- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ICHR

ICHR fundamentals

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