Ichor Holdings, Ltd. Announces Fourth Quarter and Fiscal Year 2025 Financial Results

FREMONT, Calif.--(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 fourth quarter and fiscal year 2025 financial results. Fourth quarter 2025 highlights: Revenue of $223.6 million, above the mid-point of our guidance range communicated in November; Gross margin of 9.4% on a GAAP basis and 11.7% on a non-GAAP basis; and Earnings (loss) per share of $(0.46) on a GAAP basis and $0.01 on a non-GAAP basis. Fiscal year 2025 highlights: Revenue of $947.7 million, up 11.6% year-over-year; Gross margin of 9.3% on a GAAP basis and 12.2% on a non-GAAP basis; and Earnings (loss) per share of $(1.54) on a GAAP basis and $0.23 on a non-GAAP basis. “With Q4 results favorably aligned with our earlier expectations, our focus now shifts to the strengthening demand environment ahead for fiscal 2026,” commented Phil Barros, Ichor’s CEO. “Early indications of customer demand entering the year provide us with a first-quarter revenue outlook reflecting solidly upward momentum from Q4’s trough levels. At this time, we expect this upward trend to continue into the second half of the year. While our gross margin improvement strategies are just beginning to take shape, we believe we will demonstrate meaningfully improved gross margin performance in fiscal 2026, compared to fiscal 2025. As we embark upon several new strategic initiatives that reflect our operational and technological priorities in the coming year, we expect to deliver strong earnings leverage in the quarters ahead.” Q4 2025 Q3 2025 Q4 2024 FY 2025 FY 2024 (dollars in thousands, except per share amounts) U.S. GAAP Financial Results: Net sales $ 223,606 $ 239,296 $ 233,291 $ 947,652 $ 849,040 Gross margin 9.4 % 4.6 % 11.6 % 9.3 % 12.2 % Operating margin (6.2 )% (8.1 )% (0.5 )% (4.1 )% (0.9 )% Net loss $ (15,961 ) $ (22,853 ) $ (3,943 ) $ (52,781 ) $ (20,820 ) Diluted EPS $ (0.46 ) $ (0.67 ) $ (0.12 ) $ (1.54 ) $ (0.64 ) Q4 2025 Q3 2025 Q4 2024 FY 2025 FY 2024 (dollars in thousands, except per share amounts) Non-GAAP Financial Results: Gross margin 11.7 % 12.1 % 12.0 % 12.2 % 12.7 % Operating margin 1.2 % 2.2 % 2.4 % 2.2 % 2.2 % Net income $ 280 $ 2,302 $ 2,761 $ 7,915 $ 5,888 Diluted EPS $ 0.01 $ 0.07 $ 0.08 $ 0.23 $ 0.18 U.S. GAAP Financial Results Overview For the fourth quarter of 2025, revenue was $223.6 million, net loss was $(16.0) million, and net loss per diluted share (“diluted EPS”) was $(0.46). This compares to revenue of $239.3 million and $233.3 million, net loss of $(22.9) million and $(3.9) million, and diluted EPS of $(0.67) and $(0.12), for the third quarter of 2025 and fourth quarter of 2024, respectively. For 2025, revenue was $947.7 million, net loss was $(52.8) million, and diluted EPS was $(1.54). This compares to revenue of $849.0 million, net loss of $(20.8) million, and diluted EPS of $(0.64) for 2024. Non-GAAP Financial Results Overview For the fourth quarter of 2025, non-GAAP net income was $0.3 million and non-GAAP diluted EPS was $0.01. This compares to non-GAAP net income of $2.3 million and $2.8 million, and non-GAAP diluted EPS of $0.07 and $0.08, for the third quarter of 2025 and fourth quarter of 2024, respectively. For 2025, non-GAAP net income was $7.9 million and non-GAAP diluted EPS was $0.23. This compares to non-GAAP net income of $5.9 million, and non-GAAP diluted EPS of $0.18 for 2024. First Quarter 2026 Financial Outlook For the first quarter of 2026, we expect the following: Low-End Mid-Point High-End Revenue $240 million $250 million $260 million GAAP diluted EPS $(0.10) $(0.04) $0.02 Non-GAAP diluted EPS $0.08 $0.12 $0.16 This outlook for non‑GAAP diluted EPS excludes amortization of intangible assets of approximately $2.1 million and share-based compensation expense of approximately $4.0 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. Balance Sheet and Cash Flow Results We ended the fourth quarter of 2025 with cash and cash equivalents of $98.3 million, an increase of $5.8 million from the prior quarter and a decrease of $10.4 million from the prior year ended December 27, 2024. The increase of $5.8 million for the fourth quarter of 2025 was primarily due to net cash provided by operating activities of $9.2 million, partially offset by capital expenditures of $3.2 million. The decrease of $10.4 million during the twelve months ended December 26, 2025 was primarily due to capital expenditures of $36.2 million and net payments on our credit facilities of $4.4 million, partially offset by cash provided by operating activities of $29.9 million. Our cash provided by operating activities of $9.2 million for the fourth quarter of 2025 consisted of net non-cash charges of $16.1 million, consisting primarily of depreciation and amortization of $10.0 million, share-based compensation expense of $4.2 million, and inventory impairment of $3.1 million, and a decrease in our net operating assets and liabilities of $9.1 million, partially offset by a net loss of $16.0 million. Our cash provided by operating activities of $29.9 million for the twelve months ended December 26, 2025 consisted of net non-cash charges of $73.7 million, consisting primarily of depreciation and amortization of $33.5 million, inventory impairment of $19.8 million, and share-based compensation expense of $16.7 million, and a decrease in our net operating assets and liabilities of $9.0 million, partially offset by a net loss of $52.8 million. The decrease in our net operating assets and liabilities of $9.1 million during the fourth quarter of 2025 was primarily due to a decrease in accounts receivable of $13.9 million, and a decrease in inventory of $6.8 million, partially offset by a decrease in accounts payable of $8.3 million, and a decrease in accrued and other liabilities of $3.7 million. The decrease in our net operating assets and liabilities of $9.0 million for the twelve months ended December 26, 2025 was primarily due to a decrease in accounts receivable of $16.1 million and a decrease in prepaid assets of $7.9 million, partially offset by a decrease in accrued and other liabilities of $7.1 million and a decrease in accounts payable of $6.4 million. Use of Non-GAAP Financial Results 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, inventory impairment charges, 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. 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. Conference CallRead the full story here

Ichor Holdings, Ltd. Announces Fourth Quarter and Fiscal Year 2025 Financial Results

Andere Nachrichten des Unternehmens