Did Ichor Holdings beat or miss consensus estimates last quarter?

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What is Ichor Holdings's gross profit margin?

What is the revenue and EPS growth rate for Ichor Holdings year over year?

What were the key takeaways from Ichor Holdings's earnings call?

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What factors drove the changes in Ichor Holdings's revenue and profit?

What were the key takeaways from Ichor Holdings’s earnings call?

- **Q3 Revenue Beat**: $239 million driven by etch/deposition demand, offset by 1% margin drag from IMG underperformance.
- **Q4 Trough Guidance**: $210-230 million revenue, 10-12% gross margin, with Q1 2026 recovery.
- **Strategic Shifts**: Transitioning to product-driven business with 20%+ gross margin goal via internal manufacturing and new product ramps.
- **Operational Focus**: Meet Q4 expense targets ($23.7M), stabilize cash flow, and execute restructuring.

**【CEO Summary Section】**
- Q3 2025 revenue of $239 million exceeded expectations, driven by strong demand in etch and deposition applications. However, non-semiconductor (IMG) business underperformance reduced gross margin by 1 percentage point.
- Q4 2025 is expected to be the trough with revenue guidance of $210-230 million and gross margins of 10-12%. Recovery in Q1 2026 is anticipated.
- Strategic focus on internal component manufacturing, transitioning to a product-driven business, and expanding high-margin machining and flow control businesses.
- Long-term goal of achieving 20% gross margin through internal production ramping and new product qualifications.

**【CFO Financial Commentary】**
- Q3 non-GAAP EPS of $0.07, with GAAP net loss due to $18.3 million restructuring costs.
- Cash position of $92.5 million, refinanced credit facility, and 2026 tax rate of 15-17%.
- Q4 operating expenses expected to remain stable at $23.7 million, with focus on cost control and margin improvement.

**【Q&A Key Highlights】**
- IMG business decline due to funding delays, with recovery expected in Q1 2026.
- Internal valve system qualification for a fourth customer anticipated in Q1 2026.
- Hiring targets met in Minnesota factory, with capacity expansion plans in Malaysia and Mexico.
- 2026 strategic priorities include gross margin expansion to mid-teens and operational efficiency improvements.

Ichor Holdings, Ltd. (ICHR) Q3 2025 Earnings Call Transcript

- **Revenue beat with margin miss**: Q2 $240M revenue (18% YoY) vs. 12.5% gross margin (low end of guidance) due to machining labor shortages.
- **New product momentum**: Flow control end-user qualification and valve commercial shipments mark inflection points.
- **CEO transition**: Strategic advisor role announced amid search for successor.
- **Q3 guidance cautious**: Flat revenue vs. Q2, 12.5-13.5% gross margin range maintained.
- **Tax headwind**: $0.07 EPS impact from accelerated Pillar Two tax.

**【CEO Summary Section】**
- Q2 revenue of $240 million exceeded expectations, driven by lower-margin gas panel integration business. Gross margin of 12.5% fell short of guidance due to hiring challenges in U.S. machining operations.
- New product progress: Flow control product qualified at a key end user; valve product line secured third customer qualification with commercial shipments beginning. Next-gen products targeting broader semiconductor applications in development.
- 2025 outlook: Year-over-year revenue growth expected to outpace WFE industry (20%+ vs. 5-10% WFE growth). Gross margin expansion contingent on ramping internal component supply and reducing external sourcing costs.
- CEO succession: Jeff Andreson announced transition to strategic advisor role, with search for new CEO underway.

**【CFO Financial Commentary】**
- Q2 GAAP net income: $420 million. Non-GAAP EPS: $0.03 (vs. $0.07 expected), impacted by $3.2 million Pillar Two tax acceleration.
- Balance sheet: $92 million cash, $126 million debt (1.5x net debt ratio). 2025 CapEx ~4% of revenue ($7 million Q2, $28 million annualized).
- Q3 guidance: Revenue $225-245 million, gross margin 12.5-13.5%, operating expenses ~$23.7 million. Full year tax estimate $5.6 million.

**【Q&A Key Highlights】**
- Hiring challenges: Minnesota machining operation turnover offset hiring gains. Shift differentials and off-shift incentives being tested.
- Demand trends: NAND investment continues, but EUV builds slower than expected. Major U.S. IDM delaying CapEx.
- Tariffs: Section 232 steel/aluminum tariffs (50% duty) passed through to customers. New April 2023 rules eliminate duty drawback for non-U.S. sourced metals.
- Gross margin path: 13%+ achievable in Q3 if hiring ramp meets plan. Long-term 20%+ target remains, contingent on flow controller qualification timing.

Ichor Holdings, Ltd. (ICHR) Q2 2025 Earnings Call Transcript

- **Revenue Resilience**: Q1 up 21% YoY, driven by NAND, DRAM, and Foundry Logic strength, despite modest WFE market growth.
- **Gross Margin Recovery**: H2 2025 target of 15-16% after Q1 miss, with 25% internal component penetration vs. 5% in 2024.
- **Tariff Mitigation**: Mexico operations exempt from Section 232 tariffs, limiting impact on WFE supply chain.
- **Long-Term Vision**: 18-20% gross margin achievable with full next-gen gas panel qualification and component cost-sharing with customers.

**【CEO Business Update】**
- Q1 revenue of $244.5 million, up 21% YoY and 5% sequentially, reflecting stable demand in NAND, DRAM, and Foundry Logic segments.
- Gross margin of 12.4% fell short of expectations due to slower-than-anticipated transition to internally sourced components, resulting in higher external purchases.
- 2025 revenue growth expected to outpace overall WFE market, with H2 gross margin targeted at 15-16%.
- Internal component penetration in gas panels improved from 5% in 2024 to 25% in 2025, with long-term goal of 18-20% gross margin.

**【CFO Financial Highlights】**
- Q1 non-GAAP net income of $6.6 million, EPS of $0.12, below prior guidance due to gross margin underperformance.
- Operating expenses of $23.7 million aligned with expectations, with 2025 CapEx forecasted at 4% of revenue for global expansion.
- Cash flow from operations of $19 million, with free cash flow of $0.5 million.
- 2025 tax rate expected at 12.5%, with net interest expense of $6 million annually.

**【Key Q&A Insights】**
- **Tariff Impact**: Section 232 steel tariffs affecting U.S.-based weldment business, while Mexico operations remain exempt under USMCA.
- **Customer Demand**: Lithography business softer in Q2, offset by strength in NAND upgrades and DRAM for AI applications.
- **Component Qualifications**: 4 of 4 largest customers now qualified on all 3 major product families (valves, fittings, substrates), with 2025 qualification rate doubling 2024 levels.
- **Scotland Exit**: Refurbishment business closure reduced Q1 revenue by ~$10 million annually, with no further material impact expected.


Ichor (ICHR)-5 May 25-2025 Q1 Earnings call transcript

- **Revenue Beat & Growth Momentum**: Q4 $233M (+15% YoY), raising Q1 high end to $255M with 14%-15% gross margin.
- **Gross Margin Recovery**: 2025 target 15%-16%+ (vs. 12% Q4), driven by 25%-30% flow-through and $233M+ new product pipeline.
- **Market Leadership**: Outperforming WFE growth with NAND recovery, advanced logic intensity, and U.S. OEM mix shift.
- **Financial Strength**: Debt down 52% YoY, 1.6x net debt, and $109M cash for growth investments.

**【CEO Summary Section】**
- Q4 revenue reached $233 million, up 10% sequentially and 15% year-over-year, driven by stronger demand in etch and CVD applications.
- Gross margin headwinds in Q4 due to higher direct labor costs and training delays, but expects improvement in 2025 with proprietary component ramp-up.
- 2025 outlook: 15%-16%+ gross margin target, 25%-30% flow-through, and new product growth from high-purity valves, fittings, and next-gen gas panels.
- NAND recovery and advanced logic investments are key growth drivers, with foundry logic and DRAM remaining strong.

**【CFO Financial Commentary】**
- Q4 GAAP net income: $0.08 EPS (non-GAAP), with $233 million revenue and 12% gross margin (down 300bps YoY due to labor and inventory charges).
- Q1 2025 guidance: $235-$255 million revenue, 14%-15% gross margin, and $0.20-$0.32 EPS.
- 2025 full-year gross margin target: >16%, with 5%-7% OpEx growth and $6 million net interest expense.
- Debt reduction to $129 million (from $250M YoY), improving net debt coverage to 1.6x.

**【Q&A Key Takeaways】**
- **Gross Margin Drivers**: 45% from new products (valves, gas panels), 35% from volume growth, 20% from Q4 headwind reversal.
- **Market Mix**: Foundry logic > NAND > DRAM > gate-all-around, with litho recovery in H2 2025.
- **Capacity Utilization**: Current infrastructure supports $400+ million annualized revenue, with minimal incremental hiring needed for 2025 growth.
- **Long-Term Margin Potential**: 19%-20%+ with full proprietary component adoption and scale leverage.

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