus on the support or extension of current product lines and the development of new products and manufacturing technologies. ER&D expenses were $87.5 million in the three months ended September 26, 2026 compared to $80.9 million in the year-ago period. The factors underlying ER&D expenses are presented in the following table:

Previous wording

ER&D expenses were $158.1 million in the six months ended June 27, 2026 compared to $169.1 million in the year-ago period. The factors underlying ER&D expenses are presented in the following table:

Current wording

ER&D expenses were $245.6 million in the nine months ended September 26, 2026 compared to $250.0 million in the year-ago period. The factors underlying ER&D expenses are presented in the following table:

Previous wording

Amortization of intangible assets Amortization of intangible assets was $46.1 million in the three months ended June 27, 2026, compared to $46.0 million for the three months ended June 28, 2025.

Current wording

Amortization of intangible assets Amortization of intangible assets was $45.6 million in the three months ended September 26, 2026, compared to $46.0 million for the three months ended September 27, 2025.

Previous wording

Amortization of intangible assets was $92.4 million in the six months ended June 27, 2026, compared to $92.1 million for the six months ended June 28, 2025.

Current wording

Amortization of intangible assets was $138.0 million in the nine months ended September 26, 2026, compared to $138.1 million for the nine months ended September 27, 2025.

Previous wording

Interest expense Interest expense includes interest associated with debt outstanding and the amortization of debt issuance costs and original issuance discounts associated with such borrowings. Interest expense was $48.6 million in the three months ended June 27, 2026, compared to $52.4 million in the three months ended June 28, 2025. The decrease primarily reflects lower interest expense related to lower average debt balances for the period due to repayments on the Company’s outstanding debt.

Current wording

Interest expense Interest expense includes interest associated with debt outstanding and the amortization of debt issuance costs and original issuance discounts associated with such borrowings. Interest expense was $45.4 million in the three months ended September 26, 2026, compared to $47.9 million in the three months ended September 27, 2025. The decrease primarily reflects lower interest expense related to lower average debt balances for the period due to repayments on the Company’s outstanding debt.

Previous wording

Interest expense was $97.5 million in the six months ended June 27, 2026, compared to $103.4 million in the six months ended June 28, 2025. The decrease primarily reflects lower interest expense related to lower average debt balances for the period due to repayments on the Company’s outstanding debt.

Current wording

Interest expense was $142.9 million in the nine months ended September 26, 2026, compared to $151.3 million in the nine months ended September 27, 2025. The decrease primarily reflects lower interest expense related to lower average debt balances for the period due to repayments on the Company’s outstanding debt.

Previous wording

Other expense, net Other expense, net was $7.8 million in the three months ended June 27, 2026 and consisted mainly of equity investment impairment of $6.7 million and a loss on extinguishment of debt of $1.7 million, partially offset by foreign currency transaction gains of $0.8 million. Other income, net was $0.2 million in the three months ended June 28, 2025 and consisted mainly of foreign currency transaction gains of $0.1 million.

Current wording

Other expense, net Other expense, net was $0.2 million in the three months ended September 26, 2026 and consisted mainly of a loss on extinguishment of debt of $1.7 million, partially offset by foreign currency transaction gains of $1.1 million. Other expense, net was $4.2 million in the three months ended September 27, 2025 and consisted mainly of foreign currency transaction losses of $2.5 million and a loss on extinguishment of debt of $1.7 million.

Previous wording

Other expense, net was $9.2 million in the six months ended June 27, 2026 and consisted mainly of equity investment impairment of $6.7 million and a loss on extinguishment of debt of $2.2 million. Other expense, net was $1.1 million in the six months ended June 28, 2025 and consisted mainly of foreign currency transaction losses of $2.0 million, partially offset by other expenses of $0.9 million.

Current wording

Other expense, net was $9.4 million in the nine months ended September 26, 2026 and consisted mainly of equity investment impairment of $6.7 million and a loss on extinguishment of debt of $3.9 million. Other expense, net was $5.3 million in the nine months ended September 27, 2025 and consisted mainly of foreign currency transaction losses of 4.5 million and a loss on extinguishment of debt of $1.7 million.

Previous wording

Income tax expense Income tax expense was $16.5 million in the three months ended June 27, 2026, compared to income tax expense of $2.8 million in the three months ended June 28, 2025. The Company’s effective income tax rate was 15.0% for the three months ended June 27, 2026, compared to 5.0% for the three months ended June 28, 2025 The effective tax rate for the quarter ended June 27, 2026 was higher primarily due to an increase in book income, tax expense recorded related to a provision to return adjustment, and the release of unrecognized tax benefits in the quarter ended June 28, 2025 that did not recur in the quarter ended June 27, 2026.

Current wording

Income tax expense Income tax expense was $28.7 million in the three months ended September 26, 2026, compared to income tax expense of $1.5 million in the three months ended September 27, 2025. The Company’s effective income tax rate was 15.4% for the three months ended September 26, 2026, compared to 2.1% for the three months ended September 27, 2025 The effective tax rate for the quarter ended September 26, 2026 was higher primarily due to an increase in pre-tax book income in the quarter and the release of unrecognized tax benefits in the quarter ended September 27, 2025 that did not recur in the quarter ended September 26, 2026.

Previous wording

Net income Due to the factors noted above, the Company recorded net income of $93.6 million, or $0.61 per diluted share, in the three months ended June 27, 2026, compared to net income of $52.8 million, or $0.35 per diluted share, in the three months ended June 28, 2025.

Current wording

Net income Due to the factors noted above, the Company recorded net income of $157.8 million, or $1.03 per diluted share, in the three months ended September 26, 2026, compared to net income of $70.5 million, or $0.46 per diluted share, in the three months ended September 27, 2025.

Previous wording

In the six months ended June 27, 2026, the Company recorded net income of $185.6 million, or $1.21 per diluted share,

Current wording

In the nine months ended September 26, 2026, the Company recorded net income of $343.4 million, or $2.24 per diluted share,

Previous wording

compared to net income of $115.7 million, or $0.76 per diluted share, in the six months ended June 28, 2025.

Current wording

compared to net income of $186.2 million, or $1.22 per diluted share, in the nine months ended September 27, 2025.

Previous wording

The following table compares non-GAAP financial measures for the three and six months ended June 27, 2026 and June 28, 2025, both in dollars and as a percentage of net sales, for each caption.

Current wording

The following table compares non-GAAP financial measures for the three and nine months ended September 26, 2026 and September 27, 2025, both in dollars and as a percentage of net sales, for each caption.

Previous wording

The increase in Adjusted Operating Income, Adjusted EBITDA and Non-GAAP EPS for the three and six months ended June 27, 2026 compared to the year-ago period is generally attributable to an increase in sales, operating leverage in our manufacturing facilities and decrease in depreciation expense due to the change in useful lives of specific property, plant and equipment, partially offset by an increase in SG&A expenses, primarily related to variable compensation.

Current wording

The increase in Adjusted Operating Income and Non-GAAP EPS for the three and nine months ended September 26, 2026 compared to the year-ago period is generally attributable to an increase in sales, operating leverage in our manufacturing facilities and decrease in depreciation expense due to the change in useful lives of specific property, plant and equipment, partially offset by an increase in SG&A expenses, primarily related to variable compensation.

Previous wording

The following table presents selected net sales and segment profit data for the Company’s two reportable segments, along with unallocated general and administrative expenses, for the three and six months ended June 27, 2026 and June 28, 2025.

Current wording

The following table presents selected net sales and segment profit data for the Company’s two reportable segments, along with unallocated general and administrative expenses, for the three and nine months ended September 26, 2026 and September 27, 2025.

Previous wording

For thesecond fiscal quarter of 2026, MS net sales increased to $371.3 million, up 5% compared to $354.9 million in the comparable period last year. The sales increase was driven primarily by increased sales from advanced deposition materials, specialty materials, selective etch chemistries and CMP consumables. MS reported a segment profit of $77.7 million in thesecond fiscal quarter of 2026, up 7% from a $72.5 million segment profit in the year-ago period. The segment profit increase was primarily due to higher sales and lower depreciation expense as a result of changes in useful lives of specific property, plant and equipment, partially offset by higher variable compensation costs.

Current wording

For thethird fiscal quarter of 2026, MS net sales increased to $404.1 million, up 16% compared to $348.6 million in the comparable period last year. The sales increase was driven primarily by increased sales from advanced deposition materials, specialty materials, selective etch chemistries and CMP consumables. MS reported a segment profit of $84.3 million in thethird fiscal quarter of 2026, up 29% from a $65.2 million segment profit in the year-ago period. The segment profit increase was primarily due to higher sales, lower depreciation expense as a result of changes in useful lives of specific property, plant and equipment and tariff refunds, partially offset by higher variable compensation costs associated with stronger business performance in 2026 as compared to 2025.

Previous wording

comparable period last year. The sales increase was driven primarily by increased sales from advanced deposition materials, selective etch chemistries, specialty materials and CMP consumables. MS reported a segment profit of $153.6 million in the six months ended June 27, 2026, up 4% from a $147.5 million segment profit in the year-ago period. The segment profit increase was primarily due to higher sales and lower depreciation expense as a result of changes in useful lives of specific property, plant and equipment, partially offset by higher variable compensation costs.

Current wording

For the nine months ended September 26, 2026, MS net sales increased to $1,126.5 million, up 8% compared to $1,044.9 million in the comparable period last year. The sales increase was driven primarily by increased sales from advanced deposition materials, selective etch chemistries, specialty materials and CMP consumables. MS reported a segment profit of $237.9 million in the nine months ended September 26, 2026, up 12% from a $212.7 million segment profit in the year-ago period. The segment profit increase was primarily due to higher sales, lower depreciation expense as a result of changes in useful lives of specific property, plant and equipment and tariff refunds, partially offset by higher variable compensation costs associated with stronger business performance in 2026 as compared to 2025.

Previous wording

For thesecond fiscal quarter of 2026, APS net sales increased to $514.6 million, up 17% compared to $439.9 million in the comparable period last year. The sales increase was mainly due to increased sales from liquid and gas filtration and purification products, FOUPs, and fluid management solutions. APS reported a segment profit of $150.9 million in thesecond fiscal quarter of 2026, up 57% from $95.9 million in the year-ago period. The segment profit increase was primarily due to higher gross profit related to an increase in sales and lower depreciation expense as a result of changes in useful lives of specific property, plant and equipment, partially offset by higher variable compensation costs.

Current wording

For thethird fiscal quarter of 2026, APS net sales increased to $604.9 million, up 31% compared to $460.8 million in the comparable period last year. The sales increase was mainly due to increased sales from liquid and gas filtration and purification products, front-opening unified pods (“FOUPs”), and fluid management solutions. APS reported a segment profit of $212.7 million in thethird fiscal quarter of 2026, up 80% from $118.2 million in the year-ago period. The segment profit increase was primarily due to higher gross profit related to an increase in sales, lower depreciation expense as a result of changes in useful lives of specific property, plant and equipment and tariffs, partially offset by higher variable compensation costs associated with stronger business performance in 2026 as compared to 2025.

Previous wording

For the six months ended June 27, 2026, APS net sales increased to $978.2 million, up 12% compared to $873.8 million in the comparable period last year. The sales increase was mainly due to increased sales from liquid filtration, FOUPs, and gas filtration products. APS reported a segment profit of $284.5 million in the six months ended June 27, 2026, up 39% from $204.0 million in the year-ago period. The segment profit increase was due to higher gross profit related to an increase in sales and lower depreciation expense as a result of changes in useful lives of specific property, plant and equipment, partially offset by higher variable compensation costs.

Current wording

For the nine months ended September 26, 2026, APS net sales increased to $1,583.1 million, up 19% compared to $1,334.6 million in the comparable period last year. The sales increase was mainly due to increased sales from liquid and gas filtration and purification products, FOUPs, and fluid management solutions. APS reported a segment profit of $497.2 million in the nine months ended September 26, 2026, up 54% from $322.2 million in the year-ago period. The segment profit increase was due to higher gross profit related to an increase in sales, lower depreciation expense as a result of changes in useful lives of specific property, plant and equipment and tariffs, partially offset by higher variable compensation costs associated with stronger business performance in 2026 as compared to 2025.

Previous wording

Unallocated general and administrative expenses totaled $17.9 million in the second fiscal quarter of 2026, up 10% compared to $16.3 million in the comparable period last year. The $1.6 million increase is primarily due to higher professional fees.

Current wording

Unallocated general and administrative expenses totaled $20.8 million in the third fiscal quarter of 2026, up 41% compared to $14.8 million in the comparable period last year. The $6.0 million increase is primarily due to higher professional fees primarily related to internal operational enhancement initiatives.