ICHR earnings analysis
What we found in ICHR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Ichor delivered a strong operating recovery in Q2: revenue increased 22.7% year over year to $294.8 million, gross margin expanded 260 bps to 13.9%, and GAAP EPS turned positive at $0.03 versus a negative $0.28 loss a year ago. The balance sheet was fortified by a $195.4 million ATM raise, lifting cash to $256.5 million, but the first half generated negative $18.8 million operating cash flow as working capital absorbed cash. Management remains constructive on semiconductor-equipment demand, but identifies tariffs, export controls and geopolitical uncertainty as potential constraints.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue rose 22.7% year over year
- Q2 net sales were $294.8 million, up $54.5 million, or 22.7%, from $240.3 million in Q2 2025, driven by higher customer demand associated with semiconductor-capacity expansion and advanced process technologies. Sales also rose from $256.1 million in Q1 2026.
- Margins returned decisively to profit
- GAAP gross margin expanded 260 basis points year over year to 13.9% from 11.3%, and operating margin improved to 2.4% from negative 2.0%. Management cited lower employee costs relative to revenue (+130 bps), nonrecurrence of prior-year restructuring charges (+80 bps), and factory overhead leverage (+50 bps).
- GAAP profitability restored
- GAAP net income was $1.0 million, or $0.03 diluted EPS, versus a $9.4 million loss and negative $0.28 EPS a year earlier. Non-GAAP diluted EPS improved to $0.34 from negative $0.01.
- ATM equity raise materially increased cash
- Liquidity strengthened substantially: cash and equivalents ended at $256.5 million, up $158.2 million from December 26, 2025, following $195.4 million of net proceeds from issuing approximately 2.5 million ordinary shares at an average $80.70 per share.
- Restructuring largely completed
- The geographic footprint rationalization and restructuring plan was substantially completed in Q2. However, Q2 GAAP operating income of $7.2 million excluded $2.7 million of restructuring-plan costs in the company's non-GAAP presentation.
- No segment-level sales disclosure
- No reportable segment revenue breakdown was disclosed in the filing. The company reported consolidated sales of $294.8 million and attributed growth to its semiconductor capital-equipment markets, particularly etch and deposition.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Working-capital build drove negative operating cash flow
- Cash used in operating activities was $18.8 million in the first six months of 2026, compared with $11.5 million of cash provided in the prior-year period. Management attributed the decline principally to $42.9 million of unfavorable changes in operating assets and liabilities amid higher production and sales activity.
- Elevated effective tax rate constrained earnings
- Despite $7.2 million of Q2 GAAP operating income, tax expense was $4.4 million on $5.4 million of pretax income, producing an 81.6% effective tax rate and limiting Q2 GAAP net income to $1.0 million. The filing cites the end of the Singapore tax holiday, jurisdictional earnings mix, foreign taxes, and a U.S. deferred-tax-asset valuation allowance.
- Restructuring charges remain material
- The company recorded $2.7 million of Q2 restructuring-plan costs, including $1.3 million of fixed-asset charges and $0.9 million of right-of-use asset impairment. These costs remain a drag on GAAP earnings even though the plan was substantially completed in Q2.
- No formal risk-factor updates; trade risks persist
- Item 1A states that the filing should be read with the 2025 Form 10-K risk factors and identifies no new or revised risk factors; therefore, there were 0 disclosed risk-factor updates versus the annual filing. Management nevertheless specifically flags volatile trade conditions, potential tariffs, and export controls affecting China as risks to costs, pricing, demand and supply chains.
- Equity financing increased share count
- The June ATM issuance added approximately 2.5 million ordinary shares, while Q2 non-GAAP diluted EPS used 36.3 million diluted shares versus 34.2 million a year earlier. The equity-funded cash increase therefore carries dilution risk for existing holders.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.03
- Gross margin
- 13.9%
- Operating margin
- 2.4%
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that long-term semiconductor-equipment and product demand is expected to grow, while noting trade, tariff, export-control and geopolitical uncertainty.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Ichor Holdings reported Q1 2026 results with revenue of $256.1 million, slightly above estimates, and an EPS of $0.15, outperforming expectations by 36%. The results indicate a recovery in operations as both gross and…
- 10-K · February 20, 2026
- Ichor reported full-year revenue of $947.7 million in 2025, up from $849.0 million in 2024 and $811.1 million in 2023, driven by semiconductor OEM demand. Despite top-line growth, GAAP results deteriorated with a net…
- 10-Q · August 5, 2025
- Ichor reported Q2 net sales of $240,285 (in thousands) versus $203,227 in Q2 2024, but GAAP profitability and cash flow deteriorated. Gross profit rose in dollars to $27,202 (Q2 2025) but gross margin compressed to…
- 10-K · February 21, 2025
- Ichor positions itself as a specialized, engineering‑led supplier of gas and chemical fluid delivery subsystems that engages early with OEM customers and operates a capital‑efficient, geographically proximate…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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