0001652535-25-000053
SEC filingRevenue grew 18% YoY to $240M driven by stronger semiconductor spending, but gross margin declined to 11.3% on costs and mix.
For the second quarter of fiscal 2025, Ichor Holdings reported net sales of $240.3 million, an 18.2% increase from $203.2 million in the same period last year. The growth was driven by stronger demand due to a healthier semiconductor capital equipment spending environment. Despite higher revenue, GAAP gross margin contracted 130 basis points to 11.3%, primarily due to increased material costs, unfavorable sales mix, and $1.6 million of inventory write-offs associated with the planned exit from Scotland operations. Operating loss widened to $4.8 million compared to $2.3 million in Q2 2024, as selling, general and administrative expenses rose 22.5% to $24.3 million, including $2.0 million of exit disposal costs. Net loss increased to $9.4 million from $5.1 million, reflecting higher income tax expense due to Pillar Two minimum tax rules in Singapore. On a non-GAAP basis, operating margin improved to 2.6% from 2.2%, and non-GAAP net income was $1.1 million, or $0.03 per diluted share, versus $0.05 per share a year ago.
The MD&A does not report segment-level financials. The company operates as a single reportable segment, providing fluid delivery subsystems and components. Revenue growth was broad-based across gas and chemical delivery systems, driven by OEM demand. No specific segment breakdowns were provided.
Management noted that overall semiconductor equipment spending in 2025 is anticipated to grow over 2024 levels, with healthy demand in etch and deposition markets. However, the global trade environment, including tariff uncertainty, remains a risk. To date, tariffs have not materially impacted demand or material costs, but future changes could adversely affect the business. The company remains confident in long-term semiconductor demand. No specific numerical guidance was provided.
As of June 27, 2025, Ichor Holdings had cash and cash equivalents of $92.2M, down from $108.7M at year-end 2024. Total debt (principal) stood at $125.6M, consisting of a term loan of $125.6M and no revolver draws. Shareholders' equity was $694.1M. Inventory increased to $259.4M from $250.1M, driven by raw materials and work-in-process. The company also reported $4.2M in unrecognized tax benefits.
No purchase commitments were disclosed in the Notes. Operating lease liabilities totaled $41.8M, with future minimum lease payments of $49.1M through 2037. The company has a $250M revolving credit facility undrawn.
Debt reduction: The term loan was reduced by $3.75M during the six months, with quarterly payments of $1.9M. No share buybacks or dividends were reported. Capital expenditures of $25.8M (from cash flow statement) were not explicitly noted in the Notes, but depreciation expense was $11.1M for the six months. The company changed an accounting estimate for CNC machinery useful lives, decreasing depreciation by $1.0M.
The company operates as a single segment. For Q2 2025, net sales were $240.3M, with geographic breakdown: Singapore $106.9M (44%), United States $76.7M (32%), Europe $25.3M (11%), and Other $31.5M (13%). Foreign long-lived assets were $68.9M.
Net loss of $14.0M (2025) and $14.1M (2024) was more than offset by non-cash charges—primarily depreciation ($16.1M) and share-based compensation ($8.4M)—leading to positive operating cash flow in both periods. However, CFO in 2025 ($11.5M) was less than half of 2024 ($22.3M), mainly due to a $9.3M inventory build compared to a $14.4M reduction in the prior year. Capital expenditures surged to $25.8M (3.5x CFO), resulting in negative free cash flow of -$14.3M (CFO minus capex = $11.5M - $25.8M = -$14.3M). The company financed this deficit through equity issuance proceeds ($4.7M) and prior cash balances. Debt repayments totaled $3.8M on the term loan; no revolving borrowings were used. Overall, while operations remain cash-generative, rapid capex growth outpaced internal cash generation, increasing reliance on external funding and cash reserves.