ICHR · Ichor Holdings, Ltd.

Ichor Holdings reported a strong start to fiscal 2026, with Q1 results exceeding the upper end of management's prior expectations for revenue, gross margin, and earnings per share. Revenue of $256.1 million represented a 15% sequential increase, which CEO Phil Barros attributed to a strengthening demand environment and structural technology transitions driving wafer fabrication equipment investments. The company's focus on operational execution facilitated the improvement, with GAAP gross margin expanding 320 basis points sequentially to 12.6%. Non-GAAP diluted EPS of $0.15 significantly outperformed the GAAP loss per share of $(0.07), reflecting adjustments primarily for share-based compensation and amortization of intangibles. The company noted that early investments in labor headcount and inventory positioning enabled strong execution for customers. Looking forward, management guided for Q2 2026 revenue of $300 million at the midpoint, reflecting continued sequential growth. The Q2 outlook also projects further expansion in gross margin and earnings leverage. Despite the operational progress, the company used $2.9 million in operating activities and spent $7.1 million on capital expenditures, resulting in a cash balance decline to $89.1 million. Working capital dynamics saw increases in accounts receivable and inventory, partially offset by higher accounts payable, indicating active ramping activities to meet accelerating customer delivery timelines.