Earnings

Ichor Raises Third-Quarter Revenue Outlook to a $330 Million Midpoint

The Tip Desk · August 4, 2026 · 3 min read

Second-quarter sales of $294.8 million came in above the May range, and the company now sees third-quarter revenue of $315 million to $345 million.

Ichor Holdings, Ltd. (ICHR), a designer and manufacturer of fluid-delivery subsystems for semiconductor capital equipment, reported second-quarter revenue of $294.8 million, 15% above the first quarter and 24% above a year earlier.

The sequential gain matched the 15% step-up the company posted in the first quarter, when sales were $256.1 million. Chief executive Phil Barros said the additional growth the company had forecast for the second quarter had already been achieved in the third quarter, and that Ichor is driving significantly more growth in the second half than it expected a quarter ago.

GAAP gross margin expanded to 13.9% from 12.6% in the first quarter. Non-GAAP gross margin was 14.1%. GAAP operating margin widened to 2.4% from 0.8%. Non-GAAP operating margin was 5.5%.

On a GAAP basis, the company swung to net income of $1.0 million, or $0.03 a share, from a $2.5 million net loss, or $(0.07) a share, in the first quarter. Non-GAAP net income was $12.2 million, or $0.34 a share, compared with $5.3 million, or $0.15 a share. Barros said that over the past two quarters, the company had significantly expanded gross margin while driving earnings to a three-year record.

Cost of sales was $253.8 million. Research and development expense was $7.8 million. Selling, general and administrative expense was $24.1 million. Amortization of intangible assets was $1.9 million. Consolidation Restructuring Plan costs were $2.7 million. Facility shutdown costs were $44,000.

Cash and cash equivalents ended the quarter at $256.5 million, up $167.4 million from the prior quarter, after a $200 million at-the-market equity offering. Net proceeds were $195.4 million from 2.5 million ordinary shares at an average offer price of $80.70 a share. Operating activities used $15.9 million of cash. Capital expenditures were $7.8 million. Inventories rose $38.4 million in the quarter to $290.7 million. Accounts receivable increased $11.6 million to $104.7 million.

Barros said customers’ demand visibility now extends well into 2027 and that the outlook for the remainder of 2026 indicates continued sequential growth in revenues, gross margin, and earnings per share. He said the company’s strategic, operational and technological priorities are now supported by a strengthened balance sheet.

For the third quarter of 2026, Ichor expects revenue of $315 million to $345 million, with a midpoint of $330 million. GAAP diluted earnings are expected at $0.25 to $0.35 a share. Non-GAAP diluted earnings are expected at $0.40 to $0.50 a share, excluding amortization of intangible assets of about $1.9 million and share-based compensation of about $4.8 million, plus related tax effects. In May, the company had guided second-quarter revenue of $290 million to $310 million, with a $300 million midpoint, and non-GAAP diluted earnings of $0.25 to $0.35 a share.

Beginning in the second quarter of 2026, Ichor revised its non-GAAP measures to no longer exclude inventory impairment charges and recast prior periods.

The company said it will continue to execute the operating-model, margin and positioning plan it laid out three quarters ago. Barros said second-quarter results demonstrate the company is delivering against that plan.

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