This article first appeared on GuruFocus .
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Q4 Revenue:$223.6 million, above the midpoint of guidance.
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Fiscal 2025 Revenue:$948 million, up 12% year-over-year.
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Q4 Gross Margin:11.7%, 70 basis points above the midpoint of guidance.
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Q4 Operating Expenses:$23.4 million.
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Q4 Operating Income:$2.7 million.
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Q4 Net Interest Expense:$1.7 million.
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Q4 Non-GAAP Net Income Tax Expense:$400,000.
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Q4 Earnings Per Share (EPS):$0.01 per share.
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Cash and Equivalents:$98.3 million at the end of Q4.
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Free Cash Flow for Q4:$6 million.
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Total Debt Outstanding:$123 million at year-end.
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Q1 2026 Revenue Guidance:$240 million to $260 million.
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Q1 2026 Gross Margin Guidance:12% to 13%.
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Q1 2026 Operating Expenses Guidance:Approximately $24 million.
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Q1 2026 EPS Guidance:$0.08 to $0.16.
Release Date: February 09, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ichor Holdings Ltd ( NASDAQ:ICHR ) reported a strong revenue growth of 12% year-over-year, reaching $948 million in fiscal 2025.
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The company is experiencing increased demand in its primary markets, driven by technology transitions and strategic capacity additions.
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Ichor Holdings Ltd ( NASDAQ:ICHR ) expects sequential revenue growth every quarter in 2026, indicating a strong growth trajectory.
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The company's global footprint realignment, including expansions in Mexico and Malaysia, is expected to drive meaningful margin improvements by midyear.
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Ichor Holdings Ltd ( NASDAQ:ICHR ) is making significant progress in its commercial space business, which is translating into meaningful revenue growth.
Negative Points
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Gross margin for Q4 was relatively low at 11.7%, although slightly above the midpoint of guidance.
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The company is facing short-term headwinds due to the relocation of capacity and machinery, which may temporarily reduce capacity for certain components.
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There is some uncertainty regarding the recovery of the EUV segment, with inventory levels needing to be digested by Q3 2026.
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The anticipated non-GAAP effective tax rate is expected to increase due to the geographic distribution of profits and the sunsetting of Singapore pioneer status.
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Ichor Holdings Ltd ( NASDAQ:ICHR ) is still facing challenges in achieving its long-term gross margin targets of 18% to 20%, with no specific timeline provided for reaching these levels.
Q & A Highlights
Q: Can you discuss the improvement in Q1 revenue guidance and how you expect to grow relative to the industry benchmark of 15% to 20% growth? A: Philip Barros, CEO: We are seeing strengthening demand weekly, making us more bullish on the market. We expect to be in the 15% to 20% growth range, if not outperforming.
Q: Regarding gross margins, you mentioned a potential 15% gross margin in the second half. How quickly can you capitalize on attributes that improve margins? A: Philip Barros, CEO: We are moving capacity to new sites, which will be in place before the first half ends. This will help us achieve the 15% gross margin target in the second half.
Q: Can you provide insights into the sequential growth expectations for the year and the mix of products? A: Philip Barros, CEO: The first half will be gas panel heavy, with increased component supply driving growth in the second half. We expect the year to be second-half weighted but with strong momentum in the first half.
Q: How is the Malaysia business relocation progressing, and will it impact revenue or expenses? A: Philip Barros, CEO: The Malaysia facility is operational, and any headwinds are baked into our Q1 guidance. This facility will provide additional capacity needed for future growth.
Q: What is your current demand visibility, and how does it compare to previous cycles? A: Philip Barros, CEO: We have solid visibility for the next six months, and the second half looks strong based on customer feedback. We are confident in the demand outlook for 2027 as well.
Q: How are you addressing the inventory levels at your two biggest customers? A: Philip Barros, CEO: Our revenue forecasts are aligning with customer demand, indicating that inventory levels are being replenished. This suggests that inventory from the last cycle has been largely burned through.
Q: What areas do you expect to gain market share in 2026 and 2027? A: Philip Barros, CEO: We aim to grow in commercial space, non-semi business, machining, and gas panels. We are preparing to win share during this ramp cycle.
Q: How does the commercial space business contribute to your growth strategy? A: Philip Barros, CEO: The commercial space business is currently a sub-5% customer, but we aim to make it a 10% customer in the medium term. It is accretive to our margin profile.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
