Ichor Holdings, Ltd.

Ichor Holdings, Ltd. (Nasdaq: ICHR) supplies gas-delivery systems, precision components and related equipment used in semiconductor manufacturing. Its systems control the specialized gases used in processes such as depositing or removing material on chips.

Third-quarter results

The table compares the 13 weeks ended September 25, 2026, with the 13 weeks ended September 26, 2025. Amounts are USD millions, except earnings per share. Adjusted figures use the current comparable definition.

Revenue increased from $294.8 million in Q2 2026. Gross margin rose to 15.8% from 13.9%, and operating income increased to $22.8 million from $7.2 million. Net income also benefited from a lower tax expense: $1.3 million in Q3, versus $4.4 million in Q2.

Earlier forecast and the Q4 outlook

In August, Ichor forecast Q3 revenue of $315 million to $345 million, GAAP diluted earnings of $0.25 to $0.35 per share and adjusted earnings of $0.40 to $0.50. Actual revenue was within that range; both earnings measures exceeded their ranges.

For Q4, management expects revenue of $345 million to $365 million, GAAP earnings of $0.50 to $0.60 per share and adjusted earnings of $0.65 to $0.75. The adjusted outlook removes approximately $1.9 million in intangible amortization and $4.0 million of stock compensation, with related tax effects.

A changed adjusted earnings comparison

Since Q2 2026, Ichor has stopped excluding inventory impairment charges from adjusted earnings and has restated earlier comparisons on that basis.

Its original Q3 2025 adjusted earnings were $0.07 per share. Under the current definition, which retains a $16.7 million inventory charge, that quarter shows an adjusted loss of $0.42 per share.

For Q3 2026, adjusted profit excludes stock compensation, intangible amortization, a legal settlement charge and smaller specified costs, with the associated tax adjustments. Adjusted net income was $24.2 million, compared with GAAP net income of $20.9 million.

Cash invested in the sales ramp

Inventory used $39.5 million of cash in Q3 and receivables used $36.0 million. Higher amounts owed to suppliers and other changes partly offset those uses, leaving working capital to absorb $58.8 million. Operating cash flow was negative $28.8 million, and free cash flow, defined as operating cash flow less capital spending, was negative $39.5 million.

At September 25, inventory was $330.2 million and receivables were $140.6 million, up from $290.7 million and $104.7 million at June 26.

Over the first nine months, operating cash flow was negative $47.6 million and capital spending was $25.5 million, producing negative free cash flow of $73.2 million.

Financing and manufacturing changes

Cash was $213.5 million at September 25, compared with $256.5 million at June 26 and $98.3 million at December 26, 2025. During Q2, Ichor issued about 2.5 million shares and raised $195.4 million after fees.

Noncurrent debt, after financing costs, was $112.8 million at September 25, with $6.3 million due currently. The corresponding December balances were $117.3 million and $6.3 million.

Ichor began reorganizing its manufacturing footprint in 2025 and said the plan was substantially completed in Q2 2026. It is concentrating production in larger sites and increasing the use of its own components. Management says customer demand visibility extends into 2027.