EX-99.1 2 ef20060918_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
For Further Information:
Ted Moreau
VP, Investor Relations
469.395.8175
tmoreau@photronics.com

Photronics Reports Full Year and Fourth Quarter Fiscal 2025 Results

BROOKFIELD, Conn. December 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 $2.05 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 my 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
    
$
598,485
  
Short-term investments
    
95,909
      
42,184
  
Accounts receivable
    
195,921
      
200,830
  
Inventories
    
61,767
      
56,527
  
Other current assets
    
44,199
      
33,036
  
                 
Total current assets
    
890,052
      
931,062
  
                 
Property, plant and equipment, net
    
854,436
      
745,257
  
Other 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
    
$
17,972
  
Accounts payable and accrued liabilities
    
165,862
      
165,839
  
                 
Total current liabilities
    
165,873
      
183,811
  
                 
Long-term debt
    
13
      
25
  
Other liabilities
    
41,341
      
47,464
  
                 
Equity:
                
Photronics, Inc. shareholders’ equity
    
1,173,589
      
1,120,864
  
Noncontrolling interests
    
423,718
      
359,895
  
Total 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
    
$
120,486
    
$
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