Photronics, Inc. (NASDAQ: PLAB) Q2 2025 Earnings Call | 05/28/2025

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Photronics, Inc. reported Q2 2025 results on May 28, 2025, with revenue of $211.0 million, down 3% year-over-year and 1% sequentially, reflecting ongoing weakness in mainstream integrated circuit (IC) demand and flat panel display (FPD) markets. GAAP net income attributable to shareholders fell sharply to $8.9 million ($0.15 per diluted share), compared to $36.3 million ($0.58) in Q2 2024 and $42.9 million ($0.68) in Q1 2025. Non-GAAP net income was $24.3 million ($0.40 per diluted share), also down from both the prior year and previous quarter. IC revenue was $155.9 million, declining 3% year-over-year but up 1% sequentially, with high-end IC sales rising 2% and now representing 30% of total IC revenue. Mainstream IC revenue dropped 6% annually, while FPD revenue was $55.1 million, down 2% year-over-year and 5% sequentially. Gross margin held steady at 37%, consistent with the company’s three-year average, while operating margin improved sequentially by 180 basis points to 26%. Photronics generated $31.5 million in operating cash flow and invested $60.5 million in capital expenditures to support organic growth. The company returned $72.1 million to shareholders through the repurchase of 3.6 million shares and ended the quarter with $558.4 million in cash, cash equivalents, and short-term investments. A major leadership transition was announced: Dr. Frank Lee stepped down as CEO to focus on Asia operations and will remain Chairman and President of Photronics’ PDMC subsidiary in Taiwan. George Macricostas has been appointed Chief Executive Officer. Outlook: Q3 2025 revenue guidance: $200–$208 million; non-GAAP EPS: $0.35–$0.41 per diluted share; operating margin: 20–22%. Management remains focused on high-end growth, strategic investments, and shareholder returns, but is cautious on near-term demand and tariff risks. The company plans to invest $200 million in capital expenditures for fiscal 2025 to support long-term growth. #Photronics #PLAB #EarningsCall #Q22025 #IC #FPD #ShareRepurchase #Leadership #Semiconductors #Investing #InsideTicker