Entegris Inc. has recently released its 10-K report, providing a comprehensive overview of its operations and financial performance. The company, headquartered in Billerica, Massachusetts, operates in two segments: Materials Solutions (MS) and Advanced Purity Solutions (APS). The MS segment offers materials-based solutions, while the APS segment provides filtration, purification, and contamination-control solutions for the semiconductor manufacturing processes and other high-technology industries.
In the 10-K report, under Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations," Entegris Inc. discusses the risks and uncertainties it faces, including fluctuations in the demand for semiconductors, global economic uncertainty, supply chain interruptions, and geopolitical risks associated with its international operations. The company also highlights its strategy to build a resilient supply chain and a global manufacturing footprint near its customers to mitigate the impact of a volatile trade environment.
The report also includes a discussion on recent events. In January 2026, the company completed an assessment of the useful lives of its property, plant, and equipment, and adjusted the estimated useful lives of certain assets to more closely reflect their expected economic lives. As a result, the change in accounting estimate is expected to reduce total depreciation expense in 2026 by $72.9 million, increase gross margin by approximately $52.4 million, decrease ER&D expenses by approximately $11.4 million, and decrease ending inventory values by $9.1 million.
Additionally, Entegris Inc. outlines its critical accounting policies and estimates, particularly related to business acquisitions. The report emphasizes the company's annual impairment testing of goodwill and the factors that would necessitate an interim goodwill impairment assessment. Management utilizes different judgments and estimates, which could result in material differences in the company's results of operations for any period.
The 10-K report provides a detailed insight into Entegris Inc.'s financial condition, operations, and strategic initiatives, offering investors and stakeholders a comprehensive understanding of the company's performance and its ability to navigate the challenges and opportunities in the semiconductor and high-technology industries. Following these announcements, the company's shares moved 3.36%, and are now trading at a price of $117.35. Check out the company's full 10-K submission here.
