Ichor Holdings Ltd
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.55%.
Did ICHR Beat Earnings? Q3 2025 Results
Ichor Holdings delivered a split verdict in Q3 2025, beating on revenue while falling well short on earnings, as a $17.59 million restructuring charge tied to the company's newly initiated Consolidation Restructuring Plan weighed heavily on the bottom line. Revenue of $239.30 million came in above the $235.14 million consensus estimate, rising 13.3% year-over-year on accelerating gas panel integration deliveries to primary etch and deposition customers, but GAAP EPS of $0.07 missed the $0.12 consensus by 40.98%, with GAAP gross margin collapsing to 4.6% from 13.2% a year earlier as inventory impairments and facility exit costs tied to operations in Scotland and Korea cut deep. Non-GAAP gross margin held more steadily at 12.1%, reflecting the one-time nature of the charges. Looking ahead, management guided Q4 revenue to a midpoint of $220.00 million, characterizing the quarter as a trough driven by demand pull-ins from core customers in Q3, while expressing confidence that a recovery in non-core served markets and continued etch and deposition strength would restore earnings leverage through 2026.
- Acceleration of gas panel integration deliveries driven by strengthened customer demand for etch and deposition
- Year-to-date revenues of $724 million representing 18% growth year-over-year, outpacing overall WFE growth
- Further softening in other served markets pressured gross margin and profitability
- Inventory impairment of $16.7 million related to Consolidation Restructuring Plan
- Recovery in operating cash flow to $9.2 million from negative $7.5 million in Q2
“The customer demand environment for etch and deposition strengthened during the third quarter, resulting in an acceleration of gas panel integration deliveries and total revenues at the upper end of our expectations.”
Ichor Holdings CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Ichor expects revenue of $210–$230 million (midpoint $220 million), GAAP diluted EPS of $(0.33) to $(0.17) (midpoint $(0.25)), and non-GAAP diluted EPS of $(0.14) to $0.02 (midpoint $(0.06)). The sequential revenue decline reflects a pull-in of demand among primary etch and deposition customers during Q3. Management expects momentum to recover moving into 2026, with a robust demand environment for etch and deposition continuing and an anticipated recovery in other served markets providing gross margin tailwinds and a return to historical earnings leverage.
ICHR YoY Financials
Figures from SEC filings and company reports. Not investment advice.