Ichor Holdings, Ltd.

What they do

Ichor designs, engineers, and manufactures gas and chemical delivery subsystems, which are key elements of semiconductor process tools. Gas delivery subsystems deliver, monitor, and control specialized gases used in etch and deposition; chemical delivery subsystems blend and dispense liquid chemistries for CMP, electroplating, and cleaning. The company also provides precision-machined components, weldments, e-beam and laser welded components, precision vacuum and hydrogen brazing, and surface treatment technologies. It operates production facilities in California, Minnesota, Oregon, Texas, Singapore, Malaysia, and Mexico.

Revenue drivers

• Gas delivery subsystems — Primary product line; delivers, monitors, and controls gases for semiconductor manufacturing processes such as etch and deposition; sold to OEMs.
• Chemical delivery subsystems — Blends and dispenses reactive liquid chemistries for semiconductor processes; increasingly outsourced by OEMs; a key growth area.
• Components and value-added services — Includes precision-machined components, weldments, e-beam and laser welded components, precision vacuum and hydrogen brazing, and surface treatment technologies.

Recent performance

In Q2 2026, revenue was $294.8 million, up 15% sequentially and 24% year-over-year. GAAP net income was $1.0 million, with diluted EPS of $0.03; non-GAAP net income was $12.2 million, with diluted EPS of $0.34. Gross margin was 13.9% on a GAAP basis and 14.1% on a non-GAAP basis. Cash and equivalents rose to $256.5 million after completing a $200 million at-the-market equity offering. For fiscal 2025, annual revenue was $947.7 million with a net loss of $52.8 million.

Strategy

Management is executing strategic and operational priorities to strengthen the operating model, expand margins, and position the company for the next semiconductor growth cycle. Over the past two quarters, gross margin has expanded significantly, and the company is driving earnings leverage. The strategy includes early customer engagement in design and development to become a sole or preferred supplier during initial production ramps. The company is also expanding its product portfolio and manufacturing footprint to increase its share of addressable markets.

Risks

• Customer concentration — A very small number of OEMs account for a significant portion of sales, giving them negotiating leverage and making revenue highly dependent on their capital spending.
• Cyclical semiconductor equipment demand — Revenue depends on capital expenditures by semiconductor manufacturers, which are cyclical and can decline sharply.
• Supply chain disruptions — The company relies on a limited number of suppliers for key materials; disruptions could impact production.
• Geopolitical and macroeconomic risks — Conflicts in Ukraine and the Middle East, high inflation, interest rates, and currency fluctuations could disrupt global operations and demand.

Outlook

For Q3 2026, management expects revenue of $315–345 million (midpoint $330 million), GAAP diluted EPS of $0.25–$0.35, and non-GAAP diluted EPS of $0.40–$0.50. Management sees demand visibility extending well into 2027 and expects continued sequential growth in revenues, gross margin, and EPS through the remainder of 2026. They also noted that additional growth forecast for Q3 has already been achieved early in the quarter.