BROOKFIELD, Conn., May 28, 2026 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its second quarter of fiscal year 2026 ended May 3, 2026.

Commenting on the second quarter performance, Chairman and CEO George Macricostas said, "Photomask market dynamics reflect a mix of supportive long-term drivers and several temporary headwinds. In the near term, certain design releases have been delayed due to elevated fab utilization rates, which are extending new product launch timelines, memory supply constraints and related cost pressures for OEMs, and geopolitical uncertainty. The underlying long-term demand environment remains strong as we advance our investments in the U.S. and Korea to strengthen our position at the high end of the market over the coming years."

Second Quarter Fiscal 2026 Results

Revenue was $209.9 million, down 0.5% year-over-year and down 6.7% sequentially.
GAAP Net income attributable to Photronics, Inc. shareholders was $31.4 million, or $0.54 per diluted share, compared with $8.9 million, or $0.15 per diluted share, in the second quarter of 2025 and $42.9 million, or $0.74 per diluted share, in the first quarter of 2026.
Non-GAAP Net income attributable to Photronics, Inc. shareholders was $24.9 million, or $0.42 per diluted share, compared with $24.3 million, or $0.40 per diluted share in the second quarter of 2025 and $35.7 million, or $0.61 per diluted share, in the first quarter of 2026.
IC revenue was $147.5 million, a decrease of 5% year-over-year and a decrease of 11% sequentially.
FPD revenue was $62.4 million, an increase of 13% year-over-year and an increase of 4% sequentially.
Cash, cash equivalents and short-term investments at the end of the quarter were $637.7 million, of which $477.3 million was associated with our Joint Ventures, of which we own 50.01%.
Cash generated from operating activities was $47.0 million, and cash invested in organic growth through capital expenditures was $45.8 million.

Third Quarter Fiscal 2026 Guidance

For the third quarter of fiscal 2026, Photronics expects:

Revenue to be between $207 million and $215 million,
Operating margin to be between 18% and 20%, and
Non-GAAP diluted EPS attributable to Photronics, Inc. shareholders to be between $0.39 and $0.45 per share.

Earnings Conference Call and Webcast

An earnings conference call and webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on May 28, 2026. 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 Conference Registration. 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, which are high precision photographic quartz or glass plates that contain microscopic images of electronic circuits. Photomasks are a key element in the manufacture of ICs and FPDs and are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates. 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, 2025 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 statements 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.

For Further Information:

Ted Moreau

VP, Investor Relations

tmoreau@photronics.com

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)

	Three Months Ended									Six Months Ended
	May 3,			February 1,			May 4,			May 3,			May 4,
		2026			2026			2025			2026			2025

Revenue	$	209,940		$	225,066		$	210,992		$	435,006		$	423,130

Cost of goods sold		144,183			146,364			133,086			290,547			269,689

Gross Profit		65,757			78,702			77,906			144,459			153,441
Gross margin %		31.3	%		35.0	%		36.9	%		33.2	%		36.3	%

Operating Expenses:

Selling, general and administrative		20,756			21,311			18,099			42,067			37,201

Research and development		2,822			2,588			4,090			5,410			8,346

Total Operating Expenses		23,578			23,899			22,189			47,477			45,547

Other operating Income		–			56			–			56			–

Operating Income		42,179			54,859			55,717			97,038			107,894
Operating Margin %		20.1	%		24.4	%		26.4	%		22.3	%		25.5	%

Other income (expense), net		11,677			19,673			(25,786	)		31,350			(805	)

Income Before Income Tax Provision		53,856			74,532			29,931			128,388			107,089

Income tax provision		10,606			14,355			5,714			24,961			24,615

Net Income		43,250			60,177			24,217			103,427			82,474

Net income attributable to noncontrolling interests		11,821			17,238			15,356			29,059			30,762

Net income attributable to Photronics, Inc. shareholders	$	31,429		$	42,939		$	8,861		$	74,368		$	51,712

Earnings per share attributed to Photronics, Inc. shareholders:

Basic	$	0.54		$	0.74		$	0.15		$	1.28		$	0.84

Diluted	$	0.54		$	0.74		$	0.15		$	1.27		$	0.84

Weighted-average number of common shares outstanding:

Basic		58,123			57,794			60,793			57,959			61,443

Diluted		58,745			58,390			60,974			58,568			61,817

PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)

	May 3,		October 31,
		2026		2025

Assets

Current assets:
Cash and cash equivalents	$	511,490	$	492,256
Short-term investments		126,177		95,909
Accounts receivable		188,951		195,921
Inventories		67,826		61,767
Other current assets		49,482		44,199

Total current assets		943,926		890,052

Property, plant and equipment, net		927,936		854,436
Other assets		58,964		60,046

Total assets	$	1,930,826	$	1,804,534



Liabilities and Equity

Current liabilities:
Current portion of long-term debt	$	11	$	11
Accounts payable and accrued liabilities		186,954		165,862

Total current liabilities		186,965		165,873

Long-term debt		3,853		13
Other liabilities		46,547		41,341

Equity:
Photronics, Inc. shareholders' equity		1,241,250		1,173,589
Noncontrolling interests		452,211		423,718
Total equity		1,693,461		1,597,307

Total liabilities and equity	$	1,930,826	$	1,804,534

PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

	Six Months Ended
	May 3,			May 4,
		2026			2025

Cash flows from operating activities:
Net income	$	103,427		$	82,474
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		39,812			40,386
Share-based compensation		6,576			6,710
Changes in operating assets, liabilities and other		(5,531	)		(19,651	)

Net cash provided by operating activities		144,284			109,919

Cash flows from investing activities:
Purchases of property, plant and equipment		(93,436	)		(95,749	)
Purchases of short-term investments		(105,831	)		(27,689	)
Proceeds from maturities of short-term investments		71,789			41,482
Proceeds from sales of short-term investments		7,093			–
Government incentives		2,567			1,166
Other		(72	)		(57	)

Net cash used in investing activities		(117,890	)		(80,847	)

Cash flows from financing activities:
Repayments of debt		(5	)		(17,966	)
Common stock repurchases		–			(76,682	)
Proceeds from share-based arrangements		1,216			1,583
Net settlements of restricted stock awards		(1,632	)		(2,007	)

Net cash used in financing activities		(421	)		(95,072	)

		(6,722	)		(1,697	)

Net increase (decrease) in cash, cash equivalents, and restricted cash		19,251			(67,697	)
Cash, cash equivalents, and restricted cash, beginning of period		495,113			601,243

Cash, cash equivalents, and restricted cash, end of period		514,364			533,546

Less: Ending restricted cash		2,874			2,838

Cash and cash equivalents at end of period	$	511,490		$	530,708

PHOTRONICS, INC.
Reconciliation of U.S. GAAP 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
	May 3,			February 1,			May 4,
		2026			2026			2025


U.S. GAAP net income attributable to Photronics, Inc. shareholders	$	31,429		$	42,939		$	8,861
FX (gain) loss		(7,869	)		(12,865	)		31,111
Estimated tax effects of FX (gain) loss		629			2,553			(8,337	)
Estimated noncontrolling interest effects of above		739			3,032			(7,376	)


Non-GAAP net income attributable to Photronics, Inc. shareholders	$	24,928		$	35,659		$	24,259

Weighted-average number of common shares outstanding – Diluted		58,745			58,390			60,974


U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders	$	0.54		$	0.74		$	0.15
Effects of non-GAAP adjustments above		(0.12	)		(0.13	)		0.25
Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders	$	0.42		$	0.61		$	0.40

Photronics Reports Second Quarter 2026 Results