Ichor Holdings 2025 Q1 Earnings Misses Targets as Net Income Improves 49.3%

Ichor Holdings (ICHR) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company missed expectations with adjusted earnings of $0.12 per share, falling short of the Zacks Consensus Estimate of $0.26. Revenue also missed consensus estimates by 0.19%, with reported figures at $244.47 million. Despite these misses, Ichor Holdings adjusted its guidance for Q2 2025 with expected revenue between $225 million and $245 million and non-GAAP diluted EPS ranging from $0.10 to $0.22.

Revenue

The total revenue of Ichor Holdings increased by 21.4% to $244.47 million in 2025 Q1, up from $201.38 million in 2024 Q1.

Earnings/Net Income

Ichor Holdings narrowed losses to $0.13 per share in 2025 Q1 from a loss of $0.30 per share in 2024 Q1, marking a 56.7% improvement. Meanwhile, the company successfully reduced its net loss to $-4.56 million in 2025 Q1, a 49.3% improvement compared to the $-8.99 million net loss reported in 2024 Q1. The EPS figures indicate a significant reduction in losses, showcasing better performance compared to the previous year.

Price Action

The stock price of Ichor Holdings has dropped 3.61% during the latest trading day, has plummeted 19.72% during the most recent full trading week, and has tumbled 10.36% month-to-date.

Post Earnings Price Action Review

The strategy of purchasing Ichor Holdings shares after a quarter-over-quarter revenue decline and holding for 30 days resulted in a 4.16% return over the past five years. This return significantly underperformed the benchmark's 83.12% return. The strategy's low Sharpe ratio of 0.08 indicates poor risk-adjusted returns, underscoring the importance of risk management due to its maximum drawdown of -19.14%. Investors are advised to consider these factors when evaluating the stock's performance and potential strategies.

CEO Commentary

Jeff Andreson, CEO of Ichor Holdings, remarked on the first quarter's performance, highlighting that the overall spending environment for semiconductor wafer fab equipment remains healthy with consistent demand signals across primary markets. However, he noted that policy uncertainty in Washington is creating challenges in demand visibility, leading to a more conservative outlook for the second quarter. He expressed optimism regarding the company's revenue growth profile, stating that it continues to exceed overall industry growth expectations for 2025, and indicated an expectation for meaningful gross margin improvement as Ichor integrates its internal component supply into high-volume manufacturing operations.

Guidance

For the second quarter of 2025, Ichor Holdings projects revenue between $225 million and $245 million, with a midpoint of $235 million. The company anticipates a GAAP diluted EPS ranging from $(0.06) to $0.04, while non-GAAP diluted EPS is expected to be between $0.10 and $0.22, with a midpoint of $0.16. This outlook reflects a cautious approach amidst current market uncertainties.

Additional News

In recent developments, Ichor Holdings announced participation in the TD Cowen 53rd Annual Technology, Media & Telecom Conference on May 29, 2025, highlighting its strategic focus on expanding industry relations. Additionally, Stifel adjusted its price target for Ichor Holdings to $28 while maintaining a Buy rating, reflecting cautious optimism despite recent earnings misses. Moreover, Ichor Holdings continues to be recognized as a leader in integrated solutions for the semiconductor industry, emphasizing its commitment to innovation and technical expertise as a turn-key partner for major OEMs.