Ichor (ICHR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $256.1 million, up 15% sequentially and 4.7% year-over-year, at the upper end of guidance, driven by robust demand in semiconductor capital equipment markets.

• Gross margin improved to 12.8% non-GAAP and 12.6% GAAP, with operating income more than tripling sequentially and non-GAAP EPS at $0.15.

• Strong operational execution, early investments in labor and inventory, and strategic initiatives such as global footprint realignment and increased branded content drove efficiency and margin gains.

• Capacity expansions in Mexico and Malaysia are progressing, supporting higher volumes and cost targets.

• Restructuring and cost optimization continued, including facility consolidation, asset relocation, and workforce reduction.

Financial highlights

• Q1 2026 revenue: $256.1 million, up 15% sequentially and 4.7% year-over-year.

• Gross margin: 12.8% non-GAAP, 12.6% GAAP; gross profit: $32.3 million.

• Operating income: $8.7 million non-GAAP (3.4% margin); $2.1 million GAAP (0.8% margin).

• Net loss: $2.5 million GAAP; non-GAAP net income: $5.3 million; non-GAAP EPS: $0.15.

• Cash and equivalents: $89.1 million; EBITDA: nearly $14 million; CapEx: $7.1 million.

Outlook and guidance

• Q2 2026 revenue guidance: $290M–$310M (midpoint up 17% sequentially, 25% YoY).

• Q2 gross margin guidance: 13%–14%, with 100 bps improvement per quarter expected through H2 2026.

• Q2 EPS guidance: $0.25–$0.35 non-GAAP; $0.10–$0.20 GAAP; 35.5 million diluted shares.

• Operating expenses to remain disciplined, targeting 5%–6% growth for the year.

• Management expects continued sequential improvement in revenue, gross margin, and EPS.