ICHR

A month has gone by since the last earnings report for Ichor Holdings (ICHR). Shares have lost about 27.4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Ichor Holdings due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Ichor Holdings, Ltd. before we dive into how investors and analysts have reacted as of late. Ichor Holdings reported second-quarter 2026 non-GAAP earnings of 34 cents per share, beating the Zacks Consensus Estimate by 9.7%. The company had posted a loss of a penny in the year-ago quarter. Improved product mix and progress on its machining strategy supported the earnings upside. Revenues increased 22.7% year over year to $294.8 million but missed the consensus mark by 1.85%. Inventory turns remained at 3.7 times as Ichor invested in working capital to support accelerating customer demand. Second-quarter revenues increased 15% sequentially as demand strengthened across the semiconductor equipment market. Management said isolated part shortages prevented the company from recognizing its full revenue forecast before the June 2026 quarter end. The affected shipments were completed days later, and revenues exceeded $300 million for the 13 weeks ending July 3. The company now expects 2026 revenues to increase at least 30% from 2025, aligning with the high end of its wafer fabrication equipment market expectations. Demand is being supported by investments in artificial intelligence infrastructure, advanced etch and deposition applications, gate-all-around architectures, advanced memory and leading-edge process technologies. Non-GAAP gross margin expanded 230 basis points year over year and 130 basis points sequentially to 14.1%. The result exceeded the upper end of management’s guidance, reflecting improved product mix, higher component revenues and gains from the company’s manufacturing realignment. Non-GAAP operating expenses totaled $25.3 million. Operating income rose to $16.3 million from $4.6 million a year earlier, while the operating margin improved to 5.5% from 1.9%. Ichor secured additional customer qualifications during the second quarter, including approvals for machining and welding operations at its high-volume manufacturing site in Malaysia. These qualifications expand the company’s ability to produce components internally and reduce dependence on outside suppliers. Management said manufacturing capacity is not currently constraining growth. ICHR has installed capacity to support approximately $2 billion in annual revenues and believes targeted clean-room and machining investments could raise capacity within its existing footprint to about $3 billion annually. Ichor ended the second quarter with cash and equivalents of $256.5 million, up from $89.1 million at the end of the first quarter. The increase primarily reflected $195.4 million in net proceeds from an at-the-market equity offering involving 2.5 million shares at an average price of $80.70. Cash used in operating activities totaled $15.9 million in the second quarter of 2026. Total debt was pinned at $120.6 million, while the net debt coverage ratio was 1.1. For the third quarter of 2026, Ichor expects revenues between $315 million and $345 million. The midpoint of $330 million implies sequential growth of about 12% and year-over-year growth of approximately 38%. Non-GAAP gross margin is projected between 14.5% and 15.5%, reflecting management’s target of roughly 100 basis points of sequential expansion. Non-GAAP earnings are expected in the range of 40-50 cents per share. It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 17.61% due to these changes. At this time, Ichor Holdings has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ichor Holdings has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Ichor Holdings belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Qualcomm (QCOM), has gained 2.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Qualcomm reported revenues of $9.95 billion in the last reported quarter, representing a year-over-year change of -4%. EPS of $2.21 for the same period compares with $2.77 a year ago. Qualcomm is expected to post earnings of $2.18 per share for the current quarter, representing a year-over-year change of -27.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Qualcomm. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ichor Holdings, Ltd. (ICHR) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 4:15 p.m. ET Investor Relations - Claire McAdams Chief Executive Officer - Philip Barros Chief Financial Officer - Greg Swyt Operator: Good day, ladies and gentlemen, and welcome to Ichor's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Claire McAdams, Investor Relations for Ichor. Please go ahead. Claire McAdams: Thank you, operator. Good afternoon, and thank you for joining today's second quarter 2026 conference call. As you read our earnings press release, and as you listen to this conference call, please recognize that both contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control and which could cause actual results to differ materially from such statements. These risks and uncertainties include those spelled out in our earnings press release, those described in our annual report on Form 10-K for fiscal year 2025 and those described in subsequent filings with the SEC. You should consider all forward-looking statements in light of those and other risks and uncertainties. Additionally, we will be providing certain non-GAAP financial measures during this conference call. Our earnings press release and the financial supplement posted to our IR website each provide a reconciliation of these non-GAAP financial measures to their most comparable GAAP financial measures. On the call with me today are Phil Barros, our CEO; and Greg Swyt, our CFO. Phil will begin with an update on our business, and then Greg will provide additional details about our results and guidance. After the prepared remarks, we will open the line for questions. I'll now turn over the call to Phil Barros. Phil? Philip Barros: Thank you, Claire, and welcome, everyone, to our Q2 earnings call. Three quarters ago, we laid out our strategy to strengthen Ichor's operating model, expand margins and position the company to outperform in the next semiconductor growth cycle. Our results today demonstrate that we are delivering against that plan. Revenue of $295 million increased 15% sequentially and with gross margins up 130 basis points, we more than doubled the EPS compared to Q1. The additional revenue growth we had guided for Q2 was instead recognized 1 week later due to isolated part shortages that we have since resolved. And we are now driving significantly more growth in the second half compared to our expectations a quarter ago. Gross margin of 14.1% exceeded the high end of guidance with improved product mix as we continue to grow our component revenues in non-semi business as well as improved product margins as we execute our strategic footprint realignment during this historic ramp. The gross margin upside in the quarter translated to $0.34 in earnings at the upper end of our guidance range and our highest quarterly earnings in 3 years, demonstrating that the strategic actions that we are taking are translating into meaningful financial results. We also completed the entire ATM equity offering during the quarter, providing significant flexibility for us to make strategic investments that will enhance our results going forward, which brings me to the underlying demand environment, which continues to strengthen since our last earnings call. Ichor's revenue growth in 2026 is now expected to be even stronger than we communicated just 3 months ago. We have now reported 15% sequential revenue growth in each of the first 2 quarters of the year. Looking ahead, the steepening ramp in customer demand provides us with strengthening visibility, indicating sequential revenue growth exceeding 10% in each of the next 2 quarters. Our current demand forecast, along with our assessment of supply chain readiness, altogether supports our expectations for second half revenue volumes of at least 25% higher than the first half. Our confidence in both the magnitude and the duration of this growth cycle is higher today than at any point during this year. The technology transitions driving the demand remain unchanged. Investments in advanced etch and deposition applications supporting AI infrastructure, gate-all-around architectures, advanced memory and leading-edge process technologies continue to favor Ichor's portfolio of highly [indiscernible]. We believe Ichor is well positioned to capitalize on these technology transitions. For 2026, in particular, we expect revenue growth in alignment with the high end of WFE expectations, which would be an increase of at least 30% over full year 2025. Turning now to our strategic initiatives. Last quarter, we discussed our global footprint realignment and the actions we are taking to structurally improve our business. Today, we are demonstrating that these actions are translating into measurable financial results. Over the past 2 quarters, we have expanded gross margin to over 14%, exceeding our 100 basis points per quarter target while driving earnings to a 3-year record. This is exactly the type of operating leverage our business model can deliver as we execute our strategy. Further, because our footprint realignment and operating model improvements are structural, we continue to drive another 100 basis points in further gross margin improvement in each of the remaining 2 quarters of the year, even after coming in above the high end of expectations for Q2. We are making meaningful operational improvements within our machining and component businesses with product margin expanding significantly from the first quarter. These improvements are resulting from operational efficiencies and the success of our product transitions and not merely by the increased factory utilization at these higher revenue volumes. We also saw product mix shift to a more favorable profile with strength in our proprietary products, higher-value manufacturing service and commercial space businesses. These improvements demonstrate exactly what we expect our operating model will deliver, higher proprietary content, higher internal manufacturing, greater operational efficiency and stronger earnings leverage as revenue continues to grow. Our manufacturing transitions remain on schedule, and we continue to increase the amount of proprietary Ichor content within the systems we build. We secured additional key qualifications during Q2, including for our high-volume manufacturing site in Malaysia. This represents another important milestone in our product strategy. Every successful qualification expands our ability to manufacture internally, strengthens our competitive advantage and improves our returns over the long term. We are on track to our plans to qualify additional key components in Malaysia that will provide additional flexibility for us to optimize the supply chain and further ramp internal supply. This strategy is aimed at enabling even stronger execution for our customers and is a key element of our gross margin expansion plan. Importantly, we have now reached an inflection point. Demand is not our growth constraint. Manufacturing capacity is not our growth constraint. And with continued success in our high-volume manufacturing site, our ability to reduce Ichor's reliance on external supply will become a competitive advantage. Over the past year, we have invested aggressively in people, inventory, manufacturing capacity and our global footprint to prepare for this significant ramp in demand. Those investments are now paying dividends. We have the capacity today to support $500 million in quarterly revenue. With targeted investments, we believe we can expand capacity within our existing footprint upwards of $3 billion annually, more than double our current run rate. Our incremental investment needs will be focused primarily on expanding production of our high-value proprietary components in order to eliminate pain points in our supply base. These same investments will enable us to achieve our targeted product mix and gross margin objectives. As we look ahead, our priorities remain clear. Execute for our customers, complete our manufacturing transition, continue ramping proprietary Ichor content, expand margins and convert this exceptional demand environment to sustained earnings growth. The investments we have made over the past several years are positioning Ichor differently than any point in our history. We are becoming a structurally stronger company with more efficient manufacturing network, higher proprietary content, stronger earnings leverage and the operational capacity to support our customers through what is likely to be the strongest growth cycle our industry has ever experienced. I've never been more confident in our strategy, our execution or the opportunities that lie ahead. With that, I will now turn the call over to Greg to review the financial results in more detail. Greg Swyt: Thanks, Phil. Before I begin, I would like to emphasize that the P&L metrics discussed today are non-GAAP measures. These measures exclude the impact of share-based compensation, amortization of acquired intangible assets, nonrecurring charges and discrete tax items and adjustments. There is a useful financial supplement available on the Investors section of our website that summarizes our GAAP and non-GAAP financial results as well as a summary of the balance sheet and cash flow information for the last several quarters. Second quarter revenues of $294.8 million increased 15% sequentially. Isolated supply chain constraints that surfaced late in the quarter kept us from recognizing our full revenue forecast in time for the June 26 quarter end. And instead, we surpassed $300 million in revenue for the 13 weeks ending July 3. We have worked through these part shortages as we drive for another significant growth quarter in Q3. Gross margin increased to 14.1%, up 130 basis points sequentially and 60 basis points above the midpoint of guidance, driven by continued progress executing our machining strategy and improved product mix. Stronger gross margin drove the majority of upside in profitability with Q2 operating expenses coming in at $25.3 million, operating margin improved to over 5.5%, demonstrating significant operating leverage as volumes ramp. Interest and tax expenses were modestly favorable to our forecast and the resulting EPS for the quarter was $0.34 based on an average of 36.3 million diluted shares outstanding during the quarter. Positive cash flow generation from the P&L increased significantly in the quarter with EBITDA increasing more than 50% sequentially to over $21 million. As we prepare for continued growth ahead, we are making incremental investments in inventory and cash from operations was, therefore, a use of $15.9 million. Capital expenditures totaled $7.8 million for the quarter. Given that the stronger outlook for 2026 is expected to continue into 2027, we are accelerating investments in our factory clean rooms and machining capacity. As a result, we expect our CapEx level to trend higher in the second half while remaining within our target range of approximately 3% of revenue, which brings us to the balance sheet. Cash and equivalents totaled $256 million at the end of the quarter, an increase of $167 million from Q1. During Q2, we completed the entirety of our $200 million ATM equity offering, issuing a total of 2,480,000 shares at an average price of $80.70 per share and generating net proceeds of approximately $195 million. The transaction significantly increased our available liquidity, providing additional flexibility to support growth initiatives, working capital needs and strategic opportunities. Both DSOs and inventory turns remained similar to Q1 at 32 days and 3.7x, respectively. Total debt at quarter end was $120.6 million, and our net debt coverage ratio stands at 1.1. Now turning to guidance. As Phil mentioned, we are now anticipating a steeper revenue ramp for Q3 and the second half of 2026 compared to our expectations a year ago. We anticipate Q3 revenues in the range of $315 million to $345 million, which at the midpoint represents sequential growth of 12% and year-over-year increase in revenue volumes of 38%. Our gross margin guidance for Q3 is a range of 14.5% to 15.5% as we continue to drive gross margin improvements of 100 basis points per quarter through the remainder of 2026. Our guidance for total operating expenses this year has remained relatively constant year-to-date, even with the steeper ramp in demand. We continue to drive disciplined cost management across the organization in support of higher revenue volumes, and we currently expect total operating expenses in 2026 will be up about 6% from 2025, with nearly all of the increase in the R&D line. This expectation reflects a relatively consistent run rate of $25.5 million of OpEx for both Q3 and Q4. Finally, our EPS range of $0.40 to $0.50 for the third quarter reflects our expectation for total interest and other expenses of $1.5 million and assumed effective tax rate in the range of 20% to 25%, and 38.5 million diluted shares outstanding. In summary, our second quarter results demonstrate clear progress against the financial priorities we laid out earlier in the year, stronger profitability, continued execution of our internal product strategy, disciplined cost management and improved operating leverage as volumes accelerate. With demand strengthening, margins expanding and our balance sheet providing greater flexibility, we are entering the second half with momentum and a stronger earnings outlook than we have delivered in any period since 2022. We believe the combination of accelerating demand, improving margins, disciplined investment and enhanced liquidity positions us to support our customers through the ramp while continuing to convert higher revenue into stronger performance. Operator, we are now ready for questions. Please open the line. Operator: [Operator Instructions] And our first question will come from Krish Sankar with TD Cowen. Kinney Chin: This is Steven calling on behalf of Krish. I guess, Phil, first question for you on the commentary around full year growth. You mentioned 30% plus potential for this year versus last year. I guess when we kind of look at some of the WFE numbers that some of your customers have been talking about and also sort of the full year growth rates that one of your key customers is talking about, can you kind of help us bridge some of the gap between customer commentary versus what you're seeing today? And again, I totally get that the sentiment and demand signals are very strong. But just from a quantity standpoint, anything you can help in terms of bridging the numbers, whether it's supply or just ramping up time frame for your capacity, that would be helpful. Philip Barros: Yes. Great question. What I would say is what we're trending to today is kind of a mix of all of our customers. If you look at how -- every one of our customers are guiding, I would say that we're a good blend of what they're saying based on what our percentage of shipments are to each of those customers. So in general, I'd say we're trending towards the higher end of WFE. So when we said 30% plus, that's kind of what we mean by that. That's where we're seeing the WFE kind of coalesce at this point in the cycle. What I would say is that we will continue to monitor that, and I would say that we're continuing to grow with our customers and a good blend of what they're seeing. Kinney Chin: Okay. Understood. And for my follow-up, I was wondering for your lithography customer. I think prior quarters, you kind of mentioned that inventory levels might be a factor in how much you can grow at that customer this year. Just kind of curious like how has the inventory situation changed, if at all, at the customer over the last quarter? Philip Barros: Yes, I'd say the inventory position has been very consistent. We believe we're burning through the inventory this quarter. So I would say we're through that as we exit this quarter and Q3. Q4, we start to see a return in Q1 in particular. So we have really good visibility with that customer. They give us a long-range forecast that gives us good visibility for what they need. I would say we see significant growth in 2027 with that customers. Operator: And our next question will come from Edward Yang with Oppenheimer. Edward Yang: Could you provide a little bit more detail on that piece of the revenue in the second quarter that was pushed out from the part shortage? And was that related to flow controllers by any chance? And as a result of that, did you miss any delivery timetables with customers? Just curious around some color around that. Philip Barros: Yes. That's all good questions. First of all, your nose is very good because I would say that if I talk about the suppliers that keep me up at night, I would say flow control is definitely one of those. The way I would think about it in terms of how we're executing for our customers, I think we're executing very well for our customers. I think we're keeping very good pace with them. I think we are not a drag on their output. And so I would say we're pacing very well. So everything that we're outputting is going to the system and shipping. What I would say is that particular supplier, what happened at the end of the quarter, I would say, is more of an isolated incident. In particular, we chase parts every quarter. This is not a surprise. This is not a kind of things that we don't do as a daily part of our business. And quite frankly, this typically happens kind of earlier in the quarter, if you will. Unfortunately, it happened at the very end of the quarter, which kind of crossed quarter boundaries. I would say, if you look at when that revenue shipped, it shipped literally days after the quarter, but just not in time for us to recognize revenue. Edward Yang: Got it. And for my follow-up, maybe a question for Greg. One of the impacts from the tremendous revenue growth you're seeing is you're building up inventory and your operating cash flow has turned negative and you're burning cash on the operating cash flow side. When do you think that will start to revert back to positive? Greg Swyt: So near term, we're going to -- as we said, we still have some investments to make in our inventory to make sure that we're meeting the customer demand. We do expect to see that we'll start to see the benefit of the inventory turns start to improve into the first half of '27 as we work through this demand cycle. Operator: And moving next to Christian Schwab with Craig-Hallum. Christian Schwab: I just have a clarity about something I thought I heard in the prepared comments. I think you guys outlined last quarter that you had yearly manufacturing capacity of up to $2 billion of revenue, which is a little bit higher than what was reflected 2 or 3 quarters before that. Did I hear you correctly that you think you have the capability to produce up to $3 billion in annual revenue? Philip Barros: Christian, that's a great question. What I would say is we've gone through our long-range planning over the past quarter. And as you can imagine, in this type of ramp environment, you spent a lot of time planning and making sure you're ready for the coming demand. As part of that exercise, we went through and said, okay, what would it take to get to $3 billion? What would it take to get to above and beyond that? What I would say is $2 billion in our current footprint, not a problem at all. To get to $3 billion, we have the brick-and-mortar, which is obviously the longest lead time item. I would say we would have to add a little bit of clean room space, not a whole lot, but a little bit of clean room space, which actually we're executing in the second half of this year, which will put us in a good position. And then I would say above and beyond that, what we will do is invest in machining capacity because as we see the ramp continue, we're going to see a need for additional machining capacity to meet our internal component needs as revenues continue to grow. So for the most part, what I would say is within our 4 walls, we can do $3 billion in revenue. It just takes a little bit of investment for us to get between now and then. Christian Schwab: And that investment, it sounds like you're doing it in the second half of this year. Typically, that may take 6, 9 months to get the clean room space up and going. So is it safe to say that at some point in calendar 2027, that's the direction we're marching to. Did I hear that correctly? Philip Barros: Yes, I'm not going to guide $3 billion right now. If we get closer to that, maybe I will. But what I'll say is we are gearing ourselves up for a significant 2027. Operator: And our next question will come from Brian Chin with Stifel. Brian Chin: Maybe first, back on the supply. Maybe can you unpack a little bit more about how the -- how you're executing on that Malaysia manufacturing ramp? And also maybe related to this or maybe kind of it's beyond this, but are you getting mandates from some of your direct OEM customers at this stage to accelerate maybe in-sourcing and design of certain passive, maybe even active components based on any part shortages that are existing or maybe at risk of emerging across the supply chain? Philip Barros: Yes, Brian, I think those are great questions. What I would say is a couple of things. First and foremost, our Malaysia ramp is going exceptionally well. And what I would say for that is there's a couple of areas where I was concerned of the ramp-up of Malaysia. That would be in machining and our welding, both of which have been qualified by both of our major customers. So that's a big win in the quarter. So great progress there. What I would say is we talked about it before with Malaysia being a headwind until we fully absorb that factory. That's one of the major reasons we see the second half of the year. We continue to march to that 1 point per quarter gross margin increase. That's a portion of that is Malaysia ramp-up as well as internal supply. In terms of our customers and what they're asking from us from an internal supply, I would say the answer is yes. Our customers really want us to bring on additional supply because that's going to give them the amount of flexibility they need. And that's exactly what our customers are asking us for. I would say that, in general, the qualifications with our customers in terms of products are going faster than normal, and that's an indication of there's risks in the supply chain that they need to derisk, and we're offering kind of relief valves for that with our internal supply. Brian Chin: Great. Appreciate that color. And maybe on the demand side, again, it sounds like you're targeting at least $350 million revenue in the fourth quarter and that 25% at least second half or first half growth. And given your commentary on visibility stretching out, how would you calibrate or describe growth momentum in first half next year relative to second half? Philip Barros: Yes. We've got a couple of things that are interesting in the first half of 2027 that are going to be additive that we did not see or we're not going to see in the second half of this year, in particular, litho, for example. We see that picking up significantly in the first half. I think it's a little early to call the first half of next year. I normally wouldn't want to guide out 6 months ahead of time. But what I can tell you is our customers are placing POs out 6 months ahead, which is abnormal for our customers, as you know. So I feel very good about the trajectory of 2027 at this point. And I think our customers are giving that same level of confidence. So I just continue to echo that as well. Operator: And moving on to Linda Umwali with D.A. Davidson. Linda Umwali: My first question was to double-click on demand capacity. I think you said that demand isn't constrained anymore in manufacturing as you get Malaysia up and running and bring more production in-house. I want to understand how much more room do you have to support customers if demand stays strong. I don't know if you mentioned it but I missed it -- color on that would be great. Philip Barros: Yes. I would just -- point of clarification. Our manufacturing capacity is not a constraint today. I want to be ultra clear when I say that, that our manufacturing capacity is at the point or above where our customers need it to be today. And I would say that, that is -- I feel comfortable with that. Now with that said, what we talked about in the prepared remarks was that we are growing -- we have the capacity today to do $2 billion within our installed capacity. And as we enter into next year, we're looking at growing capacity up to about $3 billion. That increased capacity, once again, is preparing for growth and growth beyond what we need today. And what I would say is that, that $3 billion kind of run rate is more than what we have or more than double what we're going to need essentially this year. So we have the ability to more than double our size from this year. Linda Umwali: Got it. And now I want to switch gears to the non-semi business. Could you talk about what's driving the non-semi business today? Is the growth still mostly commercial space and defense? And how should we think about that business in the second half and over the next year? Philip Barros: Yes. I would say actually, the commercial space business this quarter grew significantly and that it's continuing to grow into the second half of this year. We did receive an official qualification for a particular part family that's going to be growing in the second half of the year. So we feel really, really good about that trajectory. We are also unfortunately seeing a little bit of growth in our defense business because of certain activities that are driving that. But with that said, I would say that we're seeing growth in both the commercial space business as well as the aerospace and defense. But I would say the commercial space business is pacing by far or is that growing -- or driving it by far. Operator: And our next question will come from Denis Pyatchanin with Needham & Company. Denis Pyatchanin: So I think I have only one question here today. And maybe you could provide an update on the internal content road map. Maybe provide an update on where you are today and where you expect to be over the next 12 months? And if that's changed from kind of the last time we spoke, along with perhaps what kind of gross margin improvements we could see as a result? Philip Barros: Yes. That's a fantastic question again. What I would say there is -- we exited Q2 at around just below our 25% run rate that we exited last year with. So as we bring capacity down from Minnesota and into Mexico with our realignment, obviously, we purposely took down some capacity. And we brought that back up. That's now up and running. So we're about 25% as we exited the quarter. As we bring up Malaysia and additional capacity within Mexico, we expect to be at a run rate around 30% as we exit this quarter and around 35% as we exit next quarter. That's very well in line with what we expected. I would tell you that, that's a large driver for our gross margin increases over the next couple of quarters. And the exciting part to me more than just the percentage of products that we're getting in there is the product margin we're seeing with those. As we've moved these parts, we're seeing significant increases in product margin. While that was expected, I'm really happy with what we're seeing in terms of kind of realizing those gains [indiscernible] Operator: And we'll go next to Craig Ellis with B. Riley Securities. Craig Ellis: I'll stick with the gross margin theme. Phil, at the beginning of the year, you laid out 4 factors that could lift gross margins to 15%, and we're essentially at that level, and you outlined 4 that could take the business to 20%. Can you just talk about your confidence in getting from 15% to 20% gross margins, the visibility you have and what specifically you're focused on, executing for this next 500 basis points in expansion? Philip Barros: Yes. I would say my confidence today is, I would say, higher than any given point. Obviously, when you're planning out these things, everything is a plan on paper, but to see it actually come out in execution is when you start to realize that it's going to happen. And so that's to me where I get comfort at this point because we're starting to see that in the actual results, right? As you saw from the last couple of quarters, we outperformed compared to where we thought we were going to be from 100 basis points per quarter execution. We outperformed that. So that, to me, is just a testament to everything that's going on and all the changes that we're making, and they're turning into meaningful results. Now as you pointed out, we're at the 15%. Now what have you done for me lately, how you're going to get to 20%? So getting to 20%, it's going to be a lift. We talked a bit about 100 basis points over the next 2 quarters. A lot of that's going to come from parts that we already have qualified that we need to ramp up. A lot of that's going to come from Malaysia. And once again, that's going to come from the margin -- gross margin improvement that we have in those particular products. Now one thing I do want to highlight that I maybe haven't said publicly before, but we have put out a road map that had flow control as a requirement to get to 20%. I would say that I can see a path today without that. There's more than one path to get us to the 20%. And I think that as revenue continues to grow and our execution of our product strategy continues to be -- to continue, I would say that, that's opening up additional paths for us to be successful. Craig Ellis: That's really helpful. And then there hasn't been a lot of conversation this call about just the relative strength of different products and how you feel about fulfillment at a product level. So can you talk a little bit more about gas panels, chemical delivery, weldments, et cetera, and where you think the business is in terms of meeting customer demand and your ability to hit higher calls from customers as you go through this year and into next year? Philip Barros: Yes. I would say that we're performing, at least in my view, very well for our customers. Our customers, as you know, are demanding group. With that said, I would say that we are executing to what they need. And I think that's on all aspects, whether it be chem delivery, gas delivery or our weldment business. We are seeing significant growth in our weldment business, which is a part of our business that has been kind of brought down for a period of time. So we're starting to see that pick back up and recover. So that feels really good. We have increased our capacity [indiscernible] weldment [indiscernible] the areas [indiscernible] first was in our weldment business. So that's one area where we're going to have additional capacity come online as we get into the second half, which I think with the product mix. Operator: This now concludes our question-and-answer session. I would like to turn the floor back over to Phil Barros for closing comments. Philip Barros: Yes. Thank you, operator, and thank you, everyone, for joining our call today. I want to once again thank our employees who are taking on this ramp and strategic transformation all [indiscernible]. I have complete faith in the team's ability to [indiscernible] more proud to be [indiscernible]. We can build momentum and energy at the [ quarter ]. I look forward to our next update at our Q3 call in November. In the meantime, please reach out to Claire to arrange any follow-up requests for meetings. Operator, you can conclude the call. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day. Before you buy stock in Ichor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ichor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ichor Holdings (ICHR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 15% sequentially was driven by strengthening demand for advanced etch and deposition applications supporting AI infrastructure and gate-all-around architectures. Gross margin expansion of 130 basis points to 14.1% resulted from a structural footprint realignment and improved product mix favoring proprietary components and non-semi business. Management attributed the Q2 revenue shortfall to isolated part shortages in flow control that were resolved within days of the quarter end, shifting that volume into Q3. Operational efficiencies in machining and component businesses drove product margin expansion independent of factory utilization gains. The company reached a strategic inflection point where manufacturing capacity and demand are no longer growth constraints, shifting focus to internal supply as a competitive advantage. Successful qualifications at the high-volume Malaysia site for machining and welding enable increased internal manufacturing and reduced reliance on external supply. Strategic investments in people and inventory over the past year are now yielding dividends, providing the capacity to support up to $500 million in quarterly revenue. Management anticipates sequential revenue growth exceeding 10% in each of the next two quarters, with second-half volumes expected to be at least 25% higher than the first half. Full-year 2026 revenue is projected to align with the high end of WFE expectations, representing an increase of at least 30% over 2025. Structural improvements are expected to drive an additional 100 basis points of gross margin expansion in each of the remaining two quarters of 2026. Proprietary Ichor content is targeted to reach a 35% run rate by the end of Q4 2026, up from approximately 25% at the end of Q2. Long-term capacity planning indicates the existing footprint can support up to $3 billion in annual revenue with targeted investments in clean rooms and machining. Completed a $200 million ATM equity offering during the quarter, providing $195 million in net proceeds to enhance liquidity for strategic investments. Inventory investments led to a $15.9 million use of cash from operations as the company prepares for a steeper demand ramp in the second half. Supply chain risks remain concentrated in flow control components, which management identified as a primary area of focus for derisking through internal supply. CapEx is expected to trend higher in the second half of the year to accelerate investments in factory clean rooms and machining capacity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that their 30% plus growth projection is a blend of all customer forecasts, coalescing at the higher end of current WFE expectations. Visibility is supported by customers placing purchase orders six months in advance, which is noted as abnormal for the industry. Ichor expects to finish burning through excess lithography inventory by the end of Q3, with a return to growth in Q4 and significant expansion in 2027. Long-range forecasts from these customers provide high confidence in the 2027 trajectory. Management revealed they now see a path to 20% gross margins even without a proprietary flow control solution, due to higher-than-expected gains from other qualified parts. The 100 basis point per quarter improvement target is largely de-risked by parts already qualified that are currently ramping in Malaysia and Mexico. Reaching $3 billion in revenue requires minimal additional clean room space and targeted machining investments, as the core 'brick-and-mortar' infrastructure is already in place. Current capacity is already sufficient for a $2 billion annual run rate without further investment.

This article first appeared on GuruFocus. Revenue: $294.8 million in Q2 2026, up 15% sequentially. Gross Margin: 14.1%, up 130 basis points sequentially and 60 basis points above the midpoint of guidance. Earnings Per Share (EPS): $0.34, at the upper end of guidance and the highest quarterly earnings in three years. Operating Expenses: $25.3 million in Q2. Operating Margin: Improved to over 5.5%. EBITDA: Increased more than 50% sequentially to over $21 million. Cash Flow from Operations: A use of $15.9 million, reflecting incremental investments in inventory. Capital Expenditures: $7.8 million for the quarter. Cash and Equivalents: $256 million at quarter end, an increase of $167 million from Q1. Total Debt: $120.6 million at quarter end. Q3 Revenue Guidance: $315 million to $345 million, representing 12% sequential growth at the midpoint. Q3 Gross Margin Guidance: 14.5% to 15.5%. Q3 EPS Guidance: $0.40 to $0.50. Warning! GuruFocus has detected 3 Warning Signs with ICHR. Is ICHR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue of $295 million increased 15% sequentially, with gross margins up 130 basis points, more than doubling EPS compared to Q1. Gross margin of 14.1% exceeded the high end of guidance, driven by improved product mix, growth in component revenues, and non-semi business. Demand visibility is strengthening, with expectations for sequential revenue growth exceeding 10% in each of the next two quarters and second-half revenue volumes at least 25% higher than the first half. The company has the capacity to support $500 million in quarterly revenue and can expand capacity within its existing footprint to upwards of $3 billion annually. The Malaysia high-volume manufacturing site secured additional key qualifications, enabling more internal manufacturing and strengthening competitive advantage. Gross margin is expected to improve by another 100 basis points in each of the remaining two quarters of the year, even after exceeding Q2 expectations. The company completed its $200 million ATM equity offering, providing significant liquidity for strategic investments and growth initiatives. Isolated supply chain constraints, particularly related to flow controllers, caused some revenue to be recognized one week later than guided, missing the quarter-end deadline. Cash flow from operations was a use of $15.9 million due to incremental investments in inventory to prepare for continued growth. Capital expenditures are expected to trend higher in the second half of the year, though remaining within the target range of approximately 3% of revenue. The company is still working through the ramp-up of its Malaysia facility, which remains a headwind until fully absorbed, impacting gross margin improvements. Operating cash flow is expected to remain negative in the near term, with improvements in inventory turns not expected until the first half of 2027. The company noted that flow control suppliers remain a concern, indicating potential ongoing supply chain risks. Q: Can you help bridge the gap between customer commentary on WFE growth and Ichor's expectation for at least 30% revenue growth in 2026?A: CEO Phil Barrows stated that Ichor's growth is a good blend of all its customers' guidance, and the company is trending toward the higher end of WFE expectations. He noted that this is where WFE is coalescing at this point in the cycle, and Ichor will continue to monitor and grow with its customers. Q: How has the inventory situation changed with your lithography customer, and what is the outlook for that relationship?A: CEO Phil Barrows said the inventory position has been very consistent, and the company believes it is burning through the inventory this quarter. He expects a return to growth in Q4, with particularly strong visibility and significant growth expected in 2027 with that customer. Q: Can you provide more detail on the revenue pushed out due to parts shortages in Q2, and was it related to flow controllers?A: CEO Phil Barrows confirmed flow control is a supplier that keeps him up at night. He described the Q2 issue as an isolated incident that occurred at the very end of the quarter, causing revenue to be recognized days later. He emphasized that Ichor is executing very well for customers and is not a drag on their output. Q: When will operating cash flow revert to positive given the inventory build-up for the demand ramp?A: CFO Greg Swyt stated that while there are still inventory investments to make in the near term to meet customer demand, the company expects to see the benefit of improved inventory turns start to materialize in the first half of 2027 as they work through the demand cycle. Q: Did you say you have the capability to produce up to $3 billion in annual revenue, and what investments are needed to get there?A: CEO Phil Barrows clarified that $2 billion in revenue is achievable within the current footprint without issue. To reach $3 billion, the company has the brick-and-mortar but would need to add some cleanroom space, which is being executed in the second half of this year, along with investments in machining capacity. He confirmed the company is gearing up for a significant 2027. Q: How is the Malaysia manufacturing ramp executing, and are customers mandating accelerated insourcing of components?A: CEO Phil Barrows said the Malaysia ramp is going exceptionally well, with machining and welding qualified by both major customers. He confirmed that customers are asking Ichor to bring on additional internal supply to provide flexibility and de-risk their supply chain, and qualifications are going faster than normal as a result. Q: How would you calibrate growth momentum in the first half of 2027 relative to the second half of 2026?A: CEO Phil Barrows noted that while it's early to call the first half of next year, there are additive factors like the lithography customer picking up significantly. He highlighted that customers are placing purchase orders six months out, which is abnormal, giving him very good confidence in the trajectory of 2027. Q: How much more room do you have to support customers if demand stays this strong, and what is driving the non-semi business?A: CEO Phil Barrows clarified that manufacturing capacity is not a constraint today, with capacity to support $2 billion in revenue and a path to $3 billion. On non-semi, he noted the commercial space business grew significantly in Q2 and continues to grow, with a new qualification for a physical part family. Defense is also seeing growth, but commercial space is the primary driver. Q: Can you provide an update on the internal content roadmap and the expected gross margin improvements?A: CEO Phil Barrows stated the company exited Q2 at around 25% internal content, in line with expectations. With Malaysia and additional Mexico capacity ramping, he expects a run rate of around 30% exiting Q3 and 35% exiting Q4. He highlighted that product margins on these internally manufactured parts are increasing significantly, which is a large driver for gross margin expansion. Q: What is your confidence in getting from 15% to 20% gross margins, and what are the key drivers?A: CEO Phil Barrows expressed higher confidence than at any point, citing actual execution outperforming the 100 basis points per quarter target. He noted that while flow control was previously a requirement to reach 20% margins, he can now see a path without it, as revenue growth and product strategy execution are opening up additional paths to success. Q: How is the business performing across different product lines like gas panels, chemical delivery, and weldments?A: CEO Phil Barrows said the company is executing well across all product lines. He highlighted significant growth in the weldment business, which had been down for a period, and noted that additional weldment capacity is coming online in the second half of the year to meet increasing customer demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Ichor Holdings, Ltd. ICHR reported second-quarter 2026 non-GAAP earnings of 34 cents per share, beating the Zacks Consensus Estimate by 9.7%. The company had posted a loss of a penny in the year-ago quarter. Improved product mix and progress on its machining strategy supported the earnings upside. Revenues increased 22.7% year over year to $294.8 million but missed the consensus mark by 1.85%. Inventory turns remained at 3.7 times as Ichor invested in working capital to support accelerating customer demand. Second-quarter revenues increased 15% sequentially as demand strengthened across the semiconductor equipment market. Management said isolated part shortages prevented the company from recognizing its full revenue forecast before the June 2026 quarter end. The affected shipments were completed days later, and revenues exceeded $300 million for the 13 weeks ending July 3. The company now expects 2026 revenues to increase at least 30% from 2025, aligning with the high end of its wafer fabrication equipment market expectations. Demand is being supported by investments in artificial intelligence infrastructure, advanced etch and deposition applications, gate-all-around architectures, advanced memory and leading-edge process technologies. Ichor Holdings, Ltd. price-consensus-eps-surprise-chart | Ichor Holdings, Ltd. Quote Non-GAAP gross margin expanded 230 basis points year over year and 130 basis points sequentially to 14.1%. The result exceeded the upper end of management’s guidance, reflecting improved product mix, higher component revenues and gains from the company’s manufacturing realignment. Non-GAAP operating expenses totaled $25.3 million. Operating income rose to $16.3 million from $4.6 million a year earlier, while the operating margin improved to 5.5% from 1.9%. Ichor secured additional customer qualifications during the second quarter, including approvals for machining and welding operations at its high-volume manufacturing site in Malaysia. These qualifications expand the company’s ability to produce components internally and reduce dependence on outside suppliers. Management said manufacturing capacity is not currently constraining growth. ICHR has installed capacity to support approximately $2 billion in annual revenues and believes targeted clean-room and machining investments could raise capacity within its existing footprint to about $3 billion annually. Ichor ended the second quarter with cash and equivalents of $256.5 million, up from $89.1 million at the end of the first quarter. The increase primarily reflected $195.4 million in net proceeds from an at-the-market equity offering involving 2.5 million shares at an average price of $80.70. Cash used in operating activities totaled $15.9 million in the second quarter of 2026. Total debt was pinned at $120.6 million, while the net debt coverage ratio was 1.1. For the third quarter of 2026, Ichor expects revenues between $315 million and $345 million. The midpoint of $330 million implies sequential growth of about 12% and year-over-year growth of approximately 38%. Non-GAAP gross margin is projected between 14.5% and 15.5%, reflecting management’s target of roughly 100 basis points of sequential expansion. Non-GAAP earnings are expected in the range of 40-50 cents per share. The Zacks Consensus Estimate for third-quarter 2026 revenues and earnings is currently pegged at $311.2 million and 42 cents per share, respectively. Currently, ICHR carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader Zacks Computer and Technology sector are AppFolio APPF, Amkor Technology AMKR and Amphenol APH, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of AppFolio have plunged 17.6% year to date. The Zacks Consensus Estimate for APPF’s 2026 earnings is pegged at $6.90 per share, up by 3 cents over the past seven days, indicating an increase of 30.4% year over year. Shares of Amkor Technology have jumped 28.7% year to date. The Zacks Consensus Estimate for AMKR’s 2026 earnings is pegged at $2.62 per share, up by 25.9% over the past seven days, indicating a rise of 74.7% year over year. Amphenol shares have surged 20.9% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.13 per share, up by 5.3% over the past seven days, indicating an increase of 53.6% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ichor Holdings, Ltd. (ICHR) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report AppFolio, Inc. (APPF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ichor Holdings, Ltd. ICHR used its second-quarter earnings call to emphasize accelerating demand, margin expansion and visibility into 2027. CEO Phil Barros said operating changes launched three quarters ago are producing measurable results. The quarter also exposed a near-term tension: revenue missed expectations because of late part shortages, while profitability and the forward outlook improved. CEO Phil Barros said customer demand has strengthened since the prior call. Barros expects revenue to grow more than 10% sequentially in each of the next two quarters. Barros said second-half revenue should be at least 25% above the first half. Ichor expects fiscal 2026 revenue to grow at least 30% from fiscal 2025, aligned with the high end of its wafer-fabrication-equipment outlook. CFO Greg Swyt guided third-quarter revenue to $315 million to $345 million. The midpoint implies 12% sequential growth and a 38% year-over-year increase. CEO Phil Barros said the footprint realignment, product transitions and richer mix are improving profitability beyond higher factory utilization. Non-GAAP gross margin reached 14.1%, up 130 basis points sequentially. CFO Greg Swyt guided third-quarter non-GAAP gross margin to 14.5%-15.5% and maintained the goal of roughly 100 basis points of improvement per quarter through year-end. Second-quarter non-GAAP earnings of 34 cents beat the Zacks Consensus Estimate of 31 cents. Revenue of $294.78 million missed the Zacks Consensus Estimate of $300.33 million, while rising 15% sequentially and 24% year over year. Ichor Holdings, Ltd. price-consensus-eps-surprise-chart | Ichor Holdings, Ltd. Quote CFO Greg Swyt said isolated supply constraints emerged late in the quarter and prevented Ichor from recognizing its full forecast before the June 26 close. Revenue surpassed $300 million for the 13 weeks ended July 3. An Oppenheimer analyst asked whether flow-control components caused the delay. CEO Phil Barros confirmed that flow control remains a difficult supply area but described the quarter-end event as isolated. Barros said the affected systems shipped only days after quarter-end and maintained that ICHR was not limiting customer output. Swyt said Ichor had worked through the shortages before the call. CEO Phil Barros said machining and welding at the Malaysia site received qualifications from both major customers. Customer qualification cycles are moving faster as customers seek added supply-chain flexibility. Internal Ichor content exited the quarter at about 25%. Barros expects the run rate to reach roughly 30% exiting the third quarter and 35% exiting the fourth quarter, supporting further margin expansion. In response to Craig-Hallum, Barros clarified that installed capacity can support about $2 billion in annual revenue. Clean-room and machining investments could raise capacity within the existing footprint to about $3 billion. A Stifel analyst asked about growth momentum beyond the second half. CEO Phil Barros said customers are placing purchase orders six months ahead, an ordering horizon he described as abnormal. A TD Cowen analyst asked about inventory at a lithography customer. Barros said that inventory should be worked through during the current quarter, with a recovery beginning in the fourth quarter and stronger growth in 2027. A B. Riley analyst questioned the path from roughly 15% gross margin toward the company’s 20% target. Barros said ICHR now sees more than one route to 20%, including a path that does not require flow-control products. CFO Greg Swyt said inventory investment drove $15.9 million of operating cash use and $23.6 million of negative free cash flow. Inventory increased by $38.4 million during the quarter. Swyt said inventory turns should begin improving in the first half of 2027. Capital spending should rise in the second half but remain near 3% of revenue as capacity expands. Barros and Swyt centered the call on meeting demand, completing manufacturing transitions, increasing proprietary content and translating higher volume into stronger margins and earnings. ICHR carries a Zacks Rank #4 (Sell). Its Momentum Score of A indicates favorable price-trend characteristics, while the Value Score of D, Growth Score of C and VGM Score of D reflect weaker marks across other style measures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks framework treats Style Scores as complements to the Zacks Rank, giving estimate revisions priority over a favorable individual score. The Rank can change as analysts revise earnings estimates after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ichor Holdings, Ltd. (ICHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

FREMONT, Calif., August 03, 2026--(BUSINESS WIRE)--Ichor Holdings, Ltd. (NASDAQ: ICHR), a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment, today announced second quarter 2026 financial results. Second quarter 2026 highlights: Revenue of $294.8 million, up 15% compared to Q1 2026 and up 24% compared to Q2 2025; Gross margin of 13.9% on a GAAP basis and 14.1% on a non‑GAAP basis; Earnings per share of $0.03 on a GAAP basis and $0.34 on a non-GAAP basis; and Total cash and cash equivalents increased to $256 million at quarter-end, following completion of a $200 million at-the-market equity offering during the quarter. "We are pleased to report strong financial results for the second quarter, as we continue to execute strategic and operational priorities that are driving improved earnings leverage within a strengthening demand environment," commented Phil Barros, Ichor’s CEO. "Revenues of $295 million increased 15% sequentially, and the additional growth we had forecast for Q2 has already been achieved to date in Q3 as we drive significantly more growth in the second half, compared to our expectations a quarter ago. "Three quarters ago, we laid out a strategy to strengthen Ichor's operating model, expand margins, and position the company to capitalize on the next semiconductor growth cycle, and our second-quarter results demonstrate we are delivering against that plan," continued Mr. Barros. "Over the past two quarters, we have significantly expanded gross margin while driving earnings to a three-year record. With our customers’ demand visibility now extending well into 2027, our outlook for the remainder of 2026 indicates continued sequential growth in revenues, gross margin, and earnings per share. The strategic, operational and technological priorities that we expect will enable Ichor to outperform the overall peer group going forward, are now also supported by a strengthened balance sheet, providing enhanced flexibility as we continue to execute." For the second quarter of 2026, revenue was $294.8 million, net income was $1.0 million, and diluted earnings per share ("diluted EPS") was $0.03. This compares to revenue of $256.1 million and $240.3 million, net loss of $(2.5) million and $(9.4) million, and diluted EPS of $(0.07) and $(0.28), for the first quarter of 2026 and second quarter of 2025, respectively. For the second quarter of 2026, non-GAAP net income was $12.2 million and non-GAAP diluted EPS was $0.34. This compares to non-GAAP net income (loss) of $5.3 million and $(0.5) million, and non-GAAP diluted EPS of $0.15 and $(0.01), for the first quarter of 2026 and second quarter of 2025, respectively. For the third quarter of 2026, we expect the following: This outlook for non‑GAAP diluted EPS excludes amortization of intangible assets of approximately $1.9 million and share-based compensation expense of approximately $4.8 million, as well as the related income tax effects. Non-GAAP diluted EPS should be considered in addition to, but not as a substitute for, our financial information presented in accordance with GAAP. We ended the second quarter of 2026 with cash and cash equivalents of $256.5 million, an increase of $167.4 million from the prior quarter and an increase of $158.2 million from the prior year ended December 26, 2025. The increase of $167.4 million for the second quarter of 2026 was primarily due to net proceeds of $195.4 million from our issuance of 2.5 million ordinary shares in connection with an at-the-market public offering at an average offer price of $80.70 per share, partially offset by net cash used in operating activities of $15.9 million, capital expenditures of $7.8 million, issuance of ordinary shares under share-based compensation plans net of employees' taxes paid upon vesting of restricted share units of $2.8 million, and payments on credit facilities of $1.6 million. The increase of $158.2 million from the prior year ended December 26, 2025 was primarily due to net proceeds of $195.4 million from our issuance of 2.5 million ordinary shares, partially offset by net cash used in operating activities of $18.8 million, capital expenditures of $14.8 million, and payments on credit facilities of $3.1 million over such prior two quarter period. Our cash used in operating activities of $15.9 million for the second quarter of 2026 consisted of an increase in our net operating assets and liabilities of $32.0 million, partially offset by net non-cash charges of $15.1 million, consisting primarily of depreciation and amortization of $7.2 million, share-based compensation expense of $4.5 million, loss on disposal of equipment of $1.3 million, and the impairment of lease right-of-use assets of $0.9 million, and net income of $1.0 million. Our cash used in operating activities of $18.8 million for the six months ended June 26, 2026 consisted of an increase in our net operating assets and liabilities of $44.7 million and net loss of $1.5 million, partially offset by net non-cash charges of $27.4 million, consisting primarily of depreciation and amortization of $14.9 million, share-based compensation expense of $8.4 million, loss on disposal of equipment of $1.3 million, and the impairment of lease right-of-use assets of $0.9 million. The increase in our net operating assets and liabilities of $32.0 million during the second quarter of 2026 was primarily due to an increase in inventory of $38.4 million, an increase in accounts receivable of $11.6 million, and a decrease in accrued and other liabilities of $0.5 million, partially offset by an increase in accounts payable of $15.7 million and a decrease in prepaid expenses and other assets of $1.8 million. The increase in our net operating assets and liabilities of $44.7 million for the six months ended June 26, 2026 was primarily due to an increase in inventory of $58.9 million, an increase in accounts receivable of $34.1 million, and a decrease in accrued and other liabilities of $0.6 million, partially offset by an increase in accounts payable of $43.1 million and a decrease in prepaid expenses and other assets of $4.7 million. In addition to U.S. GAAP ("GAAP") results, this press release also contains non-GAAP financial results, including non‑GAAP gross profit, non‑GAAP operating income, non‑GAAP net income (loss), non‑GAAP diluted EPS, and free cash flow. Management uses non-GAAP metrics to evaluate our operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view our results from management’s perspective. Non-GAAP gross profit, operating income, and net income are defined as: gross profit, operating income (loss), or net income (loss), respectively, excluding (1) amortization of intangible assets, share-based compensation expense, and discrete or infrequent charges and gains that are outside of normal business operations, including transaction-related costs, contract and legal settlement gains and losses, facility shutdown costs, and severance costs associated with reduction-in-force programs, to the extent they are present in gross profit, operating income (loss), and net income (loss), respectively; and (2) the tax impacts associated with these non-GAAP adjustments, as well as non-recurring discrete tax items, including the impact of deferred tax asset valuation allowances. All non-GAAP adjustments are presented on a gross basis; the related income tax effects, including current and deferred income tax expense, are included in the adjustment line under the heading "Tax adjustments related to non-GAAP adjustments." Non-GAAP diluted EPS is defined as non-GAAP net income divided by weighted average diluted ordinary shares outstanding during the period. Non-GAAP gross margin and non-GAAP operating margin are defined as non-GAAP gross profit and non-GAAP operating income, respectively, divided by net sales. Free cash flow is defined as cash provided by or used in operating activities, less capital expenditures. Tables showing these metrics on a GAAP and non-GAAP basis, with reconciliation footnotes thereto, are included at the end of this press release. Beginning in the second quarter of 2026, we revised the definition of non-GAAP financial measures to no longer exclude inventory impairment charges. Prior period non-GAAP financial measures have been recast to conform to our current definition. Non-GAAP results have limitations as analytical tools, and you should not consider them in isolation or as substitutes for our results reported under GAAP. Other companies may calculate non-GAAP results differently or may use other measures to evaluate their performance, both of which could reduce the usefulness of our non-GAAP results as tools for comparison. Because of these limitations, you should consider non-GAAP results alongside other financial performance measures and results presented in accordance with GAAP. In addition, in evaluating non-GAAP results, you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving non-GAAP results, and you should not infer from our presentation of non-GAAP results that our future results will not be affected by these expenses or other discrete or infrequent charges and gains that are outside of normal business operations. We will conduct a conference call to discuss our second quarter 2026 results and business outlook today at 1:15 p.m. PT. To listen to a live webcast of the call, please visit our investor relations website at https://ir.ichorsystems.com, or go to the live link at https://www.webcast-eqs.com/ichorq2_26. To listen via telephone, please call (877) 407‑0989 (domestic) or +1 (201) 389‑0921 (international), conference ID: 13761355. After the call, an on-demand replay will be available at the same webcast link. We are a leader in the design, engineering and manufacturing of critical fluid delivery subsystems and components primarily for semiconductor capital equipment, as well as other industries such as defense/aerospace and medical. Our primary product offerings include gas and chemical delivery subsystems, collectively known as fluid delivery subsystems, which are key elements of the process tools used in the manufacturing of semiconductor devices. Our gas delivery subsystems deliver, monitor and control precise quantities of the specialized gases used in semiconductor manufacturing processes such as etch and deposition. Our chemical delivery subsystems precisely blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes such as chemical-mechanical planarization, electroplating, and cleaning. We also provide precision-machined components, weldments, e-beam and laser welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. We are headquartered in Fremont, California. https://ir.ichorsystems.com. We use a 52- or 53-week fiscal year ending on the last Friday in December. The three-month periods ended June 26, 2026, March 27, 2026, and June 27, 2025 were each 13 weeks. References to the second quarter of 2026, first quarter of 2026, and second quarter of 2025 relate to the three-month periods then ended. Our fiscal years ended December 25, 2026 and December 26, 2025 are each 52 weeks. References to 2026 and 2025 relate to the fiscal years then ended. Certain statements in this press release are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "anticipate," "believe," "contemplate," "designed," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "outlook," "plan," "predict," "project," "see," "seek," "target," "would" and similar expressions or variations or negatives of these words are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Examples of forward-looking statements include, but are not limited to, statements regarding our outlook for our third fiscal quarter of 2026 and beyond, statements regarding the current business environment, revenue levels in 2026 and beyond, manufacturers’ investment in wafer fabrication equipment, our investment in research and development of new products, acquiring new business, and company and industry growth and performance in 2026 and beyond, as well as any other statement that does not directly relate to any historical fact. Such forward-looking statements are based on management’s current expectations about future events as of the date hereof and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to: geopolitical, economic and market conditions, including high inflation, changes to tax, trade, fiscal and monetary policy, high interest rates, currency fluctuations, challenges in the supply chain and any disruptions in the global economy as a result of the conflicts in Iran, Ukraine and the Middle East; being unable to attract, hire, integrate and retain key personnel and other necessary employees; dependence on expenditures by manufacturers and cyclical downturns in the semiconductor capital equipment industry; reliance on a very small number of original equipment manufacturers ("OEMs") for a significant portion of sales; negotiating leverage held by our customers; competitiveness and rapid evolution of the industries in which we participate; keeping pace with developments in the industries we serve and with technological innovation generally; designing, developing and introducing new products that are accepted by OEMs in order to retain our existing customers and obtain new customers; becoming involved in litigation and regulatory proceedings, which could require significant attention from our management and result in significant expense to us and disruptions in our business; managing our manufacturing and procurement process effectively; defects in our products that could damage our reputation, decrease market acceptance and result in potentially costly litigation; and our dependence on a limited number of suppliers. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission (the "SEC"), including other risks, relevant factors, and uncertainties identified in the "Risk Factors" section of our Annual Report on Form 10‑K for the year ended December 26, 2025 and any other periodic reports or other documents that we may file with the SEC. All forward-looking statements in this press release are based upon information available to us as of the date hereof, and qualified in their entirety by this cautionary statement. We undertake no obligation to update or revise any forward-looking statements contained herein, whether as a result of actual results, changes in our expectations, future events or developments, or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260803990655/en/ Contacts Greg Swyt, CFO 510-897-5200Claire McAdams, IR & Strategic Initiatives [email protected]

Ichor Holdings (ICHR) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.68%. A quarter ago, it was expected that this company would post earnings of $0.13 per share when it actually produced earnings of $0.15, delivering a surprise of +15.38%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ichor Holdings, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $294.78 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.85%. This compares to year-ago revenues of $240.29 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ichor Holdings shares have added about 308.4% since the beginning of the year versus the S&P 500's gain of 9.4%. While Ichor Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ichor Holdings was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $311.15 million in revenues for the coming quarter and $1.41 on $1.2 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ambarella (AMBA), another stock in the same industry, has yet to report results for the quarter ended July 2026. This video-compression chipmaker is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%. The consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level. Ambarella's revenues are expected to be $108.03 million, up 13.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ichor Holdings, Ltd. (ICHR) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Ichor Holdings, Ltd.? Here are five stocks we like better. Demand and outlook strengthened: Second-quarter revenue rose 15% sequentially to $294.8 million, while Ichor expects more than 10% sequential growth in each of the next two quarters and at least 30% full-year 2026 revenue growth. Profitability improved: Gross margin increased to 14.1%, EBITDA rose more than 50% sequentially to over $21 million, and EPS reached $0.34. The company expects third-quarter revenue of $315 million to $345 million and EPS of $0.40 to $0.50. Capacity and liquidity are expanding: Ichor increased cash to $256 million after a $200 million equity offering, is ramping Malaysian manufacturing and proprietary content, and believes existing facilities can support more than $3 billion in annual revenue with additional investment. Ichor (NASDAQ:ICHR) reported second-quarter revenue of $294.8 million, up 15% sequentially, as demand strengthened across semiconductor equipment markets and the company continued efforts to expand internal manufacturing and improve margins. The company said isolated part shortages late in the quarter delayed recognition of some revenue until shortly after the June 26 quarter-end. Ichor said it surpassed $300 million in revenue for the 13 weeks ended July 3 and has since resolved the shortages. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now Phil Barros said the company now expects a steeper demand ramp in the second half of 2026 than it forecast three months earlier. Ichor expects sequential revenue growth of more than 10% in each of the next two quarters and second-half revenue volumes at least 25% above first-half levels. “Our confidence in both the magnitude and the duration of this growth cycle is higher today than at any point during this year,” Barros said, citing investments in advanced etch and deposition applications for AI infrastructure, gate-all-around chip architectures, advanced memory and leading-edge process technologies. → MarketBeat Week in Review – 07/27- 07/31 All profit and loss measures discussed by the company on the call were non-GAAP measures, according to Chief Financial Officer Greg Swyt. The measures exclude items including share-based compensation, acquired-intangible amortization, non-recurring charges and certain tax items. Second-quarter gross margin rose 130 basis points sequentially to 14.1%, exceeding the high end of Ichor’s guidance range. Swyt attributed the gain to progress in the company’s machining strategy and a more favorable product mix. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Operating expenses were $25.3 million, while operating margin exceeded 5.5%. Earnings per share reached $0.34 on 36.3 million diluted shares, representing the company’s highest quarterly earnings in three years, according to management. EBITDA increased more than 50% sequentially to more than $21 million. However, cash from operations was a use of $15.9 million as the company increased inventory to support anticipated customer demand. Swyt said inventory investment would continue in the near term, with inventory turns expected to begin improving in the first half of 2027. Ichor said it remains on track to improve gross margin by roughly 100 basis points per quarter through the balance of 2026. For the third quarter, it projected gross margin of 14.5% to 15.5%. Management highlighted the company’s manufacturing footprint realignment and its effort to increase the proportion of proprietary Ichor-made content in the systems it builds. Barros said internal content was at about a 25% run rate at the end of the second quarter and is expected to reach about 30% by the end of the third quarter and about 35% by the end of the fourth quarter. The company said manufacturing transitions remain on schedule, including qualifications at its high-volume Malaysian manufacturing site. During the quarter, Ichor received qualifications from its two major customers for machining and welding operations in Malaysia, according to Barros. Management said customers are seeking additional internal supply options as they address supply-chain risks. The company said faster-than-normal product qualifications indicate customers are working to reduce those risks. Ichor said it currently has capacity to support $500 million in quarterly revenue, or roughly $2 billion annually. With targeted investment, including additional clean-room space and machining capacity, management said it believes it can expand capacity within its existing footprint to more than $3 billion annually. Barros clarified that current manufacturing capacity is not a constraint on customer demand. Capital expenditures totaled $7.8 million in the second quarter. The company expects capital spending to rise in the second half as it accelerates investments in factory clean rooms and machining capacity, while remaining near its target of approximately 3% of revenue. Cash and equivalents totaled $256 million at quarter-end, up $167 million from the first quarter. During the quarter, Ichor completed its $200 million at-the-market equity offering, issuing 2.48 million shares at an average price of $80.70 per share and generating approximately $195 million in net proceeds. Total debt was $120.6 million at the end of the quarter. Days sales outstanding remained at 32 days and inventory turns were 3.7 times, both similar to the prior quarter. Third-quarter revenue guidance: $315 million to $345 million. Revenue growth at the midpoint: 12% sequentially and 38% year over year in revenue volumes. Third-quarter EPS guidance: $0.40 to $0.50. Expected third-quarter operating expenses: approximately $25.5 million. Swyt said Ichor expects full-year 2026 operating expenses to rise about 6% from 2025, with nearly all of the increase in research and development. The company expects annual revenue growth of at least 30% from 2025, aligning with what management described as the high end of wafer-fab-equipment market expectations. Management also pointed to growth in its non-semiconductor operations, particularly commercial space. Barros said the commercial space business grew significantly in the second quarter and is expected to continue growing in the second half following a qualification for a particular part family. He also said aerospace and defense activity was growing, though commercial space was the larger driver. Ichor Holdings Ltd. is a global supplier of critical subsystems used in the fabrication of semiconductor devices. The company specializes in the design, engineering and manufacturing of gas delivery systems, vacuum pumps and abatement solutions that manage process gases and by-products in wafer-processing tools. Its modular subsystems are designed to integrate with lithography, etch, deposition and cleaning equipment, helping to ensure precise control of gas flow, pressure and purity throughout the chip-manufacturing cycle. Founded in the mid-1980s and headquartered in Fremont, California, Ichor has expanded its footprint across Asia, Europe and North America. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ichor Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.