Photronics Reports Third Quarter Fiscal 2025 Financial Results

BROOKFIELD, Conn., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2025 ended August 3, 2025.

Commenting on the third-quarter performance, Chairman and CEO George Macricostas said, "Photronics delivered very good results in our fiscal third quarter with revenue, profitability and EPS ahead of expectations. Looking ahead, we remain focused on operational efficiency to maintain our excellent standard of maximizing customer cycle times. We will further accelerate internal investment efforts to enhance geographic revenue diversification and position the company for sustained revenue and earnings growth."

Third Quarter Fiscal 2025 Results

• Revenue was $210.4 million, down 0.3% year-over-year and 0.3% sequentially.
• GAAP Net income attributable to Photronics, Inc. shareholders was $22.9 million, or $0.39 per diluted share, compared with $34.4 million, or $0.55 per diluted share, in the third quarter of 2024 and $8.9 million, or $0.15 per diluted share, in the second quarter of 2025.
• Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4 million, or $0.51 per diluted share, compared with $31.9 million, or $0.51 per diluted share in the third quarter of 2024 and $24.3 million, or $0.40 per diluted share, in the second quarter of 2025.
• IC revenue was $147.8 million, down 5% year-over-year and 5% sequentially.
• FPD revenue was $62.6 million, up 14% from the same quarter last year and 14% sequentially.
• Cash, cash equivalents and short-term investments at the end of the quarter were $575.8 million, of which $396.8 million was associated with our Joint Ventures, of which we own 50%.
• Cash generated from operating activities was $50.1 million, cash invested in organic growth through capital expenditures was $24.8 million, and cash returned to shareholders through share repurchases was $20.7 million.
• The Board of Directors authorized an increase of $25.0 million to the share repurchase authorization.

Fourth Quarter Fiscal 2025 Guidance

For the fourth quarter of fiscal 2025, Photronics expects Revenue to be between $201 million and $209 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.42 and $0.48 per diluted share.

Webcast

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on August 27, 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.

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
				Three Months Ended												Nine Months Ended
				August 3,				May 4,				July 28,				August 3,				July 28,
					2025				2025				2024				2025				2024
Revenue				$	210,394			$	210,992			$	210,984			$	633,524			$	644,318
Cost of goods sold					139,539				133,086				135,846				409,228				410,674
Gross Profit					70,855				77,906				75,138				224,296				233,644
Gross margin %					33.7	%			36.9	%			35.6	%			35.4	%			36.3	%
Operating Expenses:
Selling, general and administrative					18,423				18,099				19,436				55,624				56,753
Research and development					4,271				4,090				3,555				12,618				11,291
Total Operating Expenses					22,694				22,189				22,991				68,242				68,044
Other operating gain					-				-				1				-				90
Operating Income					48,161				55,717				52,148				156,054				165,690
Operating Margin					22.9	%			26.4	%			24.7	%			24.6	%			25.7	%
Non-operating (loss) income, net					(9,428	)			(25,786	)			10,145				(10,232	)			26,931
Income Before Income Tax Provision					38,733				29,931				62,293				145,822				192,621
Income tax provision					9,594				5,714				14,124				34,209				48,998
Net Income					29,139				24,217				48,169				111,613				143,623
Net income attributable to noncontrolling interests					6,248				15,356				13,781				37,009				46,804
Net income attributable to Photronics, Inc. shareholders				$	22,891			$	8,861			$	34,388			$	74,604			$	96,819
Earnings per share attributed to Photronics, Inc. shareholders:
Basic				$	0.40			$	0.15			$	0.56			$	1.24			$	1.57
Diluted				$	0.39			$	0.15			$	0.55			$	1.23			$	1.55
Weighted-average number of common shares outstanding:
Basic					57,937				60,793				61,815				60,274				61,681
Diluted					58,068				60,974				62,414				60,567				62,369

PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
				August 3,			October 31,
				2025			2024
Assets
Current assets:
Cash and cash equivalents				$	479,521		$	598,485
Short-term investments					96,277			42,184
Accounts receivable					190,875			200,830
Inventories					63,490			56,527
Other current assets					42,073			33,036
Total current assets					872,236			931,062
Property, plant and equipment, net					838,988			745,257
Other assets					41,541			35,740
Total assets				$	1,752,765		$	1,712,059
Liabilities and Equity
Current liabilities:
Current portion of long-term debt				$	11		$	17,972
Accounts payable and accrued liabilities					174,914			165,839
Total current liabilities					174,925			183,811
Long-term debt					16			25
Other liabilities					39,824			47,464
Equity:
Photronics, Inc. shareholders' equity					1,125,551			1,120,864
Noncontrolling interests					412,449			359,895
Total equity					1,538,000			1,480,759
Total liabilities and equity				$	1,752,765		$	1,712,059

PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
					Nine Months Ended
					August 3,				July 28,
						2025				2024
Cash flows from operating activities:
Net income					$	111,613			$	143,623
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization						59,234				61,613
Share-based compensation						10,003				9,841
Changes in operating assets, liabilities and other						(20,876	)			(22,003	)
Net cash provided by operating activities						159,974				193,074
Cash flows from investing activities:
Purchases of property, plant and equipment						(120,588	)			(87,733	)
Purchases of short-term investments						(96,571	)			(100,558	)
Proceeds from maturities of short-term investments						42,148				44,696
Government incentives						1,469				1,541
Other						(57	)			(4	)
Net cash used in investing activities						(173,599	)			(142,058	)
Cash flows from financing activities:
Repayments of debt						(17,969	)			(4,500	)
Common stock repurchases						(97,422	)			-
Proceeds from share-based arrangements						2,120				1,074
Net settlements of restricted stock awards						(2,013	)			(3,002	)
Net cash used in financing activities						(115,284	)			(6,428	)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash						10,129				(6,454	)
Net (decrease) increase in cash, cash equivalents, and restricted cash						(118,780	)			38,134
Cash, cash equivalents, and restricted cash, beginning of period						601,243				501,867
Cash, cash equivalents, and restricted cash, end of period					$	482,463			$	540,001

PHOTRONICS, INC.
Reconciliation of GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders to Non-GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders
(in thousands, except per share amounts)
(Unaudited)
	Three Months ended
	August 3,				May 4,				July 28,
		2025				2025				2024
GAAP Net income attributable to Photronics, Inc. shareholders	$	22,891			$	8,861			$	34,388
FX (gain) loss		14,258				31,111				(4,068	)
Estimated tax effects of FX (gain) loss		(3,663	)			(8,337	)			914
Estimated noncontrolling interest effects of above		(4,130	)			(7,376	)			681
Non-GAAP Net income attributable to Photronics, Inc. shareholders	$	29,356			$	24,259			$	31,915
Weighted-average number of common shares outstanding - Diluted		58,068				60,974				62,414
GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders	$	0.39			$	0.15			$	0.55
Effects of non-GAAP adjustments above		0.12				0.25				(0.04	)
Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders	$	0.51			$	0.40			$	0.51

For Further Information:

Ted Moreau

VP, Investor Relations

469.395.8175

[email protected]