Ichor (ICHR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $244.5 million, up 21% year-over-year, driven by stronger semiconductor capital equipment spending and increased customer demand.

• Non-GAAP net income was $4.2 million (EPS $0.12), compared to a loss of $2.7 million in Q1 2024; GAAP net loss narrowed to $4.6 million.

• Gross margin was 12.4% non-GAAP and 11.7% GAAP, below forecast due to higher external sourcing and non-Semi business costs.

• Exiting the Scotland refurbishment business and a commercial space contract redesign impacted both revenue and margin.

• Management expects revenue to be balanced between H1 and H2 2025, with gross margin improvement as integration processes mature.

Financial highlights

• Cash and equivalents totaled $109.3 million at quarter-end, up $0.6 million from year-end 2024.

• Free cash flow for Q1 2025 was $0.5 million after $18.5 million in CapEx.

• Total debt at quarter-end was $127 million; long-term debt (net of current portion) was $119.3 million with a 6.24% average rate.

• Cash provided by operating activities was $19.0 million, up from $4.8 million in the prior year quarter.

• Share-based compensation expense increased to $4.1 million from $2.4 million year-over-year.

Outlook and guidance

• Q2 2025 revenue guidance is $225–$245 million, about $10 million lower than prior visibility due to multiple small demand factors.

• Q2 gross margin expected to improve to 12.5–14%; operating expenses to remain flat at ~$23.5 million.

• Full-year CapEx expected at ~4% of revenue, front-half weighted.

• Full-year non-GAAP effective tax rate forecasted at 12.5%.

• Management expects long-term demand for semiconductors and related capital equipment to grow, despite near-term macroeconomic and policy uncertainty.