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Ichor Holdings (ICHR)
NASDAQ:ICHR
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Ichor Holdings (ICHR) AI Stock Analysis

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ICHR

Ichor Holdings

(NASDAQ:ICHR)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
$23.50
▲(49.49% Upside)
Ichor Holdings' overall stock score is primarily impacted by its financial performance challenges, including declining profitability and negative cash flow trends. While technical analysis shows positive momentum, valuation concerns due to negative earnings and lack of dividends weigh heavily. The earnings call provides a mixed outlook with both positive revenue performance and significant challenges in margins and restructuring costs.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand for Ichor's products, supporting long-term business expansion and stability.
Leadership Change
The appointment of an experienced CEO with deep industry knowledge can drive strategic initiatives and enhance the company's competitive position.
Strategic Product Development
Developing new proprietary products expands Ichor's market reach and potential revenue streams, supporting long-term growth and innovation.
Negative Factors
Gross Margin Challenges
Sustained margin pressures can affect profitability, indicating potential issues in cost management or pricing power that need addressing.
Decline in Non-Semi End Markets
Weakness in non-semi markets may limit diversification and revenue stability, posing risks if semiconductor demand fluctuates.
Restructuring Costs
High restructuring costs can strain financial resources and reflect underlying operational inefficiencies that need resolution.

Ichor Holdings (ICHR) vs. SPDR S&P 500 ETF (SPY)

Ichor Holdings Business Overview & Revenue Model

Company DescriptionIchor Holdings (ICHR) is a leading provider of advanced manufacturing solutions for the semiconductor industry. The company specializes in the design and production of critical fluid delivery systems used in various semiconductor fabrication processes. Ichor operates in the high-tech sector, focusing on providing innovative products that enhance efficiency and reliability in semiconductor manufacturing, which is vital for the production of advanced electronics.
How the Company Makes MoneyIchor Holdings generates revenue primarily through the sale of its fluid delivery systems and components, which are essential for semiconductor fabrication. The company has established key revenue streams from both new product sales and aftermarket services, including maintenance and support for its systems. Significant partnerships with major semiconductor manufacturers and technology firms further bolster its earnings, as Ichor's products are integral in the production processes of cutting-edge chips. Additionally, the company benefits from ongoing demand in the semiconductor market, driven by trends in technology such as 5G, artificial intelligence, and the Internet of Things (IoT).

Ichor Holdings Earnings Call Summary

Earnings Call Date:Nov 03, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook, with strong revenue performance and strategic leadership changes offset by challenges in non-semi end markets, gross margin pressures, and restructuring costs. The company's focus on strategic product development offers potential for future growth, but immediate challenges remain.
Q3-2025 Updates
Positive Updates
Strong Revenue Performance
Third quarter revenues of $239 million exceeded the midpoint of expectations and were up 13% year-over-year, demonstrating strong performance relative to overall wafer fab equipment (WFE) growth.
CEO Appointment
Phil Barros, a long-time CTO with over 20 years at Ichor, was named CEO, bringing extensive experience in engineering, product management, sales, and corporate strategy.
Strategic Product Development
The company is making steady progress on two additional proprietary component products, targeting the first beta unit for customer evaluation in early 2026, which will expand addressable markets.
Refinancing of Credit Facility
The company completed the refinancing of its credit facility to reduce borrowing costs, reducing the fixed amount of the revolver facility from $400 million to $225 million.
Negative Updates
Gross Margin Challenges
A 1 percentage point impact on Q3 gross margin was noted due to lower IMG revenue volumes, with Q4 gross margins expected to be between 10% and 12%.
Decline in Non-Semi End Markets
Significant decline in non-semi end markets, particularly within the IMG business serving commercial space and aerospace and defense, affecting financial performance.
Restructuring Costs
Q3 GAAP results included $18.3 million in restructuring costs related to the strategic consolidation of global operations, with additional charges expected in Q4 and fiscal 2026.
Lower Revenue Guidance for Q4
Anticipated revenues for Q4 are in the range of $210 million to $230 million, reflecting reductions from the third and fourth largest customers due to continued slowing in system build rates.
Company Guidance
In the Ichor Third Quarter 2025 Earnings Conference Call, the company provided several key financial metrics and guidance for the future. The third-quarter revenue was reported at $239.3 million, exceeding the midpoint of expectations and marking a 13% year-over-year increase. However, the gross margin for the quarter was 12.1%, impacted by a 1 percentage point decrease due to lower revenue volumes in non-semi markets, particularly from the IMG business. Operating income was $5.1 million, with a net interest expense of $1.7 million and a net income tax expense of $0.7 million, resulting in an EPS of $0.07 per share. For the fourth quarter of 2025, revenue is projected to be between $210 million and $230 million, with gross margins expected to be between 10% and 12%. Operating expenses are forecast to remain consistent at $23.7 million, and the EPS guidance ranges from a loss of $0.14 to a profit of $0.02. Looking forward, Ichor plans to focus on operational improvements and strategic investments to enhance profitability, projecting year-over-year growth in 2026 with mid-teens gross margins in the second half of the year.

Ichor Holdings Financial Statement Overview

Summary
Ichor Holdings faces significant challenges with declining profitability and negative cash flow trends. Despite a strong balance sheet with low leverage, negative return on equity and cash flow issues highlight potential risks. The company needs to address its cost structure and improve cash generation to stabilize its financial position.
Income Statement
45
Neutral
Ichor Holdings has experienced a decline in profitability, with negative net and EBIT margins in the TTM period. Although revenue has grown by 4.15% in the TTM, the company is struggling with negative net income, indicating challenges in cost management or market conditions. The gross profit margin has also decreased compared to previous years, reflecting pressure on profitability.
Balance Sheet
60
Neutral
The company's balance sheet shows a low debt-to-equity ratio of 0.071 in the TTM, indicating a conservative leverage position. However, the return on equity is negative, reflecting the impact of net losses on shareholder returns. The equity ratio remains stable, suggesting a solid capital structure despite recent performance challenges.
Cash Flow
40
Negative
Cash flow analysis reveals a concerning trend with negative free cash flow growth and a negative free cash flow to net income ratio in the TTM. Operating cash flow has decreased, and the company is not generating sufficient cash to cover its net losses, which could impact liquidity if the trend continues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2019
Income Statement
Total Revenue724.05M849.04M811.12M1.28B1.10B620.84M
Gross Profit66.79M103.33M103.40M211.86M177.48M86.36M
EBITDA-3.34M21.96M22.88M121.49M106.20M36.84M
Net Income-36.82M-20.82M-42.98M72.80M70.90M10.73M
Balance Sheet
Total Assets966.58M995.56M938.48M1.08B1.02B566.55M
Cash, Cash Equivalents and Short-Term Investments92.50M108.67M79.95M86.47M75.50M60.61M
Total Debt45.92M174.21M286.33M341.74M322.74M192.63M
Total Liabilities290.41M297.23M373.80M496.25M520.16M345.14M
Stockholders Equity676.18M698.34M564.68M587.50M500.71M221.42M
Cash Flow
Free Cash Flow-12.20M10.24M42.14M2.02M-5.57M36.66M
Operating Cash Flow20.72M27.88M57.63M31.45M15.27M57.15M
Investing Cash Flow-32.92M-17.64M-15.50M-28.93M-289.58M-20.49M
Financing Cash Flow-3.96M18.47M-48.65M8.46M96.91M-19.88M

Ichor Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.72
Price Trends
50DMA
19.22
Negative
100DMA
19.48
Negative
200DMA
21.50
Negative
Market Momentum
MACD
0.46
Positive
RSI
33.58
Neutral
STOCH
43.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICHR, the sentiment is Negative. The current price of 15.72 is below the 20-day moving average (MA) of 21.56, below the 50-day MA of 19.22, and below the 200-day MA of 21.50, indicating a bearish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 33.58 is Neutral, neither overbought nor oversold. The STOCH value of 43.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICHR.

Ichor Holdings Risk Analysis

Ichor Holdings disclosed 36 risk factors in its most recent earnings report. Ichor Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ichor Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
$792.22M164.190.66%3.90%0.15%-92.08%
57
Neutral
$1.09B-12.29-45.62%-44.30%16.42%
56
Neutral
$540.69M-13.20-5.94%16.86%-26.89%
52
Neutral
$15.11M416.14%31.78%
52
Neutral
$691.80M-41.78-34.11%-10.53%36.86%
50
Neutral
$374.30M-1.63-1405.64%-3299.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ICHR
Ichor Holdings
15.72
-15.78
-50.10%
IMOS
ChipMOS Technologies
21.09
-0.54
-2.50%
SQNS
Sequans Communications S A
5.92
-21.18
-78.15%
SKYT
SkyWater Technology
14.36
4.71
48.81%
BZAI
Blaize Holdings
3.47
-7.91
-69.51%
LAES
SEALSQ Corp
5.91
5.53
1455.26%

Ichor Holdings Corporate Events

Ichor Holdings Reports Q3 2025 Financial Results
Nov 4, 2025

Ichor Holdings, Ltd., headquartered in Fremont, California, is a prominent player in the semiconductor capital equipment industry, specializing in the design, engineering, and manufacturing of critical fluid delivery subsystems and components. The company also serves other sectors such as defense/aerospace and medical industries.

Executive/Board Changes
Ichor Holdings Appoints New CEO Philip Barros
Neutral
Nov 3, 2025

On October 30, 2025, Jeffrey Andreson announced his resignation as CEO and board member of Ichor Holdings, effective November 3, 2025, with no disagreements cited. Subsequently, the board appointed Philip Barros, the current CTO, as the new CEO and board member, effective the same date. Barros, who has been with the company since 2009, is expected to drive the next phase of growth, leveraging his extensive experience in engineering and product development.

The most recent analyst rating on (ICHR) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Ichor Holdings stock, see the ICHR Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Ichor Holdings Enters New Credit Agreement with Bank
Neutral
Sep 30, 2025

On September 26, 2025, Icicle Acquisition Holding B.V. and its associated entities, including Ichor Systems, Inc., entered into an Amended and Restated Credit Agreement with Bank of America and other financial institutions. This agreement, which replaces the previous one from October 29, 2021, includes a $125 million term loan and a $100 million revolving credit facility. The new terms increase the borrowing rate, extend the maturity date to September 26, 2030, and adjust the maximum leverage ratio, impacting the company’s financial strategy and obligations.

The most recent analyst rating on (ICHR) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Ichor Holdings stock, see the ICHR Stock Forecast page.

Executive/Board Changes
Ichor Holdings Announces Leadership Changes in August 2025
Neutral
Aug 15, 2025

On August 15, 2025, Ichor Holdings announced that Christopher Smith will step down as Chief Commercial Officer to become a Strategic Advisor to the CEO, effective September 2, 2025. David Lee, with 30 years of experience in the semiconductor manufacturing equipment industry, has been appointed as Senior Vice President, Sales and Marketing, starting August 29, 2025.

The most recent analyst rating on (ICHR) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Ichor Holdings stock, see the ICHR Stock Forecast page.

Ichor Holdings’ Q2 2025 Earnings: Growth Amid Challenges
Aug 6, 2025

Ichor Holdings’ recent Q2 2025 earnings call painted a picture of both triumph and tribulation. The company celebrated significant revenue growth and product achievements, yet faced challenges in gross margin performance and hiring issues. These hurdles, coupled with potential revenue stagnation due to external market factors, underscore the risks to sustaining robust financial performance despite strategic progress.

Ichor Holdings Reports Q2 2025 Financial Results
Aug 5, 2025

Ichor Holdings, Ltd., headquartered in Fremont, California, is a prominent player in the semiconductor industry, specializing in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment, as well as serving other industries such as defense, aerospace, and medical sectors.

Business Operations and StrategyExecutive/Board Changes
Ichor Holdings Announces CEO Transition Plan
Neutral
Aug 4, 2025

On August 3, 2025, Ichor Holdings announced a CEO transition plan where Jeffrey Andreson will step down, and a search for his successor will commence. Andreson will remain CEO until a successor is appointed and will then serve as an Executive Advisor until August 2026. This transition aims to ensure a seamless leadership change while Andreson assists with onboarding the new CEO and supports various company operations. The transition is amicable, with no disagreements between Andreson and the company, and reflects Ichor’s strategic focus on maintaining its leadership position in the industry.

The most recent analyst rating on (ICHR) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Ichor Holdings stock, see the ICHR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 04, 2025