Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 _____________________________________________________________ FORM 10-K _____________________________________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 26, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_______ to _______ Co ...

Core Viewpoint - Ichor Holdings (ICHR) has shown significant momentum following a strong outlook for eFY26, with management expressing renewed growth ambitions, leading to a nearly 33% increase in share price at the close [1] Group 1: Company Performance - Ichor Holdings experienced a share price increase of nearly 33% due to positive investor response to its growth outlook for eFY26 [1] Group 2: Analyst Background - Michael Del Monte, an analyst from Monte Independent Investment Research, specializes in sectors such as technology, energy, industrials, and materials, with over a decade of experience in professional services across various industries [1]

Oppenheimer analyst Edward Yang raised the firm’s price target on Ichor Holdings (ICHR) to $36 from $32 and keeps an Outperform rating on the shares. The firm notes Ichor had a solid Q4 and continued to rebuild credibility under new CEO Phil Barros, projecting that “every quarter in 2026 will be a growth quarter,” implicitly targeting 15%-20% 2026 revenue growth, and two times gross profit leverage as volumes recover. Published first on TheFly – the ultimate source for real-time, market-moving breaking f ...

Core Insights - Ichor Holdings significantly exceeded Q4 earnings expectations and provided optimistic guidance for future performance [1][3] Financial Performance - Ichor reported non-GAAP earnings per share of $0.07 for Q4, surpassing Wall Street's average estimate of a loss of $0.06 per share [3] - Sales for the quarter reached $223.6 million, exceeding the average analyst target by $2.76 million [3] - Year-over-year revenue declined by 4%, but demand in the semiconductor segment and growth in commercial manufacturing contributed to a strong earnings performance [4] Margin Analysis - The adjusted gross margin decreased to 11.7% from 12% in the same quarter last year, but management indicated that margin improvement initiatives are in early stages [4] - For the upcoming quarter, gross margins are projected to rise to between 12% and 13% [7] Future Outlook - Ichor anticipates continued growth in commercial manufacturing, potentially outpacing semiconductor sales growth [6] - The company expects Q1 sales to range between $240 million and $260 million, indicating a year-over-year growth of approximately 12% at the midpoint [7] - Adjusted earnings per share for the current quarter are projected to be between $0.08 and $0.16, suggesting earnings will remain consistent with the previous year's quarter despite increased growth-related expenditures [7]

Economic Indicators - Nonfarm payrolls are expected to increase by +68,000 in January, with the unemployment rate remaining unchanged at 4.4% [1] - Average hourly earnings are projected to rise by +0.3% month-over-month and +3.7% year-over-year in January [1] - Initial weekly unemployment claims are anticipated to decrease by -7,000 to 224,000 [1] - Existing home sales in January are expected to decline by -4.3% month-over-month to 4.16 million [1] - January CPI is expected to rise by +2.5% year-over-year, with core CPI also expected to increase by +2.5% year-over-year [1] Retail Sales and Employment Costs - US December retail sales were unchanged month-over-month, falling short of expectations of +0.4% [2] - The employment cost index for Q4 rose by +0.7% quarter-over-quarter, which is the smallest increase in 4.5 years and below the expected +0.8% [2] Stock Market Performance - Stock indexes experienced mixed trading, with the Dow Jones reaching a new all-time high while the S&P 500 closed down -0.33% and the Nasdaq down -0.56% [6][5] - The broader market initially found support from weaker-than-expected retail sales and employment cost index reports, which lowered bond yields [5] Earnings Season Insights - Over half of the S&P 500 companies have reported earnings, with 78% beating expectations [7] - S&P earnings growth is expected to rise by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [7] - Excluding the Magnificent Seven tech stocks, Q4 earnings are projected to increase by +4.6% [7] Interest Rates and Bond Market - The markets are pricing in a 23% chance of a -25 basis point rate cut at the next Federal Reserve meeting [8] - The 10-year T-note yield fell to a 3.5-week low of 4.13%, supported by weaker-than-expected economic reports [9] Sector Performance - AI-infrastructure stocks faced pressure, with Western Digital down more than -7% and other tech stocks also declining [12] - Wealth-management stocks dropped significantly, with Raymond James Financial down more than -8% due to concerns over AI disruption [13] - Homebuilding stocks rose after the drop in mortgage rates, with Toll Brothers up more than +6% [14] Company-Specific Developments - Goodyear Tire & Rubber Co reported Q4 adjusted EPS of 39 cents, below the consensus of 49 cents, leading to a decline of more than -14% [15] - Incyte forecasted dull-year total net product revenue of $4.77 billion to $4.94 billion, causing a drop of more than -8% [16] - Spotify reported a record 38 million monthly active users in Q4, leading to a rise of more than +17% [17]

Core Viewpoint - Ichor Holdings (ICHR) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance and Outlook - The upgrade for Ichor Holdings indicates a positive outlook on its earnings, suggesting that the company's underlying business is improving, which should lead to an increase in stock price [5][10]. - Ichor Holdings is projected to earn $0.74 per share for the fiscal year ending December 2026, with a 13.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Ichor Holdings in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Ichor Holdings experienced a significant stock increase of 35% following the release of quarterly earnings that exceeded expectations and a strong outlook for the upcoming quarter [1]. Company Summary - Ichor Holdings specializes in manufacturing subsystems and components utilized in semiconductor manufacturing equipment [1]. Earnings Performance - The company reported better-than-expected quarterly earnings, which contributed to the surge in stock price [1]. Future Outlook - Ichor Holdings provided a robust outlook for the current quarter, indicating positive expectations for continued performance [1].

Financial Performance - Ichor Holdings, Ltd. reported a non-GAAP EPS of $0.01, beating the consensus estimate of -$0.06 [1][2] - The company reported revenue of approximately $223.6 million, surpassing the estimated $220.6 million [1][2] - On a GAAP basis, the company reported an EPS of -$0.46, indicating a net loss [1][2] Operational Efficiency - Ichor achieved a gross margin of 9.4% on a GAAP basis and 11.7% on a non-GAAP basis, reflecting operational efficiency [2] - Despite a decline from the previous year's non-GAAP earnings of $0.08 per share, the company managed to maintain a reasonable level of operational efficiency [2] Financial Ratios - The company has a negative trailing price-to-earnings (P/E) ratio of approximately -28.43, indicating current earnings challenges [3] - The price-to-sales ratio of about 1.21 suggests that investors are willing to pay $1.21 for every dollar of sales, showing confidence in revenue generation [3] - Ichor maintains a low debt-to-equity ratio of about 0.24 and a strong current ratio of approximately 3.16, indicating good short-term financial health and liquidity [3]

Core Viewpoint - Ichor Holdings reported quarterly earnings of $0.01 per share, exceeding the Zacks Consensus Estimate of a loss of $0.06 per share, representing an earnings surprise of +117.64% [1] Group 1: Earnings Performance - The company posted revenues of $223.61 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.20%, but down from $233.29 million year-over-year [2] - Over the last four quarters, Ichor Holdings has surpassed consensus EPS estimates just once [2] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $240 million, and for the current fiscal year, it is $0.74 on revenues of $1 billion [7] Group 2: Stock Performance and Outlook - Ichor Holdings shares have increased approximately 74.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook will be crucial for future stock performance, with mixed trends in estimate revisions noted prior to the earnings release [4][6] - The current Zacks Rank for Ichor Holdings is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Electronics - Semiconductors industry, to which Ichor Holdings belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Another company in the same industry, Entegris, is expected to report quarterly earnings of $0.67 per share, reflecting a year-over-year decline of -20.2% [9]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $224 million, above the midpoint of guidance, and fiscal 2025 revenue totaled $948 million, reflecting a 12% year-over-year increase [8][14] - Gross margin for Q4 was 11.7%, which was 70 basis points above the midpoint of guidance [14] - Operating income for Q4 was $2.7 million, with net income per share at $0.01 [15] Business Line Data and Key Metrics Changes - The etch and deposition segments drove the year-over-year revenue growth, while demand in certain trailing edge markets softened [8] - The commercial space business grew significantly in 2025, now representing a notable portion of overall revenues [8] Market Data and Key Metrics Changes - The company is experiencing a sustained demand ramp driven by technology transitions, particularly in gate-all-around architectures and high-bandwidth memory [5] - The outlook for Q1 2026 anticipates revenues between $240 million and $260 million, indicating double-digit growth from Q4 2025 [9][16] Company Strategy and Development Direction - The company aims to increase market share through strategic capacity additions and responsiveness to customer demand [5] - A global footprint realignment is underway, focusing on expanding machining capacity in Mexico and a new manufacturing center in Malaysia [9][10] - The company is transitioning from an integration company to a product company, aiming for Ichor-branded products to support up to 75% of system content by year-end 2026 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong growth year for 2026, with expectations for sequential growth every quarter [9] - The visibility for demand is solid, particularly for the second half of 2026, with indications that inventory levels at major customers are decreasing [48][60] Other Important Information - The company expects gross profit dollars to grow at twice the rate of revenues as the year progresses, with significant margin improvements anticipated by mid-year [11][16] - The anticipated non-GAAP effective tax rate is expected to be in the range of 20%-25% due to geographic profit distribution [18] Q&A Session Summary Question: Update on Q1 revenue guidance - Management noted that demand has strengthened since the last update, aligning with industry growth forecasts of 15%-20% [20][21] Question: Gross margin expectations - Management indicated that gross margins are expected to improve as production capacity is optimized and additional components are introduced [22][30] Question: Sequential growth expectations - Management expects the first half to be gas panel-heavy, with increased component supply contributing to growth in the second half [30] Question: Malaysia business relocation impact - Management acknowledged that the relocation may present short-term headwinds but emphasized that it is necessary for long-term capacity needs [31][32] Question: Demand visibility for 2027 - Management confirmed solid visibility for the next six months and indicated that customer feedback suggests a positive outlook for 2027 [48][49] Question: Inventory levels at major customers - Management stated that inventory levels are decreasing, indicating a need for replenishment, which aligns with revenue forecasts [58][60] Question: Growth opportunities in commercial space - Management aims to increase the commercial space business from under 5% to 10% of total revenue in the medium term [72]