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Group 1: Company Overview - Ichor Holdings (NASDAQ: ICHR) is a semiconductor equipment company that has recently seen significant stock price movement, with shares more than doubling in value, gaining approximately 110% since August 2025 [1][2]. Group 2: Stock Performance - On the day of the filings, ICHR shares were priced at $14.54, and as of the latest report, the price has risen to $30.57 [2]. - Despite the recent rally, ICHR shares are still down 6% on a yearly basis, indicating ongoing execution challenges for the company [6]. Group 3: Market Sentiment and Analyst Ratings - The recent momentum in the semiconductor sector is expected to support Ichor's performance, leading to an upgrade by Needham to a 'Buy' rating with a price target of $36 [7]. - The upcoming fourth-quarter 2025 financial results, scheduled for release on February 9, 2026, are anticipated to be crucial for Ichor's future trajectory, especially following a 42% drop in earnings growth and a 13% increase in sales growth in the past quarter [8].

Company Overview - Ichor Holdings (ICHR) shares increased by 6.9% to $27.92 in the last trading session, with a notable trading volume, and have gained 48.8% over the past four weeks, driven by strong demand for etch and deposition applications [1] - The company is expected to report a quarterly loss of $0.06 per share, reflecting a year-over-year decline of 175%, with revenues projected at $220.95 million, down 5.3% from the previous year [2] Earnings Estimates - The consensus EPS estimate for Ichor Holdings has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - SkyWater Technology, another company in the same industry, has a consensus EPS estimate of -$0.01, representing a 125% decline from the previous year [4] Industry Context - Ichor Holdings operates within the Zacks Electronics - Semiconductors industry, which is currently experiencing strong demand due to investments in advanced technologies [1] - SkyWater Technology has also shown significant performance, closing 4% higher at $30.44 and achieving a 79.4% return in the past month [3]

Ichor Holdings Conference Call Summary Company Overview - **Company**: Ichor Holdings - **Industry**: Semiconductor manufacturing equipment and components - **CEO**: Phil Burrows (newly appointed) - **CFO**: Greg Swyt Key Points and Arguments Company Strategy and Focus Areas - **Cost Transformation**: Aiming to build a more cost-competitive Ichor through consolidation and realignment of global footprint, particularly in Malaysia and Mexico [11][12][13] - **Market Growth**: Anticipates that etch and deposition will outgrow the overall wafer fabrication equipment (WFE) market due to technological advancements [11][15] - **Differentiation**: Transitioning from a manufacturing company to a product and technology company, with a goal of achieving 75% vertical integration by 2026 [12][17][21] - **Vertical Integration**: Currently capable of producing 35% of components internally, targeting 75% by the end of 2026, which is expected to enhance margins [17][19][55] Market Dynamics - **Semiconductor Market Growth**: The semiconductor market is experiencing growth, with a notable trend in memory pricing surging, which is expected to drive equipment purchases [15][40][41] - **Customer Base Expansion**: Non-semiconductor business is growing, with SpaceX identified as the fifth largest customer, indicating diversification beyond traditional semiconductor clients [19][20][80] Financial Performance and Projections - **Gross Margin Strategy**: Aiming for a gross margin of 15% at a $250 million run rate and 20% at a $350 million run rate, with operational execution and cost management as key drivers [29][30][49] - **Q4 Pre-announcement**: Expected to exceed midpoint guidance for Q4, with incremental revenue improvements anticipated [25][33] Operational Challenges and Opportunities - **Inventory Management**: Acknowledgment of inventory challenges faced by customers, particularly in the lithography segment, which is expected to remain flat due to existing inventory positions [42][44][46] - **Customer Demand**: Observing a pull-forward in demand for the second half of the year, indicating potential growth opportunities [33][39] Future Outlook - **Active Process Control**: A strategic vision to become a leader in active process control, leveraging technical capabilities and vertical integration to meet customer needs [66][67] - **Market Share Gains**: Focused on expanding market share within existing customer bases and targeting aerospace and defense sectors for growth [75][76] Additional Important Insights - **Technological Expertise**: Phil Burrows emphasizes the importance of technical expertise in navigating the Angstrom era of semiconductor manufacturing [9][10] - **Customer Relationships**: Strong relationships with major customers, particularly in etch and deposition, are crucial for future growth [41][85] - **Operational Discipline**: Commitment to operational discipline and execution to ensure predictable business outcomes moving forward [78] This summary encapsulates the key insights and strategic directions discussed during the Ichor Holdings conference call, highlighting the company's focus on growth, market dynamics, and operational strategies.

Financial Results - Ichor Holdings, Ltd. announced preliminary financial results for Q4 2025, which are subject to change and not yet audited [7]. - The company has not yet filed its annual report on Form 10-K for the fiscal year 2025, indicating ongoing financial review processes [8]. - Preliminary results are based on management estimates and may materially differ from actual results once finalized [8]. Compliance and Disclosure - The company utilizes its website's "Investors" section for disclosing material non-public information, complying with Regulation FD [10].

Multiple catalysts combined, provide evidence that Ichor Holding ( ICHR ) fundamentals will improve in 2026 and the share price is in the process of bottoming. I am inclined to assign a BUY rating becauseAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeki ...

Core Viewpoint - Ichor Holdings is facing challenges in earnings performance despite showing strong revenue growth, leading to a cautious outlook from analysts [2][3][4]. Company Overview - Ichor Holdings specializes in the design, engineering, and manufacturing of critical fluid delivery subsystems for semiconductor capital equipment, playing a vital role in semiconductor production [1]. Earnings Performance - The company reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.12 per share, and this represents a decrease from $0.12 per share reported in the same quarter last year [3]. - Ichor has consistently failed to exceed consensus EPS estimates over the past four quarters, with a significant earnings surprise of -41.67% reported recently [2][3]. Revenue Performance - Ichor Holdings reported revenues of $239.3 million for the quarter ending September 2025, exceeding the Zacks Consensus Estimate by 1.77% and showing an improvement from $211.14 million in revenues reported a year ago [4]. - The company has surpassed consensus revenue estimates in three of the last four quarters, indicating strong revenue growth despite challenges in meeting earnings expectations [4]. Stock Performance - The stock for Ichor Holdings is currently priced at $22.92, reflecting an increase of 1.06% or $0.24, with fluctuations between a low of $22.12 and a high of $23.30 during the trading day [5]. - Over the past year, the stock has reached a high of $36.48 and a low of $13.12, with a market capitalization of approximately $786.8 million [5].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Denny's Corporation (DENN) is up 49% at $6.16 [3] - Cambium Networks Corporation (CMBM) is up 25% at $2.55 [3] - Tactile Systems Technology, Inc. (TCMD) is up 22% at $19.35 [3] - Upwork Inc. (UPWK) is up 19% at $18.60 [3] - Kforce Inc. (KFRC) is up 12% at $27.50 [3] - Super Group (SGHC) Limited (SGHC) is up 12% at $11.91 [3] - Innovex International, Inc. (INVX) is up 10% at $22.62 [3] - Sanmina Corporation (SANM) is up 9% at $154.03 [3] - Exact Sciences Corporation (EXAS) is up 8% at $72.69 [3] - OTG Acquisition Corp. I Class A Ordinary Share (OTGA) is up 7% at $10.77 [3] Premarket Losers - Sarepta Therapeutics, Inc. (SRPT) is down 40% at $14.44 [4] - JELD-WEN Holding, Inc. (JELD) is down 32% at $2.81 [4] - Ichor Holdings, Ltd. (ICHR) is down 29% at $16.05 [4] - Insperity, Inc. (NSP) is down 27% at $32.50 [4] - Prelude Therapeutics Incorporated (PRLD) is down 22% at $3.08 [4] - Forward Industries, Inc. (FORD) is down 20% at $11.11 [4] - Navitas Semiconductor Corporation (NVTS) is down 18% at $10.03 [4] - Diginex Limited (DGNX) is down 17% at $19.51 [4] - Atlas Energy Solutions Inc. (AESI) is down 16% at $10.58 [4] - Chijet Motor Company, Inc. (CJET) is down 15% at $3.24 [4]

Financial Data and Key Metrics Changes - Third quarter revenues reached $239 million, exceeding the midpoint of expectations and reflecting a 13% year-over-year increase [4][10] - Gross margin for Q3 was 12.1%, impacted by a one percentage point decline due to lower IMG revenue volumes [9][10] - Operating income for Q3 was $5.1 million, with net income per share at $0.07 [10] Business Line Data and Key Metrics Changes - The demand for etch and deposition applications remained strong, particularly for leading-edge investments, but there was a decline in non-semi end markets, notably in the IMG business [5][6] - IMG's business, which includes commercial space and aerospace and defense, did not recover as expected, leading to a forecast of continued lower revenue for the remainder of the year [6][12] Market Data and Key Metrics Changes - Year-to-date revenue growth of 18% was noted, driven by increased demand from the two largest customers, despite declines in EUV lithography and silicon carbide businesses [8] - The company anticipates Q4 revenues to range between $210 million and $230 million, with gross margins expected to be between 10% and 12% [12] Company Strategy and Development Direction - The company plans to realign its global footprint and cost structure to enhance long-term profitability, focusing on improving product margins across all verticals [15] - Strategic investments are aimed at transitioning products to volume and delivering new offerings to maintain a competitive edge [15][16] Management's Comments on Operating Environment and Future Outlook - Management indicated that Q4 2025 may be the trough quarter, with expectations for recovery in the first half of 2026 [25][57] - The company remains optimistic about long-term market fundamentals driven by AI, high-performance logic, and advanced packaging [15][16] Other Important Information - The company completed refinancing its credit facility, reducing borrowing costs and extending the term by five years [11] - Cash and equivalents totaled $92.5 million at the end of Q3, with $9 million generated from operations [10][11] Q&A Session Summary Question: Can you quantify the revenue shortfall from IMG in Q3? - The revenue shortfall was approximately $2.5 million, with expectations for a similar decline in Q4, stabilizing thereafter [18][19] Question: What type of optimism do you have regarding business levels improving in the first half of next year? - There is visibility for recovery into Q1, with expectations that Q4 will be the trough [25] Question: Were the Q3 pull-ins correlated with the revenue decline from the number three and four customers? - The pull-ins were largely unrelated and primarily offset the softness in IMG [34] Question: What are the specific contributors to gross margin expansion? - Continued improvements in proprietary products and rationalization of global operations are key contributors [40][41] Question: Is the aspirational goal of vertical integration driving a gross margin of 20% still in place? - Yes, that remains the long-range aspirational goal, with flow control being a significant enabler [59]

Financial Performance - Net sales for the three months ended September 26, 2025, were $239,296,000, representing a 13.3% increase from $211,139,000 for the same period in 2024[71] - The company reported a net loss of $22,853,000 for the three months ended September 26, 2025, compared to a net loss of $2,776,000 for the same period in 2024[71] - Non-GAAP net income for the three months ended September 26, 2025, was $2,302,000, down from $4,020,000 in the same period of 2024[71] - Operating margin for the three months ended September 26, 2025, was (8.1)%, compared to (0.2)% for the same period in 2024[71] - The increase in net sales for the nine months ended September 26, 2025, was $108,297,000, or 17.6%, compared to the same period in 2024[78] - Non-GAAP operating income for the nine months ended September 26, 2025, was $17,867 thousand, up from $13,291 thousand in the same period of 2024[96] - U.S. GAAP net loss for the three months ended September 26, 2025, was $22,853 thousand, compared to a loss of $2,776 thousand for the same period in 2024[98] - Non-GAAP net income for the nine months ended September 26, 2025, was $7,635 thousand, compared to $3,127 thousand in the same period of 2024[98] Margins and Expenses - Gross margin decreased to 4.6% for the three months ended September 26, 2025, down from 13.2% in the same period of 2024, primarily due to increased inventory write-off costs of $16.7 million[79] - Gross margin decreased due to inventory write-off costs of $18.3 million related to the Consolidation Restructuring Plan and exit from Scotland operations[80] - Total operating expenses for the three months ended September 26, 2025, were $30,494,000, compared to $28,176,000 for the same period in 2024[75] - Research and development expenses increased by 1.8% from $17.168 million to $17.482 million for the nine months ended September 26, 2025, primarily due to fluctuations in material and service costs[81] - Selling, general, and administrative expenses rose by 15.6% from $59.253 million to $68.515 million for the nine months ended September 26, 2025, driven by increased exit disposal costs and employee-related expenses[83] - The company incurred restructuring plan costs of $17,586 thousand for the three months ended September 26, 2025[98] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 26, 2025, was $20,716 thousand, down from $30,368 thousand for the same period in 2024[104] - Cash used in investing activities for the nine months ended September 26, 2025, was $32,920 thousand, compared to $13,238 thousand in the same period of 2024[104] - The company ended the third quarter of 2025 with cash and cash equivalents of $92.5 million, a decrease of $16.2 million from the prior year[103] - The company believes that its cash and cash equivalents, along with available credit facilities, will be sufficient to fund its business for at least the next 12 months[101] Industry Outlook - The semiconductor capital equipment industry is expected to see growth in spending in 2025, particularly in etch and deposition markets, despite ongoing geopolitical uncertainties[72] - The company anticipates that long-term demand for semiconductors and semiconductor capital equipment will continue to grow, driven by the need for expanded manufacturing capacity[73] Debt and Taxation - Interest expense, net decreased by 35.0% from $7.592 million to $4.934 million for the nine months ended September 26, 2025, due to lower average borrowings and borrowing rates[86] - Income tax expense increased by 151.5% from $2.021 million to $5.083 million for the nine months ended September 26, 2025, primarily due to additional tax provisions in Singapore[89] - The effective income tax rate increased by 330 basis points to -16.0% for the nine months ended September 26, 2025[89] - Weighted average borrowings outstanding decreased by 25.8% from $169.430 million to $125.678 million for the nine months ended September 26, 2025[86] Inventory Management - The company incurred $16.7 million in inventory impairment as part of the Consolidation Restructuring Plan[93] - The company reported an increase in inventory of $8.3 million for the nine months ended September 26, 2025[105]