0001652535-26-000031
SEC filingRevenue grew 4.7% YoY to $256M, gross margin expanded 90 bps, and net loss narrowed to $2.5M.
Net sales for Q1 2026 were $256.1 million, a 4.7% increase compared to $244.5 million in Q1 2025, driven by robust customer demand in the semiconductor capital equipment industry, particularly in etch and deposition markets. Gross profit rose 13.1% to $32.3 million, with gross margin expanding 90 basis points to 12.6% (from 11.7%). The improvement was primarily due to the absence of $1.1 million in severance charges that occurred in the prior year and higher factory utilization. Operating income improved to $2.1 million (0.8% margin) from an operating loss of $1.2 million (-0.5% margin) in Q1 2025, as revenue growth outpaced cost increases. Research and development expenses declined 5.9% to $5.5 million, reflecting lower employee costs, while selling, general, and administrative expenses increased 3.8% to $22.6 million due to higher employee expenses and restructuring costs. Despite a $2.6 million income tax expense (driven by the end of a Singapore tax holiday and valuation allowances), net loss narrowed to $2.5 million from $4.6 million. Non-GAAP net income increased to $5.3 million from $4.2 million, and non-GAAP diluted EPS rose to $0.15 from $0.12.
The filing does not provide segment-level revenue or operating income breakdowns. However, management noted that demand was concentrated in etch and deposition served markets, which are primary applications for the company's gas and chemical delivery subsystems. Outsourcing trends among OEMs continue to support demand for these subsystems.
Management expressed confidence in long-term semiconductor demand growth driven by expanding manufacturing capacity and advanced process technologies. However, they highlighted near-term risks from global trade volatility, new tariffs, and U.S. export controls on China. The company is undertaking a geographic footprint rationalization to align capacity with customer demand. No specific quantitative guidance was provided for Q2 2026 or full-year 2026.
As of March 27, 2026, Ichor had $89.1 million in cash and cash equivalents, down from $98.3 million at year-end 2025. Total debt, net of unamortized issuance costs, stood at $122.0 million, consisting of a $123.4 million term loan (current portion $6.25 million) and an undrawn $100 million revolving credit facility. Shareholders' equity was $668.0 million. Inventory increased to $252.3 million, driven by work-in-process growth, partially offset by impairment charges.
The notes disclose no material purchase commitments or contractual obligations beyond operating lease obligations ($42.8 million total future payments) and debt repayments. Restructuring plan costs total $31.9 million, with $19.8 million inventory impairment (remaining $8.3 million), $5.4 million fixed asset charges (remaining $2.2 million), $1.8 million lease impairment (remaining $0.9 million), $1.7 million severance (remaining $0.1 million), and $3.2 million other costs (remaining $1.5 million).
Ichor did not repurchase shares or pay dividends in the first quarter of 2026. Capital expenditures were $7.1 million (2.8% of sales), down from $18.5 million a year ago. Debt repayment totaled $1.6 million. The company issued $4.8 million in shares under compensation plans and used $2.4 million for employee tax withholdings upon RSU vesting.
Ichor operates as a single operating segment. Revenue by destination: Singapore $128.8M (50.3%), United States $69.0M (27.0%), Europe $18.5M (7.2%), Other $39.7M (15.5%). Foreign long-lived assets (ex-deferred tax) were $75.1 million. No further segment detail is provided.