Photronics, Inc. reported fiscal 2025 fourth‑quarter revenue of $215.8 million and a non‑GAAP diluted earnings per share of $0.60, a $0.13 or 27% beat over the consensus estimate of $0.47. The quarter’s revenue fell 3.1% year‑over‑year, but the company’s GAAP net income rose to $61.8 million, driven largely by a $16.8 million tax benefit from the reversal of a U.S. tax loss valuation allowance. Non‑GAAP net income of $34.6 million was slightly lower than the $37.1 million reported in Q4 2024, reflecting a modest decline in overall revenue but offset by the tax benefit and improved operating efficiency.
The company’s high‑end IC and FPD mask lines continued to drive performance, with the United States contributing the strongest growth. Photronics’ expansion of its Korean manufacturing capability is expected to diversify its geographic revenue mix and support demand for leading‑edge chip designs. The favorable product mix helped lift gross margin to 35% and operating margin to 24%, both higher than the 34% and 23% margins reported in the prior year, underscoring the company’s pricing power in high‑margin segments.
Management guided for fiscal 2026 Q1 revenue of $217 million to $225 million and non‑GAAP diluted EPS of $0.51 to $0.59, a range that exceeds the previous guidance and signals confidence in continued demand for its advanced mask lines. The guidance reflects expectations of sustained growth in the U.S. market and the anticipated impact of the Korea capacity extension, while maintaining a focus on high‑margin, high‑end products.
CEO George Macricostas described the quarter as “very good,” highlighting record high‑end revenue and strong U.S. performance. CFO Eric Rivera noted the $16.8 million tax benefit that boosted GAAP net income, and reiterated the company’s commitment to investing in U.S. and Asian capacity to support future growth.
The earnings beat and robust guidance reinforce Photronics’ strategic shift toward high‑margin photomask markets and demonstrate effective cost control and execution in a challenging revenue environment. The company’s ability to deliver a strong EPS beat while managing a modest revenue decline positions it well for continued profitability and market share gains in the high‑end segment.
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