PLAB Photronics Inc - 8-K

EX-99.1
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ef20074970_ex99-1.htm
EXHIBIT 99.1

Exhibit 99.1

Photronics Reports Second Quarter 2026 Results

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

[email protected]

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,

2026

October 31,

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,

2026

May 4,

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

)

Effects of exchange rate changes on cash, cash equivalents, and restricted cash

(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,

2026

February 1,

2026

May 4,

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

EX-99.2
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ef20074970_ex99-2.htm
EXHIBIT 99.2

Exhibit 99.2

May 2026  Investor Presentation

Safe Harbor Statement  This presentation and some of our comments during this
presentation may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions and contain risks and
uncertainties. We refer you to the 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 the actual results for the Company to differ materially from those contained in our projections or forward-looking statements. Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee the accuracy of any forecasts or estimates, and we are not obligated to update any forward-looking statements if our expectations change.  2

Corporate Overview

Europe  4%  Taiwan  32%  South  Korea  19%  US  18%  Photronics Overview (Nasdaq:
PLAB)  $861M  Revenue  $197M  Operating Income  $283M  Operating Cash Flow  $3.04B  Market Cap  5/12/2026  ~1,900  Employees  ~675  Customers  1969  Founded  A Global Merchant Market Leader of Photomasks used in Lithographic Imaging for
Semiconductor and Flat Panel Display production  Revenue By Geographic Origin  Revenue By Technology  All data reflects Trailing Twelve Month figures as of 5/3/26 unless otherwise noted  Totals may differ due to
rounding  4  Mainstream  48%  High-End  52%   Revenue By Product Line  Flat Panel Display  28%  Integrated Circuits  72%  China IC  15%  China FPD  12%

Photomasks: Critical Enabler for IC and FPD Manufacturing  Integrated Circuit (IC)
photomasks are used to transfer circuit patterns onto semiconductor wafers during the fabrication of integrated circuits.  Photomasks are glass substrates used in lithographic systems to transfer the pattern of semiconductor and flat panel
display designs  Light Source  Photomask  Reduction Lens  Wafer  Stage  5  Flat Panel Display (FPD) photomasksare used in the fabrication of flat screen televisions, PC monitors, tablets, mobile devices and other flat panel displays.  Exposure
Process used to Create a TFT Circuit Pattern  TFT Substrate – Thin-Film Transistor substrate

IC: New Chip Designs Drive Photomask Demand  Photomasks are the foundation of
wafer manufacturing and critical to the semiconductor manufacturing process   A global merchant leader in mask production  Advances in semiconductor chip designs drive Photronics revenue  6  Source: Semi’s 2024 Photomask Characterization Study,
August 2025  Source: TechInsights “McClean Report February 2026” February 23, 2026

Global Footprint Aligns with Regionalization Trends  IC: Integrated Circuit | FPD:
Flat Panel Display  7  Allen, Texas  Boise, Idaho  Brookfield, Connecticut  HQ  Bridgend, Wales  Cheonan, South Korea  Hsinchu, Taiwan   Xiamen, China  Dresden, Germany   Hefei, China  Taichung, Taiwan   Largest commercial mask maker in Taiwan.
  Only high-end capable commercial mask maker in US.   IC  FPD  IC & FPD  U.S. and Asia investments align with industry regionalization trends, and diversify geographic footprint  U.S. capacity and capability extension for mid-range IC
nodes  Asia capacity and capability extension to 8nm

Node Migration Drives Mask Set Value  Nodes  Indicative Mask Value  8  Mask
pattern complexity / Mask count per IC Design / Impact of Mask performance on IC yield  Drives higher individual mask ASP, more layers per mask set, and higher barriers of entry for competitors  Currently  participating  Planning to
  participate

FPD: Advanced Displays are Driving Innovation   Photronics leverages expertise
gained from IC mask production into FPD mask production  Consumer electronics with larger, high-performance displays increase the complexity of mask production  Panel makers are developing AMOLED production processes to increase substrate size
to G8.6, requiring larger, high-quality advanced masks  Customers rely on Photronics for its market leading AMOLED technology  9

Competitive Advantages  Global Footprint  Customer relationships  Aligned with end
markets  Flexible supply chain  Technology Leader  Process expertise  Advanced Process-of-Record  High barriers to entry  Commercial Excellence  Customer first  Trusted partner  Wafer yield enhancement  Technology roadmap enabler  Operational
Excellence  Responsive delivery  High yields  Cost control  Supply chain optimization  Teamwork and execution  10

Capital Expenditures  * 2026E Capex is represented in US$. The bar reflecting 2026
capex is not comparable to Capital Intensity Ratios for prior periods.  The Capital Intensity Ratio is defined as Capex divided by Revenue  11  2026 Capex Includes:  Allen, TX facility to begin delivering qualification masks in FQ3  Korea
orders and clean room preparation for the capability extension to 8nm and beyond  End-of-Life tool upgrades expected to peak in fiscal 2026

Compelling Investment Thesis  A global leader in the merchant photomasks industry
critical for semiconductor manufacturing  Favorable Industry Trends  12  Regionalization/ reshoring of the semiconductor industry   Captives increasing outsourcing to merchant suppliers  Node migration drives ASP expansion and revenue
growth  Foldable displays and higher value masks drive FPD opportunity   Premier operational execution enables preferred supplier status  Consistent delivery of cash flow for strategic flexibility  Operational Excellence

Fiscal Q2 2026 Financial Results

FQ2 2026 Summary  Revenue  Gross Margin  Operating Margin  Diluted EPS  Non-GAAP
Diluted EPS1  FQ2 2026  $209.9M  31.3%  20.1%  $0.54  $0.42  FQ1 2026  $225.1M  35.0%  24.4%  $0.74  $0.61  FQ2 2025  $211.0M  36.9%  26.4%  $0.15  $0.40  1See reconciliation included in this presentation  Totals may differ due to
rounding  14  Revenue reflects temporary delays of semiconductor design releases due to high industry fab utilization rates, allocation of memory supply, and macroeconomic concerns. Display grew 13% y/y as customers prepare for upcoming
consumer electronics launches  Promising long-term demand driven by regionalization & reshoring, node migration, and overall semiconductor / display industry growth  Revenue by Geographic Origin: Taiwan (32%), China IC (17%), China FPD
(12%), U.S. (16%), South Korea (19%), Europe (4%)  Gross margin of 31.3% reflects operational leverage inherent in our financial model, and also product mix  Non-GAAP Diluted EPS of $0.42 reflects temporary design release delays

Revenue by Product
Line  $M  2Q26  Q/Q  Y/Y  High-End*  56.7  (21%)  (4%)  Mainstream  90.9  (3%)  (6%)  Total  147.5  (11%)  (5%)  Temporarily delayed design releases resulting from high industry fab utilization rates, memory tightness, and macro
factors  Strategic emphasis on High-End to leverage competitive advantage  Both High-End and Mainstream expected to continue experiencing node migration to more advanced IC geometries driving ASPs  *IC: 28nm and smaller; FPD: G10.5+, AMOLED and
LTPS   Totals may differ due to rounding  High-End accelerated ahead of major consumer electronics releases in the Fall  China IT market reverted back to traditional run rate   Competitive advantages in larger, more complex panel sizes using
AMOLED display technology such as G10.5 and G8.6  $M  2Q26  Q/Q  Y/Y  High-End*  52.8  13%  21%  Mainstream  9.6  (25%)  (16%)  Total  62.4  4%  13%  IC  FPD  15

Operating cash flow represented 22% of revenue with contribution from our largest
geographic regions  FQ2 capex primarily reflects outlays for our Korea node extension down to 8nm, end-of-life tool upgrades, facility optimization and Allen expansion  Capital allocation:  Organic growth investments: investing in U.S. and
South Korea to support customer growth plans and capture more high-end opportunities  Business development initiatives: leverage and enhance core competencies  Return cash to shareholders: Repurchased $97M throughout Fiscal 2025; $28M currently
authorized  Balance Sheet and Cash Flow Metrics  $M  2Q26  1Q26  2Q25  Cash, cash equivalents and Short-term investments  637.7  636.9  558.4  Debt  3.9  0.02  0.03  Operating Cash Flow  47.0  97.3  31.5  Capital
Expenditures  45.8  47.6  60.5  16

FQ3 2026 Guidance   Assumptions:  Delayed design starts because of tight memory
conditions, prolonged profitability maximization of existing designs, and macroeconomic factors  Allen, TX facility to begin delivering qualification masks in FQ3  Fiscal 2026 capex reflects latter stages of expansion in U.S., initial expansion
in South Korea, and peak end-of-life tool replacement  Revenue ($M)  207 – 215  Operating Margin  18% - 20%  Diluted non-GAAP EPS  $0.39 - $0.45  Diluted Shares (M)  ~59  Full-year Capex ($M)  ~330  17

Appendix

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 on the following page.   19

Non-GAAP Financial Measures  20