Ichor Holdings Ltd
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
Did ICHR Beat Earnings? Q1 2025 Results
Ichor Holdings delivered a mixed first quarter for 2025, posting strong top-line growth that nonetheless fell short on the bottom line by a wide margin. Revenue of $244.47 million rose 21.4% year-over-year but barely missed the $244.95 million consensus estimate, while non-GAAP diluted EPS of $0.12 came in 54.09% below the $0.26 analyst forecast, a gap wide enough to prompt scrutiny from investors and, notably, a shareholder investigation into the results. The primary pressure point was profitability; despite non-GAAP gross margin inching up to 12.4% from 12.2% a year ago, thin operating leverage and $1.55 million in severance costs tied to restructuring, including a planned exit from Scotland operations, weighed on earnings. Capital expenditures surging to $18.48 million left the company with just $496,000 in free cash flow for the quarter. Looking ahead, Ichor guided Q2 revenue of $225 million to $245 million with non-GAAP EPS of $0.10 to $0.22, while flagging policy uncertainty from Washington as a growing headwind to demand visibility.
- Healthy semiconductor wafer fab equipment spending environment with relatively consistent demand signals across primary served markets
- 21.4% year-over-year revenue growth driven by semiconductor capital equipment demand
- Non-GAAP gross margin improvement to 12.4% from 12.2% year-over-year
- Non-GAAP operating margin expansion to 2.7% from 1.2% year-over-year
- Strong operating cash flow of $19.0 million driven by favorable working capital changes
“The overall spending environment for semiconductor wafer fab equipment continues to be quite healthy as we enter 2025, with demand signals remaining relatively consistent across our primary served markets.”
Ichor Holdings CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Ichor guided revenue of $225 million to $245 million (midpoint $235 million), GAAP diluted EPS of $(0.06) to $0.04 (midpoint $(0.01)), and non-GAAP diluted EPS of $0.10 to $0.22 (midpoint $0.16). Non-GAAP EPS guidance excludes approximately $2.1 million in amortization of intangible assets and $4.8 million in share-based compensation. Management expects 2025 revenue to be reasonably balanced between the first and second halves, with revenue growth exceeding overall industry growth. Meaningful gross margin improvement is anticipated through 2025 as the company matures its internal component supply integration into high-volume gas panel manufacturing. However, policy uncertainty from Washington is challenging demand visibility and has led to a more conservative near-term outlook.
ICHR YoY Financials
Figures from SEC filings and company reports. Not investment advice.