Photronics Reports Full Year and Fourth Quarter Fiscal 2025 Results
BROOKFIELD, Conn., Dec. 10, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its full year and fourth quarter of fiscal year 2025 ended October 31, 2025. Commenting on the fourth-quarter performance, Chairman and CEO George Macricostas said, "Photronics delivered very good results in our fiscal fourth quarter achieving record high end revenue with particular strength in the United States. We continue to see positive forecasts from our customers in the U.S. validating our U.S. investment plans, while our Korea capability extension is also anticipated to help diversify our geographic revenue mix and increase our exposure to leading-edge chip designs in the future.” Full Year Fiscal 2025 Results Revenue was $849.3 million, down 2.0% year-over-year.GAAP net income attributable to Photronics, Inc. shareholders was $136.4 million, or $2.28 per diluted share, compared with $130.7 million, or $2.09 per diluted share in 2024.Favorable impact associated with the deferred tax valuation allowance reduction of $16.8 million.Non-GAAP net income attributable to Photronics, Inc. shareholders was $120.6 million, or $2.01 per diluted share, compared with $127.6 million, or $2.05 per diluted share in 2024.IC revenue was $615.1 million, down 4% year-over-year.FPD revenue was $234.2 million, up 2% year-over-year.Cash generated from operating activities was $247.8 million, and cash invested in organic growth through capital expenditures was $188.1 million. Fourth Quarter Fiscal 2025 Results Revenue was $215.8 million, down 3.1% year-over-year and up 2.6% sequentially.GAAP Net income attributable to Photronics, Inc. shareholders was $61.8 million, or $1.07 per diluted share, compared with $33.9 million, or $0.54 per diluted share, in the fourth quarter of 2024 and $22.9 million, or $0.39 per diluted share, in the third quarter of 2025.Favorable impact associated with the deferred tax valuation allowance reduction of $16.8 million.Non-GAAP Net income attributable to Photronics, Inc. shareholders was $34.6 million, or $0.60 per diluted share, compared with $37.1 million, or $0.59 per diluted share in the fourth quarter of 2024 and $29.4 million, or $0.51 per diluted share, in the third quarter of 2025.IC revenue was $157.4 million, down 4% year-over-year and up 7% sequentially.FPD revenue was $58.3 million, down 1% from the same quarter last year and down 7% sequentially.Cash, cash equivalents and short-term investments at the end of the quarter were $588.2 million, of which $422.3 million was associated with our Joint Ventures, of which we own 50.01%.Cash generated from operating activities was $87.8 million, cash invested in organic growth through capital expenditures was $67.5 million. First Quarter Fiscal 2026 Guidance For the first quarter of fiscal 2026, Photronics expects Revenue to be between $217 million and $225 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.51 and $0.59 per diluted share. Webcast A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on December 10, 2025. The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here. It is suggested that participants register fifteen minutes prior to the call's scheduled start time. About Photronics Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 56 years. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com. Forward-Looking Statements Certain statements in this press release constitute “forward-looking statements” regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially. Please refer to Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results. Non-GAAP Financial Measures Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below. Totals presented may not sum due to rounding. PHOTRONICS, INC.Condensed Consolidated Statements of Income(in thousands, except per share amounts)(Unaudited) Three Months Ended Year Ended October 31, August 3, October 31, October 31, October 31, 2025 2025 2024 2025 2024 Revenue $215,770 $210,394 $222,628 $849,294 $866,946 Cost of goods sold 140,236 139,539 140,326 549,464 551,000 Gross Profit 75,534 70,855 82,302 299,830 315,946 Gross margin % 35.0% 33.7% 37.0% 35.3% 36.4% Operating Expenses: Selling, general and administrative 20,001 18,423 21,008 75,625 77,760 Research and development 3,185 4,271 5,285 15,804 16,576 Total Operating Expenses 23,186 22,694 26,293 91,429 94,336 Other operating expense (241) - (182) (240) (92) Operating Income 52,107 48,161 55,827 208,161 221,518 Operating Margin 24.1% 22.9% 25.1% 24.5% 25.6% Other income (loss) , net 23,855 (9,428) (1,034) 13,623 25,897 Income Before Income Tax Provision 75,962 38,733 54,793 221,784 247,415 Income tax (benefit) provision (2,659) 9,594 14,568 31,550 63,567 Net Income 78,621 29,139 40,225 190,234 183,848 Net income attributable to noncontrolling interests 16,820 6,248 6,356 53,829 53,160 Net income attributable to Photronics, Inc. shareholders$61,801 $22,891 $33,869 $136,405 $130,688 Earnings per share attributed to Photronics, Inc. shareholders: Basic $1.07 $0.40 $0.55 $2.29 $2.12 Diluted $1.07 $0.39 $0.54 $2.28 $2.09 Weighted-average number of common shares outstanding: Basic 57,600 57,937 61,863 59,606 61,726 Diluted 57,977 58,068 62,456 59,920 62,391 PHOTRONICS, INC.Condensed Consolidated Balance Sheets(in thousands)(Unaudited) October 31, October 31, 2025 2024 Assets Current assets: Cash and cash equivalents$492,256 $598,485Short-term investments 95,909 42,184Accounts receivable 195,921 200,830Inventories 61,767 56,527Other current assets 44,199 33,036 Total current assets 890,052 931,062 Property, plant and equipment, net 854,436 745,257Other assets 60,046 35,740 Total assets $1,804,534 $1,712,059 Liabilities and Equity Current liabilities: Current portion of long-term debt$11 $17,972Accounts payable and accrued liabilities 165,862 165,839 Total current liabilities 165,873 183,811 Long-term debt 13 25Other liabilities 41,341 47,464 Equity: Photronics, Inc. shareholders' equity 1,173,589 1,120,864Noncontrolling interests 423,718 359,895Total equity 1,597,307 1,480,759 Total liabilities and equity $1,804,534 $1,712,059 PHOTRONICS, INC.Condensed Consolidated Statements of Cash Flows(in thousands)(Unaudited) Year Ended October 31, October 31, 2025 2024 Cash flows from operating activities: Net income $190,234 $183,848 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 77,605 82,805 Share-based compensation 13,388 13,890 Changes in operating assets, liabilities and other (33,429) (19,099) Net cash provided by operating activities 247,798 261,444 Cash flows from investing activities: Purchases of property, plant and equipment (188,137) (130,942)Purchases of short-term investments (129,649) (100,558)Proceeds from maturities of short-term investments 76,823 72,836 Government incentives 2,158 2,229 Other (94) (30) Net cash used in investing activities (238,899) (156,465) Cash flows from financing activities: Repayments of debt (17,972) (6,621)Common stock repurchases (97,422) - Proceeds from share-based arrangements 2,231 1,916 Net settlements of restricted stock awards (2,094) (3,025) Net cash used in financing activities (115,257) (7,730) Effects of exchange rate changes on cash, cash equivalents, and restricted cash 228 2,127 Net (decrease) increase in cash, cash equivalents, and restricted cash (106,130) 99,376 Cash, cash equivalents, and restricted cash, beginning of period 601,243 501,867 Cash, cash equivalents, and restricted cash, end of period$495,113 $601,243 PHOTRONICS, INC.Reconciliation of U.S. GAAP net income and diluted earnings per share attributable to Photronics, Inc. shareholders to non-GAAP net income and diluted earnings per share attributable to Photronics, Inc. shareholders(in thousands, except per share amounts)(Unaudited) Three Months ended Year Ended October 31, August 3, October 31, October 31, October 31, 2025 2025 2024 2025 2024 U.S. GAAP net income attributable to Photronics, Inc. shareholders$61,801 $22,891 $33,869 $136,405 $130,688 FX (gain) loss (18,615) 14,258 7,758 8,310 (2,168)Estimated tax effects of FX (gain) loss 4,781 (3,663) (1,936) (2,066) 477 Estimated noncontrolling interest effects of above 3,341 (4,130) (2,637) (5,342) (1,407)Reversal of deferred tax valuation allowance (16,751) - - (16,751) - Non-GAAP net income attributable to Photronics, Inc. shareholders$34,557 $29,356 $37,054 $120,556 $127,590 Weighted-average number of common shares outstanding - Diluted 57,977 58,068 62,456 59,920 62,391 U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders$1.07 $0.39 $0.54 $2.28 $2.09 Effects of non-GAAP adjustments above (0.47) 0.12 0.05 (0.27) (0.04)Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders$0.60 $0.51 $0.59 $2.01 $2.05 For Further Information:Ted MoreauVP, Investor [email protected]
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